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2017-08-14 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. Monday, August 14, 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 Closed Session 5:00-6:15 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Ed Shikada, Rumi Portillo, Lalo Perez, Molly Stump) Employee Organization: Service Employees International Union (SEIU), Local 521 Authority: Government Code Section 54957.6(a) City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Ed Shikada, Rumi Portillo, Lalo Perez, Molly Stump) Employee Organization: Utilities Management and Professional Association of Palo Alto (UMPAPA) Authority: Government Code Section 54957.6(a) 2 August 14, 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. Agenda Changes, Additions and Deletions City Manager Comments 6:15-6:25 PM Oral Communications 6:25-6:40 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 6:40-6:45 PM 2. Approval of Action Minutes for the June 19 and June 27, 2017 Council Meetings Consent Calendar 6:45-6:50 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3. Selection of Applicants to Interview on August 24, 2017 for the Storm Water Management Oversight Committee 4. Approval of Amendment Number 2 to the Agreement Between the City of Palo Alto and Acterra to Extend the Term to 2022 and Funding for First Year of $75,720 5. Approval and Authorization for the City Manager to Execute a Master License Agreement for use of City-controlled Space on Utility Poles and Streetlight Poles, and in Conduits With Mobilitie, LLC, a Nevada Limited Liability Corporation 6. Approval of a Contract With Alaniz Construction, Inc. in the Amount of $568,880 for the City Facility Parking Lot Maintenance Project, Capital Improvements Program Project PE-09003, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to- Exceed $56,880 in Total Value 7. Approval of Contract Amendment Number 3 to Contract Number C15154454 With Integrated Design 360 for Green Building Program Management Services and Landscape Plan Review and Consulting Services for a Term Extension of one Year and Increasing Compensation for Ongoing and Approved Work With Development Services and Optional Tasks by $376,744 for a Total Not-to-Exceed Amount of $1,255,005 8. Approval of Amendment Number 3 to Contract Number S15156222 With Golder Associates to Increase Compensation by $91,300, for a Total Not-To-Exceed Amount of $311,622, to Perform an Evaluation of Selenium Concentrations and Leachate Levels at the Palo Alto Landfill, and to Extend the Current Three-year Term by Four Months 3 August 14, 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. 9.Authorize the City Manager to Execute an Amendment to Contract Number C12146667 Between the City and Van Scoyoc Associates Inc., for Federal Legislative Advocacy, to Reduce the Term by Seven Months and Reduce the Not-to-Exceed Amount by $56,000 10.Approval of a Contract With Bauer Compressors in the Amount of $697,519 for the Purchase of Fire Fighting Self-contained Breathing Apparatus, Face Masks, Air Cylinders, Maintenance and Support Equipment, and Authorize the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $102,481 11.Approval of Amendment Number 3 to the Agreement With the Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Administration to Extend the Term of the Agreement for one Year and to Provide an Additional $128,200 for Community Shuttle Service on the Existing Embarcadero Shuttle Route From July 2017 Until June 2018 12.Adoption of a Resolution of Local Support for Grant Funding as Required by the Metropolitan Transportation Commission (MTC) for the One Bay Area Grant Program (OBAG) Cycle Two and Vehicle Emissions Reductions Based at Schools (VERBS) Funding Programs 13.425 Portage Avenue: Approval of the Planning and Community Environment Director's Determination to Authorize a Waiver of the Retail Preservation Ordinance. Environmental Assessment: Exempt in Accordance With the California Environmental Quality Act (CEQA)Section 15061(b)(3) Guidelines 14.Approval of a Side Letter of Agreement Between the City of Palo Alto and the Palo Alto Police Management Association (PMA) 15.Policy and Services Committee Recommendation to Accept the Continuous Monitoring Audit: Payments 16.Policy and Services Committee Recommendation to Accept the Audit of Green Purchasing Practices 17.Policy and Services Committee Recommendation to Accept the Utilities Department: Cross Bore Inspection Contract Audit 18.Adoption of a Resolution Establishing Fiscal Year 2017-18 Secured and Unsecured Property Tax Levy for the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N) MEMO Q and A 4 August 14, 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. 19.Policy and Services Committee Recommendation to Accept the Auditor's Office Quarterly Report as of March 31, 2017 Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 6:50-8:15 PM 20.Approval of the Draft Palo Alto Transit Vision Plan and Direction toStaff to Pursue Funding for Local Shuttle Service Enhancements 8:15-8:45 PM 21.PUBLIC HEARING/QUASI JUDICIAL 3972, 3980 and 3990 El Camino Real [17PLN-00197]: Request by the Housing Authority of Santa Clara County for a Tentative Map for a 6.19 Acre Site That Includes the Buena Vista Mobile Home Park Site (3980 El Camino Real) and two Adjacent Commercial Properties (3972 and 3990 El Camino Real), for lot Reconfiguration and lot Line Removals to Reduce Five Parcels to Three Parcels, and Provide Access and Utilities Easements. The Three new Parcels Will be: (1) Parcel 1, at 4.5 Acres, Zoned RM-15 for Multiple Family Residential Use (Buena Vista Mobile Home Park); (2) Parcel 2 at 1.0 Acre, Zoned CN for Neighborhood Commercial Use (Existing Retail Building; and (3) Parcel 3 at 0.7 Acres, Zoned CN (Existing Gas Station Site) and RM-15 (0.41 Acre Rear PortionSupporting More Than Eight Buena Vista Park Studios/Modular Units). The 0.41 Acre Residential Portion Would be Leased to the Housing Authority for up to Three Years, Allowing Tenants to Remain Until They can be Accommodated on Parcel 1. On July 12, 2017, the Planning & Transportation Commission Recommended Approval of the Tentative Map 8:45-9:15 PM 22.Approval of a Five-year General Services Agreement With SWA Services Group in the Amount of $10,652,615 for Janitorial Services and Approval of a Budget Amendment in the General Fund 9:15-9:45 PM 23.Adoption of: (1) a Resolution of Intent; and (2) an Ordinance to Amend the Contract Between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to Implement the Share of Employer Contribution in Accordance With Section 20516 of the California Government Code and the Memorandum of Agreement Between the City of Palo Alto and Service Employees International Union (SEIU) Local 521, International Association of Fire Fighters (IAFF), Local 1319, Palo Alto Fire Chief's Q and A Q and A 5 August 14, 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. Association (FCA), Palo Alto Peace Officers' Association (PAPOA) and Palo Alto Police Management Association (PAPMA) 9:45-10:00 PM 24. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2017 Conference, to be Held September 13-15, 2017 in Sacramento, CA 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. 6 August 14, 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 Finance Committee Meeting August 15, 2017 CANCELLED Sp. Rail Committee Meeting August 16, 2017 Sp. City Council Meeting August 16, 2017 City / School Meeting August 17, 2017 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report City of Palo Alto Investment Activity Report for the Fourth Quarter, Fiscal Year 2017 City of Palo Alto Sales Tax Digest Summary Fourth Quarter Sales (October - December 2016) Architectural Review Board, Historic Resources Board, and Planning & Transportation Commission Recruitment Flyer Public Letters to Council 7-10-2017 7-17-2017 7-24-2017 7-31-2017 8-7-2017 8-14-2017 CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 14, 2017 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the June 19 and June 27, 2017 Council Meetings Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: Attachment A: 06-19-17 DRAFT Action Minutes (DOCX) Attachment B: 06-27-17 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 8 Regular Meeting June 19, 2017 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:00 P.M. Present: DuBois, Filseth, Holman, Kniss, Kou, Tanaka, Wolbach Absent: Fine, Scharff Study Session 1. Palo Alto Safe Routes to School Partnership Annual Update. Special Orders of the Day 2. Proclamation Honoring Penny Ellson for 15 Years of Service to the Palo Alto Safe Routes to School Partnership. Council took a break from 7:06 P.M. to 7:23 P.M. Agenda Changes, Additions and Deletions None. Minutes Approval 3. Approval of Action Minutes for the June 5, 2017 Council Meeting. MOTION: Council Member DuBois moved, seconded by Council Member Wolbach to approve the Action Minutes for the June 5, 2017 Council Meeting. MOTION PASSED: 7-0 Fine, Scharff absent Consent Calendar MOTION: Council Member Holman moved, seconded by Council Member Wolbach to approve Agenda Item Numbers 4-12. 4. Approval of Contract Number C17167812 With Truepoint Solutions, LLC for a Three-year Contract, $400,000 Annually With a Not-to- Exceed Amount of $1,200,000 to Provide Services in Scripting, DRAFT ACTION MINUTES Page 2 of 8 City Council Meeting Draft Action Minutes: 6/19/17 Reporting, and Other Technical Support of the City's Development Permitting System, Accela, for Development Services and Planning and Community Environment. 5. Approval of Amendment Number One to Contract Number C16161852 With PSC Industrial Outsourcing, LP (PSC) to Increase Compensation for the Second and Third Contract Years by $102,217 for a Total Not- to-Exceed Amount of $585,920 to Address Higher Landfill Disposal Costs for the Transportation and Disposal of ash From the Regional Water Quality Control Plant. 6. Resolution 9684 Entitled, “Resolution of the Council of the City of Palo Alto Approving a Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services in a Total Amount Not-to-Exceed $500,000 for a Three-year Term.” 7. Approval of the Purchase of Police Radio Consoles for the Silicon Valley Regional Communications System (SVRCS) Regional 700 MHz Trunked Radio System in an Amount Not-to-Exceed $917,000 With an Option for the Utilities Department to Purchase two Additional Consoles for an Amount Not-to-Exceed $72,000. 8. Approval of a Contract Amendment With Team Sheeper for Operational Management of Rinconada Pool's Lap and Open Swim Programs as Well as Oversight of Rinconada Masters and Palo Alto Stanford Aquatics Programs. 9. Approval of a Purchase Order With National Auto Fleet Group, in the Amount of $214,782 for the Purchase of a 2017 Ford F-550 XL 4WD With a Knapheide 14' Value Master Platform With Weco Industries Equipment and Approve Budget Amendments in the Wastewater Collection Fund and Vehicle Replacement & Maintenance Fund. 10. Approval of a Contract With G4S Secure Integration in the Amount of $1,413,734 to Provide Design and Construction of a Video Management System Along the Caltrain Corridor, Capital Improvement Program Project PE-18001, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $136,246 in Total Value and a System Maintenance Agreement for a Five-year Term in an Amount Not-to-Exceed $225,000 Annually, Subject to Consumer Price Index (CPI) Increases and Appropriation of Funds Through the Annual Budget Process. DRAFT ACTION MINUTES Page 3 of 8 City Council Meeting Draft Action Minutes: 6/19/17 11. Acceptance of the Institute of Museums and Library Services Grant and Sherrie Innis Estate Bequest and Approve Budget Amendment in the General Fund. 12. Ordinance 5413 Entitled, “Ordinance of the Council of the City of Palo Alto Dedicating 36.5 Acres of Land at the Former ITT Property Antenna Field to Become Part of the Baylands Nature Preserve (FIRST READING: June 5, 2017 PASSED: 9-0).” MOTION PASSED: 7-0 Fine, Scharff absent Action Items 13. PUBLIC HEARING: Resolution 9685 Entitled, “Resolution of the Council of the City of Palo Alto Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein.” Public Hearing opened and closed without public comment at 8:00 P.M. MOTION: Council Member Filseth moved, seconded by Council Member Wolbach to adopt a Resolution confirming the Weed Abatement Report and ordering abatement costs to be a special assessment on the properties specified in the report. MOTION PASSED: 7-0 Fine, Scharff absent 14. PUBLIC HEARING AND PROPOSITION 218 HEARING: Two Resolutions: Resolution 9686 Entitled, “Resolution of the Council of the City of Palo Alto 1) Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to Increase Rates up to 4 Percent;” and Resolution 9687 Entitled, “Resolution of the Council of the City of Palo Alto Repeal the Drought Surcharges Effective July 1, 2017; and 2) Amending Rate Schedule R-1 (Residential Refuse Rates) to Increase Monthly Refuse Service Rates by 5 Percent Effective July 1, 2017.” Public Hearing opened and closed without public comment at 8:04 P.M. DRAFT ACTION MINUTES Page 4 of 8 City Council Meeting Draft Action Minutes: 6/19/17 MOTION: Council Member Filseth moved, seconded by Council Member Holman to: A. Adopt a Resolution: i. Amending Utility Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to increase rates up to 4 percent effective July 1, 2017; and ii. Removing the drought surcharge effective July 1, 2017; and B. Adopt a Resolution amending Utility Rate Schedule R-1 (Residential Refuse Rates) to increase monthly refuse service rates by 5 percent effective July 1, 2017. MOTION PASSED: 6-1 Tanaka no, Fine, Scharff absent 15. PUBLIC HEARING: Resolution 9688 Entitled, “Resolution of the Council of the City of Palo Alto for the Creation of a new Residential Preferential Parking (RPP) Program in the Southgate Neighborhood Bounded by Churchill Avenue, Caltrain Rail Corridor, Sequoia Avenue, and El Camino Real; and a Finding of Exemption From Review Under the California Environmental Quality Act (CEQA) Pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.” Public Hearing opened at 8:34 P.M. Public Hearing closed at 8:39 P.M. MOTION: Council Member Wolbach moved, seconded by Council Member DuBois to: A. Adopt a Resolution to implement the Southgate Residential Preferential Parking (RPP) Program as a one-year pilot and direct Staff to make corresponding changes to the RPP Administrative Guidelines; and B. Find the program exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. MOTION PASSED: 7-0 Fine, Scharff absent DRAFT ACTION MINUTES Page 5 of 8 City Council Meeting Draft Action Minutes: 6/19/17 16. PUBLIC HEARING: Human Relations Commission Recommends Adoption of the 2017-18 Action Plan and Associated 2017-18 Funding Allocations and Resolution 9689 Entitled, “Resolution of the Council of the City of Palo Alto Approving the use of Community Development Block Grant Funds for Fiscal Year 2017-18 Consistent With the Human Relation Commission's Recommendation.” Public Hearing opened at 9:30 P.M. Public Hearing closed at 9:31 P.M. MOTION: Council Member Holman moved, seconded by Council Member Kou to: A. Adopt a Resolution allocating Community Development Block Grant (CDBG) funding as recommended in the draft 2017/2018 Action Plan and as described in this Staff Report; and B. Allocate CDBG funding as recommended in the draft 2017/2018 Action Plan and as described in this Staff Report including the contingency plan policies recommended by the Human Relations Commission (HRC); and C. Authorize the City Manager to execute the 2017/2018 CDBG Application and 2017/2018 Action Plan for CDBG funds, any other necessary documents concerning the Application, and to otherwise bind the City with respect to the Applications and commitment of funds; and D. Authorize Staff to submit the 2017/2018 Action Plan to United States Department of Housing and Urban Development (HUD) no later than August 16, 2017 based on revised HUD guidance. MOTION PASSED: 7-0 Fine, Scharff absent 17. Policy and Services Committee Recommendation to Reaffirm Palo Alto’s Position to Reduce Aircraft Noise and Direction on Further Near-Term Advocacy Steps, Including Sending a Letter From the Mayor to the United States Department of Transportation and Other Federal Officials (CMO). MOTION: Council Member Wolbach moved, seconded by Vice Mayor Kniss to reaffirm Palo Alto’s position to reduce aircraft noise by directing Staff to finalize a letter from the Mayor to the appropriate federal agency DRAFT ACTION MINUTES Page 6 of 8 City Council Meeting Draft Action Minutes: 6/19/17 incorporating relevant commentary from Council tonight including the following changes: i. Include clear references that the Federal Aviation Administration (FAA) is already reviewing the Select Committee on South Bay Arrivals Report and the San Francisco International Airport/Community Roundtable Report; and ii. Prior to sending the letter, review a draft with Peter Hirsch, Juan Alonso, and Van Scoyoc, the City’s federal lobbyist; A. Directing Staff to: i. Obtain expert opinion on aircraft noise monitoring strategy; and ii. Meet with neighboring cities to establish a regional position on the issue of aircraft noise; and iii. Align resources to be prepared to respond to the Federal Aviation Administration’s (FAA) response to the reports of the Select Committee on South Bay Arrivals and San Francisco International Airport (SFO)/Community Roundtable; B. Endorse the Policy and Services recommendations with minor changes: i. Take into account the public comments made tonight and received in writing, and reaffirm the City’s position to reduce aircraft noise over the skies of Palo Alto; and ii. Endorse and advocate for a seat on the Select Committee's proposed Ad-Hoc Committee and any new permanent entities whose actions will impact Palo Alto and communicate that interest to United States Representative Anna Eshoo; and iii. Obtain an expert opinion on aircraft noise monitoring strategy and make a recommendation to Council; and iv. Reach out to neighboring communities such as Portola Valley, Woodside, Menlo Park, Mountain View, Los Altos, Sunnyvale, Santa Cruz, and East Palo Alto to establish a regional position on this issue; and v. Be prepared to respond to the Select Committee Report in the form of legal or professional representation; and DRAFT ACTION MINUTES Page 7 of 8 City Council Meeting Draft Action Minutes: 6/19/17 vi. Emphasize as a priority, a focus on minimizing noise, the equitable dispersion of noise, and improving technology and flight methods to minimize aircraft noise in general; and vii. Ask the FAA to recognize that on the ground noise matters, even if it is not within the immediate vicinity of an airport and establish an objective standard for noise at certain elevations and flight methods; and viii. Separately, ask FAA to consider emissions from aircraft. SUBSTITUTE MOTION: Council Member DuBois moved, seconded by Council Member Holman to reaffirm Palo Alto’s position to reduce aircraft noise by directing Staff to finalize a letter from the Mayor to the appropriate federal agency incorporating relevant commentary from tonight and: A. Directing Staff to: i. Obtain expert opinion on aircraft noise monitoring strategy; and ii. Meet with neighboring cities to establish a regional position on the issue of aircraft noise; and iii. Align resources to be prepared to respond to the Federal Aviation Administration’s (FAA) response to the reports of the Select Committee on South Bay Arrivals and San Francisco International Airport (SFO)/Community Roundtable. MOTION WITHDRAWN BY THE MAKER SUBSTITUTE MOTION PASSED: 7-0 Fine, Scharff absent Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Council Member DuBois announced he was elected Vice Chair of the Joint Recycled Water Committee (JRWC) with the Santa Clara Valley Water District. He shared the Committee is making good progress and that funds for recycled water will likely be available to the City of Palo Alto. Council Member Wolbach offered congratulations to Council Member DuBois on this election as Vice Chair of the JRWC. He announced his attendance at the League of California Cities, Peninsula Division meeting last Friday, he DRAFT ACTION MINUTES Page 8 of 8 City Council Meeting Draft Action Minutes: 6/19/17 moderated a panel covering how cities can prepare for autonomous vehicles along the benefits and challenges of autonomous vehicles. He encouraged Council Members to attend these meetings. Jonathan Reichental, Chief Information Officer and Joshuah Mello, Chief Transportation Official also attended the meeting. Vice Mayor Kniss announced the Annual Meeting of the League of California Cities will take place beginning September 13. She announced the League Mayors and Council Members Executive Forum is scheduled for June 28 – 29, 2017 in Monterey, CA. Council Member Holman shared that Doris Richmond passed away recently. Doris and Cole Richmond hosted hundreds of Stanford University students for dinners over the years. Doris worked on an assembly line during World War II and was the first African-American employee of the Palo Alto Library. When renaming the Main Library, Doris Richmond was a name considered for the Library. The Richmond’s purchased their home South of Oregon Expressway, which at the time, was one of the few places African-Americans could buy homes in Palo Alto. Doris and Cole were charter members of the first African-American church, AME Zion Church, in Palo Alto. Council Member Holman requested the Council meeting be adjourned in honor of Doris Richmond. Vice Mayor Kniss commented that it is helpful to remember those from Palo Alto’s past. Adjournment: The meeting was adjourned in honor of Doris Richmond at 11:07 P.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 10 Special Meeting June 27, 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. Minutes Approval 1. Approval of Action Minutes for the June 12, 2017 Council Meeting. MOTION: Vice Mayor Kniss moved, seconded by Council Member Wolbach to approve the Action Minutes for the June 12, 2017 Council Meeting. MOTION PASSED: 9-0 Consent Calendar Agenda Item Number 17- QUASI-JUDICIAL: 305 N. California Avenue [17PLN-00015]… removed from the Agenda due to the withdrawal of the Conditional Use Permit Application. Council Member Holman registered a no vote on Agenda Item Number 6- Approval of Contract Number C17161815 With Granite Construction Company… MOTION: Vice Mayor Kniss moved, seconded by Council Member Wolbach to approve Agenda Item Numbers 2-16, 18. 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, DRAFT ACTION MINUTES Page 2 of 10 City Council Meeting Draft Action Minutes: 6/27/17 Environmental Review, Historic Evaluations, and Long Range Planning Projects in the Department of Planning & Community Environment. 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. DRAFT ACTION MINUTES Page 3 of 10 City Council Meeting Draft Action Minutes: 6/27/17 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 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 Three-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 Approval of Budget Amendments in the Storm Drain Fund and Vehicle Replacement and Maintenance Fund. 13. Resolution 9690 Entitled, “Resolution of the Council of the City of Palo Alto Summarily Vacating Public Utility Easement at 144 Kellogg Avenue.” 14. Resolution 9691 Entitled, “Resolution of the Council of the City of Palo Alto Determining the Proposed Calculation of the Appropriations Limit for Fiscal Year 2018.” 15. Adoption of Fiscal Year 2018 Investment Policy. 16. Ordinance 5415 Entitled, “Ordinance of the Council of the City of Palo Alto 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 DRAFT ACTION MINUTES Page 4 of 10 City Council Meeting Draft Action Minutes: 6/27/17 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, Improve the Canopy in South Palo Alto, and Educate the Public About Trees. MOTION FOR AGENDA ITEM NUMBERS 2-5, 7-16, 18 PASSED: 9-0 MOTION FOR AGENDA ITEM NUMBER 6 PASSED: 8-1 Holman no Action Items 19. PUBLIC HEARING: Adoption of Budget Ordinance 5414 Entitled, “Ordinance of the Council of the City of Palo Alto for Fiscal Year (FY) 2018, Including Adoption of Operating and Capital Budgets and Municipal Fee Schedule;” 7 Resolutions: 1) Resolution 9692 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2018 Electric Financial Plan;” 2) Resolution 9693 Entitled, “Resolution of the Council of the City of Palo Alto 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) Resolution 9694 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2018 Gas Utility Financial Plan;” 4) Resolution 9695 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2018 Wastewater Collection Utility Financial Plan;” 5) Resolution 9696 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase and Amending Dark Fiber Rate Schedules EDF-1 and EDF-2;” 6) Resolution 9697 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2018 Water Utility Financial Plan;” and 7) Resolution 9698 Entitled, “Resolution of the Council of the City of Palo Alto 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.” Public Hearing opened at 6:38 P.M. Public Hearing closed at 6:54 P.M. DRAFT ACTION MINUTES Page 5 of 10 City Council Meeting Draft Action Minutes: 6/27/17 MOTION: Council Member Filseth moved, seconded by Mayor Scharff to: A. Adopt a Budget Appropriation Ordinance, which includes: i. City Manager’s Fiscal Year 2018 (FY 2018) Proposed Operating and Capital budgets; and ii. Amendments to the City Manager’s Fiscal Year 2018 Proposed Operating and Capital Budgets including: a. The transfer of $348,000 from the General Fund to the Cubberley Infrastructure Fund and increase the contribution to the Infrastructure Reserve by the commensurate amount; and b. Amend Staff Report, Attachment A, Exhibit 2, Page 12, “Below Market Rate Housing Contract” for $137,000 was erroneously appropriated in the Below Market Rate Fund (Fund 230) and these funds be corrected to be appropriated in the Housing In-Lieu/Residential Fund (Fund 233); and iii. FY 2018 City Table of Organization; and iv. FY 2018 Proposed Municipal Fee Changes; and B. Adopt a Resolution approving the FY 2018 Electric Financial Plan and proposing several transfers for FY 2018; and C. Adopt a Resolution 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); and D. Adopt a Resolution approving the FY 2018 Gas Utility Financial Plan; and E. Adopt a Resolution approving the FY 2018 Wastewater Collection Utility Financial Plan; and DRAFT ACTION MINUTES Page 6 of 10 City Council Meeting Draft Action Minutes: 6/27/17 F. Adopt a Resolution increasing Dark Fiber Rates by 3.5 percent effective July 1, 2017 by Amending Rate Schedules EDF-1 and EDF-2; and G. Adopt a Resolution approving the FY 2018 Water Utility Financial Plan and a transfer of $1.877 million from the Water Rate Stabilization Reserve to the Water Operations Reserve; and H. Adopt 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 (CEQA); and I. Approve Amending Salary Schedules for: i. Management and Professional Group (MGMT) as amended on March 27, 2017 to add one new classification and change titles of three classifications; and ii. Service Employees International Union, Local 521 (SEIU) 2015- 2018 Memorandum of Agreement (MOA) as amended on February 6, 2017 to reclassify four classifications and change the salary rates of two classifications; and iii. Limited Hourly Group as amended on February 6, 2017 to update the salary rates of one classification; and J. Direct Staff to return to the Finance Committee in August to review the citywide implications of: i. Structural revenue and expense growth ensuring expense growth remains at or below that of revenues; and ii. Unfunded pension liability: a. 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 alternate models; and b. Review of the financial reporting of the unfunded pension liability. AMENDMENT: Council Member DuBois moved, seconded by Council Member Holman to add to the Motion, “direct Staff to return to Council to clarify transportation funding needs and revenue forecasts from paid parking.” DRAFT ACTION MINUTES Page 7 of 10 City Council Meeting Draft Action Minutes: 6/27/17 AMENDMENT FAILED: 4-5 DuBois, Holman, Kou, Tanaka yes AMENDMENT: Council Member Dubois moved, seconded by Council Member Holman to modify the Motion Part A.i. to allocate an additional $150,000 to Human Services Resource Allocation Process (HSRAP) and $198,000 to the Cubberley Infrastructure Reserve. AMENDMENT RESTATED: Council Member Dubois moved, seconded Council Member Holman to modify the Motion Part Modify Part A.i. to allocate an additional $94,000 to Human Services Resource Allocation Process (HSRAP) and $254,000 to the Cubberley Infrastructure Reserve. SUBSTITUTE AMENDMENT: Mayor Scharff moved, seconded by Council Member Filseth to modify the Motion Part A.i. to allocate an additional $44,000 to Human Services Resource Allocation Process (HSRAP) and $304,000 to the Cubberley Infrastructure Reserve. SUBSTITUTE AMENDMENT PASSED: 5-4 DuBois, Holman, Kou, Tanaka, no AMENDMENT: Council Member Tanaka moved, seconded by Vice Mayor Kniss to add to the Motion, “direct Staff to include an approximate market pension debt for the City in the Budget.” SECOND WITHDRAWN BY THE SECONDER AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Holman moved, seconded by Vice Mayor Kniss to add to the Motion, “refer to the Finance Committee discussion and consideration of cost sharing with the Palo Alto Unified School District (PAUSD) relating to budget costs.” (New Part K) AMENDMENT PASSED: 6-3 DuBois, Scharff, Tanaka no AMENDMENT: Council Member Holman moved, seconded by Council Member Tanaka to add to the Motion, “remove the proposed 0.96 FTE from the Office of Sustainability.” AMENDMENT FAILED: 3-6 Holman, Kou, Tanaka yes MOTION AS AMENDED: Council Member Filseth moved, seconded by Mayor Scharff to: A. Adopt a Budget Appropriation Ordinance, which includes: DRAFT ACTION MINUTES Page 8 of 10 City Council Meeting Draft Action Minutes: 6/27/17 i. City Manager’s Fiscal Year 2018 (FY 2018) Proposed Operating and Capital budgets; and ii. Amendments to the City Manager’s Fiscal Year 2018 Proposed Operating and Capital Budgets including: a. The transfer of $348,000 from the General Fund to the Cubberley Infrastructure Fund and increase the contribution to the Infrastructure Reserve by $304,000 and Human Services Resource Allocation Process (HSRAP) by $44,000; and b. Amend Staff Report, Attachment A, Exhibit 2, Page 12, “Below Market Rate Housing Contract” for $137,000 was erroneously appropriated in the Below Market Rate Fund (Fund 230) and these funds be corrected to be appropriated in the Housing In-Lieu/Residential Fund (Fund 233); and iii. FY 2018 City Table of Organization; and iv. FY 2018 Proposed Municipal Fee Changes; and B. Adopt a Resolution approving the FY 2018 Electric Financial Plan and proposing several transfers for FY 2018; and C. Adopt a Resolution 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); and D. Adopt a Resolution approving the FY 2018 Gas Utility Financial Plan; and E. Adopt a Resolution approving the FY 2018 Wastewater Collection Utility Financial Plan; and F. Adopt a Resolution increasing Dark Fiber Rates by 3.5 percent effective July 1, 2017 by Amending Rate Schedules EDF-1 and EDF-2; and DRAFT ACTION MINUTES Page 9 of 10 City Council Meeting Draft Action Minutes: 6/27/17 G. Adopt a Resolution approving the FY 2018 Water Utility Financial Plan and a transfer of $1.877 million from the Water Rate Stabilization Reserve to the Water Operations Reserve; and H. Adopt 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 (CEQA); and I. Approve Amending Salary Schedules for: i. Management and Professional Group (MGMT) as amended on March 27, 2017 to add one new classification and change titles of three classifications; and ii. Service Employees International Union, Local 521 (SEIU) 2015- 2018 MOA as amended on February 6, 2017 to reclassify four classifications and change the salary rates of two classifications; and iii. Limited Hourly Group as amended on February 6, 2017 to update the salary rates of one classification; and J. Direct Staff to return to the Finance Committee in August to review the citywide implications of: i. Structural revenue and expense growth ensuring expense growth remains at or below that of revenues; and ii. Unfunded pension liability: a. 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 alternate models; and b. Review of the financial reporting of the unfunded pension liability; and K. Refer to the Finance Committee discussion and consideration of cost sharing with Palo Alto Unified School District (PAUSD) relating to budget costs. MOTION AS AMENDED PASSED: 8-1 Tanaka no DRAFT ACTION MINUTES Page 10 of 10 City Council Meeting Draft Action Minutes: 6/27/17 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Council Member DuBois noted several members of the public addressed affordable housing during Oral Communications. He announced the submittal by Council Members Holman, Kou, and himself of a Colleagues Memorandum addressing enhancements to the Renter’s Protection Ordinance. He shared that other cities are taking action on this front and requested this be agendized promptly. Vice Mayor Kniss discussed the Bay Area Air Quality Management District’s (BAAQMD) publication “Leading the Way.” The publication lists the sources of greenhouse gas emissions in the Bay Area. At a May BAAQMD meeting, the Board voted to cap the amount of greenhouse gas emissions generated by oil refineries. A second vote on this limit has been postponed. She hopes the District will implement this limit prior to the implementation of a statewide limit. Council Member Holman shared her participation and the participation of Vice Mayor Kniss on the Healthy City, Healthy Community Committee. She reported the Committee has been successful and is looking to identify a way to quantify this success. She suggested Staff provide an update on the Committee including metrics and successes to the Council. Vice Mayor Kniss noted the Committee has many members, 35 or so attended the last meeting. Council Member Holman added the Committee membership includes numerous Staff and members of the public. James Keene, City Manager shared his appreciation for the Council’s approval of the budget. Adjournment: The meeting was adjourned at 9:49 P.M. CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 14, 2017 The Honorable City Council Palo Alto, California Selection of Applicants to Interview on August 24, 2017 for the Storm Water Management Oversight Committee Recommendation Direct Staff to schedule interviews with all applicants. Discussion Staff is requesting the City Council select the candidates to be interviewed for: Three terms on the new Storm Water Management Oversight Committee, ending on May 31, 2019; and Four terms on the new Storm Water Management Oversight Committee, ending on May 31, 2021. Interviews are scheduled for Thursday, August 24, 2017 at 6:00 P.M. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be provided to Council Members directly. Background The newly formed Storm Water Management Oversight Committee provides citizen oversight of funding collected pursuant to the Storm Water Management Fee approved by property owners in April 2017. Applicants 1. Ayla Agarwal 2. Keith Bennett 3. David Bower 4. Peter Drekmeier 5. Jolanta Goslawska-Uchman 6. Chris Graham 7. Marilyn Keller 8. Hal Mickelson 9. Dena Mossar 10. Cedric Pitot de La Beaujardiere 11. Bob Wenzlau 12. Richard Whaley Page 2 Please note that the City uses DocuSign electronic signatures as a method for individuals to submit applications for Boards and Commissions. Formatting irregularities present in the attached applications are likely the result the DocuSign process. ATTACHMENTS: Attachment A: Agarwal, Ayla (PDF) Attachment B: Bennett, Keith (PDF) Attachment C: Bower, David (PDF) Attachment D: Drekmeier, Peter (PDF) Attachment E: Goslawska-Uchman, Jolanta (PDF) Attachment F: Graham, Chris (PDF) Attachment G: Keller, Marylin (PDF) Attachment H: Mickelson, Hal (PDF) Attachment I: Mossar, Dena (PDF) Attachment J: Pitot de la Beaujardiere, Cedric (PDF) Attachment K: Wenzlau, Bob (PDF) Attachment L: Whaley, Richard (PDF) Department Head: Beth Minor, City Clerk Page 3 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Ph ____ Home / ____ Office Ph E- Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 52EC4BBC-089F-4BE8-8C74-F126917BF87B *EXLSQ 'SQTYXMRK 4&' '33 2SZ TVIWIRX %'637%2'8 )\IGYXMZI (MVIGXSV .YRI (IGIQFIV 'MVGYW 'IRXIV )\IGYXMZI (MVIGXSV *IFVYEV] .YRI 1EWWEGLYWIXXW -RWXMXYXI SJ 8IGLRSPSK] 7& 'SQTYXIV 7GMIRGI )RKMRIIVMRK %]PE %KEV[EP Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: 52EC4BBC-089F-4BE8-8C74-F126917BF87B 1] LSQI MW ZIV] GPSWI XS XLI %HSFI 'VIIO ERH Q] GSQQYRMX] SJ RIMKLFSVW PSZMRKP] QSRMXSVW ERH GSQQIRXW SR XLI LIEPXL SJ XLI GVIIO HYVMRK VEMR] ERH HV] TIVMSHW - LEZI EPWS HSRI I\XIRWMZI FYHKIX GVIEXMSR ERH VIZMI[ JSV XLI X[S RSRTVSJMXW QIRXMSRIH EFSZI -R Q] GYVVIRX NSF EW '33 EX *EXLSQ 'SQTYXMRK E GSQTYXIV LEVH[EVI WXEVXYT - EQ VIWTSRWMFPI JSV EPP SJ XLI JMRERGMEP QEREKIQIRX ERH VITSVXMRK 1] QSWX WMKRMJMGERX ZSPYRXIIV GSRXVMFYXMSRW LEZI FIIR XS X[S RSRTVSJMX GMVGYW EVXW SVKERM^EXMSRW MR 7ER *VERGMWGS - [EW XLI ZSPYRXIIV )\IGYXMZI (MVIGXSV SJ XLI 'MVGYW 'IRXIV [LIVI - PIEH XLI SVKERM^EXMSR SYX SJ JMRERGMEP ERH STIVEXMSREP HMJJMGYPXMIW XLEX XLVIEXIRIH XS GPSWI XLIMV HSSVW JSV KSSH 8LIR - GSJSYRHIH E RSRTVSJMX 'LMRIWI EGVSFEXMGW TIVJSVQMRK EVXW GSQTER] GEPPIH %'637%2'8 ERH WIVZIH EW XLIMV ZSPYRXIIV )\IGYXMZI (MVIGXSV ERH &SEVH 7IGVIXEV]8VIEWYVIV '33 *EXLSQ 'SQTYXMRK 4&' Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope ID: 52EC4BBC-089F-4BE8-8C74-F126917BF87B 7EHP] - ORS[ ZIV] PMXXPI EFSYX XLI TVSKVEQ SV MXW TVSNIGXW 4EVX SJ Q] IRXLYWMEWQ JSV ETTP]MRK MW XS PIEVR QSVI ERH LEZI E TSWMXMZI MQTEGX SR SYV GSQQYRMX] 6ITEMV ERH QEMRXIRERGI EVI XLI LMKLIWX TVMSVMXMIW ERH XLEX MW [LIVI - [SYPH WTIRH JYRHW JMVWX *SV I\EQTPI XLI [EXIV PIZIP MR XLI %HSFI 'VIIO RIEV Q] LSQI MW ZIV] PS[ VMKLX RS[ ERH MX WIIQW PMOI E KVIEX XMQI XS KIX MR XLIVI ERH GPIER EPP SJ XLI EGGVYIH QYGO SYX SJ MX DocuSign Envelope ID: 52EC4BBC-089F-4BE8-8C74-F126917BF87B Application Deadline: August 1, 2017 at 4:30pm Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The fu ll code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Pa lo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR X I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the fo llowing alternate information and request that they use the following contact information instead. Cell Phone:-------------------------------- __ Home / __ Office Phone:-------------------------- E-mail :----------------------------------- The phone number I address can be non-public and different than the address collected on page one. lnDocuSigned by: Signature: L~~s!!:~ Date: 8/1 /2017 (Optional) Additional Attachmentlsl If you would like to submit a resume, work sample, etc. along with your Application, Check this box and click "Attach" to upload your document(s). Ayl a Agarwal Storm Water Management Oversight Committee 4 of4 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 2024222E-9B09-4F45-86F3-F552C615337C -LEZIFIIRMRXIVIWXIHMRKVSYRH[EXIVTVSXIGXMSR[MWIYWIERHJPSSH VMWOQEREKIQIRXJVSQQ]EGXMZMXMIW[MXL7EZI4EPS%PXS W+VSYRH[EXIV LXXT @@WEZITEPSEPXSWKVSYRH[EXIVSVK )HYGEXMSR 4L]WMGW&% 1-8 %TTPMIH4L]WMGW4L( 7XERJSVH 'SRXEGXJVSQTISTPI-ORS[ ;IFWXIV7X /IMXL&IRRIXX TEKVSYRH[EXIV$PY\WGMRIX Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope ID: 2024222E-9B09-4F45-86F3-F552C615337C %WMHIJVSQQMRMQM^MRKSFZMSYW[EWXIQ]TVMQEV]GSRGIVRMW IJJIGXMZIMQTPIQIRXEXMSRSJXLI+VIIR-RJVEWXVYGXYVI-RMXMEXMZIERH IRWYVMRKXLI'MX]LEWEGGYVEXIL]HVSKISPSK]HEXESR[LMGLXSFEWI HIGMWMSR -EQJYVXLIVQSVIMRXIVIWXIHMRIRWYVMRKXLI'MX] WTSPMGMIW VIKEVHMRK+VIIR-RJVEWXVYGXYVIEVIGSRWMWXIRXERHWYTTSVXXLI HIWMVIHSTIVEXMSRSJXLI+VIIR-RJVEWXVYGXYVITSVXMSRSJXLIFEPPSX QIEWYVI 1]ORS[PIHKIMWPMQMXIHXSXLIMRJSVQEXMSRTVSZMHIHEWTEVXSJXLI FEPPSXMRMXMEXMZI Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: 2024222E-9B09-4F45-86F3-F552C615337C Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Ph ____ Home / ____ Office Ph E- Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 48A72152-380C-4CDB-ACC2-A93CFB5B32D8 (EZMH &S[IV - [EW E PMGIRWIH &YMPHMRK 'SRXVEGXSV JVSQ XS JSGYWMRK SR VIWMHIRXMEP GSRWXVYGXMSR MR 4EPS %PXS - LEZI E &% JVSQ 7ER *VERGMWGS 7XEXI 9RMZIVWMX] Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: 48A72152-380C-4CDB-ACC2-A93CFB5B32D8 - [EW E QIQFIV SJ XLI 7XSVQ[EXIV &PYI 6MFFSR 'SQQMXXII - EQ GYVVIRXP] SR XLI ,MWXSVMG 6IWSYVGIW &SEVH ERH [EW E QIQFIV SJ XLI -RJVEWXVYGXYVI &PYI 6MFFSR 'SQQMWWMSR %W E ]IEV VIWMHIRX SJ 4EPS %PXS - Q TEVXMGYPEVP] MRXIVIWXIH MR XLI GSRXMRYIH LMKL TIVJSVQERGI SJ XLI GMX] YXMPMXMIW ERH MRJVEWXVYGXYVI VIXMVIH VIXMVIH Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope ID: 48A72152-380C-4CDB-ACC2-A93CFB5B32D8 %HHVIWWMRK XLI HVEMR W]WXIQ GSQTSRIRXW XLEX HS RSX JYRGXMSR IJJIGXMZIP] HYVMRK WXSVQ IZIRXW MW XLI XST TVMSVMX] SJ XLI WXSVQ[EXIV GSQQMXXII 3ZIVWIIMRK XLI TVSTSWIH GETMXEP MQTVSZIQIRX TVSNIGX FYHKIX I\TIRHMXYVIW ERH QEOMRK WYVI XLI JYRHW EVI QSWX IJJIGXMZIP] YWIH [SYPH QI Q] KSEP %W E QIQFIV SJ XLI 7XSVQ[EXIV &PYI 6MFFSR 'SQQMXXII - WXYHMIH XLI WXSVQ W]WXIQ LMWXSV] ERH PEWX VIGIRX GETMXEP MQTVSZIQIRX TVSKVEQ - LIPTIH EW E GSQQMXXII QIQFIV XS JSVQ XLI GYVVIRX WXSVQ[EXIV FEPPSX TVSKVEQ ERH TEVXMGMTEXIH SR XLI 7XSVQ[EXIV GEQTEMKR GSQQMXXII September 8, 2016 David Bower PO Box 1518 Palo Alto, California 94302-1518 Birth Date February, 1951, Palo Alto, California Education San Francisco State University, San Francisco, California 19731975 B.A. in Communications, May 1975 Foothill College, Los Altos, California 19701973 Liberal Arts Major Washington University, St. Louis, Missouri 19691970 Liberal Arts Major Honors Professional Experience President, David Bower Incorporated, Palo Alto, California. Residential construction and consulting 2007 to present President, Bower Loops Builders, Palo Alto, California. Residential construction company. 2001 to 2007 President, David Bower Builders, Palo Alto, California. Residential construction company. 1979 to 2001 President, Designs In Wood, Palo Alto, California. Residential construction company. 19751979 Licensed contractor in the State of California 1979 to present Community Activities Board of Directors, Treasurer, Western Ballet, Mountain View, California. 19891993 Board of Directors, Treasurer, Palo Alto Chamber Orchestra, Palo Alto, California. 19951997 Board of Directors, Pelican Homeowners Association, Pajaro Dunes, Watsonville, California. 2005 to present. Current President Chairman, Design Committee, Pajaro Dunes Association, Watsonville, California. April 2006 to January 2015 Board member, Palo Alto Historic Resources Board, Palo Alto, California June 2007 to present Chairman, Palo Alto Historic Resources Board, Palo Alto, California June 2009 to October 2011 Board member, City of Palo Alto Infrastructure Blue Ribbon Commission, November 2010 to December 2011 Board member, Pajaro Dunes Geologic Hazard Abatement District, July 2014 to present Committee Member, City of Palo Alto Storm Drain Blue Ribbon Committee, AprilJuly 2016 Memberships NARI (National Association of the Remodeling Industry), 1993 to 2013 International Conference of Building Officials, 2004 to 2014 Build It Green, 2009 to 2014 DocuSign Envelope ID: 48A72152-380C-4CDB-ACC2-A93CFB5B32D8 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 6E66DB26-F1B2-40B3-B668-147B6AD2187E *YPXSR7X 4IXIV(VIOQIMIV -WIVZIHEW'S'LEMVSJXLI'MX] W7XSVQ[EXIV1EREKIQIRX*IIXEWOJSVGI XLEXGVEJXIHXLIXLIWYGGIWWJYPQEMPMRFEPPSXMRMXMEXMZI-EPWS TEVXMGMTEXIHSRXLIGEQTEMKRXIEQ-[SVOJSVXLI8YSPYQRI6MZIV8VYWX [LIVI-TVSQSXIEPXIVREXMZI[EXIVWYTTPMIWMRGPYHMRKKVSYRH[EXIVXLEX GERFIVIGLEVKIHXLVSYKLKVIIRWXSVQ[EXIVMRJVEWXVYGXYVI THVIOQIMIV$IEVXLPMRORIX Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope ID: 6E66DB26-F1B2-40B3-B668-147B6AD2187E %WQIRXMSRIHEFSZI-GSGLEMVIHXLI'MX] W7XSVQ[EXIV1EREKIQIRX *II8EWO*SVGIWS- QUYMXIJEQMPMEV[MXLXLIMWWYIWMRZSPZIHERH TVSNIGXWTVSTSWIHXSVIHYGIJPSSHVMWO -XMWMQTSVXERXXLEXXLI'MX]HIPMZIVSRXLIGETMXEPTVSNIGXW GSQQMXXIHXSMRXLI7XSVQ[EXIV1EREKIQIRX*II-EQLSTIJYPXLEXXLI 'MX][MPPMQTPIQIRXQSVIKVIIRWXSVQ[EXIVMRJVEWXVYGXYVITVSNIGXW XSVIHYGIXLIPSEHIRXIVMRKSYVWXSVQHVEMRWERHGVIIOW[LMPI VIGLEVKMRKXLIKVSYRH[EXIVFEWMR Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: 6E66DB26-F1B2-40B3-B668-147B6AD2187E 0 0 Personal Information -Note: The SWMOC meets on an as needed basis CITY OF PALO ALTO. CA CITY CLERK'S OFFICE Name: Jolanta Goslawska-Uchman Address: 793 Allen court Cell Phone: 050. 201. 9575 {!)Home IQ Office Phone: E-mail: jolantajgu@yahoo.com Are you a Palo Alto Resident? @yes 0 No 17 AUG -I PM 3: 05 Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Q Yes® No Are you available and committed to complete the term applied for? {;}YesQ No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1 ) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for?Q Yes ®No Excluding your principal residence, do you or your spouse own real property in Palo Alto?Q Yes{!) No How did you learn about the vacancy on the Storm Water Management Oversight Committee? [{]community Group §Daily Post 8mail from City Clerk City Website alo Alto Weekly Flyer Other: ______________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: Education: MSc Stratigraphy and Exploratory Geology from the University of Warsaw, Department of Geology, 1979 Registration: Jolanta M. Uchman Professional Geoiogist -State of California# 6577, 1989 -1993 Geologist in geotechnical & environmental company; 1994-2017 Engineering Geologist State Water Resources Control Board,Reg. 2 in Oakland.2003-14 RB representative for projects that required the CWA S. 401 Water Quality Certifications, compliance with the existing municipal stormwater NPDES permits and Water Quality Control Plan in Solano County. Jolanta Goslawska-Uchman rt-t owe-~ t1v IJ..c;ykJ f ~ Page 1 storm Water Management Oversight Committee 0 0 List relevant education, training, certificates of training or professional registration Education: MSc Stratigraphy and Exploratory Geology from the University of Warsaw, Department of Geology, 1979 Registration: Jolanta M. Uchman Professional Geologist -State of California # 6577, 1996 Professional Experience • 1989 -1993 Project geologist in geotechnical and environmental consulting company in Santa Clara; • 1994 -July 2017 Engineering geologist State Water Resources Control Board at the Regional Water Quality Control Board in Oakland (Region 2); 1994 -2002 and 2014 -2017 Toxics Cleanup Division -reviewed engineering and geologic work related to regulatory oversight for the investigation and remediation of soil and groundwater pollution; 2002-2014 Watershed Division 2003 -2014 Regional Board representative for projects that required the Clean Water Act Section 401 Water Quality Certifications, compliance with the existing municipal stormwater National Pollutant Discharge Elimination System (NPDES) permits and Water Quality Control Plan in Solano County; Assisted and oversaw implementation of the Municipal Stormwater NPDES Permit Phase I (Fairfield and Suisun, Vallejo) and Phase II (Benicia, Solano County) Polish Professional Experience: • 1979 -1981 Geologist at the Hydrogeology and Exploratory Geology State Company in Lodz; • 1981 -1987 the University of Lodz, faculty member of Earth Sciences and Biology Department 0 0 Employment Present or Last Employer: State Water Resources Control Board, SF Bay Regional Water Quality Control Board Region 2 Occupation: Engineering Geologist Descnl>e your involvement in community activities, volunteer and civic organizations: Association of Engineering Geologists -former member POLAM Polish-American Credit Union member since 1989 Elks' Lodge member since 2009 Sierra Club Member since 1998 League of Women Voters member since 1999 Mother of PAUSD student, who graduated from Gunn H.S. 1. What is it about the Stonn Water Management Oversight Committee that is aligned with your interests? Just retired from my full-time position with the State Water Resources Control Board at the SF Bay Regional Water Quality Control Board in Oakland (Region 2). The City of Palo Alto Stormwater program is in line with my previous duties at the Water Board 2003-2014 as the Water Board representative for projects that required compliance with the existing municipal stormwater National Pollutant Discharge Elimination System (NPDES) permits and Water Quality Control Plan in Solano County. I am interested in the elements of the stormwater management program that are designed to minimize stormwater pollution, specifically low impact development and green infrastructure. I am also interested in watershed planning, urban design, land development, and creek restoration projects. Jolanta Goslawska-Uchman Page 2 Storm Water Management Oversight Committee 0 ·------2. Describe your experience with and knowledge of City of Palo Alto SWM program or projects No personal experience with the City program other than the review of the FEMA maps to verify the need for flood insurance and cleaning the storm drains by my house during major rainfalls. I am aware of the Palo Alto storm water program since the City is the permittee of the NPDES Phase I municipal separate storm sewer systems (MS4) permit adopted by Region 2 Order No. R2-2015-0049. The Permit requires the City to develop and implement a Storm Water Management Plan/Program with the goal of reducing the discharge of pollutants to the maximum extent practicable. The City works with the Santa Clara Valley Urban Runoff Pollution Prevention Program as member to further develop and implement stormwater programs. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? I would evaluate program effectiveness and update the codes to current regional standards, I would also survey staff and residents about their concerns relating to storm drains. Afterwards I would ask staff to incorporate information from the survey and evaluation of program effectiveness to find new ways to improve operation and maintenance of the installed storm water systems. My second agenda item would be to update and implement current BMPs -The Pub1ic Works website shows infonnation from 1999 (http://www.cityofpaloalto.org/gov/depts/pwd/stormwater/pollution.asp). My third item would be to promote and implement more green infrastructure designs for construction projects and also to combine flood control projects with creek restoration to minimize potential flood hazards. Jolanta Goslawska-Ucbman Page3 Consent to Publish Personal Information on the Citv of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: ~ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21 . I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: Home I Office Phone: E-mail: Signature: ___ <J1~-~-------U/L. ___________ Date: ~61 ;). ~ Page 4 Storm Water Mana~ement oversight Committee Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Ph ____ Home / ____ Office Ph E- Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: C5C29BD6-29D4-43AF-A2CD-286C86AAA9A7 GLVMW KVELEQ 0MGIRWIH '% EXXSVRI] WMRGI 7IVZIH EW 7ERXE 'PEVE 'SYRX] .YHKI 4VS 8IQ JVSQ XLVSYKL 7IVZIH EW 7TIGMEP -RZIWXMKEXSV JSV XLI 'MX] SJ 7ER .SWI %XXIRHIH WGLSSP MR 4%97( 3VXIKE )PIQIRXEV] ;MPFYV .V ,MKL 'YFFIVPI] ,7 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: C5C29BD6-29D4-43AF-A2CD-286C86AAA9A7 .YWX XV]MRK XS LIPT [LIVI LIPT QE] FI RIIHIH :EVMSYW ERH WYRHV] SZIV PMJIXMQI SJ PMZMRK ERH [SVOMRK SR 4EPS %PXS ')3 6SEH[E] -RXIP 00' Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope ID: C5C29BD6-29D4-43AF-A2CD-286C86AAA9A7 8S XLI I\XIRX MX [SYPH FI LIPTJYP - EQ [IPP WYMXIH XS JEGMPMXEXMRK KVSYTW MR EHHVIWWMRK XLI QEXXIVW XLI] EVI XEWOIH XS LERHPI 8S XLEX IRH - [SYPH RSX MQTSWI Q] TIVWSREP TVMSVMXMIW FYX VEXLIV [SVO XS [EVHW FYMPHMRK E GSRWIRWYW XLEX FIWX VIJPIGXW XLI MRXIVIWXW SJ EPP VIPIZERX WXEOILSPHIVW - LEZI PMZIH MR 4EPS %PXS WMRGI DocuSign Envelope ID: C5C29BD6-2904-43AF-A2CD-286C86MA9A7 Application Deadline: August 1, 2017 at 4:30pm Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The fu ll code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Pa lo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR X I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the fo llowing alternate information and request that they use the following contact information instead. dd 3860 Dixon Place, PA A ress:~--------------------------------~ C II Ph 65026981 95 e one:--------------------------------~ __ Home / __ Office Phone:-------------------------- E-mail : Chr is . scott .graham@gmail .com The phone number I address can be non-public and different than the address collected on page one. [ OocuSigned by: Signature: ~743E Date: 7/30/2017 (Optional) Additional Attachmentlsl If you would like to submit a resume, work sample, etc. along with your Application, Check this box and click "Attach" to upload your document(s). chris graham Storm Water Management Oversight Committee 4 of4 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 225BE1A1-38FE-4820-A3D2-4D744E6E78B7 7XERJSVH9RMZIVWMX] 17%TTPMIH)EVXL7GMIRGIWVIWIEVGLIHTPERXWSMPQMRIVEPVIPEXMSRWLMTW &7&MSPSKMGEP7GMIRGIWERHIUYMZEPIRXMR)RZMVSRQIRXEP)EVXL7GMIRGIW 9'&IVOIPI]'IVXMJMGEXIMR,E^EVHSYW1EXIVMEPW1EREKIQIRXGPEWWIW 4EGMJMG+EW )PIGXVMG'SQTER]SZIV ]IEVWEWEVIWIEVGLFMSPSKMWX )PIGXVMG4S[IV6IWIEVGL-RWXMXYXIZMWMXMRKFMSPSKMWX -EPWSLIEVHEFSYXXLMWJVSQ7YWER6SWIRFIVKGYVVIRXP]SRXLI7;13' ;EZIVPI]7XVIIX4EPS%PXS'% 1EVMP]R/IPPIV QEVMP]ROIPPIV$KQEMPGSQ Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: 225BE1A1-38FE-4820-A3D2-4D744E6E78B7 4EGMJMG+EW )PIGXVMG'SQTER] 'ERST]&SEVHQIQFIV7IGVIXEV] 'ERST]4VSKVEQ'SQQMXXII'ERST]TPERXMRKPIEHIV 'MX]SJ4EPS%PXS9XMPMXMIW%HZMWSV]'SQQMWWMSR 4EVXRIVWMR)HYGEXMSR+YRR,MKL7GLSSP6ITVIWIRXEXMZI +YRR,MKL7GLSSP7EJI6SYXIWXS7GLSSP8IEQ1IQFIV .071MHHPI7GLSSP+VIIR8IEQTEVIRXPMEWSR .071MHHPI7GLSSP)\IGYXMZI48%'SYRGMP6ITVIWIRXEXMZI +MVP7GSYX0IEHIVSV'S0IEHIVJSVXVSSTWJVSQ *EMVQIEHS[)PIQIRXEV]7GLSSP7MXI'SYRGMP *EMVQIEHS[)PIQIRXEV]7GLSSP)\IGYXMZI48% 4EPS%PXS*EQMP]6IWSYVGIW%QFEWWEHSV4VSKVEQ %GXMZIMRZEVMSYWGSYRGMPQIQFIVGERHMHEXIGEQTEMKRW ,IPTIHGSSVHMREXIGSQQYRMX]MRTYXJSV4EPS%PXS W%PQE4PE^ETVSTSWEP %PPQ]EHYPXPMJI-LEZIFIIRMRXIVIWXIHMRQMRMQM^MRKRIKEXMZI IRZMVSRQIRXEPMQTEGXW-WIIWXSVQ[EXIVQEREKIQIRXEWERMQTSVXERX [E]XSVIHYGIJPSSHMRKERHFE]TSPPYXMSR-EQEPWSMRXIVIWXIHMR STTSVXYRMXMIWXSYWIWXSVQ[EXIVEWEVIWSYVGIXSGETXYVIERHYWI 1SVIWTIGMJMGEPP]- QMRXIVIWXIHMRYWMRKXVIIWXSWMKRMJMGERXP] VIHYGITIEOWXSVQ[EXIVJPS[WERHXSGSRWMHIV[E]WXSYWIWXSVQ[EXIV EWEVIWSYVGIJSVSYVXVIIWERH[EXIVXEFPI -EQEPWSMRXIVIWXIHMRMRGVIEWMRKPSRKXIVQMRJVEWXVYGXYVIGETEGMX]XS QEREKIMRGVIEWMRKWXSVQ[EXIVHIQERHWIWTIGMEPP]MREVIEWIEWXSJ 1MHHPIJMIPHVSEH-REHHMXMSRXSYTKVEHMRKTMTIWERHTYQTW- Q MRXIVIWXIHMRSXLIVSTXMSRWWYGLEWTPERXMRKQSVIXVIIWIRGSYVEKMRK QSVIYWISJTIVQIEFPILEVHWGETIERHGSRWMHIVMRKXLIYWISJFMSW[EPIW XSVIHYGITIEOJPS[W 7IRMSV6IWIEVGL%WWSGMEXI Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: 225BE1A1-38FE-4820-A3D2-4D744E6E78B7 DocuSign Envelope ID: 225BE1A1-38FE-4820-A3D2-4D744E6E78B7 MARILYN L. KELLER 3476 Waverley Street Palo Alto, CA 94306 (650) 494-9331 marilynkeller@gmail.com SUMMARY Develo~ managed and implemented research to solve and prevent environmental, health, and safety problems for over fifteen years. Successful in bridging various technical disciplines and interest groups to optimize research results. PROFESSIONAL EXPERIENCE PACIFIC GAS & ELECTRIC COMPANY, San Ramon, CA Senior Research Associate, R&D Department 1990-1997 Developed and managed over $1 million annual company-wide research programs on health, environmen4 and safety issues including electric and magnetic fields (EMF), hazardous materials, seismic safety, and indoor air quality. • Managed programs and projects up to $1 million. • Won annual program budgets of up to $1 million plus $500,000 co-funding. • Developed and managed interdisciplinary research teams. - • Negotiated research requirements with outside agencies and won technical approval. • Supervised project managers and consultants to complete research and reports. • Published papers and presented results at conferences. • Advised technical committees and served as internal consultant on EMF health research. R&D Biologist-Program Manager, R&D Department 1983-1990 • Planned and implemented multi-year research programs exceeding $1 million per year. • Managed health and geothermal research programs that saved over $500,000 per year in air pollution abatement plus additional avoided health and safety costs. • Obtained over $500,000 co-funding for geothermal and health research. • Managed project managers from multiple departments along with coiisultants to conduct studies and document methods for reducing future health and safety costs. • Advised outside research groups on public health issues. Environmental Specialist, Department of Engineering Research 1980-1983 Managed and conducted biological impact studies for various types of proposed power facilities. • Supervised biologists and managed consultants to conduct projects. • Coordinated environmental assessments with other departments and regulatory agencies. • Initiated multi-year studies on vegetation damage due to air emissions. • Managed rare species resulting in national recognition for PG&E's environmental work. Electric Power Research Institute (EPRI), Palo Alto~ CA 1988-1989 Recruited to plan research on neurobiological and behavioral effects of EMF exposure. Developed strategic partnership for collaboration in future research. DocuSign Envelope ID: 225BE1A1-38FE-4820-A3D2-4D744E6E78B7 MARILYN KELLER EDUCATION Stanford University -Palo Alto, CA MS, BS -Applied Earth Sciences. Researched plant-soil-ore deposit relationships. BS Biological Sciences (included six months in Germany) U.C. Berkeley Extension -Berkeley, CA Candidate for certificate in Hazardous Materials Management Page Two Professional development seminars include EMF, hazardous materials management, indoor air quality, remote sensing, supervision and management, watershed management, and pollution effects on vegetation. COMMITTEE PARTICIPATION • Massachusetts Institute of Technology Energy Lab Technical Advisory Group • Bonneville Power Administration Technical Committee -Joint HVDC Agriculture Study • Southern California Gas/Gas Research Institute Indoor Air Quality Advisory Committee • Electric Power Research Institute Advisory Committee • PG&E EMF Task Force and Joint Union/Management EMF Committee AWARDS • EPRI hmovators Award -Advanced new technology to develop the new "high field" EMDEX meter for measuring comprehensive occupational magnetic field exposures. (1994) • EPRI Recognition Award -For outstanding efforts and service in the EPRI Nationwide Residential Magnetic Field Measurement Program. (1992) • R&D Performance Award Nominee -Obtained $500,000 co-funding, managed a complex project of over $1,000,000 and gained regulatory technical approval. (1991) • R&D Performance Recognition Program Award-Obtained more than $200,000 co-funding from EPRI for PG&E's geothermal research. (1988) • Distinguished Employee Award-Provided technical review ofEPRI research proposals and reports. (1986) PUBLICATIONS and PRESENTATIONS • Managed the completion of technical reports. • Published technical papers, and wrote PG&E reports. • Presented research results within PG&E and to outside technical groups. Titles available upon request. Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Ph ____ Home / ____ Office Ph E- Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: AEFEE29C-46D3-4241-AF47-D19BEA5F4932 ,EP 1MGOIPWSR -R EHHMXMSR XS Q] I\TIVMIRGI [MXL XLI &PYI 6MFFSR 'SQQMXXII ERH XLI 7XSVQ (VEMR 3ZIVWMKLX 'SQQMXXII RSXIH FIPS[ - EQ E VIXMVIH EXXSVRI] [LS QEMRXEMRW EGXMZI QIQFIVWLMT MR XLI 7XEXI &EV SJ 'EPMJSVRME 7XEXI &EV 1IQFIV (MWGYWWMSR EQSRK QIQFIVW SJ IEVPMIV 3ZIVWMKLX 'SQQMXXII Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope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ocuSign Envelope ID: AEFEE29C-4603-4241-AF47-D19BEA5F4932 Application Deadline: August 1, 2017 at 4:30pm Consent to Publish Personal Information on the City of Palo Alto Website California Govern ment Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR X I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the fo llowing alternate information and request that t hey use the following contact information instead. dd Post Office Box 20062, Stanford, CA 94309 A ress:~--------------------------------~ C II Ph 650 868 2938 e one:--------------------------------~ 650 868 2938 _x_ Home/ __ Office Phone:-------------------------- E-mail : unclehalpaloalto@gmail.com The phone number I address can be non-public and different than the address collected on page one. la DocuSigned by: Signature: l!:2~~~~~ Date: 7 /14/2017 (Optional) Additional Attachmentlsl If yo u would like to submit a resume, work sample, etc. along wit h your Application, Check this box and click "Attach" to upload your document(s). Hal Mickelson Storm Water Ma nagement Oversight Committee 4 of4 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 70F7BCC9-C4FA-4274-BB2A-E9F8F7E0C0C6 HQSWWEV$KQEMPGSQ 4EPS%PXS'MX]'SYRGMPQIQFIV 1E]SV (MVIGXSV7ER*VERGMWUYMXS'VIIO.SMRX4S[IVW%YXLSVMX] (MVIGXSV:EPPI]8VERWTSVXEXMSR%YXLSVMX] (MVIGXSV&E]%VIE%MV5YEPMX]1EREKIQIRX(MWXVMGX )QIVWSR7X (IRE1SWWEV Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: 70F7BCC9-C4FA-4274-BB2A-E9F8F7E0C0C6 4VMSVXSQ]WIVZMGISRXLI4EPS%PXS'MX]'SYRGMP-QEREKIHE 8VERWTSVXEXMSR(IQERH1EREKIQIRX4VSKVEQJSVXLI4EPS%PXS1IHMGEP *SYRHEXMSR-[SVOIH[MXLXLI4EPS%PXS'LEQFIVSJ'SQQIVGIXSJSYRH XLI4EPS%PXS8V]8VERWMX'EQTEMKRERHXLI7TIGMEP)ZIRX7LYXXPI 4VSKVEQ-[EWEJSYRHMRKQIQFIVSJXLI7ERXE'PEVE'SYRX]'VIIOW 'SEPXMSRERHXLI7MPMGSR:EPPI]4SPPYXMSR4VIZIRXMSR'IRXIV- 'S'LEMVIHXLI6IWIEVGL4EVO8VERWTSVXEXMSR8EWO*SVGI-[EWXLI VIGMTMIRXSJXLI%MV(MWXVMGX W'PIER%MV'LEQTMSR%[EVHMR 8LI'MX] WSVMKMREPWXSVQ[EXIVTVSKVEQYRJSPHIHHYVMRKQ]XIRYVISR XLI'MX]'SYRGMP-RS[LEZIXLIXMQIXSGSRXMRYIQ]MRZSPZIQIRXXS LIPTWLITLIVHXLIGYVVIRXTVSKVEQIWXEFPMWLIHMRXSEWYGGIWWJYP GSQTPIXMSR -WIVZIHSRXLI0MFVEV]&SRH'MXM^IR W%HZMWSV]'SQQMXXIIERHEQ JEQMPMEV[MXLXLIRIIHERHTYVTSWISJWYGLERSZIVWMKLXGSQQMXXII 6IXMVIH 'MX]SJ4EPS%PXS Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: 70F7BCC9-C4FA-4274-BB2A-E9F8F7E0C0C6 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 0A126F4C-3C13-4CE6-A413-AE335DC6C47A .SWMRE%ZI4EPS%PXS'% )QEMPJVSQEJVMIRHMR4YFPMG;SVOW &7)PIGXVMGEP)RKMRIIVMRK 'SQTYXIV7GMIRGI 4IVQEGYPXYVI(IWMKR'IVXMJMGEXI %TVMQEV]4IVQEGYPXYVIXIRIXSR[EXIVMWWPS[MXWTVIEHMXWMROMX ERH- ZIPIEVRIHQER]QIXLSHWXSHSXLMW (IGEHIWPSRKMRXIVIWXERHWXYH]SJ7XSVQ;EXIVQEREKIQIRXLEZILEH MRWXEPPIHWIZIVEPJIEXYVIWXSVIXEMRVEMR[EXIVSRWMXI VEMRFEVVIPW GIHVMGGSQTSWX$KQEMPGSQ 'IHVMG4MXSXHI0E&IEYNEVHMIVI Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? 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Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: 0A126F4C-3C13-4CE6-A413-AE335DC6C47A Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: 74F71536-DFCD-4CAC-A4D8-59240A77E258 4VSJIWWMSREPGMZMPIRKMRIIV 1EWXIVWERH&EGLIPSVWMR'MZMP)RZMVSRQIRXEP)RKMRIIVMRK7XERJSVH 9RMZIVWMX] 7IVZIHSRWXSVQ[EXIVXEWOJSVGIERHGSGLEMVIHGEQTEMKRJSVTEWWEKI FSF$[IR^PEYRIX &SF;IR^PEY (ERE%ZIRYI Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: 74F71536-DFCD-4CAC-A4D8-59240A77E258 8LIVIEVIRSEVIEWXLEXHSRSXEPMKR[MXLQ]MRXIVIWX )RKMRIIV 8IVVEHI\-RG 4VIWMHIRX2IMKLFSVW%FVSEHSJ4EPS%PXS 'S'LEMV'EQTEMKRJSV4EPS%PXS7XSVQ[EXIV 1IQFIV'MXM^IR%HZMWSV]'SQQMXXIIJSV'SQTVILIRWMZI4PER TEVXMEPP] GSQTPIXIH 1IQFIV&PYI6MFFSR8EWOJSVGIJSV'SQTSWXMRK 1IQFIV>IVS;EWXI8EWO*SVGI >IVS;EWXI&PSGO0IEHIV 1IQFIV/M[ERMW-RXIVREXMSREPSJ4EPS%PXS *SYRHIVERH&SEVHQIQFIV6ITEMV'EJISJ4EPS%PXS &SEVHQIQFIV'IRXIVJSV4YFPMG)RZMVSRQIRXEP3ZIVWMKLX *SYRHIVERH')38IVVEHI\-RG Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope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pplication Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: 74F71536-DFCD-4CAC-A4D8-59240A77E258 Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 1 of 4 Personal Information Note: The SWMOC meets on an as needed basis Name: Address: Cell Phone: ____ Home / ____ Office Phone: E-mail: Are you a Palo Alto Resident? ____ Yes ____ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? ____ Yes ____ No Are you available and committed to complete the term applied for? ____ Yes ____ No Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2)provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? ____ Yes ____ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ___ Yes ___ No How did you learn about this vacancy? ____ Community Group ____ Email from City Clerk ____ Palo Alto Weekly ____ Daily Post ____City Website ____ Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: DocuSign Envelope ID: A5FB295C-24F2-4799-AAA1-AE5B5237F8ED +VEHYEXISJ7XERJSVH9RMZIVWMX] MR'MZMP)RKMRIIVMRK 0MGIRWIHEWE'MZMP)RKMRIIVMR'EPMJSVRMEJSVSZIV]IEVW 7IIVIWYQIJSV4VSJIWWMSREPI\TIVMIRGI 1IQFIVSJ7XSVQ(VEMR3ZIVWMKLX'SQQMXXIIJSV]IEVW 1IQFIVSJXLI7XSVQ(VEMR&PYI6MFFSR'SQQMXXII &VMEV[SSH;E]4EPS%PXS'% 6MGLEVH-;LEPI] VMGLEVH$XMROIVTMRGSQ Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 2 of 4 Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Storm Water Management Oversight Committee that is aligned with your interests? DocuSign Envelope ID: A5FB295C-24F2-4799-AAA1-AE5B5237F8ED 'MX]SJ4EPS%PXS 2IMKLFSVW%FVSEH4EPS%PXS,MWXSVMGEP7SGMIX] 3RISJQ]4VSJIWWMSREPWTIGMEPXMIW 'LMIJ'SRWXVYGXMSR-RWTIGXSV9XMPMXMIW Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 3 of 4 2. Please describe your experience with and knowledge of the City of Palo Alto Storm Water Management program or projects. 3. What do you think are the highest priorities regarding storm drains and how would you spend storm water funds? DocuSign Envelope ID: A5FB295C-24F2-4799-AAA1-AE5B5237F8ED 4VMSVMXMIWEVIPMWXIHMR7XSVQ(VEMRVITSVX+SEPMWXSVIHYGI WXVIIXJPSSHMRK 7IIEFSZI]IEVWSRXLI'SQQMXXII Application Deadline:August 1, 2017 at 4:30pm Storm Water Management Oversight Committee 4 of 4 Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, This consent form will not be redacted and will be attached The full code can be read here: Read the code, and check only ONE option below: _ Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ____ Home / ____ Office Phone: ___________________________________________________ Email: ____________________________________________ The phone number / address can be nonpublic and different than the address collected on page one. (Optional) Additional Attachment(s) If you would like to submit a resume, work sample, etc. along with your DocuSign Envelope ID: A5FB295C-24F2-4799-AAA1-AE5B5237F8ED RESUME RICHARD I. WHALEY, P.E. Civil Engineer Mr. Whaley is a California licensed Civil Engineer, RCE 16149; and a graduate of Stanford University in Civil Engineering, 1958. Experience as follows: City of Palo Alto, Utilities Department, Water, Gas, Wastewater, Palo Alto, Ca. Supervisor of Construction Inspectors. 1990 – 2005. Supervised three inspectors. Duties included plan review, field inspection, progress reports, and as-built records. Projects included water, gas, wastewater, road, and tank construction. Barrett Consulting Group, Menlo Park, Ca., Project Engineer. 1985 – 1990 Duties involved design, construction, and reports for a wide range of projects. Clients included the Cities of Palo Alto, Mill Valley, Redwood City, and Mountain View; the U.S.Navy; and FEMA. Richard I. Whaley, Civil Engineer, Palo Alto, Ca. Owner and operator. 1975 – 1985. Specialized in Municipal Engineering, and was the Town Engineer for Woodside for 20 years. Other work involved land development projects and expert witnessing. R. M. Galloway and Associates, Inc., Burlingame, Ca., Chief Engineer. 1973 – 1975. Supervised an office staff, and performed work for the Town of Woodside, and land development clients. Brian-Kangas-Foulk and Associates, Redwood City, Ca. Project Engineer. 1965 – 1973. Duties included municipal engineering and land development engineering for the Town of Woodside, Stanford University, and the City of Redwood City. George S. Nolte, Consulting Civil Engineers, Inc., Palo Alto, Ca. Project Engineer. 1963 - 1965. As a member of the Sanitary Department, designed sewer outfalls, pump stations, and assessment districts. A drainage plan was also prepared. Charles S. Mc Candless and Company, Consulting Civil Engineers, Palo Alto, Ca, Engineer. 1962 – 1963. Duties included reports, plans, and construction management for water, sanitary sewer, and municipal projects. Deputy Town Engineer for the Town of Los Altos Hills, and Construction Engineer for the Purissima Hills County Water District. American Culvert Company, Oakland, Ca. Sales Engineer. 1958 -1962. Work included sales, promotion, credit clearance, and bill collecting in eleven counties connected with the manufacture of corrugated metal pipe. Professional Affiliations: American Society of Civil Engineers, National Society of Professional Engineers, American Public Works Association, American Water Works Association, and Water Environment Federation. Address: 4240 Briarwood Way Palo Alto, Ca. 94306 650-494-0675 richard@tinkerpin.com City of Palo Alto (ID # 8159) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Acterra Stewardship Agreement - Amendment No. 2 Title: Approval of Amendment Number 2 to the Agreement Between the City of Palo Alto and Acterra to Extend the Term to 2022 and Funding for First Year of $75,720 From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve an amendment to City of Palo Alto’s agreement with Acterra, for stewardship services at the Enid W. Pearson Arastradero Preserve, for an additional term of five years (2017 – 2022) in the amount of $75,720.56 for the 1st year of the extension (Attachment A). Executive Summary In 1996, the City initiated a stewardship agreement with Bay Area Action for habitat restoration and environmental education at the Enid W. Pearson Arastradero Preserve (Preserve). Bay Area Action later became Acterra and their stewardship program now operates as Grassroots Ecology. An approved 2007 agreement amendment included a clause providing for the extension of the agreement for an additional five-year period if the performance of the steward was satisfactory. The contract was again amended in 2012 for a period of five years. Acterra has continued to meet and exceed the goals of the Pearson Arastradero Preserve Management Plan (Attachment B). Therefore, staff recommends amending the agreement for an additional five year period. Background On March 11, 1996, Council adopted a five-point plan for the management of the Preserve and gave direction to staff to explore opportunities for leveraging City resources, to ensure future maintenance and oversight of the natural resources of the Preserve. This direction included: 1. Explore the possibility of a public/private stewardship agreement; 2. The removal of all existing building structures (house site, cottage and barn); 3. Restoration of habitat in the areas where the structures were located; 4. Explore the potential for a new modest facility as an educational gateway to the Preserve; City of Palo Alto Page 2 5. Create a mechanism to allow funding for some or all elements of the Preserve Management Plan. On May 13, 1996, Council approved the Arastradero Preserve project work plan (CMR:253:96). One element of the work plan addressed the development of the concept of a public/private partnership for stewardship of the Preserve. On November 12, 1996, Council approved the Arastradero Preserve Management Plan and the concept of a stewardship agreement (CMR:423:96). At its April 28, 1997 meeting, Council approved a five-year contract with Bay Area Action to act as the steward of the Preserve and to implement action steps of the Arastradero Management Plan (CMR:199:97). The approved agreement included a clause providing for the amendment of the agreement for an additional five-year period if the performance of the steward was satisfactory. In 2000, Bay Area Action merged with the Peninsula Conservation Center Foundation to become a new organization named Acterra. On July 5, 2002, Council approved the extension of the Stewardship agreement with Acterra for another five year period. Subsequently, Council approved five year contract amendments with Acterra in 2007 and 2012. In 2016, Acterra’s stewardship program changed its name to Grassroots Ecology. Although their stewardship operates as Grassroots Ecology, the City’s amendment agreement is with Acterra. Discussion On October 1, 2007, Council approved a reinstated contract with Acterra to act as the steward of the Preserve and to continue action steps of the Arastradero Management Plan through 2012 (CMR: 374:07) (Attachment C). The approved agreement included a clause (Section 3.2 of the 2007 Acterra Stewardship Agreement) providing for the extension of the agreement for an additional five-year period through 2017 if the performance of the steward was satisfactory. On April 16, 2012 Council approved the five year extension through 2017 (Attachment D). Since 1997, Acterra and its predecessors have provided stewardship services and continue to meet and exceed goals of the Preserve Management Plan. Amending the contract for an additional five years will help the City meet the goals of the Pearson Arastradero Preserve Management Plan, and build upon the success and accomplishments of the stewardship agreement. Accomplishments 2012-2017 Acterra/Grassroots Ecology worked with community volunteers to improve habitat within the Enid W. Pearson Arastradero Preserve including: City of Palo Alto Page 3 ● Native plant revegetation along the riparian corridors (Mayfly and Arastradero Creeks) using locally native plants grown in their nursery ● Maintaining and expanding the demonstration garden at the Gateway Facility. ● Management of target invasive plant species, including stinkwort, medusahead, thistles, teasel and hemlock. Removal and control techniques include timed mowing in conjunction with City Rangers, hand pulling, sheet mulching, soil solarization and scything. Pushing back Yellow Starthistle back further and removing plants from the seed bank. Poison hemlock and teasel removal are proceeding well with total control along Mayfly Creek likely within two years. ● Removal of invasive plant species around naturally occurring native plant “hot spots”. Encouraging the natural seeding of native plants, allowing the native plants to fill the space naturally at low cost. ● Protecting and monitoring native tree saplings to allow the next generation of trees to grow to maturity. ● Continuing stewardship of Mayfly Creek that was daylighted in 2008, including addition of woody debris to capture sediment, raising the groundwater table, and allow the creek to connect to its floodplain. Slowing and spreading runoff in Mayfly resulting in sediment deposition and infiltration of water. ● Installation of landscape berms and swales to further capture surface runoff and establish perennial grasses to increase groundwater recharge ● Installation of camera traps in Mayfly Creek demonstrating the biological impact of the restoration. Images have shown mountain lions, bobcats, deer, birds, rodents, and a badger. Following is a quantitative summary of accomplishments over the last five years: ● Engaged over 10,000 people at volunteer workdays and educational events; about 60% youth. ● Organized and managed 780 volunteer events, averaging three per week. ● Installed 15,000 locally native plants. ● Improved 7,300 linear feet of creek bank habitat through invasive removal, native plant installation, and creation of natural stream function. ● Over $500,000 value from the work of volunteers. Resource Impact An allocation of $75,720.56 for the first year of the amendment to the five-year stewardship agreement with Acterra, including basic restoration activities, is included in the City’s Fiscal Year 2018 Operating Budget, adopted by the City Council on June 27, 2017. Once the Council approves the amendment to the stewardship agreement, staff will encumber the first year City of Palo Alto Page 4 allocation amount for stewardship services at the Preserve. The agreement includes a provision under Section 2.5 that the amount of compensation will be negotiated by the City and Acterra on or before February 1 of 2018, 2019, 2020 and 2021, respectively, and that the compensation shall be based on an adjustment factor reflected in the Consumer Price Index – All Urban Consumers for the San Francisco-Oakland-San Jose MSA. Fiscal Year 2018 will be considered the base year for purposes of the adjustment calculation. Acterra proposes to continue utilizing donations, grant funding and money obtained through fundraisers to significantly augment funds from the City for stewardship expenses. Most recently, they received a three year $100,000 grant from the Santa Clara Valley Water District to reduce erosion, recharge groundwater, and improve habitat along Arastradero Creek. Policy Implications The proposal to have a non-profit organization continue to serve as the Preserve steward to assist the City in the accomplishment of the goals of the Management Plan is consistent with the public/private partnership policy. Environmental Review The Stewardship Agreement represents a continuation of the same use of existing facilities; therefore, it carries a Class I facility exemption under Section 15301 of CEQA. Attachments: Attachment A - ACTERRA 2017 Agreement AMENDED AND RESTATED 06.23.17 FINAL.doc Attachment B - Pearson Arastradero Preserve Management Plan Attachment C - 2007 - 2012 Acterra Stewardship Agreement Attachment D - 2012 - 2017 Acterra Stewardship Extension AMENDED AND RESTATED STEWARDSHIP AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ACTERRA This Amended and Restated Stewardship Agreement (the "Agreement"), dated as of July 1, 2017, is made by and between the City of Palo Alto, a California chartered municipal corporation (the "CITY"), and Acterra, a California public benefit corporation organized under the California Nonprofit Public Benefit Corporation Law (the"STEWARD") (individually, a "Party" and, collectively, the "Parties"), in reference to the following facts and circumstances: RECITALS: 1. The CITY owns certain Palo Alto real properties, commonly known as the Enid Pearson Arastradero Preserve (523 acres) and the Hewlett-Mullen Property 99 acres) (collectively, the "Preserve"), and shown in Exhibit A, attached hereto and incorporated herein by reference. 2. The CITY'S policy applicable to the Preserve, enunciated in the Arastradero Conceptual Master Plan, adopted June 20, 1983, is "to create a low intensity and minimal cost park with emphasis on natural and open space amenities of the land and sensitivity to the fragile foothills ecology. Uses planned for the park should not duplicate those provided in urban neighborhood or regional parks." 3. The CITY adopted a plan for the Preserve, the Arastradero Preserve Management Plan (the "Plan"), on November 12, 1996, and shown in Exhibit C, attached hereto and incorporated herein by reference. 4. The success of the Plan is directly related to the active support and involvement of the community. 5. The STEWARD intends to benefit the CITY and the general public by providing services in accordance with the CITY's referenced policy and the Plan. By this Agreement, the STEWARD will, under the direction of the City Manager, or designee, and through the use, of supervised volunteers, provide education and research programs, and perform a variety of maintenance and habitat restoration activities on the Preserve. 6. The Parties entered into a Stewardship Agreement on July 1, 2002, and now desire to amend and restate this agreement. NOW, THEREFORE, in consideration of the following covenants, terms and conditions, the Parties agree, as follows: DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 SECTION 1. PURPOSE 1.1 The purpose of this Agreement is to have both parties cooperate in the preservation, protection and enhancement of the Preserve. SECTION 2. SCOPE OF SERVICES 2.1 The STEWARD shall: A. Coordinate all of its activities at the Preserve with the City Manager or designee. B. Under the direction of the CITY, perform habitat restoration, removal and control of non-native, invasive weeds, trail maintenance and repair, litter removal, erosion control, and habitat restoration activities in accordance with the Plan. C. Under the direction of the CITY, provide and staff educational programs to educate the public about the Preserve and its amenities. D. Under the direction of the CITY, conduct ecological research in order to monitor the resources and the impacts of visitor use on the Preserve. E. Under the direction of the CITY, mobilize volunteers for Preserve projects and programs. F. Under the direction of the CITY, organize fundraising efforts for Preserve projects and programs. G. Within sixty (60) days after the Parties' execution of the Agreement, and thereafter on or before October 1 of each year during the term of this Agreement, the STEWARD shall submit to the City Manager, or designee, a proposed written annual work plan of activities to be carried out at the Preserve during the current fiscal year. On or before December 1 of each year, the STEWARD shall submit a proposed budget and any request for CITY funding for the following fiscal year. The STEWARD and the City Manager, or designee, shall jointly review the work plan, the budget, and any request for CITY funding, and shall jointly develop performance objectives and standards for the STEWARD'S activities. Upon approval, the City Manager, or designee, shall forward any budget request in accordance with the CITY's annual budget process. Any payments from approved requests for CITY funding will be made on a quarterly basis beginning July 1, 2017. As of September 1, 2017, and on or before September 1 of each succeeding fiscal year during the term of this Agreement, the STEWARD and the City Manager, or designee, shall conduct a performance review, indicating the activities that have been carried out at the Preserve for the past fiscal year, and conformance to the agreed upon performance objectives and standards. The performance review shall serve as a basis for consideration of any requests for funding or extension of the term of this agreement. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 H. The STEWARD may perform other services related to the preservation, protection and enhancement of the Preserve, as approved, in writing, by the CITY. 2.2 The CITY will: A. Provide overall management of the Preserve. B. Review all activities proposed for the Preserve. All activities of the STEWARD must be pre-approved by the City Manager. C. Be responsible for maintenance of all utility facilities within the Preserve, including those that do not benefit the Preserve directly. D. Be responsible for maintenance of all roads within the Preserve, signage, tree trimming and tree removal, fire management, law enforcement, and lake management. 2.3 The CITY may: A. Provide its own educational programs, conduct research, perform habitat restoration, remove and control non-native, invasive weeds, trail maintenance and repair, litter removal, erosion controls, raise funds, and supervise volunteers or contract with others to perform these duties. 2.4 As compensation for the services fully and faithfully provided during the Term specified in Section 3.1 by the STEWARD hereunder, the CITY will pay the STEWARD at the beginning of each calendar quarter, commencing July 1, 2017, upon receipt of the STEWARD's invoice the amount of eighteen thousand nine hundred thirty dollars and fourteen cents ($ 18,930.14), for a total annual compensation of seventy five thousand seven hundred twenty dollars and 56 cents ($ 75,720.56). 2.5 The payment amount set forth in Section 2.4 above will be adjusted on each July 1 of FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21. The amount of the adjusted compensation will be negotiated by the Parties on or before February 1 of 2017, 2018, 2019 and 2020, respectively, and be based on an adjustment factor reflected in the Consumer Price Index - All Urban Consumers for the San Francisco-Oakland-San Jose MSA. FY 2017-18 will be considered the base year 100 for purposes of the adjustment calculation. SECTION 3. TERM; EXTENSION; TERMINATION 3.1 The term of this Agreement (the "Term") shall be five (5) years, commencing on July 1, 2017, unless it is earlier terminated as herein provided. 3.2 The Term may be extended by the Parties for one additional five-year period. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 3.2 A Party may terminate this Agreement, with or without cause, upon thirty (30) days' prior written notice given to the other Party. SECTION 4. CONTROL OF HOURS, PRICES AND PROCEDURES 4.1 The STEWARD shall have access to the Preserve for the uses specified in Section 2 during normal business hours of the Preserve. The STEWARD shall at all times maintain a written schedule, setting forth the operating hours and operating procedures for each service provided at the Preserve. 4.2 At the written request of the CITY, the STEWARD shall furnish to the City Manager, or designee, a copy of the schedules and procedures aforementioned. Should the City Manager, or designee, decide that any part of these schedules or procedures is not responsive to the needs of the public, the STEWARD, upon receipt of written notice from the City Manager, or designee, shall modify the schedules and/or procedures to the reasonable satisfaction of the City Manager, or designee. Prior to issuing such notice, the City Manager, or designee, shall personally review and confer with the STEWARD or its representative. 4.3 Because the Preserve is public property and the STEWARD is acting for and on behalf of the CITY, the STEWARD, its officers, employees, agents and representatives shall conduct themselves in a courteous and efficient manner and be neat in appearance while they are working at the Preserve. The STEWARD shall hire and retain active, qualified, competent, and experienced personnel to supervise the STEWARD'S operations at the Preserve. The STEWARD shall closely monitor volunteers and otherwise ensure the highest standards of service to the public are maintained. SECTION 5. INSURANCE 5.1 Minimum Limits and Forms of Coverage. The STEWARD shall obtain and maintain the following insurance coverage acceptable to the CITY in full force and effect during the Term. POLICY MINIMUM LIMITS OF LIABILITY A. WORKER'S Statutory COMPENSATION B. COMPREHENSIVE Bodily Injury $1,000,000 ea. person AUTOMOBILE LIABILITY Property Damage $1,000,000 ea. person including owned, hired, and non-owned automobiles C. COMPREHENSIVE Bodily Injury $l, 000,000 ea. person GENERAL $1,000,000 ea. occurrence LIABILITY $1,000,000 aggregate DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 including products Property Damage $1,000,000 ea. occurrence & completed operations, Personal Injury $1,000,000 ea. occurrence broad form contractual, and personal injury. 5.2 Required Clauses. Insurance shall be in full force and effect before the Term may commence. Every insurance policy required by this Agreement shall contain the following clauses: A. "This insurance shall not be canceled, limited in scope of coverage or nonrenewed until after thirty (30) days written notice has been given to: City of Palo Alto/Superintendent Open Space and Sciences, PO Box 10250, Palo Alto, Cal. 94303". B. "All rights of subrogation are hereby waived against the CITY OF PALO ALTO and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their employment or appointment. " C. "The CITY OF PALO ALTO is added as an additional insured as respects operations of the named insured at or from the Preserve." D. "It is agreed that any insurance maintained by the CITY OF PALO ALTO will apply in excess of, and not contribute to, insurance provided by this policy." 5.3 Evidence of Insurance Coverage and/or Changes A. Certificate of Insurance. STEWARD agrees to deposit with CITY'S Superintendent, Open Spaces and Sciences, before the effective date of thisAgreement, certificates of insurance necessary to satisfy CITY that the insurance provisions of this Agreement have been complied with, and to . ensure that such insurance is kept in effect, with the certificates on deposit with CITY, during the entire term of this Agreement. Should STEWARD not provide evidence of such required coverage at least three (3) days prior to the expiration of any existing insurance coverage, CITY may purchase such insurance, on behalf of and at the sole expense of STEWARD, to provide six months coverage. B. Review of Coverage. CITY shall retain the right, at any time, to review the coverage, form, and amount of the insurance required hereby. If, in the opinion of the Risk Manager, the insurance provisions in this Agreement do not provide adequate protection for CITY and for members of the public using the Preserve, the City Manager, or his designee, may require an amount to provide adequate protection as determined by the Risk Manager. CITY's requirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk which exists at the time a change in insurance is required. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 C. Changes in Coverage. The City Manager, or his designee, shall notify STEWARD in writing of changes in the insurance requirements; if STEWARD does not deposit copies of acceptable insurance policies with CITY incorporating such changes within sixty (60) days of receipt of such notice, or in the event STEWARD fails to ensure that the required insurance coverage is maintained in effect, this Agreement shall be in default without further notice to STEWARD. D. No Limit of Liability. The procuring of such required policy or policies of insurance shall not be construed to limit STEWARD's liability hereunder nor to fulfill the indemnification provision and requirements of this Agreement. Not withstanding said policy or policies of insurance, STEWARD shall be obligated for the full and total amount of any damage, injury, or loss caused by or connected with this Agreement, with the STEWARD'S use of the Preserve. E. Acceptability of Insurers. Insurance shall be placed with insurers with a current A.M. Best's rating of no less than A:X. SECTION 6. INDEMNITY 6.1 Except as provided under section 6.2, the STEWARD hereby waives all claims, liability and recourse against the CITY, including the right of contribution for loss or damage of or to persons or property arising from, growing out of, or in any way connected with or related to this Agreement. The STEWARD agrees to protect, indemnify, hold harmless and defend the CITY, its elected officials, officers, employees and agents, against any and all claims, losses, liability, demands, damages, costs, expenses or attorneys' fees arising out of the STEWARD's negligent performance or nonperformance of its obligations under the terms of this Agreement. In the event the CITY is named as co-defendant, the STEWARD shall notify the CITY of such fact and shall represent the CITY in such legal action, unless the CITY undertakes to represent itself as codefendant in such legal action, in which event the STEWARD shall pay to the CITY its reasonable litigation costs and expenses, including reasonable attorneys' fees. 6.2 The CITY agrees to protect, indemnify, hold harmless and defend the STEWARD, its officers, employees and agents, against any and all claims, losses, liability, demands, damages, costs, expenses or attorneys' fees arising out of the CITY's negligent performance or nonperformance of its obligations under the terms of this Agreement. SECTION 7. NO PROPERTY RIGHTS 7.1 The Parties agree that this Agreement shall not confer any property right upon the STEWARD or its officers, employees, members or volunteers. Any work performed for the benefit of the Preserve and any improvements placed or constructed at DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 the Preserve shall conform to the CITY's standards and approved by the City Manager, or designee, and shall, upon acceptance, become the property of CITY. SECTION 8. ASSIGNMENTS 8.1 As the CITY has relied on the specific background and capabilities of the STEWARD in the award of this Agreement, any mortgage, pledge, hypothecation, encumbrance, transfer, sublease, or assignment (collectively referred to as "Encumbrance") of the STEWARD's interest in the Preserve or any part or portion thereof, is prohibited. Any attempted Encumbrance shall be null and void and shall confer no right, title, or interest in or to this Agreement. SECTION 9. NOTICES 9.1 Unless otherwise required by the terms and conditions of this Agreement, whenever notice is required to be furnished by this Agreement, it shall be mailed, first class, postage prepaid, to the following: To CITY: To STEWARD: City Clerk Executive Director City of Palo Alto ACTERRA P.O. Box 10250 3921 E. Bayshore Road, Suite 202 Palo Alto, CA 94303 Palo Alto, CA 94303-4303 with a copy to: Division Manager, Open Space, Parks & Golf City of Palo Alto P.O. Box 10250 Palo Alto, Ca 94303 SECTION 10. EXHIBITS TO AGREEMENT 10.1 General Conditions. All general terms, conditions, and provisions applicable to contracts respecting land entered into by the City shall apply to this Agreement, and the same is attached hereto and incorporated herein by reference as Exhibit B. 10.2 This Agreement includes the following, which are expressly attached here to and by this reference incorporated into this Agreement: Exhibit A - Map showing area of the Preserve Exhibit B - General Conditions Exhibit C - Arastradero Preserve Management Plan (dated July 1, 2002) DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 The inclusion of provisions in Exhibit B (General Conditions) is not in any way intended to lessen their importance, but is merely done to enhance the organization of various sections and this Agreement. IN WITNESS WHEREOF, the Parties by their duly appointed representatives have executed this Agreement as of the date first above written. CITY OF PALO ALTO ACTERRA ________________________ __________________________ City Manager Executive Director __________________________ City Attorney or Designee DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 EXHIBIT A MAP SHOWING AREA OF THE PRESERVE DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 EXHIBIT B GENERAL CONDITIONS 1. DEFINITIONS CITY shall mean the City Council of the City of Palo Alto, a municipal corporation. The City Manager is hereby authorized to take any actions under this Agreement. Clauses in this Agreement refer to specific officers or employees of CITY. Should these positions be eliminated or the title changes, it is understood and agreed that such references shall be considered to be to the new title for renamed positions or to the replacement official designated with the responsibilities of any eliminated position. 2. ASSURANCES A. Each Party represents and warrants that it has the authority to enter into this Agreement. B. STEWARD is a duly qualified nonprofit corporation authorized to do business in Santa Clara County. 3. TIME Time is of the essence of this Agreement. 4. PERMITS AND LICENSES STEWARD shall be required to obtain any and all permits and/or licenses which may be required in connection with the operation of the Preserve as set forth in this Agreement. 5. AMENDMENT ORGANIZATION AND RULES OF CONSTRUCTION Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context otherwise indicates, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including public bodies, as well as natural persons. The terms "hereby", "hereof" "hereto", 'herein', "hereunder and any similar terms, as used in this Agreement, refer to this Agreement. All the terms and provisions hereof shall be construed to effectuate the purposes set forth herein, and to sustain the validity hereof. The titles and headings of the sections of this Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 hereof or be considered or given any effect in construing this Agreement or any provision hereof in ascertaining intent, if any question of intent shall arise. 6. ENTIRE AGREEMENT; AMENDMENTS This Agreement sets forth the entire agreement between Parties. Any modifications must be written and properly executed by both Parties. 7. UNLAWFUL USE STEWARD agrees that no improvements shall be erected, placed upon, operated, nor maintained upon the Preserve, nor any business conducted or carried on therein or therefrom, in violation of the terms of this Agreement, or of any regulation, order of law, statute, or ordinance of a governmental agency having jurisdiction over STEWARD'S use of the Preserve. 8. NONDISCRIMINATION STEWARD and its employees shall not discriminate against any person because of race, color, religion, ancestry, age, sex, national origin; disability or sexual preference. STEWARD shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex, age, national origin, disability or sexual preference. STEWARD covenants to meet all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in employment. If STEWARD is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of federal law or executive order in the conduct of its activities under this Agreement by the State of California Fair Employment Practices Commission or the equivalent federal agency or officer, it shall thereby be found in default under this Agreement, and such default shall constitute a material breach of this Agreement. CITY shall then have the power to cancel or suspend this Agreement in whole or in part. 9. DISPOSITION OF ABANDONED PERSONAL PROPERTY If STEWARD abandons the Preserve or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to STEWARD and left on the Preserve forty-five (45) days after such abandonment or dispossession shall be deemed to have been transferred to CITY. CITY shall have the right to remove and to dispose of such property without liability therefore to STEWARD or to any person claiming under STEWARD, and shall have no need to account therefore. 10. HAZARDOUS SUBSTANCES A. Definition. As used herein, the term 'Hazardous Materials" means any substance or material which has been determined by any state, federal or local governmental authority to be capable of posing risk of injury to health, safety, and property, including petroleum and petroleum products and all of those materials and DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 substances designated as hazardous or toxic by the U.S. Environmental Protection Agency, the California Water Quality Control Board, the U.S. Department of Labor, the California Department of Industrial Relations, the California Department of Health Services, the California Health and Welfare Agency in connection with the Safe Water and Toxic Enforcement Act of 1986, the U.S. Department of Transportation, the U.S. Department of Agriculture, the U.S. Consumer Product Safety Commission, the U.S. Department of Health and Human Services, the U.S. Food and Drug Administration or any other governmental agency now or hereafter authorized to regulate materials and substances in the environment. Without limiting the generality of the foregoing, the term "Hazardous Materials" shall include all of those materials and substances defined as 'toxic materials" in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, as the same may; be amended from time to time. B. STEWARDS Use of Preserve. During the term of this Agreement, STEWARD shall abide and be bound by all of the following requirements: i. STEWARD shall comply with all laws now or hereafter in effect relating to the use of Hazardous Materials on, under or about the Preserve, and STEWARD shall not contaminate the Preserve, or its sub surfaces, with any Hazardous Materials. ii. STEWARD shall restrict its use of Hazardous Materials in the Preserve to those kinds of materials that are normally used in constructing the Project. Disposal of any Hazardous Materials at the Preserve is strictly prohibited. Storage of such permissible Hazardous Materials is allowed only in accordance with all applicable laws now or hereafter in effect. All safety and monitoring features of any storage facilities shall be approved by CITY'S Fire Chief in accordance with all laws. iii. STEWARD shall be solely and fully responsible for the reporting of all Hazardous Materials releases to the appropriate public agencies, when such releases are caused by or result from STEWARD'S activities on the Preserve. STEWARD shall immediately inform CITY of any release of Hazardous Materials, whether or not the release is in quantities that would otherwise be reportable to a public agency. iv. STEWARD shall be solely and fully responsible and liable for such releases at the Preserve, or into CITY'S sewage or storm drainage systems. STEWARD shall take all necessary precautions to prevent any of its Hazardous Materials from entering into any storm or sewage drain system or from being released on the Preserve. STEWARD shall remove releases of its Hazardous Materials in accordance with all laws. In addition to all other rights and remedies of CITY hereunder, if the release of Hazardous Materials caused by STEWARD is not removed by STEWARD within ninety (90) days after discovery by STEWARD, CITY or any other third party, CITY may pay to have the sane removed and STEWARD shall reimburse CITY for such costs within five (5) days of CITY'S demand for payment. v. STEWARD shall protect, defend, indemnify and hold harmless CITY from and against all loss, damage, or liability (including all foreseeable and. unforeseeable DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 consequential damages) and expenses (including, without limitation, the cost of any cleanup and remediation of Hazardous Materials) which CITY may sustain as a result of the presence or cleanup of Hazardous Materials on the Preserve. vi. STEWARD'S obligation under this Clause shall survive the expiration or earlier termination of this Agreement. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 EXHIBITC ARASTRADERO PRESERVE MANAGEMENT PLAN CITY OF PALO ALTO MANAGEMENT PLAN FOR THE ARASTRADERO PRESERVE Purpose The purpose of this Management Plan is to provide guidelines for staff implementation of City Council direction regarding the management of the Pearson Arastradero Preserve and the Hewlett-Mullen property. Council Policy and Mission Statement At its meeting of July 23, 1984, the City Council adopted a Conceptual Master Plan for the creation of a "low intensity and minimal cost park, with emphasis on the natural and open space amenities of the land and sensitivity to the fragile foothills ecology. Uses planned for the park should not duplicate those provided in urban neighborhood or regional parks." The Conceptual Master Plan was based, in large part, on the recommendations of an eight-member Arastra Citizens Advisory Committee. This statement became, and remains, the mission statement for the Preserve. This Plan incorporates habitat preservation as its primary goal, while at the same time providing for appropriate public access and activities. In instances where public access and activities conflict with the natural values of the Preserve, the preservation of the natural values of the Preserve shall prevail. Responsibilities The City Council is responsible for providing policy direction on all use of the Arastradero Preserve. The public's use of the Preserve is regulated by ordinances contained within the City's Municipal Code. The Community Services Department has primary responsibility for implementing the elements of this Plan. Enforcement of the City's Municipal Code, as it relates to the Pearson Arastradero Preserve, will be the responsibility of the park ranger staff, with support from other City departments. Park rangers will also have a major role in responding to fire and medical emergencies on the Preserve. The Steward, who will be a contracted nonprofit, local, community-based organization, may be used in maintaining the Preserve. The mission of the Steward would be complimentary to the mission of the Preserve and would enter into a contractual agreement for designated shared stewardship responsibilities for the Preserve. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Working under the direction of the City, the Steward will assist in habitat restoration, removal and control of non-native, invasive weeds, trail maintenance and repair, educational activities, research and riparian habitat management. The Steward's responsibilities for each of these areas are discussed in more detail in the Appendix to this Plan. Notwithstanding, the overall administration and management of the Arastradero Preserve remains the responsibility of the City of Palo Alto. The Department of Public Works is responsible for the oversight and coordination of engineered capital improvement projects on the Preserve. The Utilities Department is responsible for maintenance of all electric, gas, water and wastewater facilities on the Preserve. Their activities are described in greater detail in Chapter 5 of the Management Plan, "Utilities Department Maintenance Responsibilities on the Preserve." The Fire Department is responsible for wildland fire prevention and suppression on the Preserve through implementation and revision of the Foothills Fire Management Plan. The Department's activities are described in greater detail in the chapter on "Open Space Management and Habitat Protection." The success of this Management Plan is directly related to the support the Preserve receives from the community. This support may come as financial contributions for specific activities on the Preserve, from individual volunteers working on projects, and from nonprofit organizations which provide groups of volunteers to assist in such activities as trail maintenance and repair, litter removal, erosion controls, and habitat restoration. CHAPTER 1: HISTORY OF THE ARASTRADERO PRESERVE In August 1969, Arastra Ltd., the owners of the Arastradero property, applied for a Planned Community zone change for construction of 1,776 dwelling units. The City denied this proposal. During this same period, the City hired a consultant to study land use and the ability of the City to provide services to potential foothills developments. The City Council amended the Comprehensive Plan in June 1971, to include most of the foothills area in "Open Space - Controlled Development." An Open Space Element for the General Plan was subsequently adopted in April 1972. That year, the City also adopted an Open Space zone district, which required an average of ten acres per dwelling unit. In September 1972, Arastra Ltd. sued the City, claiming $15.6 million in damages, plus interest, attorney's fees and costs. Litigation proceeded for the next three years. In September 1975, the U. S. District Court ruled in Arastra Ltd.'s favor that the zoning amounted to a "taking" of Arastra's property and that all that remained to be completed was determination and payment of the value of DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 the land as of September 1972. The City was ordered to purchase the land. Arastra Ltd. and City officials met several times and reached agreement out of court to settle the suit. A settlement fee of $7,475,000 was paid to Arastra Ltd. in July 1976, and the City became the fee owner of the property, which, in addition to the approximately 510 acres, included a six-bedroom, 5,965 square foot house, a large barn and a second, small two- bedroom house. In 1981, the Council adopted an ordinance dedicating 432.781 acres of the Pearson Arastradero Preserve as park land. In 1992, the Council dedicated 77 .219 acres of the Preserve as park land. In addition, in 1982 the Council dedicated 99.002 acres of the Hewlett-Mullen property as parkland. Although not officially a part of the Arastradero Preserve, the Hewlett-Mullen property is included as part of this Management Plan. The total acreage for the area contained within the Plan is around 609 acres. In March 1992 (CMR: 165:92), staff requested Council direction as to the future of the improvements within the Pearson Arastradero Preserve. Staff recommended the demolition of the main and small houses, with the retention of the barn for use by the Recreation, Open Space and Sciences Division. Council, instead, directed staff to proceed with a Request for Proposal (RFP) to solicit alternatives for use of the structures on the Preserve, consistent with the requirements of the park dedication ordinance. In July 1993 (CMR: 432: 93), staff presented the responses to the RFP. The Challenge Learning Center (CLC) responded and then withdrew its proposal, citing in its decision to withdraw the "unwarranted, large time and expense anticipated in dealing with the opposition raised by Arastradero neighbors, and the fact that staff would not be able to recommend the proposal to Council in light of neighborhood concerns." Staff again recommended the demolition of the main house, as well as the small house, and the retention of the barn. Council, instead, referred the question of the disposition of the Preserve main house to the Policy and Services Committee for "consideration of subdividing the home for use as a single-family residence or other options that may be determined." The Policy and Services Committee recommended to Council, and Council ultimately approved, demolition of both the main house and caretaker's house. On June 19, 1995, Council approved the 1995-96 Capital Improvement Program, which included $90,000 for a project to dismantle the Arastradero main house and caretaker's house. At that time, however, Council directed staff to prepare an RFP for use of the main house, prior to proceeding with removal. Staff transmitted the RFP to Council in October 1995, and after receiving approval, solicited proposals. Proposals were received, from Bay Area Action and the Children's Tree House. Staff recommended that Council reject both proposals. On March 11, 1996, Council adopted the staff recommendation to reject both proposals and further directed staff to take the following steps: 1) proceed with the removal of the structures, utilizing the prior budget funding of $90,000, with the focus on the reuse and recycling of the materials from the structures, and report back to Council prior to the removal of the structures; 2) explore the possibility of a public/private partnership for both the structural work and habitat restoration implementation steps and with respect to DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 the "stewardship" concept; 3) pursue with the individuals represented by attorney Theodore Carlstrom their contribution of $350,000 to the City in connection with carrying out the steps in the recommendation; 4) pursue the implementation of the habitat restoration in the areas where the structures are currently located; and 5) explore the potential for a new modest facility (less than 1,500 square feet) as a gateway to the Pearson Arastradero Preserve, with the potential reuse of the materials from the existing structures. On May 13, 1996, staff presented to Council, for which approval was received, a project work plan to implement Council direction for the Preserve. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 CHAPTER 2: INTERPRETIVE SERVICES AND RESEARCH Interpretive services and research on the Pearson Arastradero Preserve will be the responsibility of the City of Palo Alto, with the active support of the Steward, City staff will review and approve all proposed Steward interpretive and research activities on the Preserve and will evaluate such activities for their impact on the Preserve, and for their value to the community. Interpretive Services City staff and the Steward will conduct limited interpretive services, These services will include programs on the natural and human history of the Preserve, as well as programs on habitat restoration and biological research activities, These programs will be made available both during the week and on weekends and will be designed to assist the public in developing a better understanding and appreciation of the unique natural values of the Preserve. Based on usage, and in order to protect the natural values of the Preserve, City staff may place limitations on the number and types of interpretive programs offered by both the Steward, the City, and other organizations. Research Activities The Pearson Arastradero Preserve provides an opportunity for research on the effects of human activity on natural systems, Although minimally developed, the Preserve has had a long human history, which included livestock grazing, Proposed research on ecological and human impact on the Preserve will be approved in advance by the City, The City will also monitor all research activities to ensure that such activities do not negatively impact the natural values of the Preserve and provide a benefit to the community. The intent is for this research to directly benefit the Preserve through the identification of issues related to habitat restoration and preservation, and the possible development of management techniques designed to maintain the Preserve in as natural a condition as possible, Another goal of research on the Preserve is to provide information that will assist in the management of other open space areas in the region. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 CHAPTER 3: OPEN SPACE MANAGEMENT AND HABITAT PROTECTION Although nature preserves are intended to be maintained with minimal human activity, there are several situations which require active human involvement to protect native plant and animal species and to maintain the habitat in as natural a state as possible. One element of the 1984 Conceptual Master Plan for the Preserve was to, Return the land to its natural state as much as possible, with protected plantings of native oaks and elimination of intruding vegetation, using ecologically sound methods, and eventually placing utilities underground. In addition, on August 13, 1990, the City Council established a policy for overall open space management and habitat protection, which contained the following components: 1. The official policy of Palo Alto will be to retain natural habitat, except in areas where qualified City personnel certify that plants create a fire hazard or on firebreaks, roads or trails which are routinely maintained. 2. In times of higher fire danger, when public safety concerns require the use of non-routine fire prevention methods, the policy of the City of Palo Alto will be to use the least intrusive methods on open space lands. These methods, in the order they are to be used, are: a. Establish fire lines on the perimeters of open space lands, leaving the centers natural. b. Mow, rather than disc, fire lines when the terrain permits. c. Disc fire lines. d. Use herbicides as a last resort. 3. Prior to weed abatement activity, staff will identify and mark for protection any suspected nesting sites for burrowing owls or other ground dwelling animal species. 4. Herbicides shall not be used for weed abatement, except for the control of poison oak in high use areas or interfering with City weed abatement activity. The use of herbicides for this purpose is to be at the discretion of the Superintendent of Open Space and Sciences. 5. Private land owners should be encouraged to follow City policies on weed abatement. Habitat Restoration DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Working under the direction of the City, the Steward will design and recommend a habitat restoration plan for the Preserve. Upon approval, the City will implement the plan with the active support of the Steward. The plan will include: • Habitat restoration on the site of the former houses and barn. • Development of a tree planting plan and implementation schedule, incorporating the use of local, native sources of trees, with an emphasis on the re-establishment of oaks on the Preserve. • Habitat restoration of other sections of the Preserve. • Maintenance of restored areas during the first few years of new vegetation growth. This includes watering of plants and removal of any remaining non-native invasive weeds. • Monitoring of habitat restoration activities, to determine the effectiveness of the plan and to identify areas for further research or effort. Habitat restoration activities may require the closing of sections of the Preserve for periods of time, to allow grasses, trees and shrubs to become established. Areas to be closed for habitat restoration will be approved by the City. Appropriate signs will be installed to notify the public of the areas closed. These signs will be posted, both in the parking lot and adjacent to the closed area(s). Management of Non-Native Invasive Weeds Non-native, invasive weeds are encroaching on the natural habitat of the Pearson Arastradero Preserve. These include but are not limited to: • Canary Grass • Yellow Star Thistle • Bull Thistle • Bristly Ox-Tongue • Poison Hemlock • Fuller's Teasel • Fennel • Italian Thistle • French Broom • Pampas Grass The Steward will develop and submit to the City a recommended plan for the removal or control of non-native, invasive weeds. Upon approval, the City and Steward shall implement the plan. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Methods of control of non-native invasive weeds will include: • Hand and mechanical clearing of the plants, including removal of root stock • Mowing prior to the full development of seeds or fruiting bodies • Re-seeding of cleared areas with native plants, primarily grasses • Planting of native trees and shrubs Poison Oak Management Compared with other open space lands operated by the City, poison oak is not a major problem on the Preserve. Where poison oak is found in dense concentration, generally along trails and around Arastradero Lake, poison oak will be controlled by trimming or removal. Herbicides shall be used as a last resort. Poison oak management will remain the responsibility of the City, with support as appropriate, from the Steward. Tree Trimming Trees on the Pearson Arastradero Preserve are trimmed or removed only when they create a hazard to the public. This usually involves trees which are along roads or on the trail system. City staff will respond to any tree issues on the Preserve. Trimming of trees along the edge of the utility road will be the responsibility of the City. Lake Management City staff is responsible for the removal of pond weed and cattails from Arastradero Lake. Tills work is accomplished through mechanical harvesting of materials to maintain fishing and viewing access to the Lake. No chemicals are used to control pond weed and cattail growth. Materials harvested are composted on site, to reduce the costs of transporting the materials to the City's Refuse composting facility. Periodic fish creel census or other assessment work will be conducted by City staff to determine the health of the fish population in Arastradero Lake. There are no plans for restocking the Lake with fish. This is consistent with the 1983 Conceptual Master Plan. There are no plans to perform any lake management activities on the small lake, sometimes referred to as John Soby Lake. Riparian Habitat Management Working with an existing citizens' committee, the City will proceed with the Public Works Department's Capital Improvement Projects for seismic repairs to Arastradero Lake dam and for repairs or replacement of the culvert system and erosion control on Arastradero Creek, between Arastradero Lake and the Preserve's southern boundary. The role of the Steward will be to assist the City in riparian habitat management along Arastradero Creek. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Wildlife Management Wildlife management on the Preserve will be limited during the first few years of this Plan to observations and research related to existing animal populations. The City and the Steward will work collaboratively on the development of a long range wildlife management plan, when appropriate. The City's Wildlife Management Team will continue to collect information related to mountain lion sightings on the Preserve, and will continue to inform the public of any changes in mountain lion activity in the area. City staff will work closely with the State Department of Fish and Game and the U. S. Fish and Wildlife Service regarding any management issues related to mountain lions on the Preserve. Fire Management Given the above policy guidelines, Open Space and Fire Department staff will maintain the disked fuel breaks on the Pearson Arastradero Preserve, as outlined in the 1982 Foothills Fire Management Plan. This includes the disking of most perimeters which border homes and all perimeters of the 77-acre parcel. The only exception to the Foothills Fire Management Plan is that the disc lines on the Preserve will continue to be maintained at 60 or 120 foot widths, depending on the location of the disk line. Staff from Open Space Division and the Fire Department will continue to work with the disking contractor and concerned citizens over the issues of habitat disruption and the loss of seedling oaks within the disc lines. In addition, staff will direct the Steward in the identification and marking for protection of any suspected sites for burrowing owls. Although included as an element of the City's Fire Management Plan, proscribed burning of sections of the Preserve is not now being considered. CHAPTER 4: CONSTRUCTION AND MAINTENANCE OF FACILITIES Trails Formal trails on the Preserve are generally former access roads, constructed before the City acquired the property in 1976. Because of increased traffic of all kinds on the Preserve, numerous informal trails have become established. These are particularly evident since the Preserve became a popular area for mountain bikes. In March 2001, City Council adopted a comprehensive Trail Master Plan for the Pearson Arastradero Preserve. This document designates year-round and seasonal use trails, standards for the maintenance of these trails and guidelines for the construction of new trails. The Trail Master Plan also provides important information on areas of environmental constraint that has affected certain trail recommendations. This document DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 will provide direction to staff and the Steward on methods of trail maintenance and repair. Generally, trails will be maintained by removing overhanging vegetation, repairing the trail tread, and controlling erosion. The City will work with the Steward to close informal trails as part of the habitat restoration plan for the Preserve. Signs stating "Trail Closed: Habitat Restoration" will be installed at the junctions of formal and informal trails. Soil preparation and seeding of informal trails will be conducted by the Steward .under the direction of City staff. In addition, an active program of educating the public about the proper use of the Preserve and its trail system will be implemented by the City with the support of the Steward. Sections of the formal trails on the Preserve may be closed for maintenance or habitat restoration. Trails may-be closed to equestrian, bicycle, pedestrian or all travel during wet weather, when such traffic would damage the trail surface. Signs notifying the public about trail closures will be posted in the parking lot, trail heads and trail junctions. One of the significant current issues related to the management of the Preserve is mountain bike activity on both the formal and informal trails. Staff has noticed a considerable increase in the number of informal trails ("single-track" trails), which contribute to overall environmental degradation of the Preserve, and which increases the potential for erosion and accidents. Based on the Municipal Code, bicycles are restricted to designated trails. Staff will increase its efforts to educate bicyclists to the need to stay on the trails. Staff and the Steward will work together to remove informal trails through habitat restoration. And, as a last resort, staff will use its citation powers to enforce the ordinances protecting the Preserve. Road Repair and Maintenance The Arastradero Creek Trail, Meadowlark Trail (Segment 1), Juan Bautista de Anza Trail (Segments2 and 5), Woodland Star (Segment 1), and the connecting asphalt road to the Corte Madera water tank are the only designated vehicle-accessible service trails on the Preserve. As mentioned elsewhere in this Plan, these 10-foot wide gravel trails are maintained by the Utilities Department. Signs and Fence Standards In keeping with the low intensity use for the Preserve, the sign standards for the Pearson Arastradero Preserve are as follows: Trail markers and signs will be made of painted aluminum, with a brown background and yellow lettering. The signs will be mounted on one (or two, if needed) 6-inch x 6-inch redwood post, extending no more than four feet above the ground. The intent is to have the signs accomplish their intended purpose without becoming the dominant features of DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 the landscape. The only exceptions to this standard are the retention of the existing large wooden signs with routed lettering. Split rail fencing will be the fence standard for future fencing projects on the interior of the Preserve. The existing fencing will be maintained along the perimeter, with replacement fencing being installed only in areas where there is a need to protect the Preserve from unauthorized access, including motor vehicles and motorcycles. Additional signs will be added, as needed, to direct visitors and to mark areas where habitat restoration is occurring or to provide trail closure information. Because large, carved wooden trail signs and interpretive displays in parking lots and at trail heads are often targets of vandalism, trail maps will continue to be made available in the parking lot and preserve entrances. Picnic Areas and Benches Presently, there is a single picnic table on the Vista Point trail. The table is made of galvanized leg supports, with wooden benches and tabletop. No other picnic facilities are proposed. Benches have been approved for three locations on the Preserve. Bench standards will be comparable to those used at the Baylands Nature Preserve (six-foot oak, 13-s1at contour benches, with metal ground installed frame). Benches will be made of wood, varnished and constructed in such a way as to minimize maintenance and vandalism. Trash Receptacles Trash receptacles are located at the parking lot and at Arastradero Lake. There are no plans for additional trash receptacles on the Preserve, in keeping with the philosophy that visitors to the Preserve should carry their trash out with them. Restrooms Two portable restrooms are located at the parking lot, one of which provides handicapped access. Drinking Fountains and Horse Watering Troughs There is one drinking fountain at the parking lot. In addition, staff proposes the installation of a drinking fountain at Arastradero Lake. Staff also proposes moving the horse trough from the barn site to Arastradero Lake. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Parking Lot and Bicycle Racks During the development of conceptual plans for a gateway facility, citizens and staff discussed the expansion of the present 35-space gravel parking lot presently located on the 77 acre portion of the Preserve, The consensus of the design committee was to not expand the parking lot at this time, Limiting the impacts on the Preserve by users and limited funds were the factors that led to this decision, Since the lot often becomes full on warm weekend days, staff created a 20-space, unsurfaced overflow parking area which could be opened for special events. The parking lot will remain unlighted and closed when the Preserve is closed. Bicycle racks in the Arastradero Road parking lot are rarely used, Most park visitors with bicycles either transport them in vehicles to the parking lot or ride them directly onto the Preserve from other locations, Bicycle parking will be included in the designs for the gateway facility. Gateway Facility As part of the work plan for the Preserve approved by the City Council on May 13,1996, staff will explore the potential for a new, modest facility to be used as a gateway to the Pearson Arastradero Preserve. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 CHAPTER 5: UTILITIES DEPARTMENT MAINTENANCE RESPONSIBILITIES ON THE PRESERVE Electric Utility The electric utility service for the Alexis Drive area, Foothills Park and other City electric customers in the foothills is provided by the 12,470-volt overhead electric power lines entering the Pearson Arastradero Preserve from Arastradero Road near Tracy Court. The overhead electric lines continue into the Preserve and split near Arastradero Lake and the Corte Madera Booster Station. One leg continues overhead toward Alexis Drive, then goes underground along Alexis Drive and the adjoining streets. The main line continues overhead along Arastradero Creek. The overhead line splits again near the Boronda Reservoir. The main line continues a short distance overhead into Foothills Park. A tie line goes underground to the end of Alexis Drive, providing an alternate feed into the Alexis Drive area, should the direct buried underground cables along Alexis Drive fail. The overhead facilities are standard wood poles with eight to ten-foot wood cross arms. The three current-carrying wires are installed on insulators on top of the cross arm. The wood poles (fir) are treated with approved preservatives to extend their life. Their expected life is 30 years. However, because of the increased exposure to termites and insects, the last set of poles along Arastradero Creek lasted only 20 years. The poles were replaced in 1993-94. City-owned low-voltage communication cables are often mounted on the power poles and buried near the underground cables. These cables (about I inch in diameter) provide interconnection between water pumps, gas pressure sensors, water reservoirs, fire stations and radio facilities. Some maintenance of these facilities is necessary, usually when a problem with a communication circuit develops. Access roads to inspect, repair and operate all overhead facilities need to be maintained. The most likely cause of emergency repairs is winter weather. Heavy rain and winds blow trees and branches into power lines. When this occurs, heavy trucks must have access to the damaged facilities, often during the storm itself, to make timely repairs. Repairs cannot be performed without vehicle access. The areas near overhead facilities must be kept clear of trees, grasses, and brush (fuel sources). State of California codes require a ten-foot radius of cleared land around all poles with operable devices (switches, fuses, transformers, and corner poles). Trees must be trimmed or removed that overhang power lines or that may fall or be blown into power lines. Tree trimming can usually be done every two to three years. Ground clearing must be done annually. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Water, gas and wastewater utilities Water, gas, and wastewater (WOW) lines enter the Pearson Arastradero Preserve from the south side of Arastradero Road, approximately 3/8 of a mile west of Page Mill Road. The water and sewer lines also continue in a westerly direction on Arastradero Road for about a mile. This branch of the sewer line terminates at this location. The water line continues along Arastradero Road, and then enters the Preserve again and extends to the I.S-million-gallon steel Corte Madera Reservoir. The WGW lines entering the Pearson Arastradero Preserve nearest Page Mill Road continue in a southwesterly direction on the property to and past the Arastradero Lake and Corte Madera Pump Station. Except for the gas main, the lines then continue along the alignment of the Arastradero Creek Trail into Foothills Park,. After following the Juan Bautista de Anza Trail (Segment 2) for approximately 1200 feet, the gas main turns southeast and extends into the Palo Alto foothills neighborhood (Alexis Drive area), where it then ends. These lines were constructed between 1962 and 1969 in anticipation of major development in the Palo Alto foothills. Although they have been well maintained, repairs will be necessary as these systems continue to age. The depth of these systems will require the City to dig large shored trenches to facilitate repairs. Large equipment, backhoes and dump trucks are necessary for underground repairs on the water, gas and wastewater lines. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 APPENDIX: RESPONSIBILITIES OF STEWARD Working under the direction of the City, the Steward will develop and submit to the City a recommended annual habitat restoration plan for the Preserve, which will include: Habitat restoration on the site of the former houses and barn. Development of a tree planting plan and implementation schedule, incorporating the use of local, native sources of trees, with an emphasis on the re-establishment of oaks on the Preserve. Habitat restoration of other sections of the Preserve. Maintenance of restored areas during the first few years of new vegetation growth. This includes watering of plants and removal of any remaining non-native invasive weeds. Monitoring of habitat restoration activities, to determine the effectiveness of the plan and to identify areas for further research or effort. Working under the direction of the City, the Steward will develop and submit to the City a recommended aggressive program of non-native, invasive weed removal and control. All plans for such weed removal and control will be consistent with established City policy and will be approved by the Superintendent, Open Space and Sciences prior to implementation. Vegetation to be removed and/or controlled includes, but is not limited to: • Canary Grass • Yellow Star Thistle • Bull Thistle • Bristly Ox-Tongue • Poison Hemlock • Fullers Teasel • Fennel • Italian Thistle • French Broom • Pampas Grass Methods of control will include: • Hand and mechanical clearing of the plants, including removal of root stock • Mowing prior to the full development of seeds or fruiting bodies • Re-seeding of cleared areas with native plants, primarily grasses • Planting of native trees and shrubs Under direction of the City, the Steward will maintain the existing dedicated trail system. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Construction of new trails or significant upgrades to any existing trails in the Preserve will be done through the active collaboration of the City, the Steward and other volunteers. City Staff will work closely with the Steward to close informal trails in an effort to restore habitat. Under direction of the City, the Steward will be involved in riparian habitat management along Arastradero Creek. The City and the Steward will work collaboratively on the development of a long-range wildlife management plan, when appropriate. Poison oak management will remain the responsibility of the City, with support as appropriate from the Steward. The Steward will assist the City in the provision of limited interpretive services. With the approval of the City, research on ecological processes and human impact will be designed and conducted by the Steward. Staff anticipates that the Steward will be actively involved with the development of the gateway facility, including fund raising, landscaping, painting and other special projects. Master Plan Drafted July 2002 DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Annual Scope of Work July 2017 – June 2018 Prepared for the City of Palo Alto, Open Space Division by Mission Statement: Enid W. Pearson Arastradero Preserve, City of Palo Alto The Pearson-Arastradero Preserve is a low intensity and minimal cost park, with emphasis on the natural and open space amenities of the land and sensitivity to the DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 fragile foothills ecology. Uses planned for the park should not duplicate those provided in urban neighborhoods or regional parks. Mission Statement: Arastradero Stewardship Program The mission of the Arastradero Stewardship Program is to restore natural lands to ecological health by involving the community in land stewardship. Through engaging volunteers in hands-on habitat restoration activities, and sharing information about best restoration activities, we involve, educate, and inspire people to take care of the land for future generations. Scope of Services 1. Coordinate stewardship activities on the Preserve 2. Under the direction of the City, perform habitat restoration and removal and/or control of non-native, invasive weeds 3. Under the direction of the City, provide and staff educational programs to educate the public about the preserve habitat restoration activities including weed management and habitat enhancement 4. Under the direction of the City, mobilize volunteers for preserve projects and programs 5. Steward will provide the City with a proposed annual work plan to be approved prior to each fiscal year 6. Steward may perform other services related to the preservation, protection, and enhancement of the Preserve, as approved by the City Acterra will endeavor to secure additional funding for habitat restoration activities at the preserve from other funders. As these funds become available, Acterra will review the additional scope with the Rangers. Following is a detailed list of activities and corresponding outcomes for the 2017-2018 fiscal year. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 1. Active Restoration Sites: a. Gateway Facility Activity Measurable Outcome 1. Expand demonstration garden behind the Gateway Facility. 150 grasses, forbs, and shrubs installed in the Gateway Facility area. 2. Maintain plantings. At least 75% plants are alive through proper maintenance and protection from animals. 3. Remove invasive plants around facility. Areas in front of the facility will be 90% free of non-native invasive weeds. 4. Continue to reduce the invasive plants along the trail to Gate A. Areas along trail will be primarily weed free of invasive species including Italian Thistle, YST, Stinkwort and Medusahead. 5. Remove all plant debris from area. Weeds and debris will be removed immediately to an appropriate area. 6. Provide information and support where possible to visitors. Acterra staff will answer questions about restoration activities and provide a staffing presence when available. 7. Install native plant signage in demonstration garden. Primary native plants will be clearly identifiable to visitors. b. Mayfly and Arastradero Creeks Activity Measurable Outcome 1. Infill plants into lower portions of Arastradero Creek and lower Mayfly Creek. 1000 new trees, shrubs and grasses installed in the lower portions of Mayfly Creek and along Arastradero Creek. 2. Maintain restoration areas along lower portions of Mayfly Creek. Plantings from previous years are maintained and area is primarily weed free. Sheet mulch is expanded if appropriate. 3. Continue to monitor and enhance erosion control along creek. Sediment harvesting and vegetation establishment visually monitored and documented. 4. Create habitat through plant selection, At least 5 habitat structures maintained or DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 hedgerows, and brush piles. created. Existing habitat corridors adjacent to the creek maintained. 5. Continue to remove invasive weeds through pulling, sheet mulching, scything and/or tarping. Mayfly area will be cleared of Yellow Starthistle (YST) and targeted Italian Thistle populations will be reduced by 50%. 6. Continue to water newly installed plants until they are established. 75% of plants installed in Fall are alive as of June. c. Back 70 Activity Measurable Outcome 1. Maintain planted trees and shrubs. 75% planted plants survival rate. 2. Maintain habitat structures. Enhance current structures that provide habitat for small animals and perches for birds. 2. Biodiversity Hotspots: Activity Measurable Outcome 1. Monitor biodiversity hotspots. At least 5 biodiversity hotspots of high importance will be chosen, monitored, and documented. 2. Encourage native population expansion by weeding, mowing, mulching, and/or watering. Present native population seed out and expand naturally. 3. Locate and map biodiversity hotspots throughout the preserve. Update biodiversity hotspot map for Arastradero Preserve as needed. 3. Invasive Plant Removal: Activity Measurable Outcome 1. Monitor select noxious weeds populations in the preserve and use volunteer support in their removal. Weed removal is prioritized by proximity to biodiversity hotspots or invasiveness of the weed species. 2. Combat ongoing invasions of Medusahead and Stinkwort. Heightened monitoring and immediate eradication of Medusahead and Stinkwort preserve wide. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 3. Limit YST populations from replenishing seed bank at targeted sites. YST populations from Gate A to Arastradero Lake are kept under 10% plant cover. 4. Recycle organic debris on site. Noxious weeds will be composted on site. 5. Coordinate mowing with City of Palo Alto staff. Close communication with city staff to maximize the effects of mowing. 4. Education and Outreach Activity Measurable Outcome 1. Conduct restoration workdays with volunteers from local schools, community groups and neighbors. At least 40 workdays will be conducted throughout the year. 2. Continue the Preserve Steward Program through special workdays and events only offered to local high school aged students. Up to 10 high school students specific workdays. 3. Continue the adopt-a-plot program At least 5 adopt-a-plot sites will be created and/or maintained. 4. Conduct interpretive hikes for the public on various nature topics At least 4 hikes will be offered throughout the year by Acterra staff. 5. Connect with other local restoration experts on topics such as weed management. Attendance at Santa Clara and San Mateo County Weed Management Agency meetings and/or other appropriate conferences as time permits. 6. Conduct research with the help of interested students to evaluate the effectiveness of restoration techniques. Up to 4 students’ research projects will be organized and supported by Acterra staff. 5. Project Management Activity Measurable Outcome 1. Create annual report to summarize previous year’s activities and accomplishments. Submit an annual report to the City by August. 2. Create a workplan for the preserve Submit an annual report to the City by DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 activities scheduled for the upcoming year. August. 3. Provide regular status updates to the City staff to keep them up to date on our activity and aware of any issues. Monthly status meetings with City and Acterra staff. 4. Provide technical expertise for other City of Palo Alto departments. As requested, technical advice provided to other departments and programs. 5. Continue to update the preserve plant, animal and bird lists. Lists will be updated as new species are observed. List will be submitted to the City with our annual report. 6. Fire Management Activity Measurable Outcome 1. Maintain restoration plots at Arson Site. Improved native cover in restoration plots through weeding of invasive plant species. DocuSign Envelope ID: 39AA3917-EC87-4560-B3DB-4694C059E669 Attachment B ARASTRADERO PRESERVE MANAGEMENT PLAN CITY OF PALO ALTO MANAGEMENT PLAN FOR THE ARASTRADERO PRESERVE Purpose The purpose of this Management Plan is to provide guidelines for staff implementation of City Council direction regarding the management of the Pearson Arastradero Preserve and the Hewlett-Mullen property. Council Policy and Mission Statement At its meeting of July 23, 1984, the City Council adopted a Conceptual Master Plan for the creation of a "low intensity and minimal cost park, with emphasis on the natural and open space amenities of the land and sensitivity to the fragile foothills ecology. Uses planned for the park should not duplicate those provided in urban neighborhood or regional parks." The Conceptual Master Plan was based, in large part, on the recommendations of an eight-member Arastra Citizens Advisory Committee. This statement became, and remains, the mission statement for the Preserve. This Plan incorporates habitat preservation as its primary goal, while at the same time providing for appropriate public access and activities. In instances where public access and activities conflict with the natural values of the Preserve, the preservation of the natural values of the Preserve shall prevail. Responsibilities The City Council is responsible for providing policy direction on all use of the Arastradero Preserve. The public's use of the Preserve is regulated by ordinances contained within the City's Municipal Code. The Community Services Department has primary responsibility for implementing the elements of this Plan. Enforcement of the City's Municipal Code, as it relates to the Pearson Arastradero Preserve, will be the responsibility of the park ranger staff, with support from other City departments. Park rangers will also have a major role in responding to fire and medical emergencies on the Preserve. The Steward, who will be a contracted nonprofit, local, community-based organization, may be used in maintaining the Preserve. The mission of the Steward would be complimentary to the mission of the Preserve and would enter into a contractual agreement for designated shared stewardship responsibilities for the Preserve. Working under the direction of the City, the Steward will assist in habitat restoration, removal and control of non-native, invasive weeds, trail maintenance and repair, educational activities, research and riparian habitat management. The Steward's responsibilities for each of these areas are discussed in more detail in the Appendix to this Plan. Notwithstanding, the overall administration and management of the Arastradero Preserve remains the responsibility of the City of Palo Alto. The Department of Public Works is responsible for the oversight and coordination of engineered capital improvement projects on the Preserve. The Utilities Department is responsible for maintenance of all electric, gas, water and wastewater facilities on the Preserve. Their activities are described in greater detail in Chapter 5 of the Management Plan, "Utilities Department Maintenance Responsibilities on the Preserve." The Fire Department is responsible for wildland fire prevention and suppression on the Preserve through implementation and revision of the Foothills Fire Management Plan. The Department's activities are described in greater detail in the chapter on "Open Space Management and Habitat Protection." The success of this Management Plan is directly related to the support the Preserve receives from the community. This support may come as financial contributions for specific activities on the Preserve, from individual volunteers working on projects, and from nonprofit organizations which provide groups of volunteers to assist in such activities as trail maintenance and repair, litter removal, erosion controls, and habitat restoration. CHAPTER 1: HISTORY OF THE ARASTRADERO PRESERVE In August 1969, Arastra Ltd., the owners of the Arastradero property, applied for a Planned Community zone change for construction of 1,776 dwelling units. The City denied this proposal. During this same period, the City hired a consultant to study land use and the ability of the City to provide services to potential foothills developments. The City Council amended the Comprehensive Plan in June 1971, to include most of the foothills area in "Open Space - Controlled Development." An Open Space Element for the General Plan was subsequently adopted in April 1972. That year, the City also adopted an Open Space zone district, which required an average of ten acres per dwelling unit. In September 1972, Arastra Ltd. sued the City, claiming $15.6 million in damages, plus interest, attorney's fees and costs. Litigation proceeded for the next three years. In September 1975, the U. S. District Court ruled in Arastra Ltd.'s favor that the zoning amounted to a "taking" of Arastra's property and that all that remained to be completed was determination and payment of the value of the land as of September 1972. The City was ordered to purchase the land. Arastra Ltd. and City officials met several times and reached agreement out of court to settle the suit. A settlement fee of $7,475,000 was paid to Arastra Ltd. in July 1976, and the City became the fee owner of the property, which, in addition to the approximately 510 acres, included a six-bedroom, 5,965 square foot house, a large barn and a second, small two- bedroom house. In 1981, the Council adopted an ordinance dedicating 432.781 acres of the Pearson Arastradero Preserve as park land. In 1992, the Council dedicated 77 .219 acres of the Preserve as park land. In addition, in 1982 the Council dedicated 99.002 acres of the Hewlett-Mullen property as parkland. Although not officially a part of the Arastradero Preserve, the Hewlett-Mullen property is included as part of this Management Plan. The total acreage for the area contained within the Plan is around 609 acres. In March 1992 (CMR: 165:92), staff requested Council direction as to the future of the improvements within the Pearson Arastradero Preserve. Staff recommended the demolition of the main and small houses, with the retention of the barn for use by the Recreation, Open Space and Sciences Division. Council, instead, directed staff to proceed with a Request for Proposal (RFP) to solicit alternatives for use of the structures on the Preserve, consistent with the requirements of the park dedication ordinance. In July 1993 (CMR: 432: 93), staff presented the responses to the RFP. The Challenge Learning Center (CLC) responded and then withdrew its proposal, citing in its decision to withdraw the "unwarranted, large time and expense anticipated in dealing with the opposition raised by Arastradero neighbors, and the fact that staff would not be able to recommend the proposal to Council in light of neighborhood concerns." Staff again recommended the demolition of the main house, as well as the small house, and the retention of the barn. Council, instead, referred the question of the disposition of the Preserve main house to the Policy and Services Committee for "consideration of subdividing the home for use as a single-family residence or other options that may be determined." The Policy and Services Committee recommended to Council, and Council ultimately approved, demolition of both the main house and caretaker's house. On June 19, 1995, Council approved the 1995-96 Capital Improvement Program, which included $90,000 for a project to dismantle the Arastradero main house and caretaker's house. At that time, however, Council directed staff to prepare an RFP for use of the main house, prior to proceeding with removal. Staff transmitted the RFP to Council in October 1995, and after receiving approval, solicited proposals. Proposals were received, from Bay Area Action and the Children's Tree House. Staff recommended that Council reject both proposals. On March 11, 1996, Council adopted the staff recommendation to reject both proposals and further directed staff to take the following steps: 1) proceed with the removal of the structures, utilizing the prior budget funding of $90,000, with the focus on the reuse and recycling of the materials from the structures, and report back to Council prior to the removal of the structures; 2) explore the possibility of a public/private partnership for both the structural work and habitat restoration implementation steps and with respect to the "stewardship" concept; 3) pursue with the individuals represented by attorney Theodore Carlstrom their contribution of $350,000 to the City in connection with carrying out the steps in the recommendation; 4) pursue the implementation of the habitat restoration in the areas where the structures are currently located; and 5) explore the potential for a new modest facility (less than 1,500 square feet) as a gateway to the Pearson Arastradero Preserve, with the potential reuse of the materials from the existing structures. On May 13, 1996, staff presented to Council, for which approval was received, a project work plan to implement Council direction for the Preserve. CHAPTER 2: INTERPRETIVE SERVICES AND RESEARCH Interpretive services and research on the Pearson Arastradero Preserve will be the responsibility of the City of Palo Alto, with the active support of the Steward, City staff will review and approve all proposed Steward interpretive and research activities on the Preserve and will evaluate such activities for their impact on the Preserve, and for their value to the community. Interpretive Services City staff and the Steward will conduct limited interpretive services, These services will include programs on the natural and human history of the Preserve, as well as programs on habitat restoration and biological research activities, These programs will be made available both during the week and on weekends and will be designed to assist the public in developing a better understanding and appreciation of the unique natural values of the Preserve. Based on usage, and in order to protect the natural values of the Preserve, City staff may place limitations on the number and types of interpretive programs offered by both the Steward, the City, and other organizations. Research Activities The Pearson Arastradero Preserve provides an opportunity for research on the effects of human activity on natural systems, Although minimally developed, the Preserve has had a long human history, which included livestock grazing, Proposed research on ecological and human impact on the Preserve will be approved in advance by the City, The City will also monitor all research activities to ensure that such activities do not negatively impact the natural values of the Preserve and provide a benefit to the community. The intent is for this research to directly benefit the Preserve through the identification of issues related to habitat restoration and preservation, and the possible development of management techniques designed to maintain the Preserve in as natural a condition as possible, Another goal of research on the Preserve is to provide information that will assist in the management of other open space areas in the region. CHAPTER 3: OPEN SPACE MANAGEMENT AND HABITAT PROTECTION Although nature preserves are intended to be maintained with minimal human activity, there are several situations which require active human involvement to protect native plant and animal species and to maintain the habitat in as natural a state as possible. One element of the 1984 Conceptual Master Plan for the Preserve was to, Return the land to its natural state as much as possible, with protected plantings of native oaks and elimination of intruding vegetation, using ecologically sound methods, and eventually placing utilities underground. In addition, on August 13, 1990, the City Council established a policy for overall open space management and habitat protection, which contained the following components: 1. The official policy of Palo Alto will be to retain natural habitat, except in areas where qualified City personnel certify that plants create a fire hazard or on firebreaks, roads or trails which are routinely maintained. 2. In times of higher fire danger, when public safety concerns require the use of non-routine fire prevention methods, the policy of the City of Palo Alto will be to use the least intrusive methods on open space lands. These methods, in the order they are to be used, are: a. Establish fire lines on the perimeters of open space lands, leaving the centers natural. b. Mow, rather than disc, fire lines when the terrain permits. c. Disc fire lines. d. Use herbicides as a last resort. 3. Prior to weed abatement activity, staff will identify and mark for protection any suspected nesting sites for burrowing owls or other ground dwelling animal species. 4. Herbicides shall not be used for weed abatement, except for the control of poison oak in high use areas or interfering with City weed abatement activity. The use of herbicides for this purpose is to be at the discretion of the Superintendent of Open Space and Sciences. 5. Private land owners should be encouraged to follow City policies on weed abatement. Habitat Restoration Working under the direction of the City, the Steward will design and recommend a habitat restoration plan for the Preserve. Upon approval, the City will implement the plan with the active support of the Steward. The plan will include: • Habitat restoration on the site of the former houses and barn. • Development of a tree planting plan and implementation schedule, incorporating the use of local, native sources of trees, with an emphasis on the re-establishment of oaks on the Preserve. • Habitat restoration of other sections of the Preserve. • Maintenance of restored areas during the first few years of new vegetation growth. This includes watering of plants and removal of any remaining non-native invasive weeds. • Monitoring of habitat restoration activities, to determine the effectiveness of the plan and to identify areas for further research or effort. Habitat restoration activities may require the closing of sections of the Preserve for periods of time, to allow grasses, trees and shrubs to become established. Areas to be closed for habitat restoration will be approved by the City. Appropriate signs will be installed to notify the public of the areas closed. These signs will be posted, both in the parking lot and adjacent to the closed area(s). Management of Non-Native Invasive Weeds Non-native, invasive weeds are encroaching on the natural habitat of the Pearson Arastradero Preserve. These include but are not limited to: • Canary Grass • Yellow Star Thistle • Bull Thistle • Bristly Ox-Tongue • Poison Hemlock • Fuller's Teasel • Fennel • Italian Thistle • French Broom • Pampas Grass The Steward will develop and submit to the City a recommended plan for the removal or control of non-native, invasive weeds. Upon approval, the City and Steward shall implement the plan. Methods of control of non-native invasive weeds will include: • Hand and mechanical clearing of the plants, including removal of root stock • Mowing prior to the full development of seeds or fruiting bodies • Re-seeding of cleared areas with native plants, primarily grasses • Planting of native trees and shrubs Poison Oak Management Compared with other open space lands operated by the City, poison oak is not a major problem on the Preserve. Where poison oak is found in dense concentration, generally along trails and around Arastradero Lake, poison oak will be controlled by trimming or removal. Herbicides shall be used as a last resort. Poison oak management will remain the responsibility of the City, with support as appropriate, from the Steward. Tree Trimming Trees on the Pearson Arastradero Preserve are trimmed or removed only when they create a hazard to the public. This usually involves trees which are along roads or on the trail system. City staff will respond to any tree issues on the Preserve. Trimming of trees along the edge of the utility road will be the responsibility of the City. Lake Management City staff is responsible for the removal of pond weed and cattails from Arastradero Lake. Tills work is accomplished through mechanical harvesting of materials to maintain fishing and viewing access to the Lake. No chemicals are used to control pond weed and cattail growth. Materials harvested are composted on site, to reduce the costs of transporting the materials to the City's Refuse composting facility. Periodic fish creel census or other assessment work will be conducted by City staff to determine the health of the fish population in Arastradero Lake. There are no plans for restocking the Lake with fish. This is consistent with the 1983 Conceptual Master Plan. There are no plans to perform any lake management activities on the small lake, sometimes referred to as John Soby Lake. Riparian Habitat Management Working with an existing citizens' committee, the City will proceed with the Public Works Department's Capital Improvement Projects for seismic repairs to Arastradero Lake dam and for repairs or replacement of the culvert system and erosion control on Arastradero Creek, between Arastradero Lake and the Preserve's southern boundary. The role of the Steward will be to assist the City in riparian habitat management along Arastradero Creek. Wildlife Management Wildlife management on the Preserve will be limited during the first few years of this Plan to observations and research related to existing animal populations. The City and the Steward will work collaboratively on the development of a long range wildlife management plan, when appropriate. The City's Wildlife Management Team will continue to collect information related to mountain lion sightings on the Preserve, and will continue to inform the public of any changes in mountain lion activity in the area. City staff will work closely with the State Department of Fish and Game and the U. S. Fish and Wildlife Service regarding any management issues related to mountain lions on the Preserve. Fire Management Given the above policy guidelines, Open Space and Fire Department staff will maintain the disked fuel breaks on the Pearson Arastradero Preserve, as outlined in the 1982 Foothills Fire Management Plan. This includes the disking of most perimeters which border homes and all perimeters of the 77-acre parcel. The only exception to the Foothills Fire Management Plan is that the disc lines on the Preserve will continue to be maintained at 60 or 120 foot widths, depending on the location of the disk line. Staff from Open Space Division and the Fire Department will continue to work with the disking contractor and concerned citizens over the issues of habitat disruption and the loss of seedling oaks within the disc lines. In addition, staff will direct the Steward in the identification and marking for protection of any suspected sites for burrowing owls. Although included as an element of the City's Fire Management Plan, proscribed burning of sections of the Preserve is not now being considered. CHAPTER 4: CONSTRUCTION AND MAINTENANCE OF FACILITIES Trails Formal trails on the Preserve are generally former access roads, constructed before the City acquired the property in 1976. Because of increased traffic of all kinds on the Preserve, numerous informal trails have become established. These are particularly evident since the Preserve became a popular area for mountain bikes. In March 2001, City Council adopted a comprehensive Trail Master Plan for the Pearson Arastradero Preserve. This document designates year-round and seasonal use trails, standards for the maintenance of these trails and guidelines for the construction of new trails. The Trail Master Plan also provides important information on areas of environmental constraint that has affected certain trail recommendations. This document will provide direction to staff and the Steward on methods of trail maintenance and repair. Generally, trails will be maintained by removing overhanging vegetation, repairing the trail tread, and controlling erosion. The City will work with the Steward to close informal trails as part of the habitat restoration plan for the Preserve. Signs stating "Trail Closed: Habitat Restoration" will be installed at the junctions of formal and informal trails. Soil preparation and seeding of informal trails will be conducted by the Steward .under the direction of City staff. In addition, an active program of educating the public about the proper use of the Preserve and its trail system will be implemented by the City with the support of the Steward. Sections of the formal trails on the Preserve may be closed for maintenance or habitat restoration. Trails may-be closed to equestrian, bicycle, pedestrian or all travel during wet weather, when such traffic would damage the trail surface. Signs notifying the public about trail closures will be posted in the parking lot, trail heads and trail junctions. One of the significant current issues related to the management of the Preserve is mountain bike activity on both the formal and informal trails. Staff has noticed a considerable increase in the number of informal trails ("single-track" trails), which contribute to overall environmental degradation of the Preserve, and which increases the potential for erosion and accidents. Based on the Municipal Code, bicycles are restricted to designated trails. Staff will increase its efforts to educate bicyclists to the need to stay on the trails. Staff and the Steward will work together to remove informal trails through habitat restoration. And, as a last resort, staff will use its citation powers to enforce the ordinances protecting the Preserve. Road Repair and Maintenance The Arastradero Creek Trail, Meadowlark Trail (Segment 1), Juan Bautista de Anza Trail (Segments2 and 5), Woodland Star (Segment 1), and the connecting asphalt road to the Corte Madera water tank are the only designated vehicle-accessible service trails on the Preserve. As mentioned elsewhere in this Plan, these 10-foot wide gravel trails are maintained by the Utilities Department. Signs and Fence Standards In keeping with the low intensity use for the Preserve, the sign standards for the Pearson Arastradero Preserve are as follows: Trail markers and signs will be made of painted aluminum, with a brown background and yellow lettering. The signs will be mounted on one (or two, if needed) 6-inch x 6-inch redwood post, extending no more than four feet above the ground. The intent is to have the signs accomplish their intended purpose without becoming the dominant features of the landscape. The only exceptions to this standard are the retention of the existing large wooden signs with routed lettering. Split rail fencing will be the fence standard for future fencing projects on the interior of the Preserve. The existing fencing will be maintained along the perimeter, with replacement fencing being installed only in areas where there is a need to protect the Preserve from unauthorized access, including motor vehicles and motorcycles. Additional signs will be added, as needed, to direct visitors and to mark areas where habitat restoration is occurring or to provide trail closure information. Because large, carved wooden trail signs and interpretive displays in parking lots and at trail heads are often targets of vandalism, trail maps will continue to be made available in the parking lot and preserve entrances. Picnic Areas and Benches Presently, there is a single picnic table on the Vista Point trail. The table is made of galvanized leg supports, with wooden benches and tabletop. No other picnic facilities are proposed. Benches have been approved for three locations on the Preserve. Bench standards will be comparable to those used at the Baylands Nature Preserve (six-foot oak, 13-s1at contour benches, with metal ground installed frame). Benches will be made of wood, varnished and constructed in such a way as to minimize maintenance and vandalism. Trash Receptacles Trash receptacles are located at the parking lot and at Arastradero Lake. There are no plans for additional trash receptacles on the Preserve, in keeping with the philosophy that visitors to the Preserve should carry their trash out with them. Restrooms Two portable restrooms are located at the parking lot, one of which provides handicapped access. Drinking Fountains and Horse Watering Troughs There is one drinking fountain at the parking lot. In addition, staff proposes the installation of a drinking fountain at Arastradero Lake. Staff also proposes moving the horse trough from the barn site to Arastradero Lake. Parking Lot and Bicycle Racks During the development of conceptual plans for a gateway facility, citizens and staff discussed the expansion of the present 35-space gravel parking lot presently located on the 77 acre portion of the Preserve, The consensus of the design committee was to not expand the parking lot at this time, Limiting the impacts on the Preserve by users and limited funds were the factors that led to this decision, Since the lot often becomes full on warm weekend days, staff created a 20-space, unsurfaced overflow parking area which could be opened for special events. The parking lot will remain unlighted and closed when the Preserve is closed. Bicycle racks in the Arastradero Road parking lot are rarely used, Most park visitors with bicycles either transport them in vehicles to the parking lot or ride them directly onto the Preserve from other locations, Bicycle parking will be included in the designs for the gateway facility. Gateway Facility As part of the workplan for the Preserve approved by the City Council on May 13,1996, staff will explore the potential for a new, modest facility to be used as a gateway to the Pearson Arastradero Preserve. CHAPTER 5: UTILITIES DEPARTMENT MAINTENANCE RESPONSIBILITIES ON THE PRESERVE Electric Utility The electric utility service for the Alexis Drive area, Foothills Park and other City electric customers in the foothills is provided by the 12,470-volt overhead electric power lines entering the Pearson Arastradero Preserve from Arastradero Road near Tracy Court. The overhead electric lines continue into the Preserve and split near Arastradero Lake and the Corte Madera Booster Station. One leg continues overhead toward Alexis Drive, then goes underground along Alexis Drive and the adjoining streets. The main line continues overhead along Arastradero Creek. The overhead line splits again near the Boronda Reservoir. The main line continues a short distance overhead into Foothills Park. A tie line goes underground to the end of Alexis Drive, providing an alternate feed into the Alexis Drive area, should the direct buried underground cables along Alexis Drive fail. The overhead facilities are standard wood poles with eight to ten-foot wood cross arms. The three current-carrying wires are installed on insulators on top of the cross arm. The wood poles (fir) are treated with approved preservatives to extend their life. Their expected life is 30 years. However, because of the increased exposure to termites and insects, the last set of poles along Arastradero Creek lasted only 20 years. The poles were replaced in 1993-94. City-owned low-voltage communication cables are often mounted on the power poles and buried near the underground cables. These cables (about I inch in diameter) provide interconnection between water pumps, gas pressure sensors, water reservoirs, fire stations and radio facilities. Some maintenance of these facilities is necessary, usually when a problem with a communication circuit develops. Access roads to inspect, repair and operate all overhead facilities need to be maintained. The most likely cause of emergency repairs is winter weather. Heavy rain and winds blow trees and branches into power lines. When this occurs, heavy trucks must have access to the damaged facilities, often during the storm itself, to make timely repairs. Repairs cannot be performed without vehicle access. The areas near overhead facilities must be kept clear of trees, grasses, and brush (fuel sources). State of California codes require a ten-foot radius of cleared land around all poles with operable devices (switches, fuses, transformers, and corner poles). Trees must be trimmed or removed that overhang power lines or that may fall or be blown into power lines. Tree trimming can usually be done every two to three years. Ground clearing must be done annually. Water, gas and wastewater utilities Water, gas, and wastewater (WOW) lines enter the Pearson Arastradero Preserve from the south side of Arastradero Road, approximately 3/8 of a mile west of Page Mill Road. The water and sewer lines also continue in a westerly direction on Arastradero Road for about a mile. This branch of the sewer line terminates at this location. The water line continues along Arastradero Road, and then enters the Preserve again and extends to the I.S-million-gallon steel Corte Madera Reservoir. The WGW lines entering the Pearson Arastradero Preserve nearest Page Mill Road continue in a southwesterly direction on the property to and past the Arastradero Lake and Corte Madera Pump Station. Except for the gas main, the lines then continue along the alignment of the Arastradero Creek Trail into Foothills Park,. After following the Juan Bautista de Anza Trail (Segment 2) for approximately 1200 feet, the gas main turns southeast and extends into the Palo Alto foothills neighborhood (Alexis Drive area), where it then ends. These lines were constructed between 1962 and 1969 in anticipation of major development in the Palo Alto foothills. Although they have been well maintained, repairs will be necessary as these systems continue to age. The depth of these systems will require the City to dig large shored trenches to facilitate repairs. Large equipment, backhoes and dump trucks are necessary for underground repairs on the water, gas and wastewater lines. APPENDIX: RESPONSIBILITIES OF STEWARD Working under the direction of the City, the Steward will develop and submit to the City a recommended annual habitat restoration plan for the Preserve, which will include: Habitat restoration on the site of the former houses and barn. Development of a tree planting plan and implementation schedule, incorporating the use of local, native sources of trees, with an emphasis on the re-establishment of oaks on the Preserve. Habitat restoration of other sections of the Preserve. Maintenance of restored areas during the first few years of new vegetation growth. This includes watering of plants and removal of any remaining non-native invasive weeds. Monitoring of habitat restoration activities, to determine the effectiveness of the plan and to identify areas for further research or effort. Working under the direction of the City, the Steward will develop and submit to the City a recommended aggressive program of non-native, invasive weed removal and control. All plans for such weed removal and control will be consistent with established City policy and will be approved by the Superintendent, Open Space and Sciences prior to implementation. Vegetation to be removed and/or controlled includes, but is not limited to: • Canary Grass • Yellow Star Thistle • Bull Thistle • Bristly Ox-Tongue • Poison Hemlock • Fullers Teasel • Fennel • Italian Thistle • French Broom • Pampas Grass Methods of control will include: • Hand and mechanical clearing of the plants, including removal of root stock • Mowing prior to the full development of seeds or fruiting bodies • Re-seeding of cleared areas with native plants, primarily grasses • Planting of native trees and shrubs Under direction of the City, the Steward will maintain the existing dedicated trail system. Construction of new trails or significant upgrades to any existing trails in the Preserve will be done through the active collaboration of the City, the Steward and other volunteers. City Staff will work closely with the Steward to close informal trails in an effort to restore habitat. Under direction of the City, the Steward will be involved in riparian habitat management along Arastradero Creek. The City and the Steward will work collaboratively on the development of a long-range wildlife management plan, when appropriate. Poison oak management will remain the responsibility of the City, with support as appropriate from the Steward. The Steward will assist the City in the provision of limited interpretive services. With the approval of the City, research on ecological processes and human impact will be designed and conducted by the Steward. Staff anticipates that the Steward will be actively involved with the development of the und raising, landscaping, painting and other special projects. gateway facility, including f Master Plan Drafted July 2002 City of Palo Alto (ID # 8213) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Master License Agreement with Mobilitie, LLC Title: Approval and Authorization for the City Manager to Execute a Master License Agreement for use of City-Controlled Space on Utility Poles and Streetlight Poles and in Conduits with Mobilitie, LLC, a Nevada Limited Liability Corporation From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council: 1. Approve a Master License Agreement (“MLA”) with Mobilitie, LLC, a Nevada Limited Liability Company (Attachment A), for a combined initial term and potential extension term of 20 years to allow Mobilitie to access and use City-controlled spaces on utility poles, streetlight poles and in conduits for the purpose of providing communication services; and 2. Delegate to the City Manager or his designee the authority to execute on behalf of the City any documents necessary to administer the MLA that are consistent with the Palo Alto Municipal Code and City Council approved policies, including execution of individual Supplements substantially in the form of Exhibit “B” to the MLA, and non-substantive modifications to the MLA that may be required and approved by the City Attorney’s office; and The approval of the MLA does not authorize any specific installation of facilities by Mobilitie, LLC, a Nevada Limited Liability Company (“Mobilitie”). Instead, the MLA sets forth the general terms and conditions applicable to such future installations and establishes the process and requirements that the City and Mobilitie will follow, including filing an application (Exhibit “G” to the MLA), executing a Supplement memorializing specific facility requirements and terms (Exhibit “B” to the MLA), and complying with Palo Alto Municipal Code requirements set forth in Title 12 (Public Works and Utilities) and Title 18 (Zoning), should Mobilitie elect to pursue an installation or modification of telecommunications equipment on City utility poles, streetlight poles or in conduit. City of Palo Alto Page 2 Background Generally, under federal law, and subject to certain conditions protecting the City’s public rights-of-way management and compensation authority and land use authority, the City cannot prohibit wireline and wireless communication facilities from gaining access to the public rights- of-way and utilities infrastructure located therein. Federal and California law encourages, if not requires, the City to allow wireline and wireless communication facilities to access and use the utilities infrastructure located in public rights-of-way. The City can, however, establish reasonable rates, terms and conditions of access to utilities infrastructure in the public rights- of-way, including adopting rules and regulations relating to time, place and manner of attachment to that infrastructure. The City developed a standard MLA to address the interest of wired and wireless communication service providers accessing and using City of Palo Alto-controlled spaces on utility poles and streetlight poles and in conduits. On July 25, 2011, Council adopted Resolution No. 9193 approving the standard MLA and associated Exhibits, for third party access to and use of City-controlled spaces on utility poles and streetlight poles and in conduits for the purpose of providing wired and wireless communications facilities in the City of Palo Alto (Council Staff Report ID # 1756): http://www.cityofpaloalto.org/civicax/filebank/documents/28100 In approving a standard MLA, Council authorized the City Manager to execute such standard agreements. On June 27, 2016, Council approved a modified version of the MLA and associated Exhibits with GTE Mobilnet of California Limited Partnership, dba Verizon Wireless (“Verizon”) (Staff Report ID #7053). On May 1, 2017, Council approved a modified version of the MLA and associated Exhibits with Astound Broadband, LLC (dba “Wave”). The modifications to the 2011 approved template, included: (1) the modifications afforded to Verizon in the 2016 approval of the Verizon MLA; and (2) a change to “Section 3.5 “Authorized Services” (Staff Report ID #7849). The City and Mobilitie have agreed to a version of the MLA and Exhibits afforded to Verizon on June 27, 2016. Since approval of the standard MLA in 2011, the City has executed standard MLA agreements with ExteNet Systems, NextG Networks (now Crown Castle), AT&T Mobility, Verizon and Wave. Under an executed MLA, AT&T Mobility has installed seventy five (75) distributed antenna systems (DAS) on City-controlled space on utility poles throughout the City, and has plans to install sixteen (16) small cell sites on City utility poles and streetlight poles. Crown Castle has installed small cell antennas on City-owned streetlight poles at nineteen (19) sites in the downtown area for Verizon Wireless and has plans to install an additional sixteen (16) sites for Verizon in the next year. Additionally, staff is also working directly with Verizon Wireless City of Palo Alto Page 3 representatives to install 92 small cell sites on utility poles and streetlight poles throughout Palo Alto. All of these new projects will be applied for, reviewed and processed in accordance with terms of this MLA and applicable sections of the Palo Alto Municipal Code. In addition to the MLA, wireless communication and other telecommunications facilities are subject to the requirements of the Palo Alto Municipal Code. For instance, Verizon must still apply for permits with the Planning and Public Works departments and comply with Title 12 and Title 18 of the Palo Alto Municipal Code. Potential Mobilitie Project Mobilitie is a privately held utility company regulated by the California Public Utilities Commission. Mobilitie proposes deploying a hybrid transport network that provides high- speed, high-capacity bandwidth in order to facilitate the next generation of devices and data- drive services. This network can support a variety of technologies and services that require connectivity to the Internet. Staff understands that Mobilitie’s network will support data transport services for Sprint. It is staff’s understanding that Mobilitie is considering attaching and installing small cell and data backhaul equipment to new and existing utility and streetlight poles located within the City’s public rights-of-way (3 utility poles and 16 streetlight poles). As noted above, Mobilitie must still apply for permits for any project with the Planning and Public Works departments and comply with Title 12 and Title 18 of the Municipal Code. Mobilitie would also need to secure approval from the City for specific installations on utility poles under the terms of the MLA itself as its project gets more specific. The approval of the MLA does not authorize any specific installation of facilities, it only sets forth the general terms and conditions applicable to such future installations and establishes the process and requirements that the City and Mobilitie will follow, including filing an application (Exhibit “G”), executing a Supplement memorializing specific facility requirements and terms (Exhibit “B”), and complying with Palo Alto Municipal Code requirements set forth in Title 12 (Public Works and Utilities) and Title 18 (Zoning), should Mobilitie elect to pursue an installation or modification of telecommunications equipment on City utility poles, streetlight poles or in conduit. Discussion As noted above, the MLA sets the essential terms and conditions governing the deployment of wireless antennas and enables current and new service providers to address coverage and capacity issues related to high-speed mobile broadband service in Palo Alto. Deployment is managed in a manner that allows the Utilities Department’s infrastructure to be used for advanced broadband communication purposes, without materially affecting the City’s provision of electric utility service to the community, and in a manner consistent with applicable City ordinances, rules and regulations. City of Palo Alto Page 4 According to Mobilitie, the main purpose of its installations is to fulfill capacity objectives caused by the rapid increased usage of wireless data and technology in the area surrounding the project sites. This hybrid transport network provides even, widespread coverage throughout the neighborhood sites. This allows for network densification without adding larger, more traditional wireless facilities. As future capacity requirements increase, the existence of these transport sites will allow for more small-cell sites to be utilized to fill in additional coverage gaps. Timeline Staff has been working with the wireless carriers and companies that build wireless communications facilities for the carriers (e.g. Crown Castle and Mobilitie) over the next several years as they continue to upgrade their networks to improve coverage and capacity. Resource Impact The MLA represents an increased work load for City staff. As required by law, staff will review and administer the installation, inspection and billing associated with these wireless communication facilities as additional work priority. Staff costs are recovered from the applicant and the general criteria used by CPAU Engineering for make-ready work are compliance with California Public Utilities Commission (“CPUC”) General Order 95 rules for construction and maintenance of overhead systems, relocation or addition of equipment and final inspection/connection fees. The annual License Fees for DAS and small cell attachments to be charged are contingent on the number of antennas that are attached by wireless communications service providers. Policy Implications These recommendations are consistent with the Telecommunications Policy adopted by the Council in 1997, to facilitate the competitive delivery of advanced telecommunications services in Palo Alto in an environmentally sound manner (Reference CMR: 369:97). Environmental Review The California Environmental Quality Act (“CEQA”) does not apply to the Council’s approval of the MLA and Exhibits, because approval of these documents does not constitute a “project” for purposes of CEQA review. In the case of a third party applying to undertake certain action under the MLA, whether or not CEQA applies will be determined by Staff on a case-by-case basis with respect to each application, based on location, supporting structure, and other factors. Attachments: Attachment A: Mobilitie Master License Agreement Contract No. ____________ JM 07-001 Mobilitie MLA MASTER LICENSE AGREEMENT FOR USE OF CITY-CONTROLLED SPACE ON UTILITY POLES AND STREETLIGHT POLES AND IN CONDUITS BETWEEN THE CITY OF PALO ALTO AND MOBILITIE, LLC, A NEVADA LIMITED LIABILITY COMPANY DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ TABLE OF CONTENTS JM 07-001 Mobilitie MLA i Section Description Page 1.0 DEFINITIONS ..................................................................................................3 2.0 TERMS AND TERMINATION .......................................................................7 3.0 GRANT AND SCOPE OF LICENSE ..............................................................8 4.0 OTHER RIGHTS AND OBLIGATIONS OF LICENSEE ..............................12 5.0 APPLICATION FOR ACCESS .......................................................................14 6.0 COSTS AND FEES ..........................................................................................17 7.0 CONSTRUCTION AND INSTALLATION OF THE LICENSEE FACILITIES .....................................................................................................19 8.0 MOVING THE LICENSEE FACILITIES .......................................................21 9.0 INSPECTION OF THE LICENSEE FACILITIES ..........................................21 10.0 UNAUTHORIZED ATTACHMENT OR OCCUPANCY ..............................22 11.0 INSTALLATION AND REPLACEMENT OF THE LICENSEE FACILITIES .....................................................................................................23 12.0 INDEMNITY; WAIVER; RISK OF LOSS ......................................................25 13.0 INSURANCE ....................................................................................................26 14.0 PERFORMANCE BOND; LETTER OF CREDIT ..........................................27 15.0 REPRESENTATIONS AND WARRANTIES .................................................28 16.0 DEFAULT; REMEDIES FOR DEFAULT ......................................................29 17.0 DISPUTE RESOLUTION ................................................................................30 18.0 NOTICES ..........................................................................................................31 19.0 MISCELLANEOUS PROVISIONS .................................................................32 DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 1 MASTER LICENSE AGREEMENT FOR USE OF CITY-CONTROLLED SPACE ON UTILITY POLES, STREETLIGHT POLES AND IN CONDUITS BETWEEN THE CITY OF PALO ALTO AND MOBILITIE, LLC, A NEVADA LIMITED LIABILITY COMPANY THIS MASTER LICENSE AGREEMENT (the “Agreement”), dated as of ______________, _____ (the “Effective Date”), is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the “City”), and MOBILITIE, LLC, A NEVADA LIMITED LIABILITY COMPANY (the “Licensee”) (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts and circumstances: RECITALS 1. The City represents that it owns (or co-owns with Pacific Bell Telephone Company dba AT&T California or Pacific Gas and Electric Company, or both) or controls, operates and maintains certain Utility Poles and Streetlight Poles located within its jurisdictional boundary. The City also represents that it owns, controls, operates and maintains certain ducts and conduits located within its jurisdictional boundary. 2. The Licensee represents that it is either (a) a personal wireless service provider authorized, certificated or licensed by the FCC or other agency, (b) an operator of a distributed antenna system network authorized, certificated or licensed by the FCC, the CPUC or other agency, (c) a wireline provider of Telecommunications Service authorized, certificated or licensed by the CPUC, or (d) a provider of Multichannel Video Services which is franchised by the CPUC or other agency. 3. The Licensee represents that it is authorized to provide Communications Service, is otherwise qualified to do business in California, and has obtained all necessary authorizations, certifications or licenses from the FCC, the CPUC or other agency. A copy of the Licensee’s CPCN or WIRN, if applicable, is attached hereto as Exhibit “A.” 4. The Licensee desires access to and use of the City-controlled spaces on certain Poles and/or in certain Conduits in order to attach and/or install its wireline and/or wireless communications facilities and equipment for the purpose of providing Communications Service in Palo Alto as described in the applicable Supplement. The Licensee Facilities, which will be attached to certain Poles and/or installed in certain Conduits, will be identified in Exhibit “1” to each Supplement. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 2 5. Subject to the terms and conditions of this Agreement and further subject to the City’s good faith determination that the Licensee Facilities will not unreasonably interfere with the City’s duty to serve its municipal utility customers (including, without limitation, its electric, natural gas, dark fiber optics and water utility customers) or will not adversely affect the City’s obligation to otherwise provide for and protect the public health, safety and general welfare, the City is willing to grant to the Licensee a non-exclusive license to attach and/or install the Licensee Facilities on certain Poles and/or in certain Conduits, subject to conditions and limitations that the City may impose from time to time as permitted at Law and in this Agreement. NOW, THEREFORE, in consideration of the Recitals and the following agreements, covenants, and obligations, the value and sufficiency of which are acknowledged, the Parties mutually agree: AGREEMENT 1.0 DEFINITIONS Except as the context otherwise requires, the capitalized terms used in this Agreement shall have the meanings noted in this Article 1.0. “Additional Costs and Fees” has the meaning set forth in Exhibit “C.” “Annual Costs and Fees” has the meaning set forth in Exhibit “C.” “Applicant” means any Person who requests the approval and authorization of the City to access, use and occupy any City-controlled space on Poles and/or in Conduits. “Application” means the application to access and use Poles and/or Conduits, as set forth in the Processing Request Application, Exhibit “G,” referred to in Section 5.1. The term does not extend to an application for a permit that is required by Title 12 or Title 18 of the Palo Alto Municipal Code, with which the Licensee shall comply. “Available” means, when used in the context of Conduit Occupancy or Pole Attachment, any usable space on a Pole or in a Conduit that is not otherwise occupied by the City, a joint owner of a Pole and/or an existing licensee at the time an Application is submitted and is available for use by the Licensee. “Business Day” means any Day, except a Saturday, Sunday, and any Day observed as a legal holiday by the City. “City Facilities” mean the Poles, Conduits and any other City and/or CPAU facilities that are exclusively controlled by the City. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 3 “City Manager” means the individual designated as the City Manager of the City by Palo Alto Municipal Code section 2.08.140, and any individual who is designated the representative of the City Manager. “Communications Service” means a Telecommunications Service, Multichannel Video Service, Information Service, or any other service involving the transport or transmission of information electronically by wire or radio. “Conduit” means any metal, plastic or like-material duct or pipe that is wholly- owned and/or exclusively controlled by the City. “Conduit Occupancy” means any attachment and/or installation in Conduit. “Costs and Fees” means the utility rates, fees and charges actually incurred by the City to perform the Preparatory Work and the Make-Ready Work at the Licensee’s request, including, without limitation, (a) the actual rates, fees and charges or other expenditures to be incurred or incurred by the City and/or any general contractor or subcontractor acting on behalf of the City to perform the Make-Ready Work, and (b) if the City’s employees perform the Make-Ready Work, the work performed at their labor rates. Costs and Fees also includes any fee, assessment, charge (other than Costs), imposition, or other levy (but excluding a franchise fee and any tax, including the telephone utility users tax, now or hereafter in effect), lawfully imposed by the City. “CPAU” means the City’s Department of Utilities, including, without limitation, the City’s electric utility, fiber optics utility, gas utility and water utility. “CPCN” means the certificate of public convenience and necessity, issued by the CPUC to the Licensee. “CPUC” means the California Public Utilities Commission or successor agency. “Day” means a calendar day, unless a Business Day is specified. “Director” means the Public Works Director, the Utilities Director, the Planning Director or any other Person who exercises the responsibilities of the director of any City department, identified in Chapter 2.08 of the Palo Alto Municipal Code. “Effective Date” has the meaning set forth in the Preamble to the Agreement. “FCC” means the Federal Communications Commission or successor agency. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 4 “Force Majeure” means an incident, event or cause, whether or not foreseeable, that is beyond the reasonable control of a Party, including, without limitation, an act of God, act of a superior governmental authority, earthquake, fire, flood, labor strike or sabotage, which has an adverse effect on the design, construction, installation, management, operation, testing, use or enjoyment of the Facilities. “Information Service” means “information service,” as defined in 47 U.S.C. §153(25). “Initial/One-Time Costs and Fees” has the meaning set forth in Exhibit “C.” “Law” means any applicable administrative or judicial act, decision, certificate, charter, code, constitution, opinion, order, ordinance, policy, procedure, rate, regulation, resolution, rule, schedule, specification, statute, tariff, or other requirement of the City, of any county, state or federal agency, or of any other agency having joint or separate jurisdiction over the Licensee or the City, or both, and their separate facilities, now or hereafter in effect during the term of this Agreement, including, without limitation, any regulation or order of an official entity or body. “Letter of Credit” means an irrevocable standby letter of credit issued by a U.S. bank or other financial institution, which has an issuer or other creditworthiness rating of at least “A” by Standard & Poor’s and an “A2” by Moody’s Investor Services. “Licensee Facilities” means, without limitation, aerial, surface or underground wires, amplifiers, antennas, boxes, cabinets, cables (including fiber optic and coaxial cables), circuits, conduits, conductors, converters, copper wires, decoders, demodulators, drop wires, ducts, electronics, encoders, equipment, generators, hubs, inner-ducts, lasers, manholes, microwave, modulators, multiplexers, networks, nodes, optical fibers, optical repeaters, patch panels, processors, receivers, splice boxes, switches, tap-offs, terminals, traps, vaults, wires, wire and wireless transmitters and receivers, and other similar equipment owned, leased, or controlled by the Licensee that is used for or is useful in the provision of Communications Service, in existence either as of the Effective Date or at any time during the term of this Agreement and located in or on the City Facilities. “Make-Ready Construction Work” means all construction-related work associated with Make-Ready Work. “Make-Ready Construction Work Fees” means Costs and Fees associated with Make-Ready Construction Work as more particularly described in Exhibit “C.” “Make-Ready Engineering Work” means engineering-related work associated with Make-Ready Work. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 5 “Make-Ready Engineering Work Fees” means Costs and Fees associated with Make-Ready Engineering Work as more particularly described in Exhibit “C.” “Make-Ready Work” means changes to be made to City-owned or – controlled Poles, its own Pole Attachments, the existing Pole attachments of any joint owner(s) and any existing licensee, or the existing additional equipment associated with those attachments, that may be needed to accommodate a proposed additional pole attachment. It also includes Make-Ready Work relating to access to Conduits by the Licensee Facilities. “Make-Ready Work Fees” means Make-Ready Engineering Work Fees and Make-Ready Construction Work Fees, including as more particularly described in Exhibit “C” attached to this Agreement. “Multichannel Video Services” means “cable service” as defined in Chapter 2.10 of Title 2 of the Palo Alto Municipal Code and in 47 U.S.C. § 522(6), “video service” as defined in Cal. Pub. Util. Code § 5830(s), services provided over an open video system certificated by the FCC pursuant to 47 U.S.C. § 573 or a cable communications system, as defined in Chapter 2.10 of Title 2 of the Palo Alto Municipal Code, and any other form of delivery of multichannel video services to subscribers in Palo Alto over the Licensee Facilities located in the Public Rights-of-Way or Public Utilities Easements. “Payment Commencement Date” means the first day of the month following the City’s completion of a final electric service connection for the Licensee Facility under a Supplement. “Person” means any individual, for-profit corporation, nonprofit corporation, general partnership, limited partnership, limited liability company, limited liability partnership, joint venture, business trust, sole proprietorship, or other form of business association, but it does not include the City. “Pole” means (a) any Utility Pole, excluding towers, used to support mainly overhead distribution wires and cables, jointly or separately owned by the City, (b) any Streetlight Pole, wholly owned by the City, and (c) the anchors and guy strands/guy wires, which are located in the Public Rights-of-Way and the Public Utility Easements. The term does not include any Utility Pole that is wholly owned by a Person other than the City. “Pole Attachment” means any attachment to a Pole by the Licensee. “Preparatory Work” means, except as otherwise provided herein, work of a preliminary nature undertaken by City staff, including, without limitation, survey and field inspection work, review of engineering plans and specifications and other related work, that precede, and are required to establish, the Make-Ready Work in order to facilitate the attachment and/or installation of the Licensee Facilities in, on or about Poles and/or Conduits. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 6 “Preparatory Work Fees” has the meaning set forth in Exhibit “C” attached to this Agreement. The term does not extend to any fee associated with an application or permit that is required by Title 12 or Title 18 of the Palo Alto Municipal Code, which Licensee shall comply. “Provision” means any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital, reservation, representation, term, warranty, or other stipulation in this Agreement or an Exhibit or by Law that defines or otherwise controls, establishes, or limits the performance required or agreed by any Party hereto. All Provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions. “Public Rights-of-Way” means the areas in, upon, above, along, across, under, and over the public alleys, boulevards, courts, lanes, places, roads, streets, and ways, including, without limitation, all Public Utility Easements, within the jurisdiction of the City. This term shall not include any real property, in whole or in part, owned by any Person or agency other than the City except as provided by Law or pursuant to an agreement between the City and any such Person or agency, nor shall it include any real property owned and/or controlled by the City that is not dedicated to utility or public transit use. “Public Utility Easement” means any privately owned land, in which the City holds an easement for public utility uses and purposes, without regard to whether any “public utility,” as defined in California Public Utilities Code section 216(a), has an easement for similar public utility uses and purposes. “Standard Drawings and Specifications” means the general terms and conditions, specifications, and requirements of the City which govern the design, construction, installation, and maintenance of any improvement to be located within the Public Rights-of-Way and Public Utility Easements. This document is authored by the City’s Department of Public Works, Engineering Division, and any reference to such document shall include additions, amendments, deletions, revisions, modifications, and updates to this document. This term shall include documents entitled “General Conditions” or words of similar import, now or hereafter existing, which directly pertain to all aspects of general construction work. “Streetlight Pole” means any pole that is used for streetlighting purposes, including, without limitation, those using concrete, steel or aluminum (or other metal), or wood. The term does not include Utility Poles; provided, however, that in the event a pole is used for both streetlighting purposes and for electrical distribution facilities, the pole shall be deemed to be a Utility Pole. “Supplement” means that document in substantially the form attached hereto as Exhibit “B” and incorporated by reference containing information related to Licensee Facilities attachments to Poles. A Supplement shall be effective on the DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 7 Supplement Effective Date, and upon such execution, shall be deemed incorporated into this Agreement. “Supplement Effective Date” has the meaning set forth in the Preamble to the Supplement. “Telecommunications Service” means to the extent not inconsistent with federal law, the transmission of voice, video or data information in rendering audio, video or data service, which may be offered by the Licensee pursuant to its FCC, CPUC or other agency approval, authorization, certification or license. Multichannel Video Service shall not be considered a Telecommunications Service or an Information Service hereunder, except to the extent required by Law. “Utilities Rules and Regulations” means the City’s utilities rules and regulations, authorized by Chapter 12.20 of the Palo Alto Municipal Code. “Utility Pole” means any standard design wooden or metal pole that is used for electrical distribution facilities. The term does not include Streetlight Poles; provided, however, that in the event a pole is used for both streetlighting purposes and for electrical distribution facilities, the pole shall be deemed to be a Utility Pole. “WIRN” means the wireless identification registration number that the Licensee is required to obtain from the CPUC in order to offer intrastate wireless telecommunications services in California. “Work” means and includes both Preparatory Work and Make-Ready Work. 2.0 TERM AND TERMINATION 2.1 Term. 2.1.1 Initial and Extension Terms of Agreement. The initial term of this Agreement is ten (10) years (the “Initial Term”), commencing on the Effective Date, unless and until it is earlier terminated in accordance with this Agreement. This Agreement shall extend for an additional ten (10) years (the “Extension Term”), commencing on the expiration of the Initial Term, provided that: (i) Licensee shall give written notice in accordance with to section 18 of its intention to extend this Agreement no less than sixty (60) Days prior to the expiration of the Initial Term; (ii) the Licensee is in substantial compliance with the Provisions; (iii) there has not been any change in Law that may materially affect the Provisions or their enforceability; and (iv) neither the City nor Licensee have otherwise terminated this Agreement in accordance with the Provisions. 2.1.2 Renewal of Agreement. The Parties may in good faith negotiate DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 8 the terms and conditions of a new master license agreement, which negotiations the Parties shall use reasonable effort to commence by no later than six (6) months before the expiration of the Extension Term; provided, however, the negotiations shall be based on the terms and conditions of the City’s standard master license agreement then in effect or in accordance with such other contract rates, terms and conditions or Law as may be adopted by the City. If the Parties fail to negotiate the renewal of a new master license agreement, then the Licensee shall be deemed to hold over and shall be otherwise liable to perform its obligations hereunder, including the payment of all Annual Costs and Fees or for any other Costs and Fees due and payable under this Agreement, in accordance with the terms and conditions of the standard master license agreement then in effect, unless there is no such standard master license agreement then in effect, in which event the terms and conditions of this Agreement shall continue to apply. (i) If a new master license agreement has not been executed by the Parties by the expiration of the Extension Term, and the Parties do not otherwise agree in writing to renew, then the Licensee, at the City’s option provided in writing no later than ninety (90) days prior to the expiration of the Extension Term, shall either: (a) sell the Licensee Facilities to the City at fair market value, if the Licensee desires to sell and the City desires to purchase the Licensee Facilities or any part thereof (and in such case the City shall accept the Licensee Facilities in its then existing “as is” condition); (b) at the Licensee’s sole cost and expense, remove the Licensee Facilities from the City Facilities if the City does not intend to purchase the Licensee Facilities; (c) without cost or charge to the City, abandon the Licensee Facilities on Poles and/or in Conduits, provided the City first approves, in writing, the proposed abandonment of the Licensee Facilities and the terms and conditions applicable to that abandonment, whereupon in the absence of any agreement by the Parties to the contrary, such facilities shall become the property of the City. The City’s failure to provide notice or exercise its options pursuant to this section shall not relieve Licensee of its obligation to remove Licensee Facilities pursuant to section 7.5 of this Agreement. 2.1.3 Term of Supplement. The term for each particular Supplement begins on the Supplement Effective Date, and ends upon the expiration of the Initial Term, or the Extension Term, if validly exercised, under this Agreement, unless such individual Supplement is earlier terminated, or this Agreement is extended pursuant to section 2.1.2, as provided for in this Agreement. 2.1.4 Changes in Law. The Parties acknowledge that the subject of wireline and wireless communications facilities in the context of Utility Pole attachments has been addressed and continues to be addressed by federal and California authorities. If, during the Initial Term or the Extension Term, a Law is adopted, amended or repealed and is made binding upon the City and is applicable to this Agreement, then the Parties shall agree to negotiate in good faith an amendment to this Agreement (or a new agreement, as the case may be) to the extent necessary to DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 9 comply with such Law. If the Parties cannot mutually agree to an amendment to this Agreement (or a new agreement) within three (3) months after a Party receives the other Party’s request to negotiate an amendment to this Agreement (or a new agreement, as the case may be) pursuant to this section 2.4, then the Parties will agree to submit the dispute to mediation and non-binding arbitration under mutually acceptable terms and conditions. 2.2 Termination 2.2.1 By City. Except as otherwise provided herein, the City may terminate this Agreement, or at City’s election, any Supplement, for cause (as defined in subsection 2.2.1(i)) upon ten (10) Days’ prior written notice sent by the City to the Licensee; in that event, the City may exercise its legal rights and/or equitable remedies hereby reserved under this Agreement or by Law at any time, including, without limitation, the right to recover any uncollected Annual Costs and Fees that would be due and payable by the Licensee to the City if this Agreement had not been terminated during the Initial Term or the Extension Term, if any. (i) A termination for cause means: (a) the Licensee has failed to cure a material default of this Agreement within thirty (30) Days after it receives the City’s notice of default, or, if the default can be cured and such cure reasonably requires more than thirty (30) Days to achieve, fails to commence such cure within the specified period but, thereafter, diligently continues such cure until completion thereof; (b) the CPUC, the FCC or other agency exercising jurisdiction over the Licensee has, by final order or action that is no longer subject to appeal, terminated or otherwise revoked the Licensee’s approval, authorization, certification or license to operate the Licensee Facilities, to provide Communications Service, or to transact business referred to in Recital numbers 2 and 3; or (c) the Licensee’s authority to do business in California has expired or is rescinded or terminated by final order or action that is no longer subject to appeal. (ii) Upon the establishment of termination of the Agreement or any Supplement for cause, the right to attach to any Pole and/or to occupy any Conduit affected thereby will immediately terminate after the City delivers thirty (30) Days’ prior written notice to the Licensee. In that event, the Licensee shall, within six (6) months of the effective date of termination of this Agreement, remove or cause the removal of the Licensee Facilities from the affected Poles and/or Conduits, or, if the Licensee fails to remove or cause such removal within such six-month period, the City may remove the same for the account of and at the sole cost and expense of the Licensee. The preceding sentence notwithstanding, the Parties by mutual agreement may exercise any option made available under subsection 2.2.1. 2.2.2 By Licensee. Except as otherwise provided herein, Licensee may terminate this Agreement or any individual Supplement hereunder, upon sixty (60) Days’ prior written notice sent by the Licensee to the City. Termination of the DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 10 Agreement or any Supplement by Licensee pursuant to this section shall not relieve the Licensee of its obligation to pay any Initial/One-Time Costs and Fees, Annual Costs and Fees, Additional Costs and Fees, or for any other Costs and Fees due and payable under this Agreement as of the effective date of the termination to the City under the Agreement or applicable Supplement, including the uncollected Annual Costs and Fees that would be due and payable by the Licensee to the City as of the effective date of the termination if the Agreement or Supplement had not been terminated; provided, however, that Licensee shall not be entitled to a refund for any Costs and Fees already paid to City. Provisions of this Agreement related to removal of Licensee Facilities shall also apply. Upon termination of any Supplement, no further annual Costs and Fees shall be due. 3.0 GRANT AND SCOPE OF LICENSE 3.1 Grant of License. The City grants to the Licensee, and the Licensee accepts from the City, subject to the Provisions, a non-exclusive license to access and use certain Poles and/or Conduits and attach, install, operate, maintain, repair, remove, reattach, relocate and replace the Licensee Facilities in, on or about those certain Poles and/or Conduits described in the Supplement, provided, however, that Licensee may not place ground facilities, such as cabinets, in Public Utility Easements located on private property without separate written City consent or approval. The rights and obligations of the Licensee under this Agreement will be exercised at the Licensee’s sole cost and expense, unless otherwise agreed to by the Parties. The rights of Licensee under this Agreement are subject to conditions in this Agreement and to the conditions that the City may from time to time lawfully impose on the use of such Poles and/or Conduits. This grant of license to access and use certain Poles and/or Conduits does not permit the Licensee to access and use other Poles and/or Conduits not specifically listed in the Supplement. 3.2 Scope of License. The grant of license to the Licensee is subject to: 3.2.1 the prior use and existing and continuing rights, consents and approvals of the City, including CPAU and other City departments, the joint owner(s) and any existing licensee of certain Poles and/or Conduits, 3.2.2 existing and future recorded and unrecorded deeds, easements, dedications, agreements, conditions, covenants, restrictions, encumbrances and claims of title which may affect any right, title and interest in and to the Public Rights-of-Way, Public Utility Easements, and any City-owned or -controlled facility located in the Public Rights-of-Way or Public Utility Easements; 3.2.3 any restrictions on permissible uses of City Public Utility Easements under applicable law, and DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 11 3.2.4 any restrictions that the City imposes on Poles, including, without limitation, limits on the height of certain Poles or attachments to certain Poles, provided the same do not conflict with any laws or decisions of the California Public Utilities Commission (CPUC). 3.3 Nothing in this Agreement shall be deemed to grant, convey, create, or vest in the Licensee a perpetual interest in land or the Public Rights-of-Way or Public Utility Easements, including, without limitation, any fee, leasehold interest, easement, or franchise rights. Neither the City, nor the joint owner(s) of certain Poles, nor any existing licensee shall be liable to the Licensee for the failure of the City, the joint owner(s) of certain Poles, and/or any existing licensee to secure the proper legal authority from a grantor of an easement affecting any Pole or Conduit. 3.3.1 The Licensee, as a condition precedent to its right to access, use, and attach and/or install the Licensee Facilities in, on or about any Pole or Conduit, shall obtain from the City other necessary approvals, authorizations, and/or permits to access and use the Public Rights-of-Way and the Public Utility Easements controlled by the City. 3.3.2 The Licensee’s right to access, use, and attach to and/or install in, on or about any Poles and/or Conduits is subject to the City’s prior right to use or remove from use at a future date any Pole or Conduit space occupied by, or requested to be occupied by, the Licensee in the reasonable exercise of its governmental or proprietary powers. The Licensee acknowledges and agrees that its right to attach and/or install is also subject to the prior rights of the joint owner(s) of certain Poles and/or any existing licensee. If the Licensee’s right under this subsection 3.2.3 is affected by such City action, then the City will use reasonable efforts to find one or more alternative locations for the Licensee to attach the Licensee Facilities in accordance with the facilities relocation procedure set forth in Section 7.2. 3.3.3 The City may for consideration of the public health, safety, or welfare, including, without limitation, safety, reliability, consistency with surrounding area, security or engineering, historic or environmental preservation, or other legally permitted land use reasons, terminate or otherwise modify the scope of the Licensee’s non-exclusive license granted pursuant to this Agreement, upon sixty (60) Days’ prior written notice to the Licensee. If the City exercises its rights under this subsection 3.2.4, then it will use reasonable efforts to find one or more alternative locations for the Licensee to attach the Licensee Facilities. 3.3.4 Except as authorized by Law or this Agreement, the Licensee in the performance and exercise of its rights and obligations, shall not obstruct or interfere in any manner with the Public Rights-of-Way, Public Utility Easements, private rights-of-way, sanitary sewers, sewer laterals, water mains, storm drains, gas mains, poles, aerial and underground electric and telephone wires, electroliers, Multichannel Video Service facilities, and other telecommunications, utility, and DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 12 municipal property or facilities without the express written approval of the City and/or the other owner(s) of the affected property or properties. 3.3.5 The City reserves to itself the right to attach, install, maintain, replace and enlarge the City Facilities and to operate the same from time to time in such manner as will best enable it to meet the needs of CPAU’s utility customers and fulfill its service requirements. Except as provided in subsection 12.1.1, the City shall not be liable to the Licensee or its customers for any interruption of service of the Licensee or for interference with the Licensee Facilities arising in any manner relating to the City’s, the joint owner(s)’or any existing licensee’s use of the City Facilities under this Agreement, or arising in any manner out of the condition or character of the City Facilities or their manner of operation. 3.3.6 Nothing in this Agreement shall be deemed to create an entitlement of Licensee access to any particular Pole or Conduit, except as set forth in the applicable Supplement. 3.4 Compliance with Laws. The Licensee shall comply with all Laws, including, without limitation, the CPUC’s General Orders (“GO”) that are applicable to the Licensee, in the exercise and performance of its rights and obligations under this Agreement. The preceding sentence notwithstanding, the Licensee shall furnish a copy of the notification letter required by GO 159A, Section IV.C.2 to the Planning Director, to the extent GO 159A applies to the Licensee. 3.4.1 The Licensee shall obtain the City’s review and approval of the proposed siting and design and the construction methods to be used with respect to the Licensee Facilities, as may be required by Law. The Licensee shall obtain architectural review of the Licensee Facilities by the City’s Planning Department staff and by the City’s Architectural Review Board, which review will be dependent on the characteristics of the Licensee’s proposed project, as may be required by Law. The Licensee acknowledges that additional review by any other City board or commission or the City Council may be required by Law. The reviews referred to in this subsection 3.3.1 shall be conducted in conformance with the City’s land use approval process, to the extent applicable to the Licensee Facilities. Notwithstanding anything to the contrary in this Agreement, but in compliance with all laws and any CPUC decision, the City reserves the right to prohibit and/or condition initial installations or modifications of Licensee Facilities on Poles, including, but not limited to, increases in height or width of Poles. 3.4.2 The City may require the Licensee to file one or more written reports with any of the Directors within the time(s) requested. The Licensee shall file with the Utilities Director a copy of the radio frequency propagation study of any Licensee Facilities within thirty (30) Days of the completion of the first authorized attachment and/or installation of the Licensee Facilities occurring during the Initial Term and the Extension Term, if any. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 13 3.4.3 The City may require the Licensee to obtain a conditional use permit, if the City determines that the Licensee Facilities are subject to the requirements of Title 18 of the Palo Alto Municipal Code or other Law. 3.5 Authorized Services. The Licensee shall use the Licensee Facilities for the sole purpose of providing Communications Service that is subject to any FCC, CPUC or other agency approval, authorization, certification, or license. If the Licensee is authorized to offer new and/or additional Communications Service not now approved, authorized, certified, or licensed under its current FCC, CPUC or other agency approval, authorization, certification, or license, then the Licensee shall furnish the City Manager and the City Attorney with a copy of its application(s) for any such additional approval, authorization, certification, or license and a copy of any additional authorization, certification, grant, license within thirty (30) Days of its filing and its issuance. 3.5.1 The Licensee shall not allow any other Person to control the Licensee Facilities, or any portion thereof, for compensation, whether in cash or cash equivalent, for any purpose not directly related to the Licensee’s provision of Communications Service or other services approved, authorized, certified or licensed by the FCC, CPUC or other agency, unless the Licensee first gives thirty (30) Days’ prior written notice to the City Manager and the City Attorney of such intended use. 3.5.2 The Licensee acknowledges and agrees that (a) this Agreement is not a “franchise” within the meaning of 47 U.S.C. § 522(9), California Government Code § 53066, or California Public Utilities Code § 5800 et seq., and (b) this Agreement does not authorize, certify, grant or license the Licensee to use the Public Rights-of-Way and the Public Utility Easements to provide Multichannel Video Services or any other comparable services to subscribers in Palo Alto. 3.6 Location of Licensee Facilities. The non-exclusive license granted hereby shall not extend to any Pole and/or Conduit to which the attachment and/or installation of the Licensee Facilities thereon or therein would result in a forfeiture of rights by the City or the imposition of additional obligations or liabilities upon the City, the joint owner(s) of certain Poles, and/or any existing licensee to occupy the Public Rights-of-Way or Public Utility Easements. 3.6.1 If the existence of the Licensee Facilities in, on or about such Poles and/or Conduits would result in a forfeiture of any rights of the City, the joint owner(s) of certain Poles and/or any existing licensee, then the Licensee, at its sole cost and expense, shall promptly remove the Licensee Facilities within ninety (90) Days after receipt of written notice from the City. If the Licensee Facilities are not timely removed, the City may at the Licensee’s sole cost and expense remove them or cause their removal after the expiration of the notice period without liability on the part of the City or any third party hired or directed by the City to remove the same or parts thereof. In that event, the Licensee shall pay the City, upon demand, for the City’s DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 14 actual costs of removal and for all losses and damages that are incurred by the City by such undertaking. This obligation shall survive the early termination or expiration of this Agreement. 3.6.2 The Licensee shall relocate the Licensee Facilities within ninety (90) Days or other period of time established by Law after the Licensee’s receipt of written notice by the City that the Licensee must remove or relocate those facilities to another designated location within the City’s jurisdictional boundary pursuant to the City’s exercise of its police powers, including, without limitation, in accordance with the establishment of an underground utility district. 3.6.3 During the Initial Term and the Extension Term, if any, the Licensee may voluntarily remove any Licensee Facilities or part thereof from the City Facilities or part thereof on a permanent basis, provided that the Licensee first gives the City and any affected joint owner(s) of certain Poles and/or any existing licensee at least sixty (60) Days’ prior written notice of its intention to remove the Licensee Facilities. The voluntary removal of the Licensee Facilities prior to the expiration of the Initial Term or Extension Term, if any, shall not relieve the Licensee of its obligation to pay any Costs and Fees associated with the removal then due and payable to the City, including the uncollected Annual Costs and Fees that would be due and payable by the Licensee to the City if this Agreement had not been terminated. The Licensee shall obtain from the City any other approvals, authorizations, and permits required by Law prior to the commencement of such removal work. Upon removal, the Licensee may transfer the Licensee Facilities to the City, provided that the City first agrees, in writing, to accept title thereto, consistent with subsections 2.2.1(i) and (iii). Within six (6) months after the Licensee voluntarily abandons its License Facilities, or parts thereof, and fails to remove them upon the earlier of the date of voluntary abandonment or the date of early termination or expiration of this Agreement, the City shall arrange for the removal of the Licensee Facilities at the Licensee’s sole cost and expense if the City does not approve or otherwise accept the abandoned Licensee Facilities. Prior to the effective date of abandonment, the Licensee shall post security with the City to assure the City will recover the reasonable costs of removal of the Licensee Facilities; at the City’s election, the security may take the form of a Performance Bond, described in Article 14.0, or a Letter of Credit in the amount specified therein, as may be established by the City. 3.7 Disclaimer; Waiver. In no event shall either Party or its successors and assigns, elected officials, officers, employees, agents or representatives be liable for any lost profits, consequential, special, exemplary, indirect, punitive or incidental losses or damages, including loss of use, loss of goodwill, lost revenues, loss of profits or loss of contracts even if such Party has been advised of the possibility of such damages, and the Parties each waive such claims and releases each other and each of such Persons from any such liability. This Section 3.7 DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 15 shall not apply to any Costs or Fees or any other cost or fee referred to herein that the Licensee owes to the City. 3.7.1 The Parties acknowledge that California Civil Code Section 1542 provides that: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” The Parties waive the provisions of Section 1542, or other similar provisions of Law, and intend that the waiver and release provided by this subsection shall be fully enforceable despite its reference to future or unknown claims. 4.0 OTHER RIGHTS AND OBLIGATIONS OF LICENSEE 4.1 General. During the Initial Term and the Extension Term, if any, the Licensee shall request, in writing, the City’s approvals and authorizations to add, attach, install, move, remove, repair, replace, modify, or otherwise alter or change the Licensee Facilities, except as may be otherwise provided in this Agreement. The Licensee shall file the applicable requests for approvals and authorizations with the appropriate Director(s). 4.1.1 Each Party will use due care, and shall ensure that no damage, beyond reasonable wear and tear, is caused to the other Party’s facilities or property, or the facilities or property of the joint owner(s) of certain Poles and Conduits and/or any other licensees using the Poles and/or Conduits, including, without limitation, the joint owner(s)’ or other licensee(s)’ fibers, wires, cables, poles and/or conduits lawfully located in, on or about the Poles or Conduits to which the License intends to attach and/or install the Licensee Facilities. Licensee shall use due care, and ensure that no damage, beyond reasonable wear and tear, is caused to the property of any property owner adjoining the Public Rights-of-Way or easements used by Licensee. Any damage or destruction which is caused by any Party or its agent or representative shall be reported within forty-eight (48) hours to the other Party, the joint owner(s) of certain Poles and Conduits, and/or other licensee(s) or property owner(s) who could be directly affected by such damage. The Party causing such damage shall reimburse the other Party and/or any other affected Person, upon demand, for any damage caused the Party or its employees, contractors, subcontractors, agents, and representatives. 4.2 Identification of Facilities. The Licensee shall identify its Licensee Facilities, including, without limitation, its fibers, wires and cables, and wireless facilities with appropriate durable, visible identification tags that describe the Licensee’s name, number, color, identification code, size, and manufacture of the Licensee Facilities, including the fibers, wires and cables and wireless facilities, the type of service, and any other criteria as may be established or agreed to by the Utilities Director. Such information may be provided to the Utilities Director in accordance with the requirements set forth in Exhibits “D,” “E,” and “F.” DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 16 4.3 Notices to City, Joint Owners and Licensees. Excepting emergencies which may require the restoration of functionality of the Licensee Facilities within twenty-four (24) hours of loss of functionality, the Licensee shall give not less than ten (10) Business Days’ prior written notice to the Utilities Director, the joint owner(s) of certain Poles, and/or any existing licensee, whenever the Licensee will perform any approved or authorized Make-Ready Work in regard to the Licensee Facilities that will concurrently occupy any portion of the Poles and/or Conduits with the City, the joint owner(s) of certain Poles, and/or any existing licensee. Any Make-Ready Work required of the Licensee by the City shall be performed with due care by the Licensee or any Person acting on behalf of the Licensee, including its employees, agents, contractors, subcontractors and representatives. With respect to maintenance and repairs of the Licensee Facilities, the Licensee shall provide the City with reasonable prior notice in order that the City may determine whether to assign appropriate staff to be present during any such work. 4.4 Compliance with Technical Specifications. Subsection 3.3 notwithstanding, the Licensee Facilities shall be attached, installed, maintained, removed and repaired in accordance with the applicable requirements and specifications, including, without limitation, the Standard Drawings and Specifications, the specifications of the National Electrical Safety Code and National Electric Code and amendments thereto, and the applicable rules and regulations of the CPUC, the FCC and any other agency exercising jurisdiction over the Licensee. The Licensee may use the pathways inside the Streetlight Poles only if the attachment and installation work is conducted in accordance with the Standard Drawings and Specifications and the Utilities Rules and Regulations. Use of the Poles and Conduits shall be subject to any security plan now or hereafter approved by the City. 4.5 Repair of City Facilities, Public Rights-of-Way, Public Utility Easements and Private Property. The Licensee, at no liability, cost or expense to the City or the affected property owner, shall repair, replace, or restore, or shall cause the repair, replacement, or restoration, reasonable wear and tear excepted, of any damage to the City’s streets, sidewalks, underground facilities, Poles, Conduits, curbs, gutters and other City property, or any damage to any private property caused by or resulting from the performance of any Make-Ready Work by the Licensee, its employees, agents, contractor, subcontractors or representatives, or by the Licensee and others, if the Work is performed jointly by such parties. 4.6 Removal of Markings. The Licensee, at its sole cost and expense, shall remove all Underground Service Alert markings from the streets and sidewalks as may be required by Law or by the City. 4.7 Maintenance. The Licensee at its sole cost and expense, shall be responsible for all maintenance of the Licensee Facilities. 4.8 Notice to Affected Property Owners. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 17 4.8.1 Excepting emergencies which may require the restoration of functionality of the Licensee Facilities within twenty-four (24) hours of loss of functionality, Licensee shall give ten (10) Business Days’ prior written notice to private property owners near the site of the work whenever the Licensee will perform any approved or authorized Make-Ready Work in regard to the Licensee Facilities that will affect or is likely to affect the private property. The City may, in its reasonable discretion, waive the ten (10) Business Day advance notice requirement where City permits (including, without limitation, a Street Work or Encroachment Permit) issued for the same Make-Ready Work provide alternative notification requirements. With respect to maintenance and repairs of the Licensee Facilities, the Licensee shall provide affected private property owners or likely affected private property owners with reasonable prior notice. 4.8.2 Notwithstanding the foregoing, where installation, maintenance, or repair of Licensee Facilities has the potential to be complex, unusual, or have a significant effect on the City, other licensee(s) and/or private property owners, Licensee agrees to submit for City review and approval a coordination and public notification and outreach plan upon City request prior to commencement of any such work. 5.0 APPLICATION FOR ACCESS 5.1 Processing Request Application. The Licensee shall complete and file a Processing Request Application to request access to and use of Poles and/or Conduits (the “Application”) with CPAU and apply for and receive from the Public Works Director, Planning Director and/or the Utilities Director any other necessary authorizations and approvals. The form of the Application is attached hereto as Exhibit “G.” Upon receipt of approval of the Application and other authorizations and approvals and the payment of all required Costs and Fees, the Licensee shall coordinate with CPAU in making attachment to Utility Poles and/or occupancy of Conduits within the time period specified in Section 5.2, and with the City Manager or his/her designee in making attachment to Streetlight Poles within the time period specified in Section 5.3. Licensee acknowledges that its Applications, including all required attachments, must be submitted and complete in all respects in order for the City to deem the Application complete. To the extent not inconsistent with Law, the City reserves the right to reject any incomplete Application or any completed Application in accordance with this Agreement. 5.2 Access to Utility Poles and/or Conduit. The City, in acting upon an Application, will use reasonable efforts to process and accept or reject the Application for access to Utility Poles and/or Conduit, within the parameters and time periods set forth below: 5.2.1 Upon the City’s receipt of a complete Application, the City will invoice the Licensee for a non-refundable Preparatory Work Fee. Licensee will pay the DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 18 Preparatory Work Fee within thirty (30) Days of receipt of the City’s invoice. 5.2.2 Within twenty (20) Days of the City’s receipt of the Preparatory Work Fee, the City will complete Preparatory Work for the Application to determine whether and where the Licensee Facilities are feasible and what Make-Ready Engineering Work will be required. 5.2.3 Within seven (7) Days of the City’s completion of the Preparatory Work, the City will notify the Licensee of the Make-Ready Engineering Work necessary for Licensee Facilities and invoice Licensee for a non-refundable Make-Ready Engineering Work Fee. 5.2.4 If Licensee elects to proceed with Licensee Facilities, within thirty (30) Days of receipt of City’s notice and invoice for Make-Ready Engineering Work Fees, Licensee will pay the Make-Ready Engineering Work Fee. Licensee’s payment of such Make-Ready Engineering Work Fees will serve as notification to City that Licensee intends to proceed with Make-Ready Engineering Work. 5.2.5 Within thirty (30) Days of City’s completion of the Make-Ready Engineering Work, the City will provide the Licensee with a description of the necessary Make-Ready Construction Work for the Licensee Facilities and the Make-Ready Construction Work Fees applicable to the Licensee Facilities. Preparatory Work Fees and Make-Ready Engineering Work Fees paid by Licensee will be credited against Make-Ready Construction Work Fees. 5.2.6 If the Parties mutually agree to proceed with Make-Ready Construction Work, the Parties will execute a Supplement, substantially in the form of Exhibit “B” to this Agreement. The Supplement will: (i) Set forth the non-refundable Make-Ready Construction Work Fee and due date therefore; provided, however, that the Make-Ready Construction Work Fee will be paid prior to the start of Make-Ready Construction Work; and (ii) Specify whether the Make-Ready Construction Work for Licensee Facilities, including the required replacement of any deteriorated Pole, will be performed by the City or the Licensee or its City-approved, qualified and licensed contractor. 5.2.7 The City will complete the Make-Ready Work for the Licensee Facilities, as needed, within one hundred five (105) Days of execution of the Supplement. 5.3 Access to Streetlight Poles. Attachments to Streetlight Poles will be made on a case-by-case basis. To the extent not inconsistent with Law, the City reserves the right to deny access to any particular Streetlight Pole in accordance with DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 19 this Agreement. Any such denial shall be accompanied by a description of any modifications Licensee may make, or alternative locations Licensee may use, to obtain approval and an explanation of the reasons for the rejection of Licensee’s application. 5.4 Tolling. Notwithstanding Sections 5.2.1 through 5.2.7, and 5.3, the City may toll or stop the clock on any of the timelines mentioned in Sections 5.2.1, 5.2.2, 5.2.4 or 5.2.6 and 5.3 in the event of an emergency as determined by the City or for other good and sufficient cause. 5.4.1 The City will provide written notice to the Licensee of the City’s determination regarding the emergency or other good and sufficient cause. If the City is unable to complete any of the Work contemplated in Sections 5.2(A), (D) and/or (F) or 5.3 within the specified time periods, then the Licensee may request the City’s approval to undertake and complete such Work, provided that: (i) the Licensee gives to the City not less than 72 hours’ prior notice of its desire to complete such Work, (ii) the Licensee certifies, in writing, to the City that the Person(s) who will complete such Work on behalf of the Licensee is/are duly qualified and licensed to perform the Work in the electric utility space of the Pole and/or or Conduits, and (iii) the Person(s) is /are pre-authorized by the Utilities Director to complete such Work on behalf of the Licensee. As a condition precedent to the City’s obligation to approve any Person(s) who will perform such Work on behalf of the Licensee, the Licensee shall provide the name(s), copy of their license(s), and a statement of qualifications of the Person(s) designated to perform the Work on the Licensee’s behalf in the electric space on the Poles or in the Conduits at the time the Application is submitted. 5.4.2 Except as otherwise approved by the City, the Licensee shall limit the filing of an Application for Pole Attachment to not more than the number of Poles per Applications established by the City by Utility Rule and Regulation or, if no such requirement or specification exists, fifteen (15) poles per Application. 5.4.3 The City Manager or his/her designee may approve the modification of the limitations set forth in subsection 5.4.2, if the Licensee requests, in writing. The Licensee shall specify a desired priority of completion of the Work for each Application in the event that the Licensee submits multiple Applications to the City within a rolling thirty-Day period. 5.4.4 If the City Manager or his/her designee rejects or otherwise disapproves of the Application, then the City will provide the Licensee with a written detailed explanation of the basis of disapproval. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 20 5.5 Lapse of Application. Authorization or approval to the Licensee to attach to Poles and/or install in Conduits shall terminate without further notice to the Licensee as to any Poles or Conduits covered thereby, to which the Licensee has not attached or occupied within one hundred eighty (180) Days from the later of the Supplement Effective Date or the date of the City’s notice to the Licensee that such Pole(s) and/or Conduits are Available. The preceding sentence notwithstanding, the Licensee may re-submit the Application and, subject to subsection 7.5.2 hereof, the City will use reasonable efforts to expedite the City’s review and approval in accordance with the process set forth in Sections 5.2.1 through 5.2.4, or 5.3, as applicable, inclusive. 5.6 Multiple Applications for Same City Facilities. Applications received by the City regarding the same Pole or Conduit will be processed by the City on a first-come, first-served basis. First-come, first-served priority shall be determined according to the Applicant who is determined to have first submitted a complete Application. Whenever two or more Applications are filed with the City pertaining to the same Poles and/or Conduits, the City, within thirty (30) Days of receipt of the later filed Application, will notify all affected Applicants of the following: 5.6.1 one or more Applications have been received for some or all of the same Poles and/or Conduits; and 5.6.2 the name, email address and telephone number of each Applicant who has submitted such Application. 5.7 Cost Sharing Arrangements. In the event that one or more other Applicants may wish to share the costs of attachment and/or installation with the Licensee, unless otherwise agreed to by the Applicants, the Licensee, if it is the “first-in-time” Applicant, will endeavor in good faith to coordinate efforts relating to the sharing of all Make-Ready Work. Unless the Applicants otherwise agree, the Licensee, if it is the “first-in-time” Applicant, will endeavor to transmit to the City any mutually agreed to Make-Ready Work costs on behalf of the Applicants affected by such arrangement. The City shall bill the Licensee, if it is the “first-in-time” Applicant, for the entire cost of all Make-Ready Work necessary to accommodate the Applicants, including the Licensee. The City shall not be responsible, and it expressly disclaims any obligation or responsibility, for assisting the Licensee, if it is the “first-in-time” Applicant, in collecting the prorated costs of Make-Ready Work from any additional Applicant. 5.8 Performance of Work. 5.8.1 Prior to the commencement of the Make-Ready Work relating to CPAU facilities which the City may authorize the Licensee to perform, the Licensee shall post or shall cause the posting of notices of its proposed Make-Ready Work in DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 21 accordance with the Public Works and the Utilities Departments’ rules and regulations. Absent such rules and regulations, the Licensee shall at least ten (10) Days before the commencement of its Make-Ready Work deliver or shall cause to be delivered a written schedule for each portion of Work to: (i) those residents and businesses whose properties abut and are within 300 feet of the proposed Work sites or such other distance as set forth in any City-issued approval or authorization; and (ii) other Persons whose facilities will be directly impacted by such Work. In addition, the Licensee shall be required to post “No Parking” notices at least seventy-two (72) hours prior to the commencement of each portion of the Work in the absence of any time period as set forth in the approvals or authorizations. 5.8.2 The Licensee, upon the completion of its Make-Ready Work, shall promptly furnish to the City accurate plans and record drawings or as-built drawings depicting, in detail, the locations and dimensions of the Licensee Facilities, including, without limitation, the Pole and/or Conduit numbers, if available, notwithstanding that such information may have been initially provided with the Application(s). These plans and drawings shall be incorporated in any form as may be reasonably specified by the City Manager. The Licensee shall furnish its plans and drawings to the City in an electronic storage medium (which utilize AutoCAD or Geographic Data Systems software or equivalent), containing the full set of plans and record drawings or as-built drawings, whenever such information may be required by the City Manager or any Director. 5.8.3 In the event that the City determines any Pole to which the Licensee seeks access for attachment purposes is inadequate to support the Licensee Facilities in accordance with Law, following the receipt of the Licensee’s load calculations as requested by the City, the City will inform the Licensee of any required changes and the estimated costs thereof in order for the City to consider making provision for adequate load-bearing Poles in accordance with the timelines set forth in Sections 5.2.1 through 5.2.6 or 5.3. If, after the receipt of the City’s information, the Licensee desires to proceed with the Pole Attachments by submitting to the City the Licensee’s acceptance of the City’s estimate of Work and payment, in advance, in accordance with the timelines set forth in Sections 5.2.1 through 5.2.6 or 5.3 to reimburse the City for the total estimated Pole modification or replacement costs and expenses, including, without limitation, the costs of installing new Poles, plus the expenses of replacing or transferring the City’s electric and/or fiber optics utility facilities from the old Poles to the new Poles, the City may, at its option, replace the Poles with suitable Poles. The Licensee will reimburse the joint owner(s) of certain Poles and/or any existing licensee for any expense incurred by each of them in relocating their facilities from the existing Poles to the new Poles. Upon the completion of Make-Ready Work, the City will prepare and submit a final billing for DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 22 reimbursement by the Licensee to the City for the final Pole replacement costs, including, without limitation, the costs of the new Pole, the labor associated with the transfer or rearrangement of the facilities of the joint owner(s) of Poles and/or other license holders, the cost of removing the old Poles, and other matters itemized on the bill. In the alternative, the City may permit the Licensee to replace any Pole in accordance with terms and conditions mutually agreed to by the City, the joint owner(s) of certain Poles and any existing licensee thereof. 5.8.4 The City shall determine or otherwise specify the point of attachment on each Pole and/or the point of entry in each Conduit to be occupied by the Licensee Facilities after consultation with the Licensee. Information regarding the Licensee’s preferred point(s) of attachment or entry will be included on each Application. 5.8.5 The Licensee shall notify the City in the Application at least thirty (30) Days before the Licensee will add to, relocate, replace or otherwise modify the Licensee Facilities attached to a Pole or occupying a Conduit, where additional space or holding capacity shall be required on either a temporary or permanent basis. 6.0 COSTS AND FEES 6.1 Payment of Costs and Fees. In consideration of the City’s grant of a non-exclusive license to the Licensee under this Agreement, during the Initial Term and the Extension Term, if any, the Licensee shall pay to the City the Initial/One-Time Costs and Fees, the Annual Costs and Fees, and any Additional Costs and Fees, all of which are described with more particularity in Exhibit “C,” and will be set forth in a City invoice or the applicable Supplement. 6.1.1 Invoices. Unless an alternate process is specified in this Agreement, the City will prepare and deliver to the Licensee an invoice for all Costs and Fees for the privilege of accessing and using the City-controlled spaces on the Poles and/or in the Conduits, including for Initial/One-Time Costs and Fees, Annual Costs and Fees, Additional Costs and Fees, or for any other Costs and Fees due and payable under this Agreement. At a minimum, the City will invoice for Costs and Fees thirty (30) days in advance of the due date for such payments. (i) The amounts shall be due and payable on the date specified in such invoice, or where not specified on such invoice or elsewhere in this Agreement within thirty (30) Days of the invoice date. Any invoice that is not paid in a timely manner shall be assessed a late fee with respect to the overdue sum, which shall be due and payable with the invoice. (ii) The Licensee shall pay amounts not then in dispute. As to any amount subsequently determined to be due and payable, the Licensee shall promptly pay such amount and the applicable late fee with the invoice. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 23 6.1.2 Delivery of Payment. Unless otherwise specified, all payments shall be made payable by check, draft or other negotiable instrument to the “City of Palo Alto” and delivered to the address set forth in Article 18.0. 6.2 Failure to Pay. The Licensee’s failure to pay any Costs and Fees under this Agreement, including the Initial/One-Time Cost and Fees, the Annual Costs and Fees, and any Additional Costs and Fees, or any costs associated with termination or abandonment of Licensee Facilities as provided for in this Agreement when they shall become due, shall constitute a default by the Licensee under this Agreement; provided, however, the Licensee shall have the right to cure a monetary default in accordance with Article 16.0 and the right to dispute the amount of any Costs or Fees in accordance with Article 17.0. The Licensee’s obligation to pay Costs and Fees due to City, including the Annual Costs and Fees and any Additional Costs and Fees existing as of the effective date of early termination or expiration of this Agreement shall survive the expiration or earlier termination of this Agreement. 6.3 Timing of Payment. 6.3.1 Initial/One Time Costs and Fees. Payment for Initial/One Time Costs and Fees will be submitted as provided for in section 5 of this Agreement, Exhibit “G” and the applicable invoice and Supplement, a summary of which is provided below: (i) Preparatory Work Fee: Within thirty (30) Days of date of City invoice. (ii) Make-Ready Engineering Work Fee: Within thirty (30) Days of date of City invoice. (iii) Make-Ready Construction Work Fee: On the date set forth in the applicable Supplement; provided, however, that the Make-Ready Construction Work Fee will be paid prior to the start of Make-Ready Construction Work; 6.3.2 Annual Costs and Fees. (i) Year one: The Annual Costs and Fees for the first year shall be due and payable to the City within sixty (60) Days of the Payment Commencement Date specified in the applicable Supplement. For the first year, the Annual Costs and Fees shall be prorated, as of the Payment Commencement Date through December 31st of the first year. (ii) Subsequent years. Unless otherwise provided by the applicable Supplement or by Law or mutually agreed to by the Parties, the Annual Costs and Fees for subsequent years shall be payable thereafter annually, in advance, by January 1st of each year (however, if the Payment Commencement Date is in November or DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 24 December, Licensee shall have sixty (60) Days from the Payment Commencement Date to pay the 2nd year’s Annual Costs and Fees) so long as the Supplement remains in effect during the Initial Term and the Extension Term, if any. The City will invoice Licensee for Annual Costs and Fees in accordance with section 6.1.1. (iii) Except as expressly provided in the Supplements, the Annual Costs and Fees shall not be adjusted during the calendar year in the event that the Licensee removes or reduce the fibers, wires, cables or wireless facilities, or removes the wireless facilities attachments during any calendar year, whenever the adjustment or removal is effected and the Annual Costs and Fees have been paid. The City shall increase the sum total of all Annual Costs and Fees payable to the City, whenever the Licensee installs additional fibers, wires, cables or wireless facilities, in accordance with the adjustment formula specified in the Supplements or by Law. Such increased costs shall be documented in an amendment to the applicable Supplement. (iv) In addition to the Costs and Fees referred to in this section, the Licensee shall be obligated to pay the City for any uncollected Annual Costs and Fees which may be otherwise due and payable by the Licensee thru the current calendar year on account of its early termination without cause of this Agreement. 6.3.3 Additional Costs and Fees. Payment for Additional Costs and Fees (if any) will be submitted as provided for in accordance with applicable invoices, Supplements, the Provisions and Law. 7.0 CONSTRUCTION AND INSTALLATION OF THE LICENSEE FACILITIES 7.1 Make-Ready Work by City. The City shall perform its Make-Ready Work in regard to the City Facilities before the City or the Licensee can perform the Make-Ready Work in regard to the Licensee Facilities, unless the Parties otherwise agree. Nothing herein shall prohibit the City from authorizing the Licensee to perform the City’s Make-Ready Work in accordance with City requirements. The Licensee will pay the City’s Costs for the services rendered by the City and/or CPAU to the Licensee in accordance with this Article 7.0. 7.1.1 The City may install or add electrical switches in order to accommodate the Licensee Facilities within or above the electric utility space on the Poles at the Licensee’s sole cost and expense. 7.1.2 The City will trim and cut trees, shrubbery and other vegetation necessary for the proper operation of its utility infrastructure. 7.1.3 Whenever the City deems it necessary to remove or relocate the Licensee Facilities, or any part thereof, pursuant to the lawful exercise of its governmental or proprietary rights and powers, the City will issue timely notice to the DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 25 Licensee to permit the Licensee to secure the necessary approvals or authorizations, before the removal or relocation may commence. 7.1.4 Within the periods of time reasonably established by the City, the Licensee, at its sole cost and expense, shall construct, install, maintain, remove and relocate the Licensee Facilities in the manner authorized by this Agreement or by Law and in a safe manner, as not to physically or electrically interfere with the City Facilities or the facilities of the joint owner(s) of certain Poles and/or any existing licensee. 7.2 Facilities Relocation. At the request of the City, acting in accordance with Law, including the provisions of Chapter 12.16 of the Palo Alto Municipal Code, the Licensee shall relocate the Licensee Facilities in aerial locations to underground locations in accordance with Law, including, without limitation, any Law which applies to any dominant or non-dominant telephone corporation, as such term is defined in Section 234 of the California Public Utilities Code. In such event and to the extent permitted by the City, the Licensee may elect to relocate the Licensee Facilities, which are wireless facilities, affected thereby to any other available Pole, including a Streetlight Pole, as practicable, subject to the Provisions. If there is not available any other Utility Pole or a Streetlight Pole, then the City will endeavor to accommodate the Licensee’s request to either relocate, at the Licensee’s sole cost and expense, the Licensee Facilities, which are wireless facilities, or part thereof, to the nearest available Utility Pole or a Streetlight Pole or to a new Utility Pole or a Streetlight Pole to the extent the City can accommodate the Licensee’s requirements, which will be located in the Public Rights-of-Way or Public Utility Easements outside of the underground utility district in question. 7.3 Work in Electric Utility Space. Notwithstanding any other Provision in this Agreement to the contrary, no approval or authorization issued to the Licensee, that would allow the attachment of the Licensee Facilities to any Pole, shall allow the Licensee to encroach upon, perform any work, or attach and/or install the Licensee Facilities to the electric utility space on any Pole or in any Conduit, unless it is expressly permitted, in writing, by the Utilities Director. Any attachment and/or installation within the City’s electric utility space on a Pole or in a Conduit shall be performed by the City, at the Licensee’s cost and expense, unless the Licensee is otherwise permitted, in writing, by the Utilities Director to perform such work in accordance with the timelines set forth in this Agreement and Sections 5.1(A) through (G). The terms and conditions under which the Licensee or the Person representing the Licensee may be permitted, in writing, to work within the electric utility space of a Pole and a Conduit are set forth in Exhibits “D” and “E,” respectively. The Licensee will be permitted to place one or more additional Licensee Facilities onto an existing cable or strand that constitutes a part of the City Facilities subject only to availability as determined by the City and in compliance with prevailing industry safety standards. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 26 7.3.1 In the event that a Pole must be replaced to accommodate the Licensee Facilities, to the extent that the Licensee is authorized to perform such work, the Licensee shall conform to the Pole replacement requirements of the City, as set forth in Exhibit “F.” 7.4 Coordination of Work. In the event of a service outage affecting both the City Facilities and the Licensee Facilities, subject to the City’s reasonable exercise of discretion, the Licensee shall be entitled to maintain and repair the Licensee Facilities concurrently with the City’s maintenance and repair of the City Facilities. The Parties agree to work cooperatively with each other while effecting the maintenance and repairs of their respective facilities. 7.5 Facilities Removal. The Licensee, at its sole cost and expense, will permanently remove the Licensee Facilities from any Pole and/or Conduit within ninety (90) Days of the expiration or termination of the respective Supplement or this Agreement, as applicable, unless the Parties otherwise agree, in writing. The Licensee shall be liable to the City for the payment of all Costs and Fees and any Additional Costs and Fees until all of the Licensee Facilities are permanently removed. This Provision shall survive the expiration or earlier termination of this Agreement. 7.5.1 No proration or refund of any Annual Cost or Fee will be due and payable by the City to the Licensee on account of such removal on a permanent basis; provided, however, the City will not charge any Annual Cost or Fee attributable to the Licensee Facilities for the first calendar year commencing after their proper removal. Should the Licensee thereafter wish to make attachments or placements to such Poles and/or occupancy of such Conduits, it shall apply for and obtain the required authorizations and approvals. 7.5.2 Whenever the Licensee Facilities are removed from the City Facilities, no reattachment to the same Pole or insertion in the same Conduit may be made until: (a) the Licensee has first complied with the Provisions as though no such Pole Attachment and/or Conduit Occupancy had previously been made; and (b) all undisputed Costs and Fees and Additional Costs and Fees due and payable to the City for such previous Pole Attachment and/or Conduit Occupancy have been paid in full. 7.6 Notices to City. The Licensee shall inform the City, in writing, of the dates on which the removal of the Licensee Facilities has been completed. The City reserves the right to inspect each new attachment and/or installation, as conditions may warrant, and the Licensee shall reimburse the City for the Costs of such inspections at the rate per worker-hour then in effect. The surveys and inspections, whether or not made, shall not operate to relieve the Licensee of any responsibility, obligation or liability assumed under this Agreement or imposed by Law. Nothing in this Agreement shall be construed to obligate the Licensee to pay for inspections by the City of the City Facilities, made in the ordinary course of business. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 27 8.0 MOVING THE LICENSEE FACILITIES 8.1 Temporary Removal of Facilities. The Licensee will move or transfer or cause the removal or transfer of the Licensee Facilities on a temporary, non-permanent basis, whenever the City will move or replace the City Facilities. Except as otherwise required by the City, within the time required by Law or, if no such Law exists, thirty (30) Days of receipt of written notification by the City, the Licensee shall move or transfer or cause the removal or transfer of the Licensee Facilities in a workmanlike manner in accordance with the Licensee’s specifications, if those specifications are timely furnished to and subsequently approved by the City, in advance, and, if not, then in accordance with Law and the Provisions. Such movement or transfer by or for the Licensee will be performed only in the common operating areas served by the Parties. If the Licensee Facilities are not moved or transferred within the required period of time, the City may remove or transfer or cause the removal or transfer of the Licensee Facilities on behalf of the Licensee at the Licensee’s sole cost and expense. The Licensee shall pay the City, upon demand, the City’s actual Costs of removal or transfer, and this obligation shall survive the termination or revocation hereof. 9.0 INSPECTION OF THE LICENSEE FACILITIES 9.1 Inspection by City. The City reserves the right to inspect the Licensee Facilities at the time of Pole Attachment and/or Conduit Occupancy and to thereafter make reasonable periodic inspections of any part of the Licensee Facilities that are attached to Poles or installed in Conduits. The frequency and extent of such inspections by the City shall be reasonably established by the City. The Licensee shall reimburse the City for the Costs of any inspections performed by the City that may be made necessary by the Licensee’s actions or as reasonably determined by the City. The obligation to pay shall survive the expiration or earlier termination of this Agreement. 9.1.1 The City shall provide the Licensee with not less than ten (10) Business Days’ prior written notice before conducting the periodic inspections. The preceding sentence notwithstanding, where, in the sole judgment of the City Manager, the public health, safety and welfare considerations warrant an immediate or prompt inspection, the City may conduct such inspection without furnishing any prior written notice to the Licensee. 9.1.2 The City’s conduct of periodic inspections, or the failure to so conduct, shall not operate to impose upon the City any liability of any kind whatsoever, nor relieve the Licensee of any responsibility, obligations or liability assigned to the Licensee by this Agreement or by Law. 10.0 UNAUTHORIZED ATTACHMENT OR OCCUPANCY DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 28 10.1 Unauthorized Access. If, during the Initial Term or the Extension Term, if any, the City determines that the Licensee Facilities have been attached to or occupy the City Facilities, for which no Supplement was executed and no authorization or approval by the City was issued to the Licensee, the City may audit the Licensee’s records regarding such attachments and occupancies. Without prejudice to its legal rights or equitable remedies made available by this Agreement or by Law, the City may impose Costs and other financial requirements not otherwise prohibited by Law, which Costs for each unauthorized Pole Attachment or Conduit Occupancy will not exceed the lesser of an amount equal to five (5) times the Annual Costs and Fees referred to in Section 6.1, for the type of Licensee Facilities that are attached without authorization, or the sum of ten thousand dollars ($10,000) or such other sum established by Law. The failure to pay any such Costs shall be subject to the same Provisions set forth in Article 6.0 pertaining to unpaid amounts then due and payable to the City. 10.1.1 The Licensee shall submit, in writing, to the City within ten (10) Days after receipt of the City’s written notice of the unauthorized attachment or occupancy, a statement concerning the unauthorized action purportedly taken by the Licensee and shall promptly submit an Application pertaining to the unauthorized Pole Attachment or Conduit Occupancy. If the completed Application is not received by the City within the time period specified in the notice of unauthorized attachment or occupancy, the City may require the Licensee to remove its unauthorized attachment or occupancy within ten (10) Days of the date on which such Application shall be due, or the City may remove the Licensee Facilities or portion thereof without liability, and the cost and expense of such removal shall be borne by the Licensee. The obligation to pay shall survive the expiration or earlier termination of this Agreement. 10.2 No Implied Ratification. No action or inaction by the City with respect to the unauthorized use of any Pole or Conduit by the Licensee shall be deemed to be a ratification of the unauthorized use. 11.0 INSTALLATION AND REPLACEMENT OF THE LICENSEE FACILITIES 11.1 Lack of Access. Except as otherwise provided by Law, the City reserves the right to refuse to approve or authorize an Application, or access to particular Poles and/or Conduits in an Application, for any of the reasons set forth in Sections 3.2, 3.3 or 3.5, or whenever the City determines that the available City-controlled spaces on Poles or in Conduits are required for the reasons set forth in Section 3.2. The City Facilities, at the City’s discretion, may be rearranged or replaced to accommodate the Licensee Facilities, as practicable. If the City denies the Licensee access to and use of the City Facilities in question pursuant to this Section 11.1, the City will use reasonable efforts to identify one or more alternative locations at which the Licensee may attach and/or occupy the Licensee Facilities, including, without DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 29 limitation, at the Licensee’s sole cost and expense the placement of a new Pole or Conduit. 11.2 Preparatory Work. The Licensee acknowledges that Preparatory Work, consisting of an engineering survey and other related review and analysis, by the City will be required to determine the load adequacy of the existing Poles and/or the capacity of the Conduits to accommodate the Licensee Facilities, unless the City authorizes, in writing, the Licensee to perform the engineering survey and related work. The City may require the Licensee to provide its preliminary load calculations. The City also will take into account all engineering and other safety- related considerations in determining the utilization of the existing available capacity of an anchor or ability to accommodate an extension, when such utilization does not result in a reduction of the holding capacity below the level normally required by the City for safety or other purposes. 11.2.1 Except as otherwise determined by the City, the field inspection portion of the Preparatory Work will be performed by the Licensee, at its sole cost and expense, as may be reasonably required by the City. The City, the joint owner(s) of certain Poles, or any existing licensee may participate in the field inspection at its own cost and expense. The administrative processing portion of the Preparatory Work’s work order, the coordination of the Work requirements, and the schedule with the joint owner(s) of certain Poles and/or any existing licensee will be performed by the Licensee, at its sole cost and expense, as may be reasonably required by the City. 11.2.2 Before the Licensee may perform any portion of the Preparatory Work and before the City will be required to review any Application, the Licensee shall submit the required Costs and Fees with the Application or at such other time as may be established by the City. If a nonrefundable deposit is required by the City in order for the Licensee to conduct the Preparatory Work, this deposit will be applied to the cost of the Preparatory Work and/or the total cost of the job to the extent of the City’s participation or to future payments that the Licensee shall owe to the City. Upon receipt of the Application and the deposit, the City will notify the Licensee, in writing, of the estimated charges that will apply, should the City’s participation be required. The Licensee’s failure to respond within the specified period will be a ground for canceling the applicable Application and forfeiting the non-refundable deposit. 11.3 Make-Ready Work. The City, acting by the Utilities Director, will perform the Make-Ready Work for the Licensee Facilities, unless the City authorizes the Licensee to perform such Work under terms and conditions established by the City. If the City performs the Make-Ready Work, the Licensee shall pay the City for the Costs of such Make-Ready Work, and shall also reimburse the City for any other Cost that the City may incur for transferring or rearranging the facilities of the joint owner(s) of certain Poles and/or any existing licensee that are attached to the City Facilities, or part thereof, and for any such Costs incurred by the City, the joint DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 30 owner(s) of certain Poles, and/or any existing licensee, in transferring or rearranging their facilities to accommodate the Licensee’s requests. The Licensee shall not be entitled to any monies paid to the City for Pole Attachments and/or Conduit Occupancies by reason of the use by the City, the joint owner(s) of certain Poles and/or other licensee, of any additional capacity on such Pole or in such Conduit resulting from such replacement or rearrangement. The City may require the Licensee to obtain the services of a City-pre-approved, pre-authorized and pre-qualified contractor to perform the transfers, rearrangements and/or replacements of facilities. If the City authorizes the Licensee to do the Work, the City reserves the right to inspect such performance of Work. The performance of such Work shall not commence in the absence of the City’s inspectors, who will be made available on a timely basis. All materials, equipment and/or work methods and practices shall be approved by the City prior to the commencement of the Work. Notwithstanding Section 3.6, the Licensee shall be responsible for liability, losses and damages suffered by the City that may result from the Licensee’s failure to comply with the Provisions or otherwise resulting from the Licensee’s attachment, installation, operation, repair or maintenance of the Licensee Facilities. 11.4 Project Collaboration. Should the City in the exercise of its right to provide utility service to its customers, or to provide street lights or traffic lights, need to attach additional facilities to any Pole and/or Conduit to which Licensee is attached or has occupied, and wishes to avail itself of the holding capacity of an anchor being utilized by the Licensee, or needs to use the Conduits occupied by the Licensee, the Licensee will either rearrange the Licensee Facilities in, on or about the designated Pole(s) and/or Conduit(s), or if such rearrangement cannot be accomplished, transfer them to replacement Pole(s) and/or Conduit(s), as determined by the City, so that the additional facilities of the City shall be accommodated. The costs and expenses of such rearrangement and/or transfer will be borne by and at the sole expense of the Licensee. 11.5 City Obligations. Subject to Section 7.1, in performing Make-Ready Work to accommodate the Licensee Facilities, the City will use reasonable efforts to include such work in its normal work load schedule to the extent that its actions exercised in its governmental and propriety capacities are not adversely affected. 11.6 Cost Sharing. Except as otherwise provided herein, all Costs and capital investments subject to reimbursement shall be determined in accordance with the regular and customary methods of determining costs, expenses, and capital investments on the books and records of the City, the joint owner(s) of certain Poles and/or any existing licensees in their respective businesses. 11.6.1 The invoices for replacement, rearrangement, engineering, inspections, expenses and other charges levied or collected under this Agreement, DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 31 other than rentals for Pole Attachment or Conduit Occupancy, shall be payable within forty-five (45) Days after the date of receipt of such invoices by the Licensee. 12.0 INDEMNITY; WAIVER; RISK OF LOSS 12.1 Indemnity. The Licensee shall indemnify, protect, defend and hold harmless the City, its council members, officers, employees, and agents, from and against claims, demands, losses, damages, liabilities, fines, charges, penalties, administrative and judicial proceedings and orders, judgments, remedial actions of any kind, including the costs of any “hazardous material” (as such term is defined in Section 17.04.040(e) of the Palo Alto Municipal Code, as amended), remedial actions of any kind and all other related costs and expenses incurred in connection therewith, including, without limitation, reasonable attorneys’ fees and costs of defense, to the extent caused directly, in whole or in part, by the negligence or willful misconduct of the Licensee, its directors, officers, employees, agents, contractors, subcontractors and representatives, or arising, in whole or in part, from the Licensee’s construction, installation, operation, maintenance or repair of the Licensee Facilities, but not to the extent arising out of the negligence or willful misconduct of the City. 12.1.1 The City shall be liable only for the costs of repair to the damaged Licensee Facilities arising from the City’s sole negligence or willful misconduct, and the City shall not be otherwise responsible for any damage, loss, or liability of any kind occurring by reason of anything done or omitted to be done by the City or by any third party, including, without limitation, damages, losses, or liability arising from the City’s approval of an Application. 12.2 Waiver. The waiver by a Party of any breach or default or violation of any Provision by the other Party shall not be deemed to be a waiver or a continuing waiver by that Party of any subsequent breach or default or violation of the same or any other Provision. 12.3 Risk of Loss. The Licensee shall assume all responsibility for, and shall promptly reimburse, in full, the City, the joint owner(s) of certain Poles, any existing licensee, and/or any adjoining property owner, for any of their losses and expenses associated with damages caused, directly or indirectly, by the Licensee, its employees, agents and/or contractors to the City Facilities, including, without limitation, any Poles and Conduits or damage caused by the presence of the Licensee Facilities. The Licensee shall provide immediate notification to the other Party upon the occurrence of any such damage. 12.4 Notice to City. The Licensee shall promptly advise the City of all known claims relating to damage of property or injury to or death of persons, arising or alleged to have arisen in any manner, directly or indirectly, from the erection, maintenance, repair, replacement, operation, presence, use or removal of the Licensee Facilities. The Licensee shall promptly notify the City, in writing, of any known suits DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 32 or causes of action which involve the City and, upon request of the City, provide to the City’s insurer copies of all relevant accident reports and statements made to the Licensee or others. 13.0 INSURANCE 13.1 General. Unless the City’s insurance risk manager agrees, in writing, to accept the Licensee’s self-insurance in fulfillment of these insurance requirements, the Licensee shall obtain and maintain at all times during the Initial Term and the Extension Term, if any, commercial general liability insurance and commercial automotive liability insurance protecting the Licensee in an amount of two million dollars ($2,000,000) per occurrence (combined single limit), including death, bodily injury and property damage, and not less than two million dollars ($2,000,000) aggregate, for each personal injury or death liability, products-completed operations, and each accident. Such insurance, pursuant to ISO Form No. GC2010 or equivalent or other commercially reasonable form acceptable to the City’s insurance risk manager, shall include the City, its council members, officers, employees, and agents as an additional insured as respects liability arising out of the Licensee’s negligent performance of any Work that it performs or may be authorized to perform under this Agreement. Coverage shall be provided in accordance with the limits specified and the Provisions indicated herein. Claims-made policies are not acceptable. Such limits may be satisfied by a combination of primary and umbrella policies. Licensee will make best efforts to notify the City within 30 days of receipt of notice from its insurer regarding any cancellation or termination of any insurance policies. The Licensee shall be responsible for notifying the City of such change or cancellation. 13.2 Certificates. The Licensee shall file the required original certificate(s) of insurance with blanket additional insured endorsements with the City’s insurance risk manager, with a copy to the Utilities Director, subject to the City’s prior approval. The certificate(s) shall clearly state or provide: 13.2.1 Policy number; name of insurance company; name, address and telephone number of the agent or authorized representative; name and address of insured; project name and address; policy expiration date; and specific required coverage amounts; 13.2.2 With the certificate(s), the Licensee shall provide prior written notice of cancellation to the City that is unqualified as to the acceptance of liability for failure to notify the City; and 13.2.3 That the Licensee’s required insurance is primary in respect to any other valid or collectible insurance that the City may possess, including any self-insured retentions the City may have, and any other insurance the City does possess shall be considered excess insurance only and shall not be required to contribute with this insurance. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 33 13.3 Notice. The certificate(s) of insurance with blanket additional insured endorsements and notices shall be mailed to: (a) City of Palo Alto, Utilities Department, P.O. Box 10250, Palo Alto, CA 94303, Attn.: Electrical Engineering Manager; and (b) City of Palo Alto, Public Works Department, P.O. Box 10250, Palo Alto, CA 94303, Attn.: Supervising Project Engineer. 13.4 Other Coverage. Unless the City permits the Licensee to self-insure, the Licensee shall obtain and maintain at all times during the Initial Term and the Extension Term, if any, statutory workers’ compensation and employer’s liability insurance or qualify as a self-insurer in an amount not less than one hundred thousand dollars ($100,000) or such other amounts as required by Law, and furnish the City with a certificate showing proof of such coverage. 13.5 Insurance Rating. Any insurance provider of the Licensee shall be admitted and authorized to do business in California and shall be rated at least A-:VII in Best’s Key Rating Guide. Insurance certificates issued by non-admitted insurance companies will not be acceptable to the City. 13.6 Deductibles. Prior to the execution of this Agreement, any self-insured retentions must be stated on the certificate(s) of insurance, which shall be sent to the City, and any deductibles shall be reported, in writing, to the City’s insurance risk manager. Notwithstanding the foregoing, the immediately preceding sentence shall not apply to Licensee so long as Licensee maintains a net worth of no less than $100 million, as currently evidenced by the net worth letter attached hereto as Exhibit “H” and made a part hereof. “Cross liability”, “severability of interest” or “separation of insureds” clauses shall be made a part of the commercial general liability and commercial automobile liability policies. 14.0 PERFORMANCE BOND; LETTER OF CREDIT 14.1 Posting Security. The City may require the Licensee to procure and provide the City with a surety bond (the “Bond”), naming the City as the obligee in the amount of not less than one hundred percent of the estimated cost of the Work or one hundred fifty thousand dollars ($150,000), whichever sum is greater (or such other amount as may be required by Law), to guarantee and assure the faithful performance of the Licensee’s obligations under this Agreement. The City will notify the Licensee of the date by which such Bond shall be posted. The City shall have the right to draw against the Bond in the event of a default by the Licensee or in the event that the Licensee fails to meet and fully perform any of its obligations hereunder or in accordance with the City’s exercise of its rights upon the Licensee’s abandonment of the Licensee Facilities and failure to remove them as required by this Agreement. 14.2 Replenishing Bond. Within fifteen (15) Days of receipt of written notice from the City, the Licensee shall renew or replace such sums of money as shall bring the Bond current. A failure by the Licensee to bring current the Bond DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 34 within the specified time and give the City notice thereof shall constitute a default under this Agreement. Any Bond may be canceled by the Licensee at the end of the applicable construction or installation project. The Licensee shall provide thirty (30) Days’ prior written notice of cancellation to the City. 14.3 Letter of Credit. The Licensee may provide the City with a Letter of Credit in the amount set forth in Section 14.1 and in accordance with other terms and conditions as may be agreed to by the City, if the City Manager agrees to accept the Letter of Credit in lieu of the Bond to secure the Licensee’s performance under this Agreement. 15.0 REPRESENTATIONS AND WARRANTIES 15.1 Representations and Warranties of the Parties. As of the Effective Date, each Party represents and warrants to the other Party that: 15.1.1 It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; 15.1.2 The execution, delivery and performance of this Agreement and the Exhibits are within its powers, have been duly authorized by all necessary action and do not violate any of its governing documents, any contracts with any joint owners to which it is a party or any Law; 15.1.3 The Agreement and the Exhibits and any other document executed and/or delivered in accordance with this Agreement constitute its legally valid and binding obligation, enforceable against it in accordance with its covenants, terms, conditions and provisions; 15.1.4 It has not filed and it is not now contemplating the filing for bankruptcy protection or, to its knowledge, any action is threatened against it which would result in it being or becoming bankrupt; 15.1.5 There is not pending or, to its knowledge, threatened against it or any of its affiliates any legal or administrative proceedings that could materially adversely affect its ability to perform its obligations under this Agreement and the Exhibits; and 15.1.6 No “event of default” or potential “event of default” with respect to it has occurred and is continuing and no such event or circumstance would occur as a result of its entering into or performing its obligations under this Agreement and the Exhibits. 15.2 Representations and Warranties of the Licensee. The Licensee represents and warrants to the City that: DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 35 15.2.1 The Licensee has all approvals, authorizations, certifications, licenses and franchises required by the CPUC, the FCC and/or any other agency to provide the Communications Service; 15.2.2 The Licensee is not aware of any facts or circumstances that would call into doubt the continuing validity of any such approvals, authorizations, certifications, licenses or franchises; 15.2.3 There is not pending or, to the Licensee’s knowledge, threatened against the Licensee or its parent corporation or any of its subsidiaries or affiliates, any legal or administrative proceedings that could materially adversely affect the validity of such licenses, authorizations or franchises; and 15.2.4 All Work to be performed by the Licensee pursuant to this Agreement will be: (i) performed in a good and workmanlike manner, consistent with any specifications and with any prevailing industry standards, applicable Laws, and the Provisions hereof, and (ii) will be free from defects. 16.0 DEFAULT; REMEDIES FOR DEFAULT 16.1 Event of Default. This Agreement may be terminated upon the occurrence of an “event of default” by a Party (the “Defaulting Party”). 16.1.1 An “event of default,” which will constitute a material breach of this Agreement if it is not cured in a timely manner as described below, means the occurrence of any of the following: (i) A representation or warranty made by a Party is false or misleading in any material respect when made; (ii) The failure to perform any material covenant, or obligation set forth in this Agreement, if such failure is not remedied within thirty (30) Days after written notice of default is given or, if such cure reasonably requires more than thirty (30) Days, fails to commence such cure within the specified period or, thereafter, fails to continue diligently such cure until completion thereof; (iii) A Party files a petition or otherwise commences or acquiesces in the commencement of a proceeding under any bankruptcy, insolvency, reorganization or similar Law, makes an assignment for the benefit of its creditors, has an administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or is generally unable to pay its debts as DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 36 they fall due; (iv) Subject to the cure provisions set forth in this Agreement, including in section 6, the failure to make, when due, any undisputed payment required by this Agreement if such failure is not remedied within ten (10) Business Days after written notice of default is given; and (v) The revocation, expiration or denial of renewal, by final order or action that is no longer subject to appeal, of any license, authorization or franchise that is required by the FCC, the CPUC, and/or any other agency for the Licensee to provide Communications Service by means of the Licensee Facilities or to install or maintain or operate the Licensee Facilities in Palo Alto, if such expiration or denial prohibits the Licensee from operating the Licensee Facilities or providing Communications Service. 16.2 Remedies for Default. If an event of default occurs and is continuing with respect to the Defaulting Party, the other Party (the “Non-Defaulting Party”) will have an election of rights and remedies, in addition to all other legal rights and equitable remedies or as otherwise provided in this Agreement, to which the Non-Defaulting Party may resort cumulatively, or in the alternative: 16.2.1 The right to terminate this Agreement, or in City’s discretion, an applicable Supplement thereunder, by giving to the Defaulting Party thirty (30) Days’ prior written notice of termination, in which event this Agreement will terminate on the date set forth in the notice of termination; and 16.2.2 Any other right that is made available under applicable Laws. 16.3 Excusing Performance. A Party will be temporarily excused from the performance or further performance of any of its covenants or agreements hereunder, excepting only the obligation to pay Costs and Fees, and such Party’s nonperformance shall not be deemed an event of default under this Agreement for any period, to the extent, but only to the extent, that such Party is prevented, hindered or delayed for any period of time not in excess of thirty (30) Days from performing any of its covenants or agreements, in whole or in part, as a result of a Force Majeure event, including, without limitation, any denial of access to the City Facilities in order to engage in the Work. The Parties hereby agree to use reasonable efforts to remedy the effects caused by the occurrence of the Force Majeure event giving rise to a Party’s temporary nonperformance of its obligations, covenants or agreements under this Agreement. A Party will provide notice promptly to the other Party to the extent that Party relies on the provisions of this Section to temporarily excuse its failure to perform any of its covenants or agreements hereunder. 17.0 DISPUTE RESOLUTION DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 37 17.1 Informal Process. If a dispute between the Parties arises in regard to this Agreement or any Exhibit (the “Dispute”), the following procedure will govern the resolution of the Dispute: 17.1.1 the Parties will nominate their respective representatives to be responsible for and exercise the appropriate authority to resolve all Disputes hereunder for the fourteen-day resolution period of time set forth below; and 17.1.2 if the Dispute remains unresolved within such fourteen-day period, before either Party may resort to the process described in Sections 17.3 and 17.4, either Party may refer the Dispute, in writing, for final settlement to a senior principal, vice-president or other officer of the Licensee and the City Manager, who will jointly convene within ten (10) Days of receipt of a referral request and use reasonable efforts to consider and resolve the Dispute. 17.1.3 The Parties will ensure that their respective representatives confer for a period of fourteen (14) days from the date of referral by either Party. If final resolution cannot be achieved, the Parties may resort to the procedures described in Sections 17.3 and 17.4 hereunder. 17.2 No Bar to Other Relief. Nothing contained in this Agreement will prevent or otherwise restrict either Party from pursuing its rights at law or in equity, including injunctive relief and specific performance, in the event of a default and a material breach by the other Party. 17.3 Mediation. In the event of a Dispute, either Party may, by notice to the other Party (the “Mediation Notice”), request that such Dispute be submitted to non-binding mediation in Palo Alto, California, with a mediator acceptable to the Parties. If such mediation does not result in a settlement of the Dispute within one hundred eighty (180) Days from the date of the Mediation Notice, either Party may request that such matter be submitted to non-binding arbitration in Palo Alto, California, under the rules of the American Arbitration Association. Action of any kind by either Party arising out of this Agreement must be commenced within one (1) year from the date the right, claim, demand or cause of action first arises. 17.4 Continuation of Rights. Notwithstanding anything to the contrary set forth herein, in no event will the City interrupt or suspend or terminate the Licensee’s rights granted under this Agreement or perform any action that prevents, impedes, or reduces in any way the Licensee’s rights to conduct its authorized, certificated or licensed services, unless: 17.4.1 the authority to do so is granted to the City by this Agreement or by Law or conferred by a court of competent jurisdiction; 17.4.2 this Agreement has been validly terminated in accordance with DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 38 this Agreement; or 17.4.3 the Licensee has failed to pay the City any undisputed invoice that is past due in excess of thirty (30) Days after receiving a delinquency notice from the City. 17.5 Immediate Relief. Nothing in this Agreement shall be deemed or construed to prohibit a Party from obtaining judicial, regulatory or other relief necessary in order to preserve the status quo or prevent the loss or violation of that Party’s rights. 18.0 NOTICES All notices which shall or may be given pursuant to this Agreement shall be given, in writing, and shall be deemed validly given if delivered or sent by certified mail, return receipt request or by commercial courier, provided the commercial courier’s regular business is delivery service, and addressed, as follows: CITY: City of Palo Alto Department of Utilities P. O. Box 10250 Palo Alto, CA 94303 Attn.: Director of Utilities CITY: City of Palo Alto Department of Public Works P. O. Box 10250 Palo Alto, CA 94303 Attn.: Director of Public Works Copy to: City of Palo Alto P. O. Box 10250 Palo Alto, CA 94303 Attn.: City Clerk Copy to: City of Palo Alto P. O. Box 10250 Palo Alto, CA 94303 Attn.: City Attorney Any notice to be sent to the City Manager or City Attorney shall be sent to the same post office box referred to above. LICENSEE: Attn: Legal Department 660 Newport Center Drive Suite 200 DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 39 Newport Beach, CA 92660 legal@mobilitie.com Copy to: Attn: Asset Management 660 Newport Center Drive Suite 200 Newport Beach, CA 92660 assetmgmt@mobilitie.com 19.0 MISCELLANEOUS PROVISIONS 19.1 Amendments. This Agreement may not be amended except pursuant to a written instrument signed by the Parties. 19.2 Assignment. This Agreement is personal to only the Licensee and no other Person. The Licensee may not directly or indirectly assign, transfer or convey to another Person this license or any of the rights and obligations of the Licensee established by this Agreement. Any assignment or transfer of this Agreement or any Supplement shall be void, and the City may terminate this Agreement if the Licensee attempts to assign or transfer this Agreement without compliance hereof. The preceding sentences of this Section 19.2 notwithstanding, the Licensee may assign or transfer this Agreement to its parent corporation or any subsidiary corporation or affiliate or successor in interest, provided that such parent corporation, subsidiary corporation or affiliate or successor in interest first agrees, in writing, to be fully bound by this Agreement and the Exhibits and to assume all of the Licensee’s obligations and liabilities hereunder, whether arising before or after the date of such assignment or transfer. 19.3 Attorneys’ Fees. Each Party in any litigation, including mediation, regarding this Agreement will bear its own costs and expenses of suit, including, without limitation, reasonable attorneys’ fees. 19.4 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. 19.5 Entire Agreement. This Agreement contains the entire understanding between the Parties with respect to the subject matter herein. There are no representations, warranties, agreements or understandings (whether oral or written) between the Parties relating to the subject matter hereof which are not fully expressed herein. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 40 19.6 Exhibits. As of the Effective Date, all exhibits referred to in this Agreement and any addenda, attachments, Supplement(s) and schedules which may, from time to time, be referred to in any duly executed amendment to this Agreement are by such reference incorporated in this Agreement and shall be deemed a part hereof. 19.7 Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of California without regard to its conflicts of laws rules or principles. 19.8 Headings. The headings hereof are inserted for convenience of reference only, are not a part hereof and shall have no effect on the construction or interpretation hereof. 19.9 Independent Contractor. Each Party acts as an independent contractor and not as an employee of the other Party. Nothing in this Agreement shall be construed to establish a partnership, joint venture, group, pool, syndicate or agency relationship between the City and the Licensee. 19.10 Resolving Conflicting Provisions. To the extent the Provisions and any other authorizations and approvals required to be obtained by the Licensee from the City are in conflict, the Provisions of the Agreement, authorizations and approvals which impose(s) the higher or greater legal duty or obligation upon the Licensee shall take precedence. 19.11 Rules of Construction. Each Party and its counsel have reviewed this Agreement. Accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the construction and interpretation hereof. 19.12 Severability. If a court of competent jurisdiction finds or rules that a 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. 19.13 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the lawful successors and permitted assignees of the Parties. 19.14 Time of Action. For the purposes hereof, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday, or any Day observed as an official holiday by the City, the time for performance shall be extended to the following Business Day. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 41 19.15 Venue. In the event that suit is brought by a Party, the Parties agree that trial of such action shall be vested exclusively in the state courts of California, County of Santa Clara, or, assuming jurisdiction is otherwise proper, in the United States District Court, Northern District of California, in the County of Santa Clara. 19.16 Waiver of Lien Rights. The City waives any lien rights that it may have in the Licensee Facilities, which shall be deemed personal property for purposes of this Agreement regardless of whether or not the same is deemed real property, fixtures or attachments thereto, or personal property by Law. Subject to and as limited by the Provisions, the City grants the Licensee and the Licensee’s mortgagee the right to remove or cause the removal of the Licensee Facilities from time to time, whether before or after a default by the Licensee under this Agreement, in the discretion of the Licensee or the Licensee’s mortgagee. [Signature page follows] DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ____________ JM 07-001 Mobilitie MLA 42 IN WITNESS WHEREOF, this Agreement shall be deemed duly executed by the Parties in Palo Alto, County of Santa Clara, State of California, as of the Effective Date. APPROVED AS TO FORM ___________________________________ Senior Deputy City Attorney CITY OF PALO ALTO ___________________________________ City Manager ATTEST: ___________________________________ Director of Utilities ___________________________________ Director of Public Works Mobilitie, LLC, a Nevada limited liability company By: _______________________________ Name: Christos Karmis Title: President Date: ______________________________ DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 6/24/2017 Contract No. ____________ EXHIBITS In accordance with Section 19.6 of the Master License Agreement between the City and the Licensee (the “Agreement”), Exhibits A through H, inclusive, any new exhibits hereinafter existing and any amendments thereto, are hereby incorporated in and made a part of the Agreement. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits A-1 Exhibit “A” Licensee Certificate of Public Convenience and Necessity Certificate of Public Convenience and Necessity: U-7203-C DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001 Mobilitie MLA Exhibits B-1 Exhibit “B” Form of Supplement This ____________Supplement (“Supplement No. ____”), made this _____ day of ____________, 20____ (“Supplement Effective Date”) between the City of Palo Alto, a California chartered municipal corporation (“City”) and Mobilitie, LLC, a Nevada limited liability company, with its principal offices at 660 Newport Center Drive, Suite 200, Newport Beach, CA 92660 (“Licensee”). This Supplement is governed by the provisions of the that certain Master License Agreement for Use of City Controlled Space on Utility Poles, Streetlight Poles and Conduits between the City and Licensee dated ______________, 20____ ("Agreement"), and this Supplement is incorporated into the Agreement. 1. Description and Location of Licensee Facilities. A description of the Licensee Facilities and locations of such Licensee Facilities is attached hereto as Exhibit “1”. Unless the City elects to accept alternative documentation, the Description and Location of Licensee Facilities in Exhibit “1” shall include City-approved versions of the attachments to the Processing Request Application (in substantially the form of Exhibit “G” to the Agreement) submitted by Licensee. 2. Term. The term of this Supplement shall be as set forth in Section 2.1.3 of the Agreement. 3. Fees and Costs. The Fees and Costs paid by Licensee and those that remain due and payable are outlined in Exhibit 2 attached to this Supplement. Exhibit 2 includes all Initial/One Time Costs and Fees, Annual Costs and Fees and Additional Costs and Fees associated with Licensee Facitlies identified pursuant to Section 1 of this Supplement. 4. [RESERVED for Supplement-Specific Provisions] [Signature page follows] DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001 Mobilitie MLA Exhibits B-2 IN WITNESS THEREOF, the Parties hereto have caused this Supplement to be legally executed in duplicate as of the Supplement Effective Date. CITY: CITY OF PALO ALTO By: _____________________________ Name: _____________________________ Title: _____________________________ APPROVED AS TO FORM CITY ATTORNEY’S OFFICE BY: ____________________________________ Senior Deputy City Attorney LICENSEE: Mobilitie, LLC, a Nevada limited liability company By: _____________________________ Name: _____________________________ Time: ______________________________ Exhibits: Exhibit “1” – Description and Location of Licensee Facilities Exhibit “2” – Description of Fees and Costs DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits B-3 Form of Exhibit “1” to Supplement No. ____ Description and Location of Licensee Facilities [to be Attached To City-spaces on Poles and/or Installed in City Conduits] Pursant to the terms of the Agreement, Licensee is authorized to install the Licensee Facilities described, at the locations in the documentation attached to this Exhibit 1. [Documentation required by section 1 of the Supplement to be attached] DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001 Mobilitie MLA Exhibits B-4 Form of Exhibit “2” to Supplement No. ____ Costs and Fees INITIAL/ONE-TIME COSTS AND FEES CHARGE DESCRIPTION AMOUNT STATUS Preparatory Work Fee [to be specified by City] PAID Make-Ready Engineering Work Fee [to be specified by City] PAID Make-Ready Construction Work Fee (less credit for Preparatory Work Fee, Make-Ready Engineering Work Fee paid to City) [to be specified by City] Due 60 days following the Supplement Effective Date, and prior to start of any construction TOTAL: Initial/One Time Costs and Fees: ANNUAL COST AND FEES Payment Commencement Date: _______________________ CHARGE DESCRIPTION ANNUAL AMOUNT DUE DATE Wires Facilities Attachment Fee [to be specified by City] Due 60 days following the Payment Commencement Date in Year 1, January 1st each year thereafter. Wireless Facilities Attachment Fee [to be specified by City] Due 60 days following the Payment Commencement Date in Year 1, January 1st each year thereafter. Conduit Occupancy Fees [to be specified by City] Due 60 days following the Payment Commencement Date in Year 1, January 1st each year thereafter. Other Licensee Facility [to be specified by City] Due 60 days following the Payment Commencement Date in Year 1, January 1st each year thereafter. TOTAL: Annual Costs and Fees: DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits B-5 ADDITIONAL COSTS AND FEES (if applicable) CHARGE DESCRIPTION AMOUNT DUE DATE Other City Service Fees (if applicable) [to be specified by City] 60 days following the Payment Commencement Date Electric Service Charges (if applicable) [to be specified by City] 60 days following the Payment Commencement Date TOTAL: Additional Costs and Fees: DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits C-1 Exhibit “C” Fees and Costs A. INITIAL/ONE-TIME COSTS AND FEES. 1. The Licensee shall pay the City for its Costs and Fees of preparing the City Facilities (the City’s overhead and underground facilities) for each new or modified Pole Attachment or Conduit Occupancy as specified in this Exhibit “C”. 2. Initial/One-Time Costs and Fees include Preparatory Work Fees, Make-Ready Engineering Work Fees and Make-Ready Construction Work Fees and are a one-time charge for each Licensee Facility, as provided for below and in the City’s Rules and Regulations. (a) PREPARATORY WORK FEES. Licensee will pay City a non-refundable Preparatory Work Fee. The Preparatory Work Fee will depend on the specific nature of the Licensee Facilities, but may include, without limitation, the following: Charge: Processing Charge Description: The actual cost incurred for performing preliminary field investigation to review pole attachment or conduit usage submittal. Price: Total Cost (b) MAKE-READY WORK FEES. If Licensee elects to proceed with installation of Licensee Facilities, Licensee will pay City non-refundable Make-Ready Work Fees, which include the Make-Ready Engineering Work Fees and the Make-Ready Construction Work Fees set forth below. (i) MAKE-READY ENGINEERING WORK FEES. Make-Ready Work Engineering Fees depend on the specific nature of the Licensee Facilities, but may include, without limitation, Costs and Fess associated with engineering Make-Ready Work and the following: Charge: Engineering Charge Description: The actual costs incurred by the City for reviewing contact design, designing City modifications and updating operation records. Price: Total Cost (ii) MAKE-READY CONSTRUCTION WORK FEES. Should Licensee elect to move forward with design, installation and construction of Licensee Facilities after completion of Make-Ready Engineering Work, Licensee will pay City a Make-Ready Work Construction Fee. Preparatory Work Fees and Make-Ready Work Engineering Fees DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits C-2 that are paid in full to City will be credited against Make-Ready Work Construction Fees. Make-Ready Work Fees depend on the specific nature of the Licensee Facilities, but may include, without limitation, Costs and Fees associated with construction-related Make-Ready Work and the following: Charge: Cable Attachment Charges Description: The actual costs incurred by the City for making space available and other modifications necessary to accommodate each line attachment. Price: Total Cost Charge: Anchor Attachment Charges Description: The actual costs incurred by the City for making provisions for guying the structure at the communications level. Price: Total Cost Charge: Equipment Mounting Charges Description: The actual costs incurred by the City for making space available and other modifications necessary to accommodate equipment (amplifiers, nodes, battery backup) mounting. Price: Total Cost Charge: Electric Service Connection Charges Description: The costs incurred by the City for providing electric service connection to provide power to equipment attached to the pole shall be payable in accordance with Utility Rate Schedule E-15. Price: Total Cost Charge: Inspection Charge Description: The actual costs incurred by the City for providing inspection services upon completion of Make-Ready Work and the Licensee’s equipment – typically 3 hours per pole. Price: Total Cost B. ANNUAL FEES. The Fees applicable to Licensee Facilities attached to Poles or installed in conduit shall be as set forth in the City’s Utility Rate Schedule E-16, or, if such rate schedule is not applicable, any other applicable CPAU utility rate schedules. The City reserves the right to impose and collect different fees for the exclusive and nonexclusive occupation of the Conduits in accordance with Laws. C. ADDITIONAL COSTS AND FEES DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits C-3 1. Other City Service Fees. Where Licensee’s Facilities require City to render services beyond those identified in Sections A or B of this Exhibit C, the Fees for the City’s rendering of services in regard to the attachment or installation of the Licensee’s Facilities on Poles or in Conduits shall either be established in accordance with applicable CPAU utility rate schedules or be based on cost recovery by City. 2. Electric Service charges. The Fees, rates and charges for electric utility service consumed or used annually by the Licensee shall be as set forth in the City’s Utility Rate Schedule E-16 or, if such rate schedule is not applicable, other applicable CPAU utility rate schedules. D. ADDITONAL PAYMENT TERMS AND CONDITIONS 1. Late Payment fee. If the Licensee fails to pay the amounts of Costs and Fees due and payable within the time period required by this Agreement, then the License shall pay the greater of a late fee established by Law or the an amount equal to five percent (5%) of those amounts then due and payable. 2. Utility Rate Schedules. The utility rate schedules referred to in this Exhibit and any amendments hereto now or hereafter in effect shall be deemed incorporated herein by reference. The rates may be amended and adopted by the City in the ordinary course and scope of business. The Fees shall be subject to annual cost-of-living increases. The Fees upon commencement of the Extension Term shall be calculated in accordance with the utility rate, fees and charges applicable to Pole Attachments and Conduit Occupancy then in effect. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits D-1 Exhibit “D” Terms and Conditions Regarding Use of Pole Spaces 1. The Licensee shall be responsible for performing its own engineering analysis, which shall be submitted with the Processing Request Application – Exhibit “G”, in order to enable the City to determine where on the Pole the Licensee Facilities will be attached in compliance with CPUC GO 95, Rule 94 clearance and construction requirements. CPAU in its Make-Ready Work inspection will evaluate the Pole for its ability to accommodate all of the existing and new attachments from a clearance- and pole-loading perspective. 2. Subject to the City’s express written consent, the Licensee shall perform all attachments and installations; only qualified contractors reasonably approved by the City will be allowed to work in the Electric Utility space subject to any monitoring by City staff. 3. As there may be Make-Ready Work that needs to be performed by other parties attached to the Pole, the Licensee shall make arrangements with those other parties to move/transfer their facilities. 4. The Licensee shall remove existing “out of service” communications cable/devices to facilitate the new attachments and installations. 5. The City will approve the Licensee’s Pole Attachment and Conduit Occupancy requests over two phases. The first phase will entail ensuring the Make-Ready Work is completed in accordance with CPAU specifications. The second phase will entail permitting the Licensee to attach the Licensee Facilities to the Poles and/or installation in the Conduits. The City’s personnel will perform a final inspection after all Work is completed. 6. The Licensee shall identify the Licensee Facilities newly installed or serviced at each contact point by means of a marking method mutually agreed to by the Parties. Such identification shall be visible from ground level. The Licensee shall provide the City with a 24/7 contact phone number to enable the City to promptly report any concerns regarding the Licensee Facilities. In the event that the City should report any such concerns to the Licensee, the Licensee shall promptly respond to such call(s) and perform the required repair or correct any adverse impact to the City’s electric utility operations caused by such Licensee Facilities at no cost to the City unless the same shall be caused by the City or a party under the City’s control. 7. The City reserves the right to operate and maintain its electric utility City Facilities in order to fulfill its utility service requirements to its electric utility ratepayers or dark fiber/communications customers. The City shall not be liable to the Licensee for any interruption to the Licensee’s service or for any interference with the operation of the Licensee Facilities arising in any manner from the use of the City DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits D-2 Facilities, including the electric utility overhead facilities, by the City in accordance with this Agreement, provided that the City shall give the Licensee fifteen (15) Days’ advance notice of any non-emergency work which affects the Licensee Facilities. 8. The Licensee Facilities shall not be installed, placed, or maintained on any of the City Facilities which carries voltage of 60,000 volts or greater between the conductors. 9. If, at any time, the City deems it necessary to intentionally increase its voltage to 60,000 volts between conductors, on the Poles jointly occupied under this Agreement, the City shall give the Licensee ninety (90) Days’ prior written notice, as provided herein, of its intention to increase those voltages. 10. In the event any City Facilities occupied by the Licensee under this Agreement are to be replaced, repaired or altered, the Licensee shall, at its own sole risk and expense (except in the case of rearrangements required by third parties or City-owned commercial communications facilities), upon reasonable notice from the City, relocate or replace its Licensee Facilities or transfer them to the replacement City Facilities, as available, or perform any other work in connection with those facilities that may be required by City. 11. In the event of an emergency or other event or condition that the City determines presents an imminent danger or threat to the public health, safety or welfare, the City may remove a Pole and shall in such case immediately notify the Licensee of the action taken. The City shall make commercially reasonable efforts to notify the Licensee of the removal of its Licensee Facilities, prior to the emergency removal of those facilities. 12. The Licensee shall use due care to avoid causing damage to the City Facilities, including its electric utility overhead facilities, and the Licensee shall assume responsibility for any loss arising from such damage caused by the Licensee. The Licensee shall make an immediate report of the occurrence of any such damage to the City and shall, on demand, reimburse the City for its total cost that are incurred in making any repairs. 13. The City shall have the right to inspect each new installation of the Licensee Facilities attached to or installed in the City Facilities and to make periodic inspections at the City’s discretion as conditions may warrant. Such inspections shall not relieve the Licensee of any responsibility, obligation or liability assumed under this Agreement. 14. The Licensee, at its sole risk and expense, shall install and maintain guys and anchors as required where the Licensee’s anchorage requirements are not coincident with the City’s or the City Facilities’ existing anchorage requirements. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits D-3 15. Where the anchorage requirements of the City Facilities used by the Licensee and the City are coincident, the existing guys and anchors shall be used. 16. If the City, in accordance with accepted electric utility standards, determines that separate guys and/or anchors are necessary, the Licensee, at its sole risk and expense, shall install the new guys and/or anchors. 17. If the City, in accordance with accepted electric utility standards, determines at the time of installation of the Licensee Facilities that the existing guys and/or anchors need to be replaced on account of and due to the weight of the License Facilities to be installed, the City, at the Licensee’s sole cost and expense, shall install the new guys and/or anchors. 18. If the Licensee Facilities cause to displace or pull any reasonably serviceable Poles or anchors out of line, or damage any City Facilities or such other facilities, equipment or installations owned by the City or any other third party in any manner, the Licensee shall pay the cost of any replacements, repairs or restoration of such Poles, anchors, facilities, equipment or installations. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits E-1 Exhibit “E” Terms and Conditions Regarding Use of City Conduit 1. The Licensee shall submit a Processing Request Application – Exhibit “G” to the City, which will perform a preliminary site investigation jointly with the Licensee to determine the feasibility of the Licensee’s occupancy or use of any available Conduits. 2. No Licensee Facilities, including any cables, shall be permitted to be installed in electric pull boxes, electric vaults or Conduit that contains the City’s electric or dark fiber cables. 3. The Licensee Facilities or other cables shall be identified with durable and clearly visible tag when they are installed in Conduits. 4. For all installations, inner-duct shall be used prior to installing the Licensee Facilities or other cables. When, in the opinion of the Utilities Director, it is necessary to facilitate maintenance or the additional use of the Conduit, the City will require the Licensee to also install a divide-a-duct prior to installing the inner-duct. 5. Any pull box replacement or enlargement will be made at the Licensee’s sole cost and expense. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits F-1 Exhibit “F” Pole Replacement Requirements 1. All Poles identified by the City’s records as being deteriorated and scheduled or planned for replacement within the next twelve (12) months will be addressed as follows: The City will advise the Applicant or the Licensee to seek another good Pole. The Pole will be replaced by the City, but the City will not make any guarantee to complete the replacement to meet the Applicant’s or the Licensee’s desired schedule. 2. Whenever a Pole top extension will be used to mount the Licensee Facilities and whenever the Pole top is deteriorated, then the Pole shall be replaced at the Applicant’s sole cost and expense in order to accommodate the Licensee Facilities’ attachment or installation. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits G-1 Exhibit “G” Form of Processing Request Application Licensee Facility No. ______ (for Pole Attachment/Conduit Usage) REQUEST SUBMITTED BY: FIELD INVESTIGATION CONTACT: Name: Name: Title: Title: Company: Company: Street Address: Street Address: City, State, Zip: City, State, Zip: Telephone Number: Cell Phone: Email Address: Email Address: Today’s Date: ____/____/____ Project Description: Attach the following: 1. A list of Poles within the City of Palo Alto with Pole number and/or nearest street address; 2. Size and Conduit Occupancy details; 3. Size and number of pull boxes; 4. A map showing the Pole/Conduit locations; 5. Pole loading calculations; 6. Typical Installation details of equipment to be attached on the Pole; 7. Completed Electric Service Request Application (one per wireless pole attachment location; application shall include all power and attachment requests); and 8. Other: Desired completion date: __/____/__ I am submitting this Processing Request Application with the full understanding of the following conditions, including the Costs and Fees applicable to Licensee Facilities described in Exhibit “C” attached to the Agreement: 1. Upon the City’s receipt of a complete Application, the City will invoice the Licensee for a non-refundable Preparatory Work Fee. Licensee will pay the Preparatory Work Fee within thirty (30) days of receipt of the City’s invoice. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits G-2 2. Within twenty (20) days of the City’s receipt of the Preparatory Work Fee, the City will complete Preparatory Work for the Application to determine whether and where the Licensee Facilities are feasible and what Make-Ready Engineering Work will be required. 3. Within seven (7) Days of the City’s completion of the Preparatory Work, the City will notify the Licensee of the Make-Ready Engineering Work necessary for Licensee Facilities and invoice Licensee for a non-refundable Make-Ready Engineering Work Fee. 4. If Licensee elects to proceed with Licensee Facilities, within thirty (30) Days of receipt of City’s notice and invoice for Make-Ready Engineering Work Fees, Licensee will pay the Make-Ready Engineering Work Fee. Licensee’s payment of such Make-Ready Engineering Work Fees will serve as notification to City that Licensee intends to proceed with Make-Ready Engineering Work. 5. Within thirty (30) days of City’s completion of the Make-Ready Engineering Work, the City will provide the Licensee with a description of the necessary Make-Ready Construction Work for the Licensee Facilities and the Make-Ready Construction Work Fees applicable to the Licensee Facilities. Preparatory Work Fees and Make-Ready Engineering Work Fees paid by Licensee will be credited against Make-Ready Construction Work Fees. 6. If the Parties mutually agree to proceed with Make-Ready Construction Work, the Parties will execute a Supplement, substantially in the form of Exhibit “B” to this Agreement. The Supplement will: a. Set forth the non-refundable Make-Ready Construction Work Fee and due date therefore; provided, however, that the Make-Ready Construction Work Fee will be paid prior to the start of Make-Ready Construction Work; and b. Specify whether the Make-Ready Construction Work for Licensee Facilities, including the required replacement of any deteriorated Pole, will be performed by the City or the Licensee or its City-approved, qualified and licensed contractor. 7. The City will complete the Make-Ready Work for the Licensee Facilities, as needed, within one hundred five (105) Days of execution of the Supplement. For Preparatory Work Fee and Make-Ready Engineering Work Fee please do not remit any fee until you receive an invoice. Signature: ____________________________________ Date:___/______/____ Please submit the completed form with authorized signature and direct questions to: DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits G-3 Utilities Electric Engineering City of Palo Alto Utilities 1007 Elwell Ct Palo Alto, CA 94303 Phone: (650) 566-4500 Fax: (650) 566-4536 Electric.Engineering@CityofPaloAlto.org Note that all inquires of a legal nature must be directed in accordance with section 18 of the Agreement, including to to the Office of the City Attorney, 8th Floor City Hall, 250 Hamilton Avenue, P.O. Box 10250, Palo Alto, CA 94303, Attention of Senior Deputy City Attorney, Utilities. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Contract No. ______________ JM 07-001Mobilitie MLA Exhibits H-1 Exhibit “H” Net Worth Letter See attached. DocuSign Envelope ID: 5617E40C-B0AB-4E3C-9656-27E82CCA2370 Certificate Of Completion Envelope Id: 5617E40CB0AB4E3C965627E82CCA2370 Status: Sent Subject: Please DocuSign: Mobilitie Master License Agreement FINAL.pdf, Mobilitie Palo Alto MLA Exhibits... Source Envelope: Document Pages: 63 Signatures: 1 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Rachel Chiu 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 rachel.chiu@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 6/15/2017 1:51:38 PM Holder: Rachel Chiu rachel.chiu@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Christos Karmis christos@mobilitie.com President President Security Level: Email, Account Authentication (None) Using IP Address: 206.169.71.183 Sent: 6/15/2017 4:18:33 PM Viewed: 6/22/2017 7:58:42 PM Signed: 6/24/2017 10:23:42 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Jessica Mullan Jessica.Mullan@cityofpaloalto.org Jessica.Mullan@CityofPaloAlto.org City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/24/2017 10:23:44 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Rachel Chiu rachel.chiu@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Mike Sartor Mike.Sartor@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp 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 Jim Fleming Jim.Fleming@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 6/24/2017 10:23:44 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. 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City of Palo Alto (ID # 8265) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Approval of a Construction Contract for Golf Course, Ventura, and Midtown Parking Lot Title: Approval of a Contract With Alaniz Construction, Inc. in the Amount of $568,880 for the City Facility Parking Lot Maintenance Project, Capital Improvements Program Project PE-09003, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $56,880 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 Alaniz Construction, Inc. (Attachment A) in an amount not to exceed $568,880 for the City Facility Parking Lot Maintenance Project, Capital Improvement Program Project PE-09003; and 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Alaniz Construction, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $56,880. Background Public Works Engineering Services Division manages construction contracts for the City Facility Parking Lot Maintenance Capital Improvement Program (CIP) project PE-09003. This project provides for the repair, resurfacing, or reconstruction of parking lots and walkways at various City facilities, including restriping and signage. All City parking lots were inspected by engineering staff City of Palo Alto Page 2 and rated in a manner similar to the pavement condition index ratings for city streets. These ratings were used to help prioritize the list of City parking lots which need to be repaved.This contract will provide for resurfacing of the parking lots at the Palo Alto Golf Course, Ventura Community Center, and Midtown Court (see Attachment B for project locations). Discussion Under this proposed contract, the City’s contractor will repave three existing parking lots at the Palo Alto Golf Course, Ventura Community Center, and Midtown Court.The work included in this project includes 2,500 tons of asphalt overlay, 450 linear feet of asphalt berm, and two curb ramps with truncated dome detectable warning tiles. This contract also includes thermoplastic striping work to replace the existing striping. Additional signage and striping will be included along Colorado Avenue as part of the Midtown parking lot resurfacing. Extensive public outreach will be conducted before and during the construction phase to inform the community throughout the repaving process. This outreach will include flyers sent to adjacent residences and businesses,notices posted on Nextdoor and the City’s website,and signs posted throughout the parking lots. In addition, staff will interface with neighborhood associations, and other organizations and businesses as appropriate. Bid Process On June 13, 2017, a notice inviting formal bids (IFB) for the Golf Course, Ventura, and Midtown Parking Lot Project was posted at City Hall, and was sent to 10 builder’s exchanges and 555 contractors through the City’s eProcurement system. The bidding period was 28 calendar days. Bids were received from five qualified contractors on July 11 as listed on the attached Bid Summary (Attachment C). Summary of Bid Process Bid Name/Number Golf Course, Ventura, and Midtown Parking Lot Project IFB #168950 Proposed Length of Project 50 calendar days Number of Bid Packages Downloaded by Builder’s Exchanges• 5 City of Palo Alto Page 3 Number of Bid Packages Downloaded by Contractors 22 Total Days to Respond to Bid 28 Pre-Bid Meeting?No Number of Bids Received:5 Base Bid Price Range $568,880 to $831,876 Base bids ranged from $568,880 to $831,876,and from 8% to 58%above the engineer’s estimate. Staff has reviewed all bids submitted and recommends that the bid totaling $568,880 submitted by Alaniz Construction,Inc. be accepted and Alaniz Construction,Inc. be declared the lowest responsible bidder. The contingency amount of $56,880, which equals 10 percent of the total contract, is requested for related, additional, but unforeseen work that may develop during the project. Staff reviewed other similar projects performed by Alaniz Construction, 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 that the contractor has an active license on file. Resource Impact Funding for this project is available in CIP Project PE-09003,City Facility Parking Lot Maintenance. 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 This proposed parking lot resurfacing project is a minor alteration and repair to existing facilities and is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301(c) of the CEQA Guidelines. Attachments: ·Attachment A: Alaniz Construction Inc. -C18168950 ·Attachment B: Project Locations ·Attachment C: Bid Summary Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C18168950 City of Palo Alto Golf Course, Ventura, and Midtown Parking Lot 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 August 14, 2017 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and Alaniz 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 587021 and Department of Industrial Relations Registration Number 1000004707. 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 June 13, 2017, City issued an Invitation for Bids (IFB) to contractors for the Golf Course, Ventura, And Midtown Parking Lot Project (“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 Golf Course, Ventura, And Midtown Parking Lot Project, located at Various Parking Lots, 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 fifty calendar days (50) 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 Five Hundred Sixty Eight Thousand Eight Hundred Eighty Dollars ($568,880). [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: Alaniz Construction, Inc. Attn: Rosy Alaniz 7160 Stevenson Blvd. Fremont, CA 94538 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:____________________________ E a s t B a y s h W a ts o n C o ur t Emba r c a d e r o R o a d G en g R o ad E m b a r c a d e r o W a y This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend 0'390' Golf Course Parking Lot CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto F a b e r P l a c e Palo Alto Golf Course Palo Alto Airport Golf Course Parking Lot Attachment B al Curtner Avenue Ventura Avenue Mac l a n e St r e e t Ventura Ct Park Bo ulevard El Camino Re al Second Street Wilkie W ay West Meadow Drive C alTrain R O W Los R o b l e s Ave n u e Al m a Street KE Y S SC HOOL MIDDLE CAM PU S Vent u r a Co m muni ty Ce n t e r This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend 0'240' Ventura Community Center Parking Lot CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto Ventura Community Center Parking Lot Jac o b s C o u r t Midtow n C ourt Byron Street Mid dlefield R oad More n o A v e n u e Rosew o od D To wle W ay i rive Ellsw orth P laceSan C arlos C ourt Sutter Avenue C ol or a do A v e nue R anders Ct Ross R oad Clara D r i v e This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Midtown Court Parking Lot 0'236' Midtown Court Parking Lot CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto Base Bid: DESCRIPTION BID QTY UNIT BID UNIT BID UNIT BID UNIT BID UNIT BID UNIT BID QTY UNIT PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT 1AC Overlay, 3" Depth 2,423 TON 121.55$ 294,515.65$ 144.00$ 348,912.00$ 123.00$ 298,029.00$ 127.00$ 307,721.00$ 115.00$ 278,645.00$ 135.00$ 327,105.00$ 2 Milling, 3" Depth 133,000 SF 0.70$ 93,100.00$ 0.35$ 46,550.00$ 0.77$ 102,410.00$ 1.00$ 133,000.00$ 1.00$ 133,000.00$ 1.30$ 172,900.00$ 3AC Base Repair 1,366 SF 18.00$ 24,588.00$ 7.00$ 9,562.00$ 12.00$ 16,392.00$ 11.00$ 15,026.00$ 8.00$ 10,928.00$ 19.00$ 25,954.00$ 4 Inert Solids Recycling 2,449 TON 5.00$ 12,245.00$ 21.00$ 51,429.00$ 4.00$ 9,796.00$ 3.00$ 7,347.00$ 0.10$ 244.90$ 44.00$ 107,756.00$ 5 Remove and Replace AC Berm 450 LF 17.00$ 7,650.00$ 21.00$ 9,450.00$ 17.00$ 7,650.00$ 20.00$ 9,000.00$ 35.00$ 15,750.00$ 29.50$ 13,275.00$ 6 Remove and Replace Curb Ramp 2 EA 6,500.00$ 13,000.00$ 6,000.00$ 12,000.00$ 7,000.00$ 14,000.00$ 8,000.00$ 16,000.00$ 7,500.00$ 15,000.00$ 13,100.00$ 26,200.00$ 7 Remove and Replace Concrete Sidewalk & Landing 1,085 SF 15.00$ 16,275.00$ 21.00$ 22,785.00$ 20.00$ 21,700.00$ 20.00$ 21,700.00$ 30.00$ 32,550.00$ 55.00$ 59,675.00$ 8 Reset Valves 1 EA 600.00$ 600.00$ 700.00$ 700.00$ 777.00$ 777.00$ 500.00$ 500.00$ 1,200.00$ 1,200.00$ 750.00$ 750.00$ 9 Thermoplastic Striping, White, 4" Wide 8,636 LF 2.00$ 17,272.00$ 3.01$ 25,994.36$ 1.73$ 14,940.28$ 1.75$ 15,113.00$ 1.80$ 15,544.80$ 1.60$ 13,817.60$ 10 Thermoplastic Striping, Blue, 4" Wide 420 LF 2.00$ 840.00$ 6.25$ 2,625.00$ 4.37$ 1,835.40$ 5.00$ 2,100.00$ 4.50$ 1,890.00$ 4.00$ 1,680.00$ 11 Thermoplastic Striping, White, 12" Wide 82 LF 5.00$ 410.00$ 20.00$ 1,640.00$ 4.37$ 358.34$ 5.00$ 410.00$ 4.50$ 369.00$ 4.00$ 328.00$ 12 Thermoplastic Striping, White, 24" Wide 80 LF 5.00$ 400.00$ 43.75$ 3,500.00$ 8.39$ 671.20$ 9.00$ 720.00$ 10.00$ 800.00$ 8.00$ 640.00$ 13 Thermoplastic Striping, Caltrans Detail 38 30 LF 4.00$ 120.00$ 33.00$ 990.00$ 4.11$ 123.30$ 4.00$ 120.00$ 3.50$ 105.00$ 3.00$ 90.00$ 14 Thermoplastic Striping, Caltrans Detail 37B 65 EA 4.00$ 260.00$ 9.25$ 601.25$ 4.11$ 267.15$ 4.00$ 260.00$ 3.50$ 227.50$ 3.00$ 195.00$ 15 Thermoplastic Legend A90A Detail A 11 EA 250.00$ 2,750.00$ 95.00$ 1,045.00$ 373.00$ 4,103.00$ 400.00$ 4,400.00$ 400.00$ 4,400.00$ 345.00$ 3,795.00$ 16 Thermoplastic Paving Legends 101 LF 30.00$ 3,030.00$ 8.75$ 883.75$ 93.00$ 9,393.00$ 90.00$ 9,090.00$ 90.00$ 9,090.00$ 80.00$ 8,080.00$ 17 Curb Paint 234 LF 2.50$ 585.00$ 2.00$ 468.00$ 4.37$ 1,022.58$ 5.00$ 1,170.00$ 4.50$ 1,053.00$ 4.00$ 936.00$ 18 Remove Signs & Pole And Patch Concrete as Needed 11 EA 250.00$ 2,750.00$ 200.00$ 2,200.00$ 111.00$ 1,221.00$ 90.00$ 990.00$ 100.00$ 1,100.00$ 85.00$ 935.00$ 19 Remove Existing Signs 6 EA 100.00$ 600.00$ 70.00$ 420.00$ 53.00$ 318.00$ 50.00$ 300.00$ 52.00$ 312.00$ 45.00$ 270.00$ 20 New Metal Signage Pole 17 EA 500.00$ 8,500.00$ 250.00$ 4,250.00$ 271.00$ 4,607.00$ 260.00$ 4,420.00$ 250.00$ 4,250.00$ 235.00$ 3,995.00$ 21 New Signs 16 EA 250.00$ 4,000.00$ 125.00$ 2,000.00$ 139.00$ 2,224.00$ 150.00$ 2,400.00$ 150.00$ 2,400.00$ 130.00$ 2,080.00$ 22 New City Standard Sign 2 EA 500.00$ 1,000.00$ 375.00$ 750.00$ 511.00$ 1,022.00$ 500.00$ 1,000.00$ 500.00$ 1,000.00$ 450.00$ 900.00$ 23 Remove and Replace Bike Racks 1 LS 2,000.00$ 2,000.00$ 2,750.00$ 2,750.00$ 3,000.00$ 3,000.00$ 4,000.00$ 4,000.00$ 900.00$ 900.00$ 850.00$ 850.00$ 24 Traffic Control 1 LS 6,000.00$ 6,000.00$ 5,500.00$ 5,500.00$ 54,393.14$ 54,393.14$ 20,000.00$ 20,000.00$ 49,000.00$ 49,000.00$ 37,170.00$ 37,170.00$ 25 Tree Trimming 1 LS 3,000.00$ 3,000.00$ 1,875.00$ 1,875.00$ 1,000.00$ 1,000.00$ 5,000.00$ 5,000.00$ 5,500.00$ 5,500.00$ 12,500.00$ 12,500.00$ 26 Misc. Transportation 1 LS 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ Base Bid Total (Basis of Award):$525,490.65 568,880.36$ $581,253.39 591,787.00$ $595,259.20 $831,876.60 BID ITEM Golf Course, Ventura, and Midtown Parking Lot Project IFB NO. 168950 ATTACHMENT C ‐ BID SUMMARY Engineer's Estimate Alaniz Construction, Inc.G. Bortolotto & Company, Inc.O'Grady Paving, Inc. Interstate Grading & Paving, Inc.Galeb Paving, Inc. City of Palo Alto (ID # 8308) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Contract Amendment 3 for Integrated Design 360 Title: Approval of Contract Amendment Number 3 to Contract Number C15154454 With Integrated Design 360 for Green Building Program Management Services and Landscape Plan Review and Consulting Services for a Term Extension of one Year and Increasing Compensation for Ongoing and Approved Work With Development Services and Optional Tasks by $376,744 for a Total Not-to-Exceed Amount of $1,255,005 From: City Manager Lead Department: Development Services Department Recommendation Staff recommends that Council authorize the City Manager or his designee to approve Amendment No. 3 to contract C15154454 with Integrated Design 360 to extend the term one year through August 31, 2018 and increase the contract limit by $376,744 to an amount not to exceed $1,255,005. Executive Summary This action is necessary to extend existing Green Building Program, non-residential and residential landscape review, advance energy efficiency studies and consulting services for one year and amend scope to include technical coordination with Sustainability and Utilities for energy efficiency and Urban Forestry for plan check in coordination with the Urban Forest Master Plan. The consultant has nearly completed the existing two year contract. Past experience with the City’s Green Building program, including non-residential landscape projects, uniquely positions the consultant to extend the term and expand the scope of the existing contract and maintain current Green Building programs, policy creation and training. Background Following a competitive solicitation and selection process, Council approved a consulting contract with Integrated Design 360 on September 8th, 2014 (Staff Report 4986) to implement and manage the City’s Green Building Program and provide landscape review City of Palo Alto Page 2 services for non-residential projects. In January, 2016, Council approved Amendment No. 1 with Integrated Design 360 to expand the scope of the contract to include project management and analysis services associated with an Electrification Feasibility Study to be completed by December 31, 2016 (Staff Report 6297). Amendment No. 2, approved by Council on April 18, 2016 (Staff Report 6675), extended the existing Green Building services and review of non-residential project plans by one year and expanded the scope to include review of residential project plans in accordance with the Emergency Building Standards within the 2013 California Green Building Standards Code for Outdoor Potable Water Use Reduction Section 4.304.1. Discussion Amendment No. 3 allows for continued work on Green Building efforts with existing programs, training, and the expanded landscape review of commercial, multi-family and single family residential projects. The scope would further expand to include technical coordination with Urban Forestry for plan check efforts allocated toward Urban Forestry Master Plan criteria review. The total amount of the contract also includes the capacity for optional additional services for special projects in collaboration with the Office of Sustainability and the Utilities Department. These additional services are anticipated to cost $100,800, if authorized. Should the departments choose to exercise the optional tasks; staff will provide Council with an informational staff report. A more detailed scope of the consultant responsibilities is outlined as follows: A. Green Building Tasks 1. Existing Program Implementation Assistance - Provide program implementation assistance tasks for the existing green building program in accordance with local and State requirements and staff protocol. 2. Metrics Management/Reporting – Provide detailed quantitative analysis that measures how effective the Green Building program is per the Building Performance Database and provide reporting data for the Service Efforts and Accomplishments (SEA) Report and the Earth Day Report. 3. Quality Control Maintenance - Develop processes and best practices for tasks identified at various stages of the development process. The various city departments where these best practices should be implemented include Planning, Project Coordination, Plan Check, Inspections, and Utilities Coordination. 4. Webpages and Handouts - Develop clearly defined paths that are user friendly City of Palo Alto Page 3 that guide the applicant through the process from start to finish. These paths will be readily accessible either through access to the Green Building web page and/or handouts that are available for distribution from the Development Center. 5. On-Going Training - Continue to explore ways to help make Palo Alto a leader in environmental sustainability. This involves a proactive approach with all relevant City Departments including but not limited to, Planning, Building, Utilities, and Public Works. Ongoing training shall also be available to outside stakeholders when the opportunity presents itself. 6. Policy Review and Creation - Collaborate with stakeholder groups in the review of existing and creation of new green building and energy efficiency policies and guidelines that forward the city’s vision to be a leader in sustainable development. B. Landscape Review Tasks 7. Commercial, Multi-Family, and Single-Famlly Review - Review landscape and irrigation plans in accordance with the City’s landscape water efficiency standards to ensure that projects are consistent with the State Green Building Standards Code (CALGreen) and the Urban Forest Master Plan. Serve as a source of technical expertise to City staff for questions and/or issues relating to appropriate irrigation design and efficiencies. Landscape Coordination Management - Provide technical coordination and perform facilitation services to Development Services in response to Executive Order B-29-15 regarding the California State Drought and the Urban Forest Master Plan. Provide landscape water use technical expertise and strategy consulting to senior management. Resource Impact Sufficient funding for this contract amendment is available through the adjustment of Green Building and Landscape Review fees set forth in the Fiscal Year 2018 Municipal Fee Schedule, adopted by Council on June 27, 2017. Additional resources related to energy efficency and sustainability will be in coordination with the Utility Department. Future funding needs will be brought forth as part of the annual budget process and is subject to Council approval. Environmental Review Approval of this contract is not a project requiring review under the California Environmental Quality Act (CEQA). Attachments: Amendment No 1 to Integrated Design 360 (ID# 6297) Amendment No 2 to Integrated Design 360 (ID# 6675) Amendment No 3 Integrated Design 360 City of Palo Alto Page 4 Green Building Consulting Services Proposal_City of Palo Alto_Extension City of Palo Alto (ID # 6297) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Amendment No. 1 to Integrated Design 360 Contract Title: Approval of Contract Amendment Number 1 to Contract Number C15154454 with Integrated Design 360 for Project Management and Analysis Services Associated With an Electrification Feasibility Study, and Adoption of Budget Amendment Ordinance in the Amount of $145,000 From: City Manager Lead Department: Development Services Department Recommendation Staff recommends that Council authorize the City Manager or his designee to approve amendment No. 1 of contract #C15154454 with Integrated Design 360 to increase the contract limit by $66,732 to an amount not to exceed $512,726 to provide project management and analysis services associated with the electrification feasibility study and to extend the term three months through December 31, 2016. Staff further recommends that Council approve a Budget Amendment Ordinance to increase funding in the amount of $145,000, offset by a decrease to the Budget Stabilization Reserve, relating to all consultancy services identified as part of Council approved Electrification work plan. Executive Summary These actions are necessary to conduct a feasibility study to explore residential and commercial building code changes for new construction and remodeling projects to expedite electrification in Palo Alto, as identified within Task #4 of the Council-approved Electrification Work Plan (Staff Report #5961). This work plan item will require a total budget amendment ordinance of $145,000, of which $66,732 is necessary to amend the Integrated Design contract to include project management and analysis, and approximately $80,000 is necessary for additional consultancy services. Specifically, the additional consultancy services relate to requirement of an electrical engineering firm to support cost estimation and engineering judgment analysis and an energy engineering firm specializing in providing cost-effectiveness studies in accordance with California Energy Commission (CEC) regulations. Background City of Palo Alto Page 2 On December 15, 2014, Council approved a City Council Colleagues Memo (Colleagues Memo) that directed staff to develop an initial report on the resources and timeframes required to evaluate four “fuel-switching”, or “electrification”, topics: 1) prospective programs and incentives that would result in the use of electrical devices to replace those using natural gas; 2) possible building code changes to require, where feasible, the use of electrical appliances in the construction and renovation of residential and commercial buildings; 3) possible changes to utility rate structures that would not penalize fuel-switching; and 4) evaluation of additional strategies to support the addition of electric vehicles. On February 2, 2015, Council approved a two-phase work plan to prepare a report responsive to the Colleagues Memo (Staff Report 5463). The first phase of the work plan, approved by Council on August 17th, 2015 (Staff Report 5961), determined the scope of the analysis and identified any staff and/or consulting resources required to complete the task. This staff report relates to consultancy assistance necessary to complete Task #4 (“explore possible building code changes”) identified in the Phase I work plan. The second phase of the work plan will provide detailed analysis of the measures identified in the first phase and the development of an implementation plan. Discussion As part of the approved Phase I work plan, Task #4 explores potential building code changes as part of the evaluation and technical feasibility of implementing electrification projects and programs. Activities and deliverables include: 1) Study the feasibility of including heat pump water heaters (HPWH) installations as part of the Calgreen Tier 1 and Tier 2 elective or pre--requisite criteria1; 2) Study the feasibility of including heat pump space heating installations as part of Calgreen Tier 1 and Tier 2 elective or pre--requisite criteria; 3) Study the feasibility of requiring sufficient electrical panel capacity and outlets to accommodate the electrification of the house in the future; 4) Study and seek permission from the California Energy Commission (CEC) to remove certain requirements that impeded electrification (such as a case--by- -case cost effectiveness analysis) to permit installation of heat--pump based heating appliances; 1 Calgreen Tier 1 and Tier 2 is the building code structure used for permitted building projects in Palo Alto under Green Building Ordinance 5324. This structure enables Development Services to streamline the enforcement of local amendments to the Green Building Code. City of Palo Alto Page 3 5) Work with other interested parties to lobby CEC to consider carbon content (in addition to energy efficiency) of building energy systems when updating building energy codes for the 2019 code update cycle (effective 2020); 6) Explore potential scenarios for an expedited permitting program for projects pursing electrification; and 7) Identify resources required to administer an expedited permit program for projects pursuing electrification. The recommended contract amendment and budget amendment ordinance are necessary to proceed with Task #4 of the Electrification Work Plan. Staff anticipates a formal report detailing results of this analysis by December 31, 2016. Resource Impact This action requires a budget amendment ordinance to increase the Development Services operating budget by a total of $145,000 which will be offset by a corresponding decrease to the Budget Stabilization Reserve. Environmental Analysis Approval of this contract amendment with Integrated Design 360 and adoption of the related Budget Amendment Ordinance are not projects under the California Environmental Quality Act (CEQA). Attachments: C15154454 CONTRACT AMENDMENT NO 1 (PDF) BAO XXXX - Integrated 360 Design Contract Amendment 1 (DOCX) 1 Revision April 28, 2014 AMENDMENT NO. 1 TO CONTRACT NO. C15154454 BETWEEN THE CITY OF PALO ALTO AND INTEGRATED DESIGN 360, LLC. This Amendment No. 1 to Contract No. C15154454 (“Contract”) is entered into 7th day of December, 2015, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INTEGRATED DESIGN 360, LLC. a California limited liability company, located at 727 Industrial Road, Suite 128, San Carlos, California, 94070, Telephone (415) 866-6744 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of assistance to manage the Green Building Program. B. The CITY intends to extend the term and increase the compensation for additional services to include an Electrification Feasibility Study per Exhibit “A” Scope of Services C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 Term, is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through December 31, 2016 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 COMPENSATION, is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Three Hundred Sixty One Thousand Six Hundred Four Dollars ($361,604.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Five Hundred Twelve Thousand Seven Hundred Twenty Six Dollars ($512,726.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. 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 in Exhibit “A”.” DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 2 Revision April 28, 2014 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”. b. Exhibit “B” entitled “SCHEDULE Of PERFORMANCE”. c. Exhibit “C” entitled “COMPENSATION”. d. Exhibit “C1” entitled “HOURLY RATE SCHEDULE”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: INTEGRATED DESIGN 360, LLC. Attachments: EXHIBIT "A" :SCOPE OF SERVICES EXHIBIT "B" :SCHEDULE OF PERFORMANCE EXHIBIT "C" :COMPENSATION EXHIBIT "C1" :HOURLY RATE SCHEDULE DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 Principal 3 Revision April 28, 2014 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT shall provide professional services for CITY’s Green Building program. The CONSULTANT shall help manage the City’s Green Building program to help assist CITY with its continued efforts to be a leader in environmental sustainability. CONSULTANT shall integrate and manage sustainable building practices for local municipalities. CONSULTANT shall conduct landscape and irrigation plan reviews in accordance with the City’s landscape water efficiency standards. The CONSULTANT shall assist staff with the implementation and management of the City’s Green Building program. The CONSULTANT shall include a level of quality control of Green Building Program Management coupled with CITY personnel performing Green Building Quality Assurance as a portion of CONSULTANT’s duties. The CONSULTANT shall primarily execute the Green Building program and operations task list which includes: A. Existing Program Implementation Assistance B. Metrics Management and Reporting C. Quality Control Maintenance D. Develop Green Building Program Process Handouts E. Ongoing Training F. Policy Review and Creation G. Graphic Media Support of Program H. Landscape Water Efficiency Plan Review (Additional Service) A. Existing Program Implementation Assistance Provide program implementation assistance tasks for the existing green building program in accordance with CITY staff requirements. Examples of these tasks may include the items listed below: Response to requests to clear for Final Inspection Approval of permit applications (residential and non-residential) Explanation of requirements to applicants Reminders for final GP and LEED certificates, Commissioning reports, receive and enter final certs, administer fines when overdue Program efficiency improvement Integration with entire permitting system and individual staff members, as well as inter-departmental sustainability efforts (i.e.; landscape water efficiency review, C&D, zero waste) Program Development, goals, updates, implementation Data entry and management for statistics and annual report Community Education on sustainability Plan review including but not limited to residential and commercial planning and building permit applications. B. Metrics Management and Reporting Provide detailed quantitative analysis that measures how effective the Green Building program is per the following: Building Performance Database - Develop performance metrics information provided DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 4 Revision April 28, 2014 by applicant at Permit Issuance and Final Inspection stage of building permit. SEA Report – Compile standard report for fiscal year data for Green Building for annual SEA Report. Earth Daye Report – Compile standard report for fiscal year data for green building Annual Earth Day Report. C. Quality Control Maintenance Develop process and best practices for tasks identified at various stages of the development process. The various city departments where these best practices should be implemented include: Planner Quality Control Project Coordinator Quality Control Plan Checker Quality Control Inspector Quality Control Utilities Quality Control D. Develop Green Building Program Process Web Page and Handouts Develop clearly defined paths that are user friendly that guide the applicant through the process from start to finish. These paths will be readily accessible either through access to CITY’s Green Building web page and/or handouts that are available for distribution from CITY’s Development Center. E. Ongoing Training Continue to explore ways to help make Palo Alto a leader in environmental sustainability. This involves a proactive approach with all relevant City Departments including but not limited to, Planning, Building, Utilities, and Public Works. Ongoing training shall also be available to outside stakeholders when the opportunity presents itself. F. Policy Review and Creation Collaborate with stakeholder groups in the review of existing and creation of new green building policies and guidelines that forward the city’s vision to be a leader in sustainable development. CONSULTANT is expected to draw on best in class examples and latest advances in technology to promote this agenda. CONSULTANT shall use exceptional writing and communication skills to craft and articulate these policies and guidelines. G. Graphic Media Support of Program Develop and maintain web content for the Green Building webpage within the Development Services department webpage. Develop tutorial based videos explaining the Green Building process including, requirements, forms, timelines, inspections, etc.. H. Landscape Water Efficiency Plan Review (Additional Service) Review landscape and irrigation plans in accordance with the City’s landscape water efficiency standards to ensure that projects are consistent with the State Green Building Standards Code (CALGreen). Serve as a source of technical expertise to City staff for questions and/or issues relating to appropriate irrigation design and efficiencies. DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 5 Revision April 28, 2014 AMENDMENT NO. 1: ADDITIONAL SCOPE OF SERVICES A. GOALS Consultant shall provide technical project management and analysis consulting services to support Development Services in conducting a feasibility study to explore residential and commercial building code changes to assist in expediting electrification for buildings within Palo Alto. The scope of work is identified within Task #4 of the electrification work plan staff report #5961. The “Activities and Deliverables” section of this proposal follows the contents of Task #4. CONSULTANT shall structure the project into three sections: Project Management and Technical Analysis: CONSULTANT will act as the project manager on behalf of Development Services and will facilitate two other firms to complete the work outlined in this proposal. The two other consulting firms shall include the “Outside Consultants” listed below. CONSULTANT shall facilitate these outside consultants to produce the results listed under “Activities and Deliverables”. CONSULTANT will work closely with the Director of Development Services, the Chief Building Official, and the Chief Sustainability Officer on this project. Outside Consultant #1: Electrical Engineering Design Judgment & Cost Estimation: An electrical engineering firm with the capacity to provide engineering judgment analysis and cost estimation. The primary team member from Outside Consultant #1 shall be a licensed Professional Engineer (PE) in the State of California. Outside Consultant #2: Cost-Effectiveness Study Energy Engineering: An energy engineering firm with specialization in performing a cost-effectiveness study in accordance with Section 10-106 of the California Code of Regulations, Title 24, Part 1. B. ACTIVITIES & DELIVERABLES The intent of the study is to provide a high level assessment of the technical feasibility of electrification, and the associated code requirements. The activities and deliverables associated with this Statement of Work focus on researching and identifying technical requirements related to electrification for building types under the jurisdiction of the Building Standards Commission (BSC). CONSULTANT will project manage and coordinate the team from beginning to end and will provide regular updates to City Staff on the progress. CONSULTANT will facilitate the two other firms involved in this study to produce the intended result. ACTIVITIES: 1. Support Staff in the Project Initiation for the Electrification Study: Assist Staff in developing the project plan, schedule, and initiating the consulting project team for the purposing of completing the Electrification Study elements in Task #4. Assist staff to develop a scope of work for the “Outside Consultants”. Assist Staff to identify potential firms to solicit proposals for “Outside Consultant 1” and “Outside Consultant 2”. Act as the project manager to support “Outside Consultant 1” and “Outside Consultant 2” to deliver the study of engineering judgment, hard costs, and cost-effectiveness. 2. Conduct the Electrification Study Elements in Task #4 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 6 Revision April 28, 2014 a. Study the feasibility of including heat pump water heaters (HPWH) installations as part of the Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria. Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including HPWH installations for CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training. Manage Outside Consultant #1 to produce the following: Feasibility study containing narrative analysis on the 2016 California Electrical Code engineering design elements and judgment scenarios for the project type scenarios. The study would outline the impact for the case of both a Tier “elective” policy and a Tier “pre-requisite” aka “mandated” policy. Outline cost-estimates for the electrification of key project types. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios in accordance with the California Energy Commission requirements for local energy reach code ordinance development. The study would outline the impact for the case of the mandated “pre-requisite” policy. b. Study the feasibility of including heat pump space heating installations as part of Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria. Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including heat pump space heating as CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training. Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design elements and judgment scenarios for the project type scenarios for heat pump space heating installations. The study would outline the impact for the case of Tier elective policy and Tier mandatory policy. Outline cost-estimates for the electrification of key project types. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios for heat pump space heating in accordance with the California Energy Commission requirements for local energy reach code ordinance development. C. Study the feasibility of requiring sufficient electrical panel capacity and outlets to accommodate the electrification of the house in the future. Project Management and Technical Analysis: Report on the feasibility of including requiring sufficient electrical panel capacity and outlets to accommodate the electrification of residential structures with regards to identifying code sections to amend for policy development, enforcement, and staff training. DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 7 Revision April 28, 2014 Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design and judgment narratives describing the impact or requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a typical residential structure. Provide cost estimations for electrical panel capacity for applicable residential prototypes. Provide code sections that needed to be amended to of the California Electrical Code to result in achieving this result. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the residential “prototype” scenarios for requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a residential structure in accordance with the California Energy Commission requirements for local energy reach code ordinance development. d. Study and seek permission from the California Energy Commission (CEC) to remove certain requirements that impeded electrification (such as a case-by-case cost effectiveness analysis) to permit installation of heat-pump based heating appliances. Project Management and Technical Analysis: Participate in the continued correspondence with the California Energy Commission with regards to easing the permit process for installation of heat pump water heaters. Update internal “fuel-switching” inspection checklist. Manage Outside Consultant #2 to identify California Energy Code requirements that impede electrification. Manage Outside Consultant #2 to produce the following: Feasibility study containing a summary of barriers California Energy Commission requirements for local energy reach code ordinance development for the 2016 code cycle. e. Work with other interested parties to lobby CEC to consider carbon content (in addition to energy efficiency) of building energy systems when updating building energy codes for the 2016 code update cycle (effective 2017). Project Management and Technical Analysis: Facilitate the continued correspondence with the California Energy Commission with regards considering carbon content of building energy systems when updating building energy codes for the 2016 code cycle update (effective 2017). f. Research and analyze the necessary components for a permitting process and field inspection protocol to support electrification. Project Management and Technical Analysis: Support upper management in developing proposed personnel modifications and training required for the plan check staff and inspection staff to support the electrification of buildings. g. Explore potential scenarios for an expedited permitting program for projects pursing electrification. Work with staff to identify resources required to administer an expedited permit program for projects pursuing electrification. DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 8 Revision April 28, 2014 Project Management and Technical Analysis: Support upper management in exploring opportunities for an expedited permit program to support the electrification of buildings. 3. Assist Development Services in meeting the requirements of the Chief Sustainability Officer. Assist Development Services Staff in supporting the Chief Sustainability Officer in the overall delivery of the Electrification Study to the City Council related to the elements in Task #4. 4. Deliver the Electrification Study Elements in Task #4 Assist Staff in preparing and presenting to the City Council on the findings of Task #4. Prepare a Staff Report, and upload all required supporting documentation to MinuteTraq. Attend and provide technical support to staff during the City Council meeting. DELIVERABLES: Draft RFP language to assist staff in soliciting Consultant #1 and Consultant #2 Prototype scenarios for typical building projects based on past permit data Formal report detailing the results of the Electrification Study Written responses to email inquiries Staff Report DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 9 Revision April 28, 2014 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within Quarter/Year as 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. 1. Existing Program Implementation Assistance Development Center Counter Green Building Forms & Handouts (Q1, 2015) Green Building Plan Check Standards (Q1, 2015) Green Building Inspection Checklist (Q1, 2015) Green Building Training Microsoft Powerpoints (Q1, 2015) Staff Reports (As needed) 2. Metric Management and Reporting Report narratives for Earth Day and SEA Report (Q4, 2014, 2015) Annual Database Output Data, Charts, and Graphs for Earth Day Report and SEA Report (Q4, 2014, 2015) Database login access (Q3, 2015) Database information for the Information Technology Department (Q3, 2015) 3. Quality Control Maintenance Development Center Green Building Ordinance Procedures (Q4, 2014) Correspondence with staff and the public via email (On-going) Meeting Notes (As needed) 4. Webpage and Handout Website content (Q4, 2014 and Q4, 2015) Informal Videos to be stored on Vimeo (Q2, 2015 and Q2, 2016) 5. On-Going Training Staff Training PowerPoints (One Per Quarter starting Q1,2015) Informal Training Videos for New Staff (Using Jing or Camtasia Software) - (Q1, 2015 through Q2, 2016 - One Per Quarter) Public Training Powerpoints (One Per Quarter starting Q1, 2015) 6. Policy Review and Creation DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 10 Revision April 28, 2014 New green building ordinance criteria in collaboration with Technical Advisory Group (Q4, 2014) Policy Development Agendas and Meeting Notes (On-going) Technical Analysis and Staff Reports (As needed) AMENDMENT NO. 1 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD in EXHIBIT “A” Scope of Services DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 11 Revision April 28, 2014 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. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $294,872.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $445,994.00. 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. 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, does not exceed $294,872.00 and the total compensation for Additional Services does not exceed $151,122.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $129,006.50 (Existing Program Implementation) Task 2 $36,859.00 (Metric Management & Reporting) Task 3 $55,288.50 (Quality Control Maintenance) Task 4 $36,859.00 (Webpages & Handouts) Task 5 $18,429.50 (On-Going Training) Task 6 $18,429.50 (Policy Review & Creation) Sub-total Basic Services $294,872.00 AMENDMENT NO. 1 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 12 Revision April 28, 2014 Task 1 $16,080.00 (2015 4 Months) Task 1 $50,652.00 ( 2016 12 Months) Sub-total Amendment No 1 $66,732.00 Reimbursable Expenses $0.00 Total Basic Services, Amendment No. 1 $361,604.00 & Reimbursable expenses Additional Services (Not to Exceed) $151, 122.00 Maximum Total Compensation $512,726.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 13 Revision April 28, 2014 EXHIBIT “C-1” HOURLY RATE SCHEDULE Principal/Senior Program Manager (Rates Reflect a 5% Annual Increase) 1st Year (4 months Aug – Dec 2014) $145.00 2nd Year (12 months Jan – Dec 2015) $152.25 3rd Year (8 months Jan – Aug 2016) $159.86 Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Totals Task 1 - Existing Program Implementation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 35 $145.00 $20,300.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 35 $152.25 $63,945.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 35 $159.86 $44,761.50 Total Not to Exceed Task 1 $129,006.50 Task 2 - Metrics Management and Reporting** 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 2 $36,859.00 Task 3 - Quality Control Maintenance 2014 Rate (4 months Sept-Dec) Principal/Senior PM 15 $145.00 $8,700.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 15 $152.25 $27,405.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 15 $159.86 $19,183.50 Total Not to Exceed Task 3 $55,288.50 Task 4 - Webpages and Handouts* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 4 $36,859.00 Task 5 - On-Going Training* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 5 $18,429.50 Task 6 - Policy Review and Creation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 6 $18,429.50 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 14 Revision April 28, 2014 Summary Totals Total Not To Exceed Amount for 2 Years $294,872.00 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January ADDITIONAL SERVICES Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Totals Additional Services - Landscape Review 2014 Rate (4 months Sept-Dec) Principal/Senior PM 41 $145.00 $23,780.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 41 $152.25 $74,907.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 41 $159.86 $52,434.90 Total Not to Exceed Additional Services $151,121.90 **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. AMENDMENT No. 1: Hourly Rate Schedule Summary Additional Services Totals Total Not To Exceed Amount for 2 Years $151,121.90 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 NOT YET ADOPTED 1 6297/sg Revised November 30, 2015 Ordinance No. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2016 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $145,000 FROM THE BUDGET STABILIZATION RESERVE TO THE DEVELOPMENT SERVICES DEPARTMENT TO PROVIDE ADDITIONAL RESOURCES FOR THE ELECTRIFCATION FEASIBILITY STUDY The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 15, 2015 did adopt a budget for fiscal year 2016; and B. On September 8, 2014 the City Council approved a contract with Integrated Design 360 to assist Staff with the implementation and management of the City’s Green Building Program through September 2016; and C. On December 15, 2014, the City Council approved a Colleagues Memo Regarding Climate Action Plan Implementation Strategy to Reduce Use of Natural Gas and Gasoline Through “Fuel Switching” to Carbon-free Electricity; and D. On February 2, 2015, the City Council approved Staff’s work plan in response to the City Council Colleagues Memo to encourage utility customers to switch from natural gas and gasoline to electricity where appropriate and to reduce the obstacles to such fuel switching; and E. Additional resources are necessary to provide project management, analysis, and additional consultancy services related to the exploration of potential building code changes as part of the evaluation of implementing electrification projects and programs. SECTION 2. Therefore, the sum of One Hundred Forty Five Thousand dollars ($145,000) is hereby appropriated to the Development Services Department offset by a decrease to the Budget Stabilization Reserve. SECTION 3. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 4. The actions taken in this ordinance do not constitute a project requiring environmental review under the California Environmental Quality Act (CEQA). // // NOT YET ADOPTED 2 6297/sg Revised November 30, 2015 INTRODUCED AND PASSED: Enter Date Here AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Administrative Services ____________________________ Director of Development Services City of Palo Alto (ID # 6675) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/18/2016 City of Palo Alto Page 1 Summary Title: Amendment No. 2 to Integrated Design 360 Title: Approval of Contract Amendment No. 2 to C15154454 with Integrated Design 360 for Residential Landscape Plan Review and Landscape Permitting Consultancy Services and Term Extension of One Year Adding $365,535 for a Not to Exceed Amount of $878,261 From: City Manager Lead Department: Development Services Department Recommendation Staff recommends that Council authorize the City Manager or his designee to approve Amendment No. 2 to contract C15154454 with Integrated Design 360 to extend the term one year through August 31, 2017 and increase the contract limit by $365,535 to an amount not to exceed $878,261. Executive Summary This action is necessary to extend existing Green Building Program and non-residential landscape review consultancy services one year and amend scope to include residential landscape review and landscape permitting services necessary for compliance with the Emergency Building Standards for Outdoor Potable Water Use and Executive Order B- 29-15, relating to the California state drought. The consultant has completed nearly half of the existing two year contract, where experience with non-residential landscape projects uniquely positions the consultant to extend the term and expand the scope of the existing contract to include plan review of residential projects and management of a landscape permitting process. Background Following a competitive solicitation and selection process, Council approved a consulting contract with Integrated Design 360 on September 8th, 2014 (Staff Report 4986) to implement and manage the City’s Green Building Program and provide landscape review services for non-residential projects. In January, 2016, Council approved Amendment No. 1 with Integrated Design 360 to City of Palo Alto Page 2 expand the scope of the contract to include project management and analysis services associated with an Electrification feasibility study to be completed by December 31, 2016 (Staff Report 6297). The proposed amendment extends the existing Green Building services and review of non-residential project plans by one year and expands the scope to include review of residential project plans in accordance with the Emergency Building Standards within the 2013 California Green Building Standards Code for Outdoor Potable Water Use Reduction Section 4.304.1. The total anticipated cost of these extensions and expansions of scope is $365,535: The additional cost to extend Green Building consulting services through August 31, 2017 is $165,741. The additional cost to extend both residential and non-residential plan check reviews, though dependent on actual time and materials, is anticipated to be $134,318. Finally, the proposed amendment further expands the scope of services to include technical coordination and permit facilitation services for all landscape projects in response to Executive Order B-29-15, ensuring that procedures and in place and required data collected and reported to the Department of Water resources. These expanded services, though dependent on actual time and materials, are anticipated to cost $65,476. A more detailed scope of the consultant responsibilities is outlined as follows: A. Landscape Plan Check Review Services for Residential Projects Provide Landscape Plan Review consulting services for new residential construction to support Development Services in enforcing the Emergency Building Standards for Outdoor Potable Water Use set forth by the Housing and Community Development (HCD) department, effective June 1st. Activities 1. Perform Plan Review Services for Residential Projects Review project plans and supplemental documentation in accordance with the Emergency Building Standards within the 2013 California Green Building Standards Code for Outdoor Potable Water Use Reduction Section 4.304.1. The review shall be conducted in accordance with the measures outlined within the Model Water Efficient Landscape Ordinance (MWELO) for water budgeting and irrigation design. Designate each project as “Approved” or “Not Approved” and City of Palo Alto Page 3 update Accela Automation for each permit applications. 2. Issue Correction Comments, Respond to Questions Based on the criteria submitted for review by the project applicant, prepare a formal letter containing a summary of corrections to the project applicant, if applicable. Answer questions via phone and email regarding the criteria for correcting the submittal. 3. Review Revisions and Resubmittals Review revision and resubmittal documents and project plans in accordance with the Emergency Building Standards for Outdoor Potable Water Use Reduction Section 4.304.1 for Outdoor Potable Water Use in Landscape Areas. B. Landscape Permitting to Support Executive Order B-29-15 Provide technical coordination and perform permit facilitation services to Development Services in response to Executive Order B-29-15 regarding the California State Drought. Provide landscape water use technical expertise and strategy consulting to senior management. Activities 1. Create Permit Procedures, Web Content and Forms Strategy and Technical Assistance for Landscape Permit Development Assist Development Services Director, the Chief Building Official, and related leadership to create policies and procedures for a Landscape Permit. Develop Forms, Worksheet and Web Content for Landscape Permit Provide technical writing services to develop web content to support the landscape permit on the Development Services webpage. Develop forms and worksheets to support the landscape permit. Upload the forms and worksheets to the webpage. 2. Provide Permit Technician Services for the Landscape Permit Administer Landscape Permit for Landscape Projects Administer and manage the Landscape Permit process for the City of Palo Alto. Support staff will be available to the public to process necessary landscape permit paperwork and documentation. 3. Metrics Management and Submission to Department of Water Resources City of Palo Alto Page 4 Collect and Submit Necessary Metrics to the Department of Water Resources Collect required data by Executive Order B2915 regarding water use information on landscape projects for each permit. Compile and submit required data to the Department of Water Resources for the initial reporting period of (February 1, 2016 – February 28th, 2016). After the initial reporting period is completed and accepted, submit annual reports at the end of each calendar year to the Department of Water Resources. Resource Impact Sufficient funding is available within the Development Services department’s FY2016 budget to cover the additional consultant costs of $365,535. Salary savings and unencumbered contract dollars will be used to fund the increase to the contract this fiscal year. Future funding needs will be brought forth as part of the annual budget process subject to council approval. In addition, staff will bring forward recommendations to implement Landscape Review fees to achieve cost neutrality as part of the Fiscal Year 2017 annual budget process. Environmental Review The approval of this contract amendment is not a project for the purposes of the California Environmental Quality Act (CEQA) and therefore no environmental review is required. Attachments: C15154454 CONTRACT AMENDMENT NO 2 (PDF) 1 Revision April 28, 2014 AMENDMENT NO. 2 TO CONTRACT NO. C15154454 BETWEEN THE CITY OF PALO ALTO AND INTEGRATED DESIGN 360, LLC. This Amendment No. 2 to Contract No. C15154454 (“Contract”) is entered into 18th day of April, 2016, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INTEGRATED DESIGN 360, LLC. a California limited liability company, located at 727 Industrial Road, Suite 128, San Carlos, California, 94070, Telephone (415) 866-6744 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of assistance to manage the Green Building Program. B. The CITY intends to extend the term and increase the compensation by $365,535.00 from $512,726.00 to $878,261.00 for additional services as specified per Exhibit “A” Scope of Services. C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 Term, is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through August 31, 2017 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 COMPENSATION, is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Seven Hundred Twenty Seven Thousand One Hundred Thirty Nine Dollars ($727,139.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Eight Hundred Seventy Eight Thousand Two Hundred Sixty One Dollars ($878,261.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. 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 in Exhibit “A”.” DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 2 Revision April 28, 2014 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”. b. Exhibit “B” entitled “SCHEDULE Of PERFORMANCE”. c. Exhibit “C” entitled “COMPENSATION”. d. Exhibit “C1” entitled “HOURLY RATE SCHEDULE”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: INTEGRATED DESIGN 360, LLC. Attachments: EXHIBIT "A" :SCOPE OF SERVICES EXHIBIT "B" :SCHEDULE OF PERFORMANCE EXHIBIT "C" :COMPENSATION EXHIBIT "C1" :HOURLY RATE SCHEDULE DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C Principal 3 Revision April 28, 2014 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT shall provide professional services for CITY’s Green Building program. The CONSULTANT shall help manage the City’s Green Building program to help assist CITY with its continued efforts to be a leader in environmental sustainability. CONSULTANT shall integrate and manage sustainable building practices for local municipalities. CONSULTANT shall conduct landscape and irrigation plan reviews in accordance with the City’s landscape water efficiency standards. The CONSULTANT shall assist staff with the implementation and management of the City’s Green Building program. The CONSULTANT shall include a level of quality control of Green Building Program Management coupled with CITY personnel performing Green Building Quality Assurance as a portion of CONSULTANT’s duties. The CONSULTANT shall primarily execute the Green Building program and operations task list which includes: A. Existing Program Implementation Assistance B. Metrics Management and Reporting C. Quality Control Maintenance D. Develop Green Building Program Process Handouts E. Ongoing Training F. Policy Review and Creation G. Graphic Media Support of Program H. Landscape Water Efficiency Plan Review (Additional Service) A. Existing Program Implementation Assistance Provide program implementation assistance tasks for the existing green building program in accordance with CITY staff requirements. Examples of these tasks may include the items listed below: Response to requests to clear for Final Inspection Approval of permit applications (residential and non-residential) Explanation of requirements to applicants Reminders for final GP and LEED certificates, Commissioning reports, receive and enter final certs, administer fines when overdue Program efficiency improvement Integration with entire permitting system and individual staff members, as well as inter-departmental sustainability efforts (i.e.; landscape water efficiency review, C&D, zero waste) Program Development, goals, updates, implementation Data entry and management for statistics and annual report Community Education on sustainability Plan review including but not limited to residential and commercial planning and building permit applications. B. Metrics Management and Reporting Provide detailed quantitative analysis that measures how effective the Green Building program is per the following: Building Performance Database - Develop performance metrics information provided DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 4 Revision April 28, 2014 by applicant at Permit Issuance and Final Inspection stage of building permit. SEA Report – Compile standard report for fiscal year data for Green Building for annual SEA Report. Earth Daye Report – Compile standard report for fiscal year data for green building Annual Earth Day Report. C. Quality Control Maintenance Develop process and best practices for tasks identified at various stages of the development process. The various city departments where these best practices should be implemented include: Planner Quality Control Project Coordinator Quality Control Plan Checker Quality Control Inspector Quality Control Utilities Quality Control D. Develop Green Building Program Process Web Page and Handouts Develop clearly defined paths that are user friendly that guide the applicant through the process from start to finish. These paths will be readily accessible either through access to CITY’s Green Building web page and/or handouts that are available for distribution from CITY’s Development Center. E. Ongoing Training Continue to explore ways to help make Palo Alto a leader in environmental sustainability. This involves a proactive approach with all relevant City Departments including but not limited to, Planning, Building, Utilities, and Public Works. Ongoing training shall also be available to outside stakeholders when the opportunity presents itself. F. Policy Review and Creation Collaborate with stakeholder groups in the review of existing and creation of new green building policies and guidelines that forward the city’s vision to be a leader in sustainable development. CONSULTANT is expected to draw on best in class examples and latest advances in technology to promote this agenda. CONSULTANT shall use exceptional writing and communication skills to craft and articulate these policies and guidelines. G. Graphic Media Support of Program Develop and maintain web content for the Green Building webpage within the Development Services department webpage. Develop tutorial based videos explaining the Green Building process including, requirements, forms, timelines, inspections, etc.. H. Landscape Water Efficiency Plan Review (Additional Service) Review landscape and irrigation plans in accordance with the City’s landscape water efficiency standards to ensure that projects are consistent with the State Green Building Standards Code (CALGreen). Serve as a source of technical expertise to City staff for questions and/or issues relating to appropriate irrigation design and efficiencies. DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 5 Revision April 28, 2014 AMENDMENT NO. 1: ADDITIONAL SCOPE OF SERVICES A. GOALS Consultant shall provide technical project management and analysis consulting services to support Development Services in conducting a feasibility study to explore residential and commercial building code changes to assist in expediting electrification for buildings within Palo Alto. The scope of work is identified within Task #4 of the electrification work plan staff report #5961. The “Activities and Deliverables” section of this proposal follows the contents of Task #4. CONSULTANT shall structure the project into three sections: Project Management and Technical Analysis: CONSULTANT will act as the project manager on behalf of Development Services and will facilitate two other firms to complete the work outlined in this proposal. The two other consulting firms shall include the “Outside Consultants” listed below. CONSULTANT shall facilitate these outside consultants to produce the results listed under “Activities and Deliverables”. CONSULTANT will work closely with the Director of Development Services, the Chief Building Official, and the Chief Sustainability Officer on this project. Outside Consultant #1: Electrical Engineering Design Judgment & Cost Estimation: An electrical engineering firm with the capacity to provide engineering judgment analysis and cost estimation. The primary team member from Outside Consultant #1 shall be a licensed Professional Engineer (PE) in the State of California. Outside Consultant #2: Cost-Effectiveness Study Energy Engineering: An energy engineering firm with specialization in performing a cost-effectiveness study in accordance with Section 10-106 of the California Code of Regulations, Title 24, Part 1. B. ACTIVITIES & DELIVERABLES The intent of the study is to provide a high level assessment of the technical feasibility of electrification, and the associated code requirements. The activities and deliverables associated with this Statement of Work focus on researching and identifying technical requirements related to electrification for building types under the jurisdiction of the Building Standards Commission (BSC). CONSULTANT will project manage and coordinate the team from beginning to end and will provide regular updates to City Staff on the progress. CONSULTANT will facilitate the two other firms involved in this study to produce the intended result. ACTIVITIES: 1. Support Staff in the Project Initiation for the Electrification Study: Assist Staff in developing the project plan, schedule, and initiating the consulting project team for the purposing of completing the Electrification Study elements in Task #4. Assist staff to develop a scope of work for the “Outside Consultants”. Assist Staff to identify potential firms to solicit proposals for “Outside Consultant 1” and “Outside Consultant 2”. Act as the project manager to support “Outside Consultant 1” and “Outside Consultant 2” to deliver the study of engineering judgment, hard costs, and cost-effectiveness. 2. Conduct the Electrification Study Elements in Task #4 DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 6 Revision April 28, 2014 a. Study the feasibility of including heat pump water heaters (HPWH) installations as part of the Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria. Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including HPWH installations for CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training. Manage Outside Consultant #1 to produce the following: Feasibility study containing narrative analysis on the 2016 California Electrical Code engineering design elements and judgment scenarios for the project type scenarios. The study would outline the impact for the case of both a Tier “elective” policy and a Tier “pre-requisite” aka “mandated” policy. Outline cost-estimates for the electrification of key project types. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios in accordance with the California Energy Commission requirements for local energy reach code ordinance development. The study would outline the impact for the case of the mandated “pre-requisite” policy. b. Study the feasibility of including heat pump space heating installations as part of Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria. Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including heat pump space heating as CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training. Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design elements and judgment scenarios for the project type scenarios for heat pump space heating installations. The study would outline the impact for the case of Tier elective policy and Tier mandatory policy. Outline cost-estimates for the electrification of key project types. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios for heat pump space heating in accordance with the California Energy Commission requirements for local energy reach code ordinance development. C. Study the feasibility of requiring sufficient electrical panel capacity and outlets to accommodate the electrification of the house in the future. Project Management and Technical Analysis: Report on the feasibility of including requiring sufficient electrical panel capacity and outlets to accommodate the electrification of residential structures with regards to identifying code sections to amend for policy development, enforcement, and staff training. DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 7 Revision April 28, 2014 Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design and judgment narratives describing the impact or requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a typical residential structure. Provide cost estimations for electrical panel capacity for applicable residential prototypes. Provide code sections that needed to be amended to of the California Electrical Code to result in achieving this result. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the residential “prototype” scenarios for requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a residential structure in accordance with the California Energy Commission requirements for local energy reach code ordinance development. d. Study and seek permission from the California Energy Commission (CEC) to remove certain requirements that impeded electrification (such as a case-by-case cost effectiveness analysis) to permit installation of heat-pump based heating appliances. Project Management and Technical Analysis: Participate in the continued correspondence with the California Energy Commission with regards to easing the permit process for installation of heat pump water heaters. Update internal “fuel-switching” inspection checklist. Manage Outside Consultant #2 to identify California Energy Code requirements that impede electrification. Manage Outside Consultant #2 to produce the following: Feasibility study containing a summary of barriers California Energy Commission requirements for local energy reach code ordinance development for the 2016 code cycle. e. Work with other interested parties to lobby CEC to consider carbon content (in addition to energy efficiency) of building energy systems when updating building energy codes for the 2016 code update cycle (effective 2017). Project Management and Technical Analysis: Facilitate the continued correspondence with the California Energy Commission with regards considering carbon content of building energy systems when updating building energy codes for the 2016 code cycle update (effective 2017). f. Research and analyze the necessary components for a permitting process and field inspection protocol to support electrification. Project Management and Technical Analysis: Support upper management in developing proposed personnel modifications and training required for the plan check staff and inspection staff to support the electrification of buildings. g. Explore potential scenarios for an expedited permitting program for projects pursing electrification. Work with staff to identify resources required to administer an expedited permit program for projects pursuing electrification. DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 8 Revision April 28, 2014 Project Management and Technical Analysis: Support upper management in exploring opportunities for an expedited permit program to support the electrification of buildings. 3. Assist Development Services in meeting the requirements of the Chief Sustainability Officer. Assist Development Services Staff in supporting the Chief Sustainability Officer in the overall delivery of the Electrification Study to the City Council related to the elements in Task #4. 4. Deliver the Electrification Study Elements in Task #4 Assist Staff in preparing and presenting to the City Council on the findings of Task #4. Prepare a Staff Report, and upload all required supporting documentation to MinuteTraq. Attend and provide technical support to staff during the City Council meeting. DELIVERABLES: Draft RFP language to assist staff in soliciting Consultant #1 and Consultant #2 Prototype scenarios for typical building projects based on past permit data Formal report detailing the results of the Electrification Study Written responses to email inquiries Staff Report AMENDMENT NO. 2: ADDITIONAL SCOPE OF SERVICES EXTENDED SERVICES Extended Green Building and Landscape Review Consulting Services Background CONSULTANT is currently contracted with the City of Palo Alto to perform Green Building Consulting Services and Landscape Plan Review services. Amendment No. 2 acts to extend these services for one additional year. Activities & Deliverables This activities and deliverable remain unchanged from the original scope of work. ADDITIONAL SERVICES Additional Services for Landscape Permit Management and Single--Family Water Efficient Landscape Review Background The City of Palo Alto is currently seeking assistance to help with Landscape Plan Reviews to ensure the Emergency Building Standards for Outdoor Potable Water Use set forth by the Housing and Community Development (HCD) Department, effective June 1st, are enforced for new DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 9 Revision April 28, 2014 residential projects. In addition, the City seeks to develop a Landscape Permit to meet the requirements of Executive Order B--29--15 related to drought response. Goals Single--Family Residential Review: Provide Landscape Plan Review consulting services for new single--family residential construction to support Development Services in enforcing the Emergency Building Standards for Outdoor Potable Water Use effective June 1, 2015. Landscape Permit Coordination: Provide technical coordination and perform permit facilitation services to Development Services in response to Executive Order B--29--15 regarding the California State Drought. Provide landscape water use technical expertise and strategy consulting to senior management. Activities & Deliverables Single--Family Residential Landscape Review ACTIVITIES: Perform Plan Review Services for Single--Family Residential Projects Review project plans and supplemental documentation in accordance with the Emergency Building Standards within the 2013 California Green Building Standards Code for Outdoor Potable Water Use Reduction Section 4.304.1. The review shall be conducted in accordance with the measures outlined within the Model Water Efficient Landscape Ordinance (MWELO) for water budgeting and irrigation design. Designate each project as “Approved” or “Not Approved” and update Accela Automation for each permit application. Issue Correction Comments, Respond to Questions Based on the criteria submitted for review by the project applicant, prepare a formal letter containing a summary of corrections to the project applicant, if applicable. Answer questions via phone and email regarding the criteria for correcting the submittal. Review Revisions and Resubmittals DELIVERABLES: “Approved” or “Not Approved” updates in Accela Automation for each permit application Letter review for each “Not Approved” project containing a clear summary of corrections Written responses to email inquiries DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 10 Revision April 28, 2014 Landscape Permit Coordination to Support Executive Order B--29--15 ACTIVITIES: Support Staff to Create Permit Procedures, Web Content and Forms Strategy and Technical Assistance for Landscape Permit Development Assist Development Services Director, the Chief Building Official, and related leadership to create policies and procedures for a Landscape Permit. Develop Forms, Worksheet and Web Content for Landscape Permit Provide technical writing services to develop web content to support the landscape permit on the Development Services webpage. Develop forms and worksheets to support the landscape permit. Upload the forms and worksheets to the webpage. Provide Permit Technician Services for the Landscape Permit Administer Landscape Permit for Landscape Projects Administer and manage the Landscape Permit process for the City of Palo Alto. Support staff will be available to the public to process necessary landscape permit paperwork and documentation. Metrics Management and Submission to Department of Water Resources Collect and Submit Necessary Metrics to the Department of Water Resources Collect required data by Executive Order B--29--15 regarding water use information on landscape projects for each permit. Compile and submit required data to the Department of Water Resources for the initial reporting period of (February 1, 2016 – February 28, 2016). After the initial reporting period is completed and accepted, submit annual reports at the end of each calendar year to the Department of Water Resources. DELIVERABLES: Landscape Permit Forms, Worksheets, and Web Content Landscape Permit Data for Submission to the Department of Water Resources Landscape Permit Content into Accela Automation Landscape Permit Correspondence with Project Applicants DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 11 Revision April 28, 2014 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within Quarter/Year as 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. 1. Existing Program Implementation Assistance Development Center Counter Green Building Forms & Handouts (Q1, 2015) Green Building Plan Check Standards (Q1, 2015) Green Building Inspection Checklist (Q1, 2015) Green Building Training Microsoft Powerpoints (Q1, 2015) Staff Reports (As needed) 2. Metric Management and Reporting Report narratives for Earth Day and SEA Report (Q4, 2014, 2015) Annual Database Output Data, Charts, and Graphs for Earth Day Report and SEA Report (Q4, 2014, 2015) Database login access (Q3, 2015) Database information for the Information Technology Department (Q3, 2015) 3. Quality Control Maintenance Development Center Green Building Ordinance Procedures (Q4, 2014) Correspondence with staff and the public via email (On-going) Meeting Notes (As needed) 4. Webpage and Handout Website content (Q4, 2014 and Q4, 2015) Informal Videos to be stored on Vimeo (Q2, 2015 and Q2, 2016) 5. On-Going Training Staff Training PowerPoints (One Per Quarter starting Q1,2015) Informal Training Videos for New Staff (Using Jing or Camtasia Software) - (Q1, 2015 through Q2, 2016 - One Per Quarter) Public Training Powerpoints (One Per Quarter starting Q1, 2015) 6. Policy Review and Creation DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 12 Revision April 28, 2014 New green building ordinance criteria in collaboration with Technical Advisory Group (Q4, 2014) Policy Development Agendas and Meeting Notes (On-going) Technical Analysis and Staff Reports (As needed) AMENDMENT NO. 1 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD in EXHIBIT “A” Scope of Services AMENDMENT NO. 2 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD Exhibit “A” Scope of Services will be developed in cooperation with CITY Staff. DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 13 Revision April 28, 2014 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services, do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $129,006.50 (Existing Program Implementation) Task 2 $36,859.00 (Metric Management & Reporting) Task 3 $55,288.50 (Quality Control Maintenance) Task 4 $36,859.00 (Webpages & Handouts) Task 5 $18,429.50 (On-Going Training) Task 6 $18,429.50 (Policy Review & Creation) Sub-total Basic Services $294,872.00 AMENDMENT NO. 1 Task 1 $16,080.00 (2015 4 Months) Task 1 $50,652.00 ( 2016 12 Months) DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 14 Revision April 28, 2014 Sub-total Amendment No 1 $66,732.00 AMENDMENT NO. 2 Task 1 $70,110.88 (Existing Program Implementation) Task 2 $20,043.80 (Metric Management & Reporting) Task 3 $29,955.00 (Quality Control Maintenance) Task 4 $22,717.76 (Webpages & Handouts) Task 5 $11,457.00 (On-Going Training) Task 6 $11,457.50 (Policy Review & Creation) Task 7 $81,274.00 (Commercial Landscape Review) Task 8 $53,044.00 (Residential Landscape Review) Task 9 $65,476.00 (Landscape Permit Management) Sub-total Amendment No 2 $365,535.00 Additional Services (Not to Exceed) $151,122.00 Maximum Total Compensation $878,261.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 15 Revision April 28, 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 16 Revision April 28, 2014 EXHIBIT “C-1” HOURLY RATE SCHEDULE Principal/Senior Program Manager (Rates Reflect a 5% Annual Increase) 1st Year (4 months Aug – Dec 2014) $145.00 2nd Year (12 months Jan – Dec 2015) $152.25 3rd Year (8 months Jan – Aug 2016) $159.86 Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Totals Task 1 - Existing Program Implementation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 35 $145.00 $20,300.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 35 $152.25 $63,945.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 35 $159.86 $44,761.50 Total Not to Exceed Task 1 $129,006.50 Task 2 - Metrics Management and Reporting** 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 2 $36,859.00 Task 3 - Quality Control Maintenance 2014 Rate (4 months Sept-Dec) Principal/Senior PM 15 $145.00 $8,700.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 15 $152.25 $27,405.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 15 $159.86 $19,183.50 Total Not to Exceed Task 3 $55,288.50 Task 4 - Webpages and Handouts* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 4 $36,859.00 Task 5 - On-Going Training* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 5 $18,429.50 Task 6 - Policy Review and Creation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 6 $18,429.50 DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 17 Revision April 28, 2014 Summary Totals Total Not To Exceed Amount for 2 Years $294,872.00 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January ADDITIONAL SERVICES Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Totals Additional Services - Landscape Review 2014 Rate (4 months Sept-Dec) Principal/Senior PM 41 $145.00 $23,780.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 41 $152.25 $74,907.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 41 $159.86 $52,434.90 Total Not to Exceed Additional Services $151,121.90 **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. AMENDMENT No. 1: Hourly Rate Schedule Summary Additional Services Totals Total Not To Exceed Amount for 2 Years $151,121.90 DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 18 Revision April 28, 2014 AMENDMENT No 2. Hourly Rate Schedule EXTENDED SERVICES GREEN BUILDING PROGRAM CONSULTING SERVICES Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Task 1 - Existing Program Implementation 2016 Rate (4 months Sept-Dec) Principal/Senior PM 20 $159.86 $12,788.80 2016 Rate (4 months Sept-Dec) Program Associate 36 $68.25 $9,828.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 20 $167.85 $26,856.00 2017 Rate (8 months Jan-Aug) Program Associate 36 $71.66 $20,638.08 Total Not to Exceed Task 1 $70,110.88 Task 2 - Metrics Management and Reporting** 2016 Rate (4 months Sept-Dec) Principal/Senior PM 2 $159.86 $1,278.88 2016 Rate (4 months Sept-Dec) Program Associate 19 $68.25 $5,187.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 2 $167.85 $2,685.60 2017 Rate (8 months Jan-Aug) Program Associate 19 $71.66 $10,892.32 Total Not to Exceed Task 2 $20,043.80 Task 3 - Quality Control Maintenance 2016 Rate (4 months Sept-Dec) Principal/Senior PM 7 $159.86 $4,476.08 2016 Rate (4 months Sept-Dec) Program Associate 19 $68.25 $5,187.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 7 $167.85 $9,399.60 2017 Rate (8 months Jan-Aug) Program Associate 19 $71.66 $10,892.32 Total Not to Exceed Task 3 $29,955.00 Task 4 - Webpages and Handouts* 2016 Rate (4 months Sept-Dec) Principal/Senior PM 10 $159.86 $6,394.40 2016 Rate (4 months Sept-Dec) Program Associate 10 $68.25 $2,730.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 5 $167.85 $6,714.00 2017 Rate (8 months Jan-Aug) Program Associate 12 $71.66 $6,879.36 Total Not to Exceed Task 4 $22,717.76 Task 5 - On-Going Training* 2016 Rate (4 months Sept-Dec) Principal/Senior PM 5 $159.86 $3,197.20 2016 Rate (4 months Sept-Dec) Program Associate 5 $68.25 $1,365.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 3 $167.85 $4,028.40 2017 Rate (8 months Jan-Aug) Program Associate 5 $71.66 $2,866.40 Total Not to Exceed Task 5 $11,457.00 Task 6 - Policy Review and Creation 2016 Rate (4 months Sept-Dec) Principal/Senior PM 5 $159.86 $3,197.20 DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 19 Revision April 28, 2014 2016 Rate (4 months Sept-Dec) Program Associate 5 $68.25 $1,365.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 3 $167.85 $4,028.40 2017 Rate (8 months Jan-Aug) Program Associate 5 $71.66 $2,866.40 Total Not to Exceed Task 6 $11,457.00 Total Not To Exceed Green Building $165,741.44 EXTENDED SERVICES COMMERCIAL LANDSCAPE REVIEW ADDITIONAL SERVICES LANDSCAPE REVIEW – SINGLE--FAMILY RESIDENTIAL Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Additional Services - Landscape Review 2016 Rate (4 months Sept-Dec) Principal/Senior Program Manager 41 $159.86 $26,217.04 2017 Rate (8 months Jan-Aug) Principal/Senior Program Manager 41 $167.85 $55,055.78 Total Not to Exceed Landscape Review $81,272.82 Scope Labor Categories Est. Hours Hourly Rate**Extended Rate Totals Residential Landscape Review (2015)*Landscape Reviewer 26 $152.25 Total Estimate Per Month $3,958.50 Total Estimate 2015 (5 months August-Dec)$19,792.50 Residential Landscape Review (2016)*Landscape Reviewer 26 $159.86 Total Not to Exceed 2015 - Per Month $4,156.43 Total Monthly 2016 (8 months Jan-Aug)$33,251.40 Total Not To Exceed Amount $53,043.90 **Hourly rates are subject to a 5% increase each January * Residential landscape reviews are estimated to take approximatelt 2 hours per project to complete. Estimate is based on 13 new residential projects submitted for permit each month on average. DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C 20 Revision April 28, 2014 ADDITIONAL SERVICES LANDSCAPE PERMIT MANAGEMENT Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Additional Services - Landscape Permit Management 2016 Rate (12 months Jan-Dec) Principal/Senior Program Manager 3 $159.86 $5,754.96 2016 Rate (12 months Jan-Dec) Program Associate 40 $68.25 $32,760.00 2017 Rate (8 months Jan-Aug) Principal/Senior Program Manager 3 $167.85 $4,028.40 2017 Rate (8 months Jan-Aug) Program Associate 40 $71.66 $22,931.20 Total Not to Exceed Landscape Permit $65,474.56 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January DocuSign Envelope ID: 7A7EE23E-2FC8-4697-9824-DEA08E2BF76C Certificate Of Completion Envelope Id: 7A7EE23E2FC846979824DEA08E2BF76C Status: Completed Subject: Please DocuSign this document: C15154454 CONTRACT AMENDMENT NO 2 ay edit (2).pdf Source Envelope: Document Pages: 20 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Christopher Anastole AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 3/23/2016 8:57:12 AM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp melanie jacobson melanie@integrateddesign360.com Principal melanie jacobson Security Level: Email, Account Authentication (None) Using IP Address: 73.158.231.144 Signed using mobile Sent: 3/23/2016 9:01:24 AM Viewed: 3/23/2016 6:17:54 PM Signed: 3/23/2016 6:22:40 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 Jessie Deschamps Jessie.Deschamps@CityofPaloAlto.org City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 3/23/2016 6:22:41 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Katie Whitley Katie.Whitley@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 3/23/2016 6:22:41 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 3/23/2016 6:22:41 PM Certified Delivered Security Checked 3/23/2016 6:22:41 PM Signing Complete Security Checked 3/23/2016 6:22:41 PM Completed Security Checked 3/23/2016 6:22:41 PM 1 Revision April 28, 2014 AMENDMENT NO. 3 TO CONTRACT NO. C15154454 BETWEEN THE CITY OF PALO ALTO AND INTEGRATED DESIGN 360, LLC. This Amendment No. 2 to Contract No. C15154454 (“Contract”) is entered into 14th day of August, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INTEGRATED DESIGN 360, LLC. a California limited liability company, located at 727 Industrial Road, Suite 128, San Carlos, California, 94070, Telephone (415) 866-6744 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of assistance to manage the Green Building Program. B. The CITY intends to extend the term and increase the compensation by $376,744.00 from $878,261.00 to $1,255,005.00 for additional services as specified per Exhibit “A” Scope of Services. C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 Term, is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through August 31, 2018 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 COMPENSATION, is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Nine Hundred Five Thousand Four Hundred Eighty One Dollars ($905,481.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed One Million Two Hundred Fifty Five Thousand Five Dollars ($1,255,005.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. 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 in Exhibit “A”.” SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 2 Revision April 28, 2014 b. Exhibit “B” entitled “SCHEDULE Of PERFORMANCE”. c. Exhibit “C” entitled “COMPENSATION”. d. Exhibit “C1” entitled “HOURLY RATE SCHEDULE”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: INTEGRATED DESIGN 360, LLC. Attachments: EXHIBIT "A" :SCOPE OF SERVICES EXHIBIT "B" :SCHEDULE OF PERFORMANCE EXHIBIT "C" :COMPENSATION EXHIBIT "C1" :HOURLY RATE SCHEDULE DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Principal melanie jacobson 4 Revision April 28, 2014 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT shall provide professional services for CITY’s Green Building program. The CONSULTANT shall help manage the City’s Green Building program to help assist CITY with its continued efforts to be a leader in environmental sustainability. CONSULTANT shall integrate and manage sustainable building practices for local municipalities. CONSULTANT shall conduct landscape and irrigation plan reviews in accordance with the City’s landscape water efficiency standards. The CONSULTANT shall assist staff with the implementation and management of the City’s Green Building program. The CONSULTANT shall include a level of quality control of Green Building Program Management coupled with CITY personnel performing Green Building Quality Assurance as a portion of CONSULTANT’s duties. The CONSULTANT shall primarily execute the Green Building program and operations task list which includes: Existing Program Implementation Assistance Metrics Management and Reporting Quality Control Maintenance Develop Green Building Program Process Handouts Ongoing Training Policy Review and Creation Graphic Media Support of Program Landscape Water Efficiency Plan Review (Additional Service) A. Existing Program Implementation Assistance Provide program implementation assistance tasks for the existing green building program in accordance with CITY staff requirements. Examples of these tasks may include the items listed below: Response to requests to clear for Final Inspection Approval of permit applications (residential and non-residential) Explanation of requirements to applicants Reminders for final GP and LEED certificates, Commissioning reports, receive and enter final certs, administer fines when overdue Program efficiency improvement Integration with entire permitting system and individual staff members, as well as inter-departmental sustainability efforts (i.e.; landscape water efficiency review, C&D, zero waste) Program Development, goals, updates, implementation Data entry and management for statistics and annual report Community Education on sustainability Plan review including but not limited to residential and commercial planning and building permit applications. B. Metrics Management and Reporting Provide detailed quantitative analysis that measures how effective the Green Building program is per the following: Building Performance Database - Develop performance metrics information DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 5 Revision April 28, 2014 providedby applicant at Permit Issuance and Final Inspection stage of building permit. SEA Report – Compile standard report for fiscal year data for Green Building for annual SEA Report. Earth Daye Report – Compile standard report for fiscal year data for green building Annual Earth Day Report. C. Quality Control Maintenance Develop process and best practices for tasks identified at various stages of the development process. The various city departments where these best practices should be implemented include: Planner Quality Control Project Coordinator Quality Control Plan Checker Quality Control Inspector Quality Control Utilities Quality Control D. Develop Green Building Program Process Web Page and Handouts Develop clearly defined paths that are user friendly that guide the applicant through the process from start to finish. These paths will be readily accessible either through access to CITY’s Green Building web page and/or handouts that are available for distribution from CITY’s Development Center. E. Ongoing Training Continue to explore ways to help make Palo Alto a leader in environmental sustainability. This involves a proactive approach with all relevant City Departments including but not limited to, Planning, Building, Utilities, and Public Works. Ongoing training shall also be available to outside stakeholders when the opportunity presents itself. F. Policy Review and Creation Collaborate with stakeholder groups in the review of existing and creation of new green building policies and guidelines that forward the city’s vision to be a leader in sustainable development. CONSULTANT is expected to draw on best in class examples and latest advances in technology to promote this agenda. CONSULTANT shall use exceptional writing and communication skills to craft and articulate these policies and guidelines. G. Graphic Media Support of Program Develop and maintain web content for the Green Building webpage within the Development Services department webpage. Develop tutorial based videos explaining the Green Building process including, requirements, forms, timelines, inspections, etc.. H. Landscape Water Efficiency Plan Review (Additional Service) Review landscape and irrigation plans in accordance with the City’s landscape water efficiency standards to ensure that projects are consistent with the State Green Building Standards Code (CALGreen). Serve as a source of technical expertise to City staff for questions and/or issues relating to appropriate irrigation design and efficiencies. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 6 Revision April 28, 2014 AMENDMENT NO. 1: ADDITIONAL SCOPE OF SERVICES A. GOALS Consultant shall provide technical project management and analysis consulting services to support Development Services in conducting a feasibility study to explore residential and commercial building code changes to assist in expediting electrification for buildings within Palo Alto. The scope of work is identified within Task #4 of the electrification work plan staff report #5961. The “Activities and Deliverables” section of this proposal follows the contents of Task #4. CONSULTANT shall structure the project into three sections: Project Management and Technical Analysis: CONSULTANT will act as the project manager on behalf of Development Services and will facilitate two other firms to complete the work outlined in this proposal. The two other consulting firms shall include the “Outside Consultants” listed below. CONSULTANT shall facilitate these outside consultants to produce the results listed under “Activities and Deliverables”. CONSULTANT will work closely with the Director of Development Services, the Chief Building Official, and the Chief Sustainability Officer on this project. Outside Consultant #1: Electrical Engineering Design Judgment & Cost Estimation: An electrical engineering firm with the capacity to provide engineering judgment analysis and cost estimation. The primary team member from Outside Consultant #1 shall be a licensed Professional Engineer (PE) in the State of California. Outside Consultant #2: Cost-Effectiveness Study Energy Engineering: An energy engineering firm with specialization in performing a cost-effectiveness studyin accordance with Section 10-106 of the California Code of Regulations, Title 24, Part 1. B. ACTIVITIES & DELIVERABLES The intent of the study is to provide a high level assessment of the technical feasibility of electrification, and the associated code requirements. The activities and deliverables associated with this Statement of Work focus on researching and identifying technical requirements related to electrification for building types under the jurisdiction of the Building Standards Commission (BSC). CONSULTANT will project manage and coordinate the team from beginning to end and will provide regular updates to City Staff on the progress. CONSULTANT will facilitate the two other firms involved in this study to produce the intended result. ACTIVITIES: 1. Support Staff in the Project Initiation for the Electrification Study: Assist Staff in developing the project plan, schedule, and initiating the consulting project team for the purposing of completing the Electrification Study elements in Task #4. Assist staff to develop a scope of work for the “Outside Consultants”. Assist Staff to identify potential firms to solicit proposals for “Outside Consultant 1” and “Outside Consultant 2”. Act as the project manager to support “Outside Consultant 1” and “Outside Consultant 2” to deliver the study of engineering judgment, hard costs, and cost-effectiveness. 2. Conduct the Electrification Study Elements in Task #4 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 7 Revision April 28, 2014 a. Study the feasibility of including heat pump water heaters (HPWH) installations as part of the Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria. Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including HPWH installations for CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training. Manage Outside Consultant #1 to produce the following: Feasibility study containing narrative analysis on the 2016 California Electrical Code engineering design elements and judgment scenarios for the project type scenarios. The study would outline the impact for the case of both a Tier “elective” policy and a Tier “pre-requisite” aka “mandated” policy. Outline cost-estimates for the electrification of key project types. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios in accordance with the California Energy Commission requirements for local energy reach code ordinance development. The study would outline the impact for the case of the mandated“pre-requisite”policy. b. Study the feasibility of including heat pump space heating installations as part of Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria. Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including heat pump space heating as CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training. Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design elements and judgment scenarios for the project type scenarios for heat pump space heating installations. The study would outline the impact for the case of Tier elective policy and Tier mandatory policy. Outline cost-estimates for the electrification of key project types. Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios for heat pump space heating in accordance with the California Energy Commission requirements for local energy reach code ordinance development. C. Study the feasibility of requiring sufficient electrical panel capacity and outlets to accommodate the electrification of the house in the future. Project Management and Technical Analysis: Report on the feasibility of including requiring sufficient electrical panel capacity and outlets to accommodate the electrification of residential structures with regards to identifying code sections to amend for policy development, enforcement, and staff training. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 8 Revision April 28, 2014 Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design and judgment narratives describing the impact or requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a typical residential structure. Provide cost estimations for electrical panel capacity for applicable residential prototypes. Provide code sections that needed to be amended to of the California Electrical Code to result in achieving this result. Manage Outside Consultant #2 to produce the following: Feasibility study containinga cost-effective analysis of the residential “prototype” scenarios for requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a residential structure in accordance with the California Energy Commission requirements for local energy reach code ordinance development. d. Study and seek permission from the California Energy Commission (CEC) to remove certain requirementsthatimpeded electrification(such as acase-by-case cost effectiveness analysis) to permit installation of heat-pump based heating appliances. Project Management and Technical Analysis: Participate in the continued correspondence with the California Energy Commission with regards to easing the permit process for installation of heat pump water heaters. Update internal “fuel-switching” inspection checklist. Manage Outside Consultant #2 to identify California Energy Code requirements that impede electrification. Manage Outside Consultant #2 to produce the following: Feasibility study containing a summary of barriers California Energy Commission requirements for local energy reach code ordinance development for the 2016 code cycle. e. Work with other interested parties to lobby CEC to consider carbon content (in addition to energy efficiency) of building energy systems when updating building energy codes for the 2016 code update cycle (effective 2017). Project Management and Technical Analysis: Facilitate the continued correspondence with the California Energy Commission with regards considering carbon content of building energy systems when updating building energy codes for the 2016 code cycle update (effective 2017). f. Research and analyze the necessary components for a permitting process and field inspection protocol to support electrification. Project Management and Technical Analysis: Support upper management in developing proposed personnel modifications and training required for the plan check staff and inspection staff to support the electrification of buildings. g. Explore potential scenarios for an expedited permitting program for projects pursing electrification. Work with staff to identify resources required to administer an expedited permit program for projects pursuing electrification. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 Project Management and Technical Analysis: Support upper management in exploring opportunities for an expedited permit program to support the electrification of buildings. 3. Assist Development Services in meeting the requirements of the Chief Sustainability Officer. Assist Development Services Staff in supporting the Chief Sustainability Officer in the overall delivery of the Electrification Study to the City Council related to the elements in Task #4. 4. Deliver the Electrification Study Elements in Task #4 Assist Staff in preparing and presenting to the City Council on the findings of Task #4. Prepare a Staff Report, and upload all required supporting documentation to MinuteTraq. Attend and provide technical support to staff during the City Council meeting. DELIVERABLES: Draft RFP language to assist staff in soliciting Consultant #1 and Consultant #2 Prototype scenarios for typical building projects based on past permit data Formal report detailing the results of the Electrification Study Written responses to email inquiries Staff Report AMENDMENT NO. 2: ADDITIONAL SCOPE OF SERVICES EXTENDED SERVICES Extended Green Building and Landscape Review Consulting Services Background CONSULTANT is currently contracted with the City of Palo Alto to perform Green Building Consulting Services and Landscape Plan Review services. Amendment No. 2 acts to extend these services for one additional year. Activities & Deliverables This activities and deliverable remain unchanged from the original scope of work. ADDITIONAL SERVICES Additional Services for Landscape Permit Management and Single-•Family Water Efficient Landscape Review Background The City of Palo Alto is currently seeking assistance to help with Landscape Plan Reviews to ensure the Emergency Building Standards for Outdoor Potable Water Use set forth by the Housing and Community Development (HCD) Department, effective June 1st, are enforced for new 8 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 10 Revision April 28, 2014 residential projects. In addition, the City seeks to develop a Landscape Permit to meet the requirements of Executive Order B-•29-•15 related to drought response. Goals Single-•Family Residential Review: Provide Landscape Plan Review consulting services for new single-•family residential construction to support Development Services in enforcing the Emergency Building Standards for Outdoor Potable Water Use effective June 1, 2015. Landscape Permit Coordination: Provide technical coordination and perform permit facilitation services to Development Services in response to Executive Order B-•29- •15 regarding the California State Drought. Provide landscape water use technical expertise and strategy consulting to senior management. Activities & Deliverables Single-•FamilyResidentialLandscapeReview ACTIVITIES: Perform Plan Review Services for Single-•Family Residential Projects Review project plans and supplemental documentation in accordance with the Emergency Building Standards within the 2013 California Green Building Standards Code for Outdoor Potable Water Use Reduction Section 4.304.1. The review shall be conducted in accordance with the measures outlined within the Model Water Efficient Landscape Ordinance (MWELO) for water budgeting and irrigation design. Designate each project as “Approved” or “Not Approved” and update Accela Automation for each permit application. Issue Correction Comments, Respond to Questions Based on the criteria submitted for review by the project applicant, prepare a formal letter containing a summary of corrections to the project applicant, if applicable. Answer questions via phone and email regarding the criteria for correcting the submittal. Review Revisions and Resubmittals DELIVERABLES: “Approved” or “Not Approved” updates in Accela Automation for each permit application Letter review for each “Not Approved” project containing a clear summary of corrections Written responses to email inquiries DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 11 Revision April 28, 2014 Landscape Permit Coordination to Support Executive Order B-•29-•15 Support Staff to Create Permit Procedures, Web Content and Forms Strategy and Technical Assistance for Landscape Permit Development Assist Development Services Director, the Chief Building Official, and related leadership to create policies and procedures for a Landscape Permit. Develop Forms, Worksheet and Web Content for Landscape Permit Provide technical writing services to develop web content to support the landscape permit onthe Development Services webpage. Develop forms and worksheets to support the landscapepermit. Upload the forms and worksheets to the webpage. Provide Permit Technician Services for the Landscape Permit Administer Landscape Permit for Landscape Projects Administer and manage the Landscape Permit process for the City of Palo Alto. Support staff will be available to the public to process necessary landscape permit paperwork and documentation. Metrics Management and Submission to Department of Water Resources Collect and Submit Necessary Metrics to the Department of Water Resources Collect required data by Executive Order B-•29-•15 regarding water use information on landscape projects for each permit. Compile and submit required data to the Department of Water Resources for the initial reporting period of (February 1, 2016 – February 28, 2016). After the initial reporting period is completed and accepted, submit annual reports at the end of eachcalendar year to the Department of Water Resources. DELIVERABLES: Landscape Permit Forms, Worksheets, and Web Content Landscape Permit Data for Submission to the Department of Water Resources Landscape Permit Content into Accela Automation Landscape Permit Correspondence with Project Applicants AMENDMENT NO. 3: ADDITIONAL SCOPE OF SERVICES A. Background CONSULTANT is currently contracted with the City of Palo Alto to perform Green Building Consulting Services and Landscape Plan Review services. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 12 Revision April 28, 2014 B. Goals This amendment acts to extend the Green Building and Landscape Review services for one additional year. C. Activities & Deliverables These activities and deliverable remain unchanged from the original scope of work and subsequent revisions to the scope for landscape permit coordination. OPTIONAL SERVICES FOR SPECIAL PROJECTS The optional services are provided on a Time and Materials basis to assist in developing several new projects. These estimates are provided to assist staff in implementing the first phase of each project. The scope and hourly estimates for subsequent phases of will be identified a result of an evolving work plan. ZNE Roadmap Support The scope of this task aims to support staff in realizing the goals of developing a Zero Net Energy Roadmap in collaboration with stakeholder groups. Participate in 1-•‐2 stakeholder meetings to develop the criteria for the Zero Net EnergyRoadmap Provide analysis support regarding green building and energy ordinance criteria and data Assist staff with coordination and technical support to develop a Zero Net Energy roadmap. Provide support to staff in presenting to City Council on the results of the Zero Net Energy roadmap. Utilities Energy Savings Verification Support The scope of this task aims to support staff in claiming energy efficiency savings from past permit data aggregation. • Attend 2-•‐3 meetings with the Utilities department staff regarding the energy efficiencytracking detail • Provide support to staff in aggregating energy savings data for the purposes of compliance requirements with state agencies. • Analyze permit data regarding energy efficiency savings. • Provide coordination and technical support to staff on claiming energy savings Sustainability Implementation Plan Support The scope of this task aims to support staff in completing task items on the Sustainability Implementation Plan. Attend meetings regarding the Development Services role in the Sustainability Implementation Plan. Provide support to staff in completing specific tasks on the Sustainability Implementation Plan. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 13 Revision April 28, 2014 Provide coordination and technical support to help staff plan for future endeavors regarding the Sustainability Implementation Plan. Eco‐District Project Support The scope of this task aims to support staff in the development of an Eco‐District within the City of Palo Alto. Activities may include collaborating with industry stakeholders on the development of eco- •‐district criteria detail. Assist staff in coordinating industry stakeholders to participate in Eco‐district charrette‐style meetings. • Attend meetings with the Development Services staff to assist in creating a task list, schedule and coordination plan for the Eco-•‐district development. Assist is creating technical criteria for the established Eco-•‐district. Electrification Technical Support The scope of this task aims to support staff in coordinating with the City of Palo Alto Utilities (CPAU) to support efforts related to electrification. Activities may include the following: Attend two monthly coordination meetings with Development Services and CPAU staff to discuss electrification efforts Assist the Development Services staff in collaborating with the CPAU department staff ontechnical coordination efforts related to electrification incentive programs. Assist the CPAU department staff to incorporate marketing efforts related to electrification incentive programs into the Development Services front counter processes. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 14 Revision April 28, 2014 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within Quarter/Year as 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. 1. Existing Program Implementation Assistance Development Center Counter Green Building Forms & Handouts (Q1, 2015) Green Building Plan Check Standards (Q1, 2015) Green Building Inspection Checklist (Q1, 2015) Green Building Training Microsoft Powerpoints (Q1, 2015) Staff Reports (As needed) 2. Metric Management and Reporting Report narratives for Earth Day and SEA Report (Q4, 2014, 2015) Annual Database Output Data, Charts, and Graphs for Earth Day Report and SEA Report (Q4, 2014, 2015) Database login access (Q3, 2015) Database information for the Information Technology Department (Q3, 2015) 3. Quality Control Maintenance Development Center Green Building Ordinance Procedures (Q4, 2014) Correspondence with staff and the public via email (On-going) Meeting Notes (As needed) 4. Webpage and Handout Website content (Q4, 2014 and Q4, 2015) Informal Videos to be stored on Vimeo (Q2, 2015 and Q2, 2016) 5.On-Going Training Staff Training PowerPoints (One Per Quarter starting Q1,2015) Informal Training Videos for New Staff (Using Jing or Camtasia Software) - (Q1, 2015 through Q2, 2016 - One Per Quarter) Public Training Powerpoints (One Per Quarter starting Q1, 2015) 6. Policy Review and Creation New green building ordinance criteria in collaboration with Technical Advisory Group DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 15 Revision April 28, 2014 (Q4, 2014) Policy Development Agendas and Meeting Notes (On-going) Technical Analysis and Staff Reports (As needed) AMENDMENT NO. 1 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD in EXHIBIT “A” Scope of Services AMENDMENT NO. 2 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD Exhibit “A” Scope of Services will be developed in cooperation with CITY Staff. AMENDMENT NO. 3 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD Exhibit “A” Scope of Services will be developed in cooperation with CITY Staff. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 15 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services, do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE Task 1 NOT TO EXCEED AMOUNT $129,006.50 (Existing Program Implementation) Task 2 (Metric Management & Reporting) $36,859.00 Task 3 (Quality Control Maintenance) $55,288.50 Task 4 (Webpages & Handouts) $36,859.00 Task 5 (On-Going Training) $18,429.50 Task 6 (Policy Review & Creation) $18,429.50 Sub-total Basic Services $294,872.00 AMENDMENT NO. 1 Task 1 (2015 4 Months) $16,080.00 Task 1 ( 2016 12 Months) $50,652.00 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 16 Sub-total Amendment No 1 $66,732.00 AMENDMENT NO. 2 Task 1 $70,110.88 (Existing Program Implementation) Task 2 (Metric Management & Reporting) $20,043.80 Task 3 (Quality Control Maintenance) $29,955.00 Task 4 (Webpages & Handouts) $22,717.76 Task 5 (On-Going Training) $11,457.00 Task 6 (Policy Review & Creation) $11,457.50 Task 7 (Commercial Landscape Review) $81,274.00 Task 8 (Residential Landscape Review) $53,044.00 Task 9 (Landscape Permit Management) $65,476.00 Sub-total Amendment No 2 $365,535.00 AMENDMENT NO. 3 Task 1 (Existing Program Implementation) $75,548.24 Task 2 (Metric Management & Reporting) $21,692.93 Task 3 (Quality Control Maintenance) $32,396.92 Task 4 (Webpages & Handouts) $24,436.55 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 17 Task 5 (On-Going Training) $12,248.84 Task 6 (Policy Review & Creation) $12,018.70 Task 7 (Landscape Review Commercial & Multi Family) $41,106.00 Task 8 (Landscape Review – Single Family Residential) $26,598.00 Task 9 (Landscape Coordination Management) EXTENDED SERVICES SUBTOTAL $29,897.14 $275,943.00 AMENDMENT NO 3 OPTIONAL SERVICES Task 10 $9,600.00 (ZNE Roadmap Support) Task 11 (Utilities Energy Savings Verification Support) $34,700.00 Task 12 (Sustainability Implementation Plan Support) $30,048.00 Task 13 (Eco‐District Project Support) $9,836.00 Task 14 (Electrification Technical Support) $16,616.00 AMENDMENT NO. 3 OPTIONAL SERVICES SUBTOTAL $100,801.00 AMENDMENT NO. 3 TOTAL $376,744.00 Total Contract Basic Services (Not to Exceed) $905,481.00 Total Contract Additional Services (Not to Exceed) $349,524.00 Maximum Total Compensation $1,255,005.00 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 18 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 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 19 EXHIBIT “C-1” HOURLY RATE SCHEDULE Principal/Senior Program Manager (Rates Reflect a 5% Annual Increase) 1st Year (4 months Aug – Dec 2014) $145.00 2nd Year (12 months Jan – Dec 2015) $152.25 3rd Year (8 months Jan – Aug 2016) $159.86 Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Totals Task 1 - Existing Program Implementation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 35 $145.00 $20,300.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 35 $152.25 $63,945.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 35 $159.86 $44,761.50 Total Not to Exceed Task 1 $129,006.50 Task 2 - Metrics Management and Reporting** 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 2 $36,859.00 Task 3 - Quality Control Maintenance 2014 Rate (4 months Sept-Dec) Principal/Senior PM 15 $145.00 $8,700.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 15 $152.25 $27,405.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 15 $159.86 $19,183.50 Total Not to Exceed Task 3 $55,288.50 Task 4 - Webpages and Handouts* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 4 $36,859.00 Task 5 - On-Going Training* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 5 $18,429.50 Task 6 - Policy Review and Creation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 6 $18,429.50 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 20 Summary Totals Total Not To Exceed Amount for 2 Years $294,872.00 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Totals Additional Services - Landscape Review 2014 Rate (4 months Sept-Dec) Principal/Senior PM 41 $145.00 $23,780.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 41 $152.25 $74,907.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 41 $159.86 $52,434.90 Total Not to Exceed Additional Services $151,121.90 Summary Additional Services Totals Total Not To Exceed Amount for 2 Years $151,121.90 **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. AMENDMENT No. 1: Hourly Rate Schedule ADDITIONAL SERVICES DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 21 AMENDMENT No 2. Hourly Rate Schedule EXTENDED SERVICES GREEN BUILDING PROGRAM CONSULTING SERVICES Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Task 1 - Existing Program Implementation 2016 Rate (4 months Sept-Dec) Principal/Senior PM 20 $159.86 $12,788.80 2016 Rate (4 months Sept-Dec) Program Associate 36 $68.25 $9,828.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 20 $167.85 $26,856.00 2017 Rate (8 months Jan-Aug) Program Associate 36 $71.66 $20,638.08 Total Not to Exceed Task 1 $70,110.88 Task 2 - Metrics Management and Reporting** 2016 Rate (4 months Sept-Dec) Principal/Senior PM 2 $159.86 $1,278.88 2016 Rate (4 months Sept-Dec) Program Associate 19 $68.25 $5,187.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 2 $167.85 $2,685.60 2017 Rate (8 months Jan-Aug) Program Associate 19 $71.66 $10,892.32 Total Not to Exceed Task 2 $20,043.80 Task 3 - Quality Control Maintenance 2016 Rate (4 months Sept-Dec) Principal/Senior PM 7 $159.86 $4,476.08 2016 Rate (4 months Sept-Dec) Program Associate 19 $68.25 $5,187.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 7 $167.85 $9,399.60 2017 Rate (8 months Jan-Aug) Program Associate 19 $71.66 $10,892.32 Total Not to Exceed Task 3 $29,955.00 Task 4 - Webpages and Handouts* 2016 Rate (4 months Sept-Dec) Principal/Senior PM 10 $159.86 $6,394.40 2016 Rate (4 months Sept-Dec) Program Associate 10 $68.25 $2,730.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 5 $167.85 $6,714.00 2017 Rate (8 months Jan-Aug) Program Associate 12 $71.66 $6,879.36 Total Not to Exceed Task 4 $22,717.76 Task 5 - On-Going Training* 2016 Rate (4 months Sept-Dec) Principal/Senior PM 5 $159.86 $3,197.20 2016 Rate (4 months Sept-Dec) Program Associate 5 $68.25 $1,365.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 3 $167.85 $4,028.40 2017 Rate (8 months Jan-Aug) Program Associate 5 $71.66 $2,866.40 Total Not to Exceed Task 5 $11,457.00 Task 6 - Policy Review and Creation 2016 Rate (4 months Sept-Dec) Principal/Senior PM 5 $159.86 $3,197.20 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 22 2016 Rate (4 months Sept-Dec) Program Associate 5 $68.25 $1,365.00 2017 Rate (8 months Jan-Aug) Principal/Senior PM 3 $167.85 $4,028.40 2017 Rate (8 months Jan-Aug) Program Associate 5 $71.66 $2,866.40 Total Not to Exceed Task 6 $11,457.00 Total Not To Exceed Green Building $165,741.44 EXTENDED SERVICES COMMERCIAL LANDSCAPE REVIEW Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Additional Services - Landscape Review 2016 Rate (4 months Sept-Dec) Principal/Senior Program Manager 41 $159.86 $26,217.04 2017 Rate (8 months Jan-Aug) Principal/Senior Program Manager 41 $167.85 $55,055.78 Total Not to Exceed Landscape Review $81,272.82 ADDITIONAL SERVICES LANDSCAPE REVIEW – SINGLE-•FAMILY RESIDENTIAL Scope Labor Categories Est. Hours Hourly Rate** Extended Rate Totals Residential Landscape Review (2015)* Landscape Reviewer 26 $152.25 Total Estimate Per Month $3,958.50 Total Estimate 2015 (5 months August-Dec) $19,792.50 Residential Landscape Review (2016)* Landscape Reviewer 26 $159.86 Total Not to Exceed 2015 - Per Month $4,156.43 Total Monthly 2016 (8 months Jan-Aug) $33,251.40 Total Not To Exceed Amount $53,043.90 * Residential landscape reviews are estimated to take approximatelt 2 hours per project to complete. Estimate is based on 13 new residential projects submitted for permit each month on average. **Hourly rates are subject to a 5% increase each January DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Revision April 28, 2014 23 ADDITIONAL SERVICES LANDSCAPE PERMIT MANAGEMENT Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Additional Services - Landscape Permit Management 2016 Rate (12 months Jan-Dec) Principal/Senior Program Manager 3 $159.86 $5,754.96 2016 Rate (12 months Jan-Dec) Program Associate 40 $68.25 $32,760.00 2017 Rate (8 months Jan-Aug) Principal/Senior Program Manager 3 $167.85 $4,028.40 2017 Rate (8 months Jan-Aug) Program Associate 40 $71.66 $22,931.20 Total Not to Exceed Landscape Permit $65,474.56 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January AMENDMENT NO. 3 HOURLY RATE SCHEDULE LABOR CATEGORIES & RATES Labor 2017 2018 Principal $205.00 $215.25 Plan Checker $195.00 $204.75 Senior Program Manager $167.85 $176.24 Project Manager $130.00 $136.50 Associate $71.66 $75.24 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 AMENDMENT NO. 3 EXTENDED SERVICES GREEN BUILDING PROGRAM CONSULTING SERVICES Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Total Task 1 - Existing Program Implementation 2017 Rate (4 months Sept-Dec) Senior Program Manager 8 $167.85 $5,371.20 2017 Rate (4 months Sept-Dec) Project Manager 20 $130.00 $10,400.00 2017 Rate (4 months Sept-Dec) Associate 30 $71.66 $8,599.20 2018 Rate (8 months Jan-Aug) Senior Program Manager 8 $176.24 $11,279.52 2018 Rate (8 months Jan-Aug) Project Manager 20 $136.50 $21,840.00 2018 Rate (8 months Jan-Aug) Associate 30 $75.24 $18,058.32 Total Not to Exceed Task 1 $75,548.24 Task 2 - Metrics Management/Reporting** 2017 Rate (4 months Sept-Dec) Senior Program Manager 1 $167.85 $671.40 2017 Rate (4 months Sept-Dec) Project Manager 5 $130.00 $2,600.00 2017 Rate (4 months Sept-Dec) Associate 13 $71.66 $3,726.32 2018 Rate (8 months Jan-Aug) Senior Program Manager 1 $176.24 $1,409.94 2018 Rate (8 months Jan-Aug) Project Manager 5 $136.50 $5,460.00 2018 Rate (8 months Jan-Aug) Associate 13 $75.24 $7,825.27 Total Not to Exceed Task 2 $21,692.93 Task 3 - Quality Control Maintenance 2017 Rate (4 months Sept-Dec) Senior Program Manager 3 $167.85 $2,014.20 2017 Rate (4 months Sept-Dec) Project Manager 7 $130.00 $3,640.00 2017 Rate (4 months Sept-Dec) Associate 19 $71.66 $5,446.16 2018 Rate (8 months Jan-Aug) Senior Program Manager 3 $176.24 $4,229.82 2018 Rate (8 months Jan-Aug) Project Manager 7 $136.50 $7,644.00 2018 Rate (8 months Jan-Aug) Associate 19 $75.24 $11,436.94 Total Not to Exceed Task 3 $32,396.92 Task 4 - Webpages and Handouts* 2017 Rate (4 months Sept-Dec) Senior Program Manager 2 $167.85 $1,342.80 2017 Rate (4 months Sept-Dec) Project Manager 9 $130.00 $4,680.00 2017 Rate (4 months Sept-Dec) Associate 8 $71.66 $2,293.12 2018 Rate (8 months Jan-Aug) Senior Program Manager 2 $176.24 $2,819.88 2018 Rate (8 months Jan-Aug) Project Manager 9 $136.50 $9,828.00 2018 Rate (8 months Jan-Aug) Associate 8 $75.24 $4,815.55 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Task 5 - On-Going Training* 2017 Rate (4 months Sept-Dec) Senior Program Manager 1 $167.85 $671.40 2017 Rate (4 months Sept-Dec) Project Manager 3 $130.00 $1,560.00 2017 Rate (4 months Sept-Dec) Associate 6 $71.66 $1,719.84 2018 Rate (8 months Jan-Aug) Senior Program Manager 1 $176.24 $1,409.94 2018 Rate (8 months Jan-Aug) Project Manager 3 $136.50 $3,276.00 2018 Rate (8 months Jan-Aug) Associate 6 $75.24 $3,611.66 Total Not to Exceed Task 5 $12,248.84 Task 6 - Policy Review and Creation 2017 Rate (4 months Sept-Dec) Senior Program Manager 5 $167.85 $3,357.00 2017 Rate (4 months Sept-Dec) Project Manager 1 $130.00 $520.00 2018 Rate (8 months Jan-Aug) Senior Program Manager 5 $176.24 $7,049.70 2018 Rate (8 months Jan-Aug) Project Manager 1 $136.50 $1,092.00 Total Not to Exceed Task 6 $12,018.70 ADDITIONAL SERVICES (EXTENDED) LANDSCAPE REVIEW COMMERCIAL & MULTI--FAMILY Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 7 - Landscape Review Commercial & Multi- family 2017 Rate (4 months Sept-Dec) Plan Checker 17 $195.00 $13,260.00 2018 Rate (8 months Jan-Aug) Plan Checker 17 $204.75 $27,846.00 Total Not to Exceed Task 7 $41,106.00 ADDITIONAL SERVICES (EXTENDED) LANDSCAPE REVIEW – SINGLE--FAMILY RESIDENTIAL Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 8 - Single-Family Landscape Review 2017 Rate (4 months Sept-Dec) Plan Checker 11 $195.00 $8,580.00 2018 Rate (8 months Jan-Aug) Plan Checker 11 $204.75 $18,018..00 Total Not to Exceed Task 8 $26,598.00 Total Not To Exceed Green Building $178,342.18 Total Not to Exceed Task 4 $24,436.55 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 ADDITIONAL SERVICES (EXTENDED) LANDSCAPE COORDINATION MANAGEMENT Task 9 - Landscape Coordination Management 2017 Rate (4 months Sept-Dec) Senior Program Manager 1 $205.00 $820.00 2017 Rate (4 months Sept-Dec) Project Manager 15 $130.00 $7,800.00 2017 Rate (4 months Sept-Dec) Associate 4 $71.66 $1,146.56 2018 Rate (8 months Jan-Aug) Senior Program Manager 1 $167.85 $1,342.80 2018 Rate (8 months Jan-Aug) Project Manager 15 $136.50 $16,380.00 2018 Rate (8 months Jan-Aug) Associate 4 $75.24 $2,407.78 Total Not to Exceed Task 9 $29,897.14 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January Additional Assumptions related to coordination with the Urban Forestry department: 1. Compliance forms and submittal requirements for local landscape requirements will be provided by the Urban Forestry Department in June of 2017. One hour of time per plan check effort will be allocated towards Urban Forest Master Plan criteria review. 2. Includes a total of three (3) two hour meetings with the Urban Forestry department to establish compliance requirements and procedures. A simplified Urban Forestry compliance form will be established to streamline the plan check process to support the Development Services goals for transparency, predictability, and efficiency. 3. Includes a one hour monthly coordination meeting with the Urban Forestry staff to discuss compliance coordination and procedures. DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 OPTIONAL SERVICES FOR SPECIAL PROJECTS The optional services are provided on a Time and Materials basis to assist in developing several new projects. These estimates are provided to assist staff in implementing the first phase of each project. The scope and hourly estimates for subsequent phases of will be identified a result of an evolving work plan. Task 10 – ZNE Roadmap Support (Optional) ZNE Roadmap Support Labor Ca tegories Est. Hou rs Hourly Exten Rate*** Ra ded Total te Task 10 – ZNE Roadmap Support (Optional) 2017 Rate (4 months Sept---Dec) Principal 6 $205 .00 $4,920.00 2017 Rate (4 months Sept---Dec) Project Manager 9 $130 .00 $4,680.00 Total Not to Exceed Task 10 $9,600.00 Task 11 – Utilities Energy Savings Verification Support (Optional) Utilities Energy Savings Verification Support Labor Ca tegories Est. Ho urs Hourly Extended Total Rate*** Rate Task 11 – Utilities Energy Savings Verification 2017 Rate (4 months Sept---Dec) Principal 2 $205 .00 $1,640.00 2017 Rate (4 months Sept---Dec) Senior Pr ogram Manager 6 $167 .85 $4,028.40 2017 Rate (4 months Sept---Dec) Project Manager 20 $130 .00 $10,4 00.00 2017 Rate (4 months Sept---Dec) Associat e 65 $71 .66 $18,6 31.60 Total Not to Exceed Task 11 $34,700.00 Task 12 – Sustainability Implementation Plan Support (SIP) (Optional) Sustainability Implementation Plan Support Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 12 – Sustainability Implementation Plan Support (SIP) (Optional) 2017 Rate (4 months Sept---Dec) Principal 5 $205.00 $4,100.00 2017 Rate (4 months Sept---Dec) Project Manager 8 $130.00 $4,160.00 2017 Rate (4 months Sept---Dec) Associate 5 $71.66 $1,433.20 2018 Rate (8 months Jan---Aug) Principal 5 $215.25 $8,610.00 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 2018 Rate (8 months Jan---Aug) Project Manager 8 $136.50 $8,736.00 2018 Rate (8 months Jan---Aug) Associate 5 $75.24 $3,009.72 Total Not to Exceed Task 12 $30,048.92 Task 13 – Eco---District Project Support(Optional) Eco---District Project Support Labor Ca tegories Est. Hou rs Hourly Exten Rate*** Ra ded Total te Task 13 – Eco---District Project Support (Optional) 2018 Rate (8 months Jan---Aug) Principal 4 $205 .00 $6,560.00 2018 Rate (8 months Jan---Aug) Project Manager 3 $136 .50 $3,276.00 Total Not to Exceed Task 13 $9,836.00 Task 14 – Electrification Technical Support (Optional) Electrification Technical Support Task 14 --- Electrification Technical Support (Optional) Labor Ca tegories Est. Hou rs Hourly Exten Rate*** Ra ded Total te 2017 Rate (4 months Sept---Dec) Principal 4 $205 .00 $3,280.00 2017 Rate (4 months Sept---Dec) Project Manager 4 $130 .00 $2,080.00 2018 Rate (8 months Jan---Aug) Principal 4 $215 .25 $6,888.00 2018 Rate (8 months Jan---Aug) Project Manager 4 $136 .50 $4,368.00 Total Not to Exceed Task 14 $16,616.00 FEE SUMMARY Green Building Tasks 1---6 Cost Per Task Sub---Total Task 1 $75,548.24 Task 2 $21,692.93 Task 3 $32,396.92 Task 4 $24,436.55 Task 5 $12,248.84 Task 6 $12,018.70 Sub---Total Green Building Tasks 1---6 $178,342.18 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Landscape Tasks 7---9 Cost Per Task Sub---Total Task 7 $41,106.00 Task 8 $26,598.00 Task 9 $29,897.14 Sub---Total Landscape Tasks 7---9 $97,601.14 Optional Services Tasks 10---14 Cost Per Task Sub---Total Task 10 $9,600.00 Task 11 $34,700.00 Task 12 $30,048.92 Task 13 $9,836.00 Task 14 $16,616.00 Sub---Total Optional Services Tasks 10---14 $100,800.92 TOTAL FEES Total Not to Exceed Amount for Contract Extensions (Tasks 1---9) Total Not to Exceed Amount for Optional Services (Tasks 10---14) Total For All Services Listed $275,943.32 $100,800.92 $376,744.24 DocuSign Envelope ID: 84A94857-C3FB-41B7-A734-1D24FC838E87 Certificate Of Completion Envelope Id: 84A94857C3FB41B7A7341D24FC838E87 Status: Completed Subject: Please DocuSign: C15154454 CONTRACT AMENDMENT NO 3 with options.pdf Source Envelope: Document Pages: 29 Signatures: 1 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Christopher Anastole Certificate Pages: 2 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 7/20/2017 3:42:01 PM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp melanie jacobson melanie@integrateddesign360.com Principal melanie jacobson Security Level: Email, Account Authentication (None) Using IP Address: 50.207.137.246 Sent: 7/20/2017 3:48:30 PM Viewed: 7/24/2017 10:30:11 AM Signed: 7/24/2017 11:30:35 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Katie Whitley Katie.Whitley@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 7/24/2017 11:30:36 AM Viewed: 7/24/2017 11:37:03 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Tabatha Boatwright Tabatha.Boatwright@CityofPaloAlto.org Administrative Associate III City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 7/24/2017 11:30:37 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/24/2017 11:30:37 AM Certified Delivered Security Checked 7/24/2017 11:30:37 AM Signing Complete Security Checked 7/24/2017 11:30:37 AM Completed Security Checked 7/24/2017 11:30:37 AM Payment Events Status Timestamps Green Building Consulting Services – Additional Services Proposal 1 Green Building Program & Landscape Review Consulting – Contract Extension and Optional Services STATEMENT OF WORK City of Palo Alto, California February 15, 2017, Revised April 27th, 2017 ‘ WEB www.integrateddesign360.com EMAIL info@integrateddesign360.com PHONE 415.350.1116 Green Building Consulting Services – Additional Services Proposal 2 Green Building Consulting Services – Additional Services Proposal 3 Table of Contents Chapter 1 – Extended Services Extended Green Building and Landscape Review Consulting Services…………….. 5 Chapter 2 – Optional Services Optional Services for Special Projects….……………………………………………… 9 Green Building Consulting Services – Additional Services Proposal 4 Green Building Consulting Services – Additional Services Proposal 5 CHAPTER 1 A. Background Integrated Design 360 is currently contracted with the City of Palo Alto to perform Green Building Consulting Services and Landscape Plan Review services. B. Goals This proposal acts to extend the Green Building and Landscape Review services for one additional year. This proposal contains added optional services for special projects found in Chapter 2. C. Activities & Deliverables This activities and deliverable remain unchanged from the original scope of work and subsequent revisions to the scope for landscape permit coordination. D. Schedule The schedule for completing the activities presented in this Statement of Work will be developed in cooperation with the City of Palo Alto Staff. E. Fee Integrated Design 360 has added three new labor categories to the scope of work to streamline the services offered and to adjust for an enhanced level of effort. The three new categories include Principal, Plan Checker, and Project Manager. LABOR CATEGORIES & RATES Labor 2017 2018 Principal $205.00 $215.25 Plan Checker $195.00 $204.75 Senior Program Manager $167.85 $176.24 Project Manager $130.00 $136.50 Associate $71.66 $75.24 Green Building Consulting Services – Additional Services Proposal 6 EXTENDED SERVICES GREEN BUILDING PROGRAM CONSULTING SERVICES Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Total Task 1 -‐ Existing Program Implementation 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 8 $167.85 $5,371.20 2017 Rate (4 months Sept-‐Dec) Project Manager 20 $130.00 $10,400.00 2017 Rate (4 months Sept-‐Dec) Associate 30 $71.66 $8,599.20 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 8 $176.24 $11,279.52 2018 Rate (8 months Jan-‐Aug) Project Manager 20 $136.50 $21,840.00 2018 Rate (8 months Jan-‐Aug) Associate 30 $75.24 $18,058.32 Total Not to Exceed Task 1 $75,548.24 Task 2 -‐ Metrics Management/Reporting** 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 1 $167.85 $671.40 2017 Rate (4 months Sept-‐Dec) Project Manager 5 $130.00 $2,600.00 2017 Rate (4 months Sept-‐Dec) Associate 13 $71.66 $3,726.32 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 1 $176.24 $1,409.94 2018 Rate (8 months Jan-‐Aug) Project Manager 5 $136.50 $5,460.00 2018 Rate (8 months Jan-‐Aug) Associate 13 $75.24 $7,825.27 Total Not to Exceed Task 2 $21,692.93 Task 3 -‐ Quality Control Maintenance 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 3 $167.85 $2,014.20 2017 Rate (4 months Sept-‐Dec) Project Manager 7 $130.00 $3,640.00 2017 Rate (4 months Sept-‐Dec) Associate 19 $71.66 $5,446.16 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 3 $176.24 $4,229.82 2018 Rate (8 months Jan-‐Aug) Project Manager 7 $136.50 $7,644.00 2018 Rate (8 months Jan-‐Aug) Associate 19 $75.24 $11,436.94 Total Not to Exceed Task 3 $32,396.92 Task 4 -‐ Webpages and Handouts* 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 2 $167.85 $1,342.80 2017 Rate (4 months Sept-‐Dec) Project Manager 9 $130.00 $4,680.00 2017 Rate (4 months Sept-‐Dec) Associate 8 $71.66 $2,293.12 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 2 $176.24 $2,819.88 2018 Rate (8 months Jan-‐Aug) Project Manager 9 $136.50 $9,828.00 2018 Rate (8 months Jan-‐Aug) Associate 8 $75.24 $4,815.55 Green Building Consulting Services – Additional Services Proposal 7 Total Not to Exceed Task 4 $24,436.55 Task 5 -‐ On-‐Going Training* 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 1 $167.85 $671.40 2017 Rate (4 months Sept-‐Dec) Project Manager 3 $130.00 $1,560.00 2017 Rate (4 months Sept-‐Dec) Associate 6 $71.66 $1,719.84 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 1 $176.24 $1,409.94 2018 Rate (8 months Jan-‐Aug) Project Manager 3 $136.50 $3,276.00 2018 Rate (8 months Jan-‐Aug) Associate 6 $75.24 $3,611.66 Total Not to Exceed Task 5 $12,248.84 Task 6 -‐ Policy Review and Creation 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 5 $167.85 $3,357.00 2017 Rate (4 months Sept-‐Dec) Project Manager 1 $130.00 $520.00 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 5 $176.24 $7,049.70 2018 Rate (8 months Jan-‐Aug) Project Manager 1 $136.50 $1,092.00 Total Not to Exceed Task 6 $12,018.70 Total Not To Exceed Green Building $178,342.18 ADDITIONAL SERVICES (EXTENDED) LANDSCAPE REVIEW COMMERCIAL & MULTI-FAMILY Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 7 -‐ Landscape Review Commercial & Multi-‐ family 2017 Rate (4 months Sept-‐Dec) Plan Checker 17 $195.00 $13,260.00 2018 Rate (8 months Jan-‐Aug) Plan Checker 17 $204.75 $27,846.00 Total Not to Exceed Task 7 $41,106.00 ADDITIONAL SERVICES (EXTENDED) LANDSCAPE REVIEW – SINGLE-FAMILY RESIDENTIAL Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 8 -‐ Single-‐Family Landscape Review 2017 Rate (4 months Sept-‐Dec) Plan Checker 11 $195.00 $8,580.00 2018 Rate (8 months Jan-‐Aug) Plan Checker 11 $204.75 $18,018..00 Total Not to Exceed Task 8 $26,598.00 Green Building Consulting Services – Additional Services Proposal 8 ADDITIONAL SERVICES (EXTENDED) LANDSCAPE COORDINATION MANAGEMENT Task 9 -‐ Landscape Coordination Management 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 1 $205.00 $820.00 2017 Rate (4 months Sept-‐Dec) Project Manager 15 $130.00 $7,800.00 2017 Rate (4 months Sept-‐Dec) Associate 4 $71.66 $1,146.56 2018 Rate (8 months Jan-‐Aug) Senior Program Manager 1 $167.85 $1,342.80 2018 Rate (8 months Jan-‐Aug) Project Manager 15 $136.50 $16,380.00 2018 Rate (8 months Jan-‐Aug) Associate 4 $75.24 $2,407.78 Total Not to Exceed Task 9 $29,897.14 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January Additional Assumptions for Proposal related to coordination with the Urban Forestry department: 1. Compliance forms and submittal requirements for local landscape requirements will be provided by the Urban Forestry Department in June of 2017. One hour of time per plan check effort will be allocated towards Urban Forest Master Plan criteria review. 2. This proposal includes a total of three (3) two-hour meetings with the Urban Forestry department to establish compliance requirements and procedures. A simplified Urban Forestry compliance form will be established to streamline the plan check process to support the Development Services goals for transparency, predictability, and efficiency. 3. The proposal includes a one-hour monthly coordination meeting with the Urban Forestry staff to discuss compliance coordination and procedures. Green Building Consulting Services – Additional Services Proposal 9 CHAPTER 2 OPTIONAL SERVICES FOR SPECIAL PROJECTS The optional services are provided on a Time and Materials basis to assist in developing several new projects. These estimates are provided to assist staff in implementing the first phase of each project. The scope and hourly estimates for subsequent phases of will be identified a result of an evolving work plan. Task 10 – ZNE Roadmap Support (Optional) The scope of this task aims to support staff in realizing the goals of developing a Zero Net Energy Roadmap in collaboration with stakeholder groups. • Participate in 1-‐2 stakeholder meetings to develop the criteria for the Zero Net Energy Roadmap • Provide analysis support regarding green building and energy ordinance criteria and data • Assist staff with coordination and technical support to develop a Zero Net Energy roadmap. • Provide support to staff in presenting to City Council on the results of the Zero Net Energy roadmap. ZNE Roadmap Support Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 10 – ZNE Roadmap Support (Optional) 2017 Rate (4 months Sept-‐Dec) Principal 6 $205.00 $4,920.00 2017 Rate (4 months Sept-‐Dec) Project Manager 9 $130.00 $4,680.00 Total Not to Exceed Task 10 $9,600.00 Task 11 – Utilities Energy Savings Verification Support (Optional) The scope of this task aims to support staff in claiming energy efficiency savings from past permit data aggregation. • Attend 2-‐3 meetings with the Utilities department staff regarding the energy efficiency tracking detail • Provide support to staff in aggregating energy savings data for the purposes of compliance requirements with state agencies. • Analyze permit data regarding energy efficiency savings. • Provide coordination and technical support to staff on claiming energy savings Green Building Consulting Services – Additional Services Proposal 10 Utilities Energy Savings Verification Support Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 11 – Utilities Energy Savings Verification 2017 Rate (4 months Sept-‐Dec) Principal 2 $205.00 $1,640.00 2017 Rate (4 months Sept-‐Dec) Senior Program Manager 6 $167.85 $4,028.40 2017 Rate (4 months Sept-‐Dec) Project Manager 20 $130.00 $10,400.00 2017 Rate (4 months Sept-‐Dec) Associate 65 $71.66 $18,631.60 Total Not to Exceed Task 11 $34,700.00 Task 12 – Sustainability Implementation Plan Support (SIP) (Optional) The scope of this task aims to support staff in completing task items on the Sustainability Implementation Plan. • Attend meetings regarding the Development Services role in the Sustainability Implementation Plan. • Provide support to staff in completing specific tasks on the Sustainability Implementation Plan. • Provide coordination and technical support to help staff plan for future endeavors regarding the Sustainability Implementation Plan. Sustainability Implementation Plan Support Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 12 – Sustainability Implementation Plan Support (SIP) (Optional) 2017 Rate (4 months Sept-‐Dec) Principal 5 $205.00 $4,100.00 2017 Rate (4 months Sept-‐Dec) Project Manager 8 $130.00 $4,160.00 2017 Rate (4 months Sept-‐Dec) Associate 5 $71.66 $1,433.20 2018 Rate (8 months Jan-‐Aug) Principal 5 $215.25 $8,610.00 2018 Rate (8 months Jan-‐Aug) Project Manager 8 $136.50 $8,736.00 2018 Rate (8 months Jan-‐Aug) Associate 5 $75.24 $3,009.72 Total Not to Exceed Task 12 $30,048.92 Task 13 – Eco-‐District Project Support (Optional) The scope of this task aims to support staff in the development of an Eco-‐District within the City of Palo Alto. Activities may include collaborating with industry stakeholders on the development of eco-‐district criteria detail. • Assist staff in coordinating industry stakeholders to participate in Eco-‐district charrette-‐style meetings. • Attend meetings with the Development Services staff to assist in creating a task list, schedule and coordination plan for the Eco-‐district development. • Assist is creating technical criteria for the established Eco-‐district. Green Building Consulting Services – Additional Services Proposal 11 Eco-‐District Project Support Labor Categories Est. Hours Hourly Rate*** Extended Rate Total Task 13 – Eco-‐District Project Support (Optional) 2018 Rate (8 months Jan-‐Aug) Principal 4 $205.00 $6,560.00 2018 Rate (8 months Jan-‐Aug) Project Manager 3 $136.50 $3,276.00 Total Not to Exceed Task 13 $9,836.00 Task 14 – Electrification Technical Support (Optional) The scope of this task aims to support staff in coordinating with the City of Palo Alto Utilities (CPAU) to support efforts related to electrification. Activities may include the following: • Attend two monthly coordination meetings with Development Services and CPAU staff to discuss electrification efforts • Assist the Development Services staff in collaborating with the CPAU department staff on technical coordination efforts related to electrification incentive programs. • Assist the CPAU department staff to incorporate marketing efforts related to electrification incentive programs into the Development Services front-‐counter processes. Electrification Technical Support Task 14 -‐ Electrification Technical Support (Optional) Labor Categories Est. Hours Hourly Rate*** Extended Rate Total 2017 Rate (4 months Sept-‐Dec) Principal 4 $205.00 $3,280.00 2017 Rate (4 months Sept-‐Dec) Project Manager 4 $130.00 $2,080.00 2018 Rate (8 months Jan-‐Aug) Principal 4 $215.25 $6,888.00 2018 Rate (8 months Jan-‐Aug) Project Manager 4 $136.50 $4,368.00 Total Not to Exceed Task 14 $16,616.00 Green Building Consulting Services – Additional Services Proposal 12 FEE SUMMARY Green Building Tasks 1-‐6 Cost Per Task Sub-‐Total Task 1 $75,548.24 Task 2 $21,692.93 Task 3 $32,396.92 Task 4 $24,436.55 Task 5 $12,248.84 Task 6 $12,018.70 Sub-‐Total Green Building Tasks 1-‐6 $178,342.18 Landscape Tasks 7-‐9 Cost Per Task Sub-‐Total Task 7 $41,106.00 Task 8 $26,598.00 Task 9 $29,897.14 Sub-‐Total Landscape Tasks 7-‐9 $97,601.14 Optional Services Tasks 10-‐14 Cost Per Task Sub-‐Total Task 10 $9,600.00 Task 11 $34,700.00 Task 12 $30,048.92 Task 13 $9,836.00 Task 14 $16,616.00 Sub-‐Total Optional Services Tasks 10-‐14 $100,800.92 TOTAL FEES Total Not to Exceed Amount for Contract Extensions (Tasks 1-‐9) $275,943.32 Total Not to Exceed Amount for Optional Services (Tasks 10-‐14) $100,800.92 Total For All Services Listed $376,744.24 City of Palo Alto (ID # 8292) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Amendment Number Three to Contract Number S15156222 with Golder Associates Title: Approval of Amendment Number Three to Contract Number S15156222 with Golder Associates to Increase Compensation by $91,300, for a Total Not- To-Exceed Amount of $311,622.00, to Perform an Evaluation of Selenium Concentrations and Leachate Levels at the Palo Alto Landfill, and to Extend the Current Three-Year Term by Four Months From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve Amendment Number Three to Contract number S15156222 with Golder Associates for groundwater monitoring services to add evaluation of selenium concentrations and leachate levels at the Palo Alto Landfill to the scope of services, to increase compensation by $91,300 for a total not-to-exceed contract amount of $311,622, and to extend the term of the contract through September 2018. Background The 126-acre Palo Alto Landfill was filled to capacity and ceased waste acceptance in July 2011. The City properly closed and capped the landfill and in March 2016 received official approval of the landfill closure from the State. In June 2016 the San Francisco Bay Regional Water Quality Control Board (RWCQB) issued a new permit with updated Waste Discharge Requirements (Order No. R2-2016-0029), requiring the City to continue performing semi-annual groundwater monitoring and additionally, evaluate the landfill’s leachate containment performance and provide a selenium impact assessment. City of Palo Alto Page 2 The existing contract with Golder Associates, entered into on March 3, 2015, has a 3-year term and a $220,322 “not-to-exceed” amount. The contract has been amended twice to increase annual funding for Years 2 and 3. Discussion RWCQB is requiring the City to perform both a Leachate Control Evaluation and a Selenium Evaluation which includes sampling the leachate, groundwater and surface water at the Palo Alto Landfill/Byxbee Park as part of the updated permit discharge requirements. Golder Associates has recently prepared a Workplan to Evaluate Leachate Control and a Workplan to Evaluate Potential Sources of Selenium in Leachate and Groundwater, which were approved by the RWQCB in a letter dated May 1, 2017. The scope added in this third contract amendment is to execute the workplans and complete the leachate and selenium assessment reports. This amendment being proposed for Council approval would add the new state- required selenium study to the scope of the contract. An additional $91,300 and four months are required to perform the additional assessments. With the addition of the assessment work at the Palo Alto Landfill, the contract not-to- exceed amount will increase to $311,622 and the term of the contract will expire in September 2018. Resource Impact The cost of the additional monitoring scope of work included in this amendment is available in the Fiscal Year 2018 Refuse Fund operating budget. Environmental Review This project is exempt from CEQA under California Code of Regulations Title 14 Section 15306 - Information Collection. Attachments: Attachment A - Amendment Number Three For Contract S15156222. Attachments: S15156222 Amendment 3 AMENDMENT NO. 3 TO CONTRACT NO. S15156222 BETWEEN THE CITY OF PALO ALTO AND GOLDER ASSOCIATES, INC. This Amendment No. 3 to Contract No. S15156222 (“Contract”) is entered into August 14, 2017 (Amendment Effective Date), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and GOLDER ASSOCIATES, INC., a Georgia corporation, located at 425 Lakeside Drive, Sunnyvale, CA 94085 ("CONSULTANT"). City and Consultant are collectively referred to herein as the “Parties.” R E C I T A L S A. The Contract, dated effective March 3, 2015, was entered into between the Parties for the provision of Landfill Environmental Monitoring Services. B. Section 25.4 of the Contract authorizes the Parties to modify the contract by written amendment. C. The Parties now desire to amend the Contract to extend the Term an additional 4 months from its current expiration date May 26, 2018 to September 30, 2018, and increase the compensation from Two Hundred Twenty Thousand Three Hundred Twenty Two Dollars ($220,322) to a not- to-exceed amount of Three Hundred Eleven Thousand Six Hundred Twenty Two Dollars ($311,622) for a continuation of services as specified in Exhibit “A” of the Contract, Exhibit “A- 1” of Amendment No. 1 and to include an evaluation of Selenium concentrations and leachate levels at the Palo Alto Landfill in accordance with the Regional Water Quality Control Board permit requirements as specified in Exhibit “A-2” to the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Section 2 “TERM is hereby amended to read as follows: “2. TERM. The term of this Agreement is from the date of its full execution through September 30, 2018 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” and Exhibit “A-1”, including both payment for professional services and reimbursable expenses, shall not exceed Sixty-One Thousand Five Hundred Ten Dollars ($61,510.00) for the first contract year, Seventy Seven Thousand Two Hundred Seventy Three Dollars ($77,273.00) for the second contract year, and One Hundred Forty Four Thousand Five Hundred Ten Dollars ($144,510) for the third contract year. In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Sixty- Seven Thousand Six Hundred Sixty One Dollars ($67,661.00) for the first contract year, Eighty DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 Five Thousand Dollars ($85,000.00) for the second contract year and One Hundred Fifty Eight Thousand Nine Hundred Sixty One Dollars ($158,961.00) for the third contract year. The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”, “C-2” and “C-3”. 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 in Exhibit “A”, “A-1”, “A-2”. SECTION 3. The following exhibit(s) to the Contract is/are hereby added to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A-2” entitled “Scope of Services” - Amendment No. 3 b. Exhibit “A-3” entitled “Workplan to Evaluate Leachate Control”- Amendment No.3 c. Exhibit“A-4” entitled “Workplan to Evaluate Potential Sources of Selenium and Leachate in Groundwater” d. Exhibit “B-2” entitled “Schedule of Performance” - Amendment No. 3 e. Exhibit “C-3” entitled “Compensation” - Amendment No. 3 SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. SIGNATURES ON NEXT PAGE DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 CITY OF PALO ALTO ____________________________ City Manager or Designee APPROVED AS TO FORM: _____________________________ City Attorney or designee GOLDER ASSOCIATES, INC Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 William Fowler EXHIBIT A-2 SCOPE OF SERVICES AMENDMENT NO.3 SCOPE OF SERVICES CONSULTANT shall complete the work described in the Workplan to Evaluate Leachate Control (Exhibit A-3) and the Workplan to Evaluate Potential Sources of Selenium and Leachate in Groundwater (Exhibit A-4) which were prepared by CONSULTANT for the CITY as a response to Waste Discharge Requirements Order No. R2-2016-0029 (WDR) adopted by the San Francisco Regional Water Quality Control Board (RWQCB) in June 2016. TASK 1 - LEACHATE MOUND MIGRATION ASSESSMENT AND SELENIUM ASSESSMENT CONSULTANT shall conduct a Leachate Mound Migration Assessment and Selenium Assessment on behalf of CITY to satisfy provisions C3 and C4 of the WDR. For the Leachate Mound Migration Assessment, this will include: Evaluating the presence of leachate at the Palo Alto Landfill (PALF) and determine if leachate is migrating to adjacent shallow groundwater or surface water; Determining if liquid elevations measured in the leachate piezometers are an accurate reflection of the amount of leachate in refuse or if they are a function of the performance of the leachate extraction system; and Determining if an inward gradient is necessary to prevent outward migration of leachate. The Selenium Assessment will include: Identification key geochemical processes and sources that may be responsible for an apparent increase in selenium concentration in groundwater beneath the Landfill over the last 20 years; Collection of field data to model geochemical speciation, redox conditions, and likely mineral occurrence and stability and shall assess geochemical processes within the boundary of the PALF site and site surrounds. 1a Sample Collection and Analysis CONSULTANT shall collect and analyze leachate, groundwater and surface water samples for select organic, inorganic and isotopic parameters as specified in the workplans. 1b Leachate Pump Testing CONSULTANT shall conduct field studies to measure leachate and groundwater levels under baseline (pumping) conditions, after the leachate system is shut off by the City and allowed to equilibrate, and after system restart by the City, as described in the workplans. 1c Data Analysis and Report Preparation CONSULTANT shall analyze the data and prepare a report summarizing the procedures, methods, results and conclusions of the Leachate Mound Migration Assessment and Selenium Assessment. DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 CONSULTANT shall provide a draft report to the CITY for review and meet with CITY staff to discuss the conclusions and results. CITY will respond with comments or clarifications within 10 working days of draft report submittal. CONSULTANT shall prepare the final report and mail a hard copy to the CITY and the SWRCB, and provide a PDF copy to CITY. 1d Optional Sub-task: Drilling to Collect Additional Water Samples Additional groundwater sampling may be necessary to identify preferential leachate migration pathways. Based on the chemical test results and visual indications of seeps, CONSULTANT may propose drilling soil borings or temporary wells to collect additional groundwater samples. CONSULTANT shall prepare a brief workplan describing additional sampling locations and drilling methods shall be proposed by the CONSULTANT in a workplan and approved by CITY. Once approved, CONSULTANT shall implement the workplan. The results shall be reported in the final report described in (Task 1c). DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 Golder, Golder Associates and the GA globe design are trademarks of Golder Associates Corporation WORK PLAN TO EVALUATE LEACHATE CONTROL Palo Alto Landfill Palo Alto, California Prepared For: City of Palo Alto For Submittal to the Regional Water Quality Control Board San Francisco Bay Region Prepared By: Golder Associates Inc. 425 Lakeside Drive Sunnyvale, Ca 94085 Distribution: (1) Copy - Regional Water Quality Control Board (via GeoTracker) (2) Copies – City of Palo Alto (2 bound with CDs) (2) Copies – Golder Associates Inc. January 2017 Project No. 053-7481-16 LE A C H A T E W O R K P L A N EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx WORK PLAN TO EVALUATE LEACHATE CONTROL Palo Alto Landfill Palo Alto, California Prepared For: City of Palo Alto For Submittal to the Regional Water Quality Control Board San Francisco Bay Region Prepared By: Golder Associates Inc. 425 Lakeside Drive Sunnyvale, CA 94085 Golder Associates Inc. Tom Vercoutere, PG 4462 Käte Motroni Senior Consultant Senior Project Geologist EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 i 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx Table of Contents 1.0 INTRODUCTION .............................................................................................................................. 2 1.1 Objectives and Scope of Work ..................................................................................................... 2 2.0 SITE DESCRIPTION ........................................................................................................................ 3 2.1 Physical Setting ............................................................................................................................ 3 2.2 Geologic Setting ........................................................................................................................... 3 2.3 Groundwater Occurrence ............................................................................................................. 4 2.4 Leachate Collection System ......................................................................................................... 4 2.5 Leachate Mounding ...................................................................................................................... 5 3.0 OFFSITE LEACHATE MIGRATION EVALUATION ........................................................................ 5 3.1 Sampling Plan ............................................................................................................................. 6 3.2 Organic Analyses ......................................................................................................................... 7 3.3 Inorganic Analyses ....................................................................................................................... 7 3.4 Stable Isotopic Analyses .............................................................................................................. 7 3.4.1 Oxygen-18/Deuterium Ratios ................................................................................................. 8 3.4.2 Carbon-13 and Dissolved Carbon............................................................................................ 8 3.5 Graphical Analyses ..................................................................................................................... 8 3.5.1 Piper/Stiff Diagrams ................................................................................................................. 9 3.5.2 Bivariate Plots ......................................................................................................................... 9 3.5.3 Mixing Plots ............................................................................................................................. 9 3.6 Suggested Laboratory Facilities for Non-Standard Analyses ...................................................... 9 4.0 LEACHATE POTENTIOMETRIC SURFACE................................................................................... 9 5.0 PORE PRESSURED DISSIPATION MODELING ......................................................................... 10 Tables Table 1 Proposed Leachate Evaluation Sample Locations Figures Figure 1 Site Location Figure 2 Groundwater and Leachate Monitoring Networks with Proposed Water Quality Sampling Locations Figure 3 Leachate Elevation Contours, October 1999 Figure 4 Leachate Elevation Contours, May 2016 Appendices Appendix A Sample Containers, Volumes, Preservatives and Holding Times EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 2 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx 1.0 INTRODUCTION This work plan to evaluate the leachate collection and recovery system (LCRS) performance with respect to the prevention of leachate migration at the Palo Alto Landfill (Landfill) has been prepared in response to Waste Discharge Requirements Order No. R2-2016-0029 (WDR), Adopted June 2016, Provision C.3. – Leachate Control Evaluation. Leachate Control Evaluation: The Discharger shall submit technical reports acceptable to the Executive Officer to evaluate the LCRS with respect to the prevention of leachate migration to adjacent shallow groundwater and surface waters. This evaluation shall include the sampling and analysis of adjacent surface waters and determine whether the maintenance of an inward leachate gradient is necessary to prevent outward migration of leachate. The Report shall include additional proposed investigation and/or proposed changes to the SMP as warranted by the evaluation. The Landfill is located at the northeast end of Embarcadero Road in the City of Palo Alto (Figure 1). The Landfill facility is sited on an area of approximately 125 acres on the western margin of San Francisco Bay in a tidal salt marsh environment. It is bounded by Mayfield Slough to the east, Matadero Creek to the south, Emily Renzel Wetlands to the west, and the Palo Alto Water Quality Control Plant and a marsh area to the north. The Landfill began receiving waste in the early 1930s and operated as a Class III non- hazardous waste landfill. The landfill reached refuse capacity in July 2011, received regulatory certification in March 2016, and is now in its postclosure phase. 1.1 Objectives and Scope of Work The work plan objectives are as follows. Determine if leachate is migrating to adjacent shallow groundwater or surface water. This will be done by collecting leachate, groundwater, and surface water samples and analyzing the samples for geochemical parameters that could identify leachate contamination and if there are preferential pathways for leachate migration. These parameters include major cations and anions, metals and stable isotopes. If there are any key parameters identified from the results of the geochemical study that are not in the current SMP, they will be proposed to be included in the parameter list. Determine if an inward gradient is necessary to prevent outward migration of leachate particularly in relationship to the existing leachate mound. The results of the migration evaluation will provide data indicating whether there is offsite migration regardless of an inward gradient. Determine if the liquid elevations measured in the leachate piezometer are an accurate reflection of the amount of leachate in refuse or are they a function of the performance of the leachate extraction system. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 3 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx 2.0 SITE DESCRIPTION 2.1 Physical Setting The Landfill was constructed in a tidal marsh and slough environment on the edge of San Francisco Bay. The original Mayfield Slough, which underlies the site (see Figure 2), was blocked at the landfill boundaries during landfill construction. It has been speculated that backfilled areas of the channels at the landfill margins may be preferential pathways for leachate migration. Mayfield Slough, which is the bay-side extension of Matadero Creek, forms the southern and eastern border of the site. In the early 1950's, the original Mayfield slough was filled at the southern and western limits of the Landfill. The slough was also filled at a point along the eastern margin of the Landfill near the southern limit of what is now Byxbee Park. The water flowing from Matadero Creek to the original Mayfield Slough was routed along the southern and eastern perimeter of the site to its present day location. At that time, the original slough was still open to the north into the yacht harbor area. Water was also present in the cut-off slough that meandered inside the southern limits of the Landfill. In the early 1960's, an earth levee was constructed at the north end and the along the east side of the landfill to prevent refuse from entering Mayfield Slough. Based on early descriptions, bulky wastes and construction debris were used to fill the northern slough and were likely also previously used in the southern area of the site. By 1975, the original Mayfield Slough inside the limits of the Landfill had been completely filled. 2.2 Geologic Setting The tidal salt marsh environment on which the Landfill is constructed is underlain by approximately 6 to 16 feet of Younger Bay Mud – a very soft, unconsolidated deposit of organic-rich silt and clay with occasional lenses of sandy clay. This material is underlain by Older Bay Mud – a very stiff to firm clay, containing varying amounts of silt and lenses of sandy clay, sand, and gravel.1 In the site vicinity, the Bay Mud deposits interfinger with and grade into fine-grained alluvial deposits that have been shed off the Santa Cruz Mountains. Previous investigations at the site by various consultants have further defined the hydrogeologic conditions under and around the Landfill. Two zones of sand, designated as the 20-foot sand and the 40-foot sand, have been identified within the low-permeability Bay Mud. These sand units have been interpreted by previous investigators as being laterally continuous under part or all of the Landfill. The 20-foot sand is 2 to 4 feet thick, generally occurs at an elevation of about -20 feet mean sea level (MSL), is considered fairly continuous under the southern portion of the site, and is discontinuous or absent in the northernmost part of the site (see Figure 2). The 20-foot sand is likely below the base of the historic Mayfield Slough channel 1 Goldman, Harold B., editor. “Geologic and Engineering Aspects of San Francisco Bay Fill, Special Report 97.” California Division of Mines and Geology. 1969. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 4 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx bottom (estimated to be approximately -5 feet MSL near the duck pond and old harbor) and was not in direct contact with pre-landfill ground surfaces. The 40-foot sand is 2 to 10 feet thick, occurs at an elevation of about -35 to -40 feet MSL, and is generally considered continuous beneath the site. The sands are fine to medium grained and poorly graded. Thin gravel layers have been encountered in some locations. 2.3 Groundwater Occurrence Surface water and shallow groundwater occur in the tidal marsh environment surrounding the Landfill. The Bay Mud deposits therefore, are fully saturated within a few feet of ground surface. The water-bearing characteristics of the Bay Mud deposits are poor (i.e., very low hydraulic conductivities), so they are not considered aquifers. Due to their higher transmissivity, the 20-foot and 40-foot sand units have been identified as the primary water-bearing zones beneath the site even though groundwater occurs at shallower depths within the low-permeability Bay Mud. The porosity of the sand units has been estimated to be 25 percent.2 Hydraulic conductivity for the sands ranges from 5.1 x 10-4 to 1.2 x 10-4 centimeter per second (cm/sec) for the 20-foot sand, and 3.0 x 10-3 to 1.3 x 10-4 cm/sec for the 40-foot sand.3 Site groundwater monitoring wells are constructed to monitor either the 20-foot sand unit or the 40-foot sand unit. 2.4 Leachate Collection System The Landfill pre-dates waste disposal practices and regulations requiring engineered liners and leachate collection and removal systems (LCRS). Therefore, neither was constructed at the base of the Landfill prior to refuse placement. However, Bay Mud underlying the Landfill consists largely of clayey soils with permeabilities less than 1 x10-6 cm/sec, which is thought to form a natural liner under the site. Leachate is pumped from the Landfill through 24 6-inch diameter extraction wells. This extraction network comprises the Landfill’s LCRS. Well spacing averages approximately 300 feet, with locations selected based on historic information and leachate conditions at the time of well installation. In addition to the extraction wells that are 17 leachate piezometers. Leachate elevations are measured approximately monthly in fourteen of these piezometers. Collected leachate is discharged under an industrial waste discharge permit to the adjacent Palo Alto Regional Water Quality Control Plant (POTW). The quantity of leachate pumped from the LCRS to the POTW is routinely measured and reported in the semi-annual monitoring reports. Extraction well and piezometer locations are shown in Figure 2. An evaluation of the LCRS in operation at the Landfill was completed by EGI in January of 19954. The purpose of the evaluation was to (1) document the performance and effectiveness of the LCRS, (2) identify 2 EMCON. Quarterly Self-Monitoring Report, Palo Alto Landfill, City of Palo Alto, California. April 1994. 3 EMCON, April 1994. 4 Einarson Geosciences, 1995. Evaluation of Leachate Extraction System Performance, Palo Alto Landfill. January 1995. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 5 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx factors that limit the performance of the LCRS, and (3) provide recommendations to improve the performance of the LCRS over time (as needed). 2.5 Leachate Mounding One of the findings of the 1995 LCRS study was that inflow of groundwater from the Bay Mud underlying the Landfill was and may still be a significant component of leachate production at the Landfill. The inflow of groundwater is related to consolidation and settlement of the Bay Mud caused by loading of the Bay Mud with the refuse mass. Loading created elevated pore pressures in the saturated Bay Mud underlying the Landfill. The elevated pore pressures result in an upward hydraulic potential from the Bay Mud into the refuse mass. The length of time needed for the elevated pore pressures to dissipate has not been estimated but it may be several decades or more after loading ceases. In 1995, the groundwater component of the leachate in the Landfill was estimated at 20 percent. Leachate elevations are higher than groundwater and surface water levels outside the landfill. Leachate levels are typically between 3.5 feet and 16.5 feet. The current leachate mound shows a good correlation with the overall height and thickness of refuse, and therefore loading. The highest leachate levels occur in the south-central portion of the landfill, which are also the highest areas of the landfill. The high leachate levels have implications with regard to the potential for leachate to migrate outward and discharge to adjacent as seeps to surface water bodies or to discharge to groundwater. Since 1988, when leachate extraction began, the potentiometric surface of the leachate has had little variation, and the mound appears to be at equilibrium. Figures 3 and 4 show the leachate potentiometric surfaces in October 1999 and May 2016, respectively. As long as the hydraulic head within the Bay Mud is greater than the leachate head, the upward hydraulic potential should continue and prevent discharge to groundwater. Ongoing water- quality monitoring shows no direct indications of groundwater contamination from leachate. 3.0 OFFSITE LEACHATE MIGRATION EVALUATION Based on regular routine inspections, there is no visual evidence that leachate is leaving the landfill (i.e., seeps). The landfill and its final cover was designed and constructed to prevent infiltration of meteoric water. If there is, or has been, offsite migration of leachate from the base of the landfill, which is below sea level, it can be determined by comparing the geochemical and isotopic characteristics of leachate contained in the Palo Alto Landfill with those of nearby groundwater and surface water. The extent and level of contamination of groundwater due to leachate depends upon a number of factors including the chemical composition of leachate, its contrast with the composition of groundwater, and distance from the pollution source. A 1995 geochemical and isotopic evaluation of leachate from the landfill concluded that saline groundwater is a significant component of the EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 6 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx leachate5, and therefore identifying a leachate release using typical inorganic indicator parameters alone may be problematic. Samples will be collected from leachate, groundwater, and surface water and analyzed for relevant organic, inorganic, and isotopic parameters. Data analysis will be performed using collected data in a phased approach. A geochemical characterization of the different water types will be conducted using graphical techniques that maximize the contrast between each source. Summary statistics will also be performed to provide an overview of the data and characterize the distribution of the data. Stable isotope data can be used to help identify leachate as a source of contamination. Additional, more complicated analyses will be performed as needed (e.g., principal components analysis). Additionally, historical data collected to date, will be evaluated for laboratory procedures and potential bias based on the varying methodologies used to measure concentrations. Lab methods will be evaluated for application to the samples collected and recommendations for data use will be provided. 3.1 Sampling Plan All samples will be analyzed for the same select organic, inorganic, and isotopic parameters. Analytical methods for leachate, groundwater, and surface water will be the same. There are 24 leachate extraction wells, 17 leachate piezometers, and 13 groundwater monitoring wells (see Table 1 and Figure 2). Not all locations at the Landfill will be sampled. The determination of the locations will be based on several factors as described below. Leachate samples will be taken from the Phase I, Phase IIA, Phase IIB, and Phase IIC areas with good spatial coverage. The samples will be collected from leachate extraction wells, leachate piezometers, and from leachate outfall at LP-1. LP-1 is considered representative of the entire leachate system. Groundwater samples will be collected from all wells that are screened across the 20-foot sands. No wells screened across the 40-foot sand will be sampled. Surface water samples will be collected from locations in Mayfield Slough, Matadero Creek, Emily Renzel Marsh, and the marshland north of the Landfill during the lower period of an ebb tide when surface water is flowing away from the edges of the landfill. Of particular interest are preferential pathways - locations where the old channels from the original Mayfield Slough intersect the current landfill boundary. If the analytical results from surface water samples indicate preferential pathway transport, or there is visual indications of seepage from the old channel fill, shallow temporary groundwater wells that correspond with areas of the original slough channels will be installed and screened across the channel backfill material. Samples will be collected and analyzed for the parameters that indicate leachate migration. If temporary wells are 5 Einarson GeoScience, Inc, “Geochemical Evaluation of Leachate Sourced, Palo Alto Landfill”, December 1995. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 7 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx installed, continuous coring of the borehole will be attempted with a dual-tube, direct push (e.g., a Geoprobe rig). Soil samples will be collected and logged by field staff using the visual-manual methods described in ASTM D2488 and under the supervision of a California-registered professional geologist or civil engineer. Boring logs and well completion details will be completed by the field geologist under the supervision of a California-registered professional geologist or civil engineer. Analyses that will be utilized for this evaluation are described below. 3.2 Organic Analyses Organic analyses that will be utilized for this evaluation are described below. The continued overall absence of landfill-related volatile organic compounds (VOCs) in groundwater samples from the thirteen Point-of- Compliance groundwater monitoring wells at the Landfill is an indication that the leachate extraction system is functioning properly and is effective. Groundwater wells and leachate effluent are sampled semiannually. For this work plan, offsite surface water and groundwater also will be sampled for VOCs. These analyses will be performed by BC Laboratories (BC Labs) in Bakersfield, California. 3.3 Inorganic Analyses Inorganic analyses that will be utilized for this evaluation are shown below. There are several inorganic parameters that are typical indicators for identifying leachate migration because of their typical high concentrations. The parameters to be analyzed for the evaluation include: Appendix I metals (antimony, arsenic, barium, beryllium, chromium, cobalt, copper, lead, mercury, nickel, selenium, silver, thallium, vanadium, and zinc); fluoride and bromide. Major anions and cations (sodium, potassium, calcium, magnesium, manganese, iron, chloride, bicarbonate alkalinity, total alkalinity, and sulfate). General indicators (chemical oxygen demand, biochemical oxygen demand, total organic carbon, total dissolved solids, ammonia-nitrogen, and nitrate-nitrogen). Field parameters (pH, specific conductance, temperature, oxidation-reduction potential [ORP] and dissolved oxygen) Leachate and surface water samples for metals will be filtered. There is limited leachate and groundwater historical background data for some of these parameters. Many of the parameters have only be analyzed for during the 5-year constituent-of-concern events. These analyses will be performed by BC Laboratories (BC Labs) in Bakersfield, California. 3.4 Stable Isotopic Analyses Stable isotope analysis can often be used to accurately identify leachate as a source of contamination in a monitored environment. Stable isotopes of certain elements (e.g., hydrogen, oxygen, sulfur, nitrogen, and carbon) provide additional information about geochemical transformations and sources that concentration data often cannot. Each element commonly has more than one stable isotope (i.e., varying number of EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 8 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx neutrons) that slightly change the atomic mass of the element, which in turn changes reaction rates of the different isotopes, without changing its fundamental chemical properties. Contrary to radiogenic isotopes, stable isotopes do not decay, and therefore retain their mass through time. This constancy in elemental stable isotope chemistry and slight differences in reaction rate is commonly used to source reactions pathways for several elements in natural and industrial settings. Leachate, groundwater, and surface water should each have their own distinct isotopic signature to differentiate them from one another and from meteoric water, which is one of the standards from which variations are assessed. Meteoric isotopic composition is typically available via university research projects, including research at Stanford, University of California-Berkeley, and University of California-Davis. Leachate also may vary depending on what area of the landfill the leachate is coming from, thus providing even further differentiation. Isotopic analyses that will be utilized for this evaluation are described below. Sufficient samples will be collected from each possible source water, including slough and unimpacted groundwater (if a nearby source is available), and analyzed for selected isotopes. These samples will be analyzed by the Environmental Isotope Laboratory (EIL) at the University of Arizona or the Stable Isotope Laboratory at the University of California-Davis. The background samples may provide comparative standards to assess relative mixing with leachate. 3.4.1 Oxygen-18/Deuterium Ratios The stable isotopes of hydrogen (deuterium [2H]) and oxygen (oxygen-18 [18O]) are useful for identifying and tracing groundwater in the hydrologic cycle. In particular, because of the contrast between meteoric water and seawater isotope signatures, deuterium and oxygen-18 have proven very useful in seawater intrusion studies. 3.4.2 Carbon-13 and Dissolved Carbon One of the stable isotopes of carbon (carbon-13 [13C]) in dissolved carbon can be useful for identifying isotopic signatures of leachate in groundwater and surface water. 13C is a good tracer for leachate because biogeochemical processes within the landfill can produce a unique leachate signature. The concentrations of some inorganic parameters are typically higher in leachate than groundwater. However, when a significant contrast of these parameters is not present the carbon isotope can show significant differences. This makes it useful tracer for leachate in groundwater and surface water. 3.5 Graphical Analyses To analyze the data, graphical techniques that maximize the contrast between each source will be used to (1) evaluate the chemical character of each source, (2) compare and contrast the characteristics of the different sources, (3) identify the geochemical relationships between the leachate source and the groundwater and surface water source, and (4) estimate mixing ratios of the various sources. Graphical analyses that may be utilized for this evaluation are described below. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 9 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx 3.5.1 Piper/Stiff Diagrams When evaluating combinations of fresh water and salt water sources, absolute concentrations of ions can vary widely, but ratios of constituents remain relatively constant. Therefore graphical tools, which use ratios instead of absolute concentrations, such as Piper diagrams and normalized, or sliding-scale Stiff diagrams are useful for providing a "fingerprint" of the ionic character of the water. Piper diagrams are also useful for interpreting relationships that exist between various samples including mixing trends and geochemical reactions (e.g., cation exchange, precipitation and dissolution reactions, and sulfate reduction). 3.5.2 Bivariate Plots Bivariate plotting of chemical data using x-y scatter plots allows correlations between the two plotted constituents to be identified. Although a relatively simple method, the patterns of the bivariate scatter plots can be powerful analytical tools allowing identification of groups of water types, mixing, and the geochemical evolution of waters. 3.5.3 Mixing Plots Mixing of waters can be evaluated if the end member compositions and concentrations of the contributing waters are known. Using the most conservative dissolved ions, typically chloride and/or bromide, the percentage of each contributing end member can be determined using straightforward equations or graphical charts. The calculations assume that mixing is the dominant process affecting the concentration of the ion and that no geochemical reactions (i.e., sulfate reduction, cation exchange, etc.) are taking place. 3.6 Suggested Laboratory Facilities for Non-Standard Analyses Stable isotope analyses are non-standard analyses at industrial labs, but are commonly used in academic research at universities. The Stable Isotope Laboratory at the University of California – Davis is world renowned for high quality analyses and are consistently used by academic and industrial projects, alike. Golder has submitted samples to their facility on several occasions. Golder also has used the Environmental Isotope Laboratory at the University of Arizona on several projects. Golder recommends that the stable isotope samples be submitted to one of these laboratory facilities. Appendix A provides sample collection requirements for general chemical and isotope samples. Specific requirements are provided on the laboratory websites, and will be used during sample collection. Information regarding sampling and submission recommendations and forms are also included. 4.0 LEACHATE POTENTIOMETRIC SURFACE The elevated leachate levels measured in the leachate piezometers, that reflect the historically stable leachate mound, may be the result of the equilibrium between leachate generation rates and leachate extraction rates. Leachate elevations in the leachate extraction wells are not typically measured due to wellhead fittings or on-going extraction and fluctuating levels. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 10 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\leachate mound_evaluation\leachate mound migration assessment workplan.docx High leachate heads (and correspondingly higher driving forces for leachate migration) can develop at the base of landfills, even without increase in the volume of leachate within the refuse – hydraulic head can increase temporarily and/or permanently due to the loading effects as the landfill is constructed. Now that the Landfill is in the postclosure period, future changes in load will not occur. In order to get an accurate leachate potentiometric surface, levels in all piezometers and extraction wells should be used. To do this, the following will be done: Install pressure transducers in several leachate extraction wells, leachate piezometers, and groundwater wells to provide spatial distribution and where possible, within well sets for correlation of leachate and groundwater in the 20-foot and 40-ffot sands. The pressure data will be used to establish baseline conditions and assess temporal changes in liquid levels. Shut down the leachate system and allow leachate levels to stabilize. Measure leachate elevations in all piezometers and accessible extraction wells Measure groundwater elevation groundwater monitoring wells Restart system, allow time for stabilization, and repeat the elevation measurements. Any increase in of leachate elevation within the piezometers while the extraction system is turned off, compared with leachate elevations while extraction is going on, will be noted. This could provide an indication of how extraction affects the leachate head. Any increase in groundwater elevations while the system is off should also be noted for the same effect extraction might have. Additionally, long-term monitoring of the leachate and groundwater potentiometric surfaces, as recorded by the pressure transducers, can be performed to assess responses to seasonal rainfall and possible tidal influences. 5.0 PORE PRESSURED DISSIPATION MODELING The loading of Bay Mud during landfill construction and the subsequent rise in pore pressure was determined to be responsible for creating an upward hydraulic potential from saturated Bay Mud into the refuse. An empirical geotechnical evaluation will be performed to assess the duration that may be necessary for the pore pressure to dissipate. EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 Groundwater Monitoring Wells 20-Foot Sand:G-9/88, G-13/88, G-14/88, G-16/88, G-17/88, and G-19 40-Foot Sand:Not Sampled Leachate Piezometers GR-7, GR-16, and GR-22 Leachate Extraction Wells E-5, E-19, and E-33 Leachate Outfall LP-1 Surface Water Locations Mayfield Slough:2 in the former Yacht Harbor 1 at the northeastern corner of the Landfill 1 along the eastern side of the Landfill 1 along the southeastern edge of the Landfill l 1 in the Mayfield Slough Remnant Matadero Creek:1 along Matadero Creek at the southern end of the Landfill Emily Renzel Marsh Area:1 west of monitoring well G-17/88 1 west of LP-1 1 west of monitoring well G-20 Table 1 Proposed Leachate Evaluation Sample Locations Palo Alto Landfill EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 0 1 i n 053-7481-16 FIGURE 2016-07-21 KMM KMM TLV TLV 1 PALO ALTO LANDFILLCITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNIA SITE LOCATON TITLE PROJECT NO.REV. PROJECTCLIENT IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT PREPARED DESIGNED REVIEWED APPROVED YYYY-MM-DD Pa t h : \ \ s u n n y v a l e \ d a t a \ P r o j e c t s \ P a l o A l t o L F \ 0 5 3 - 7 4 8 1 ( P A L ) \ F i g u r e s \ | F i l e N a m e : S i t e L o c a t i o n . d w g EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 PALO ALTO LANDFILL LEACHATE EVALUATION CITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNA GROUNDWATER AND LEACHATE MONITORING NETWORKS WITH PROPOSED WATER QUALITY SAMPLING LOCATIONS 500250 FEET 0 SCALEEXPLANATION Groundwater monitoring well monitoring (20-foot sand) Groundwater monitoring well monitoring (40-foot sand) Leachate piezometer Leachate extraction well GR-21 and GR-22 are replacements for GR-4A and E-27P Topographic base map prepared for the City of Palo Alto by Mira Solutions, Inc., Union City, CA, using photogrammetric techniques. Aerial photography: April 4, 2016. IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT DESIGN PREPARED REVIEW APPROVED YYYY-MM-DD TITLE PROJECT No.Rev. PROJECTCLIENT Path: \\sunnyvale\data\Projects\Palo Alto LF\053-7481 (PAL)\Figures\ | File Name: GW_MONITORING NETWORK_2016 topo_for workplan.dwg 0 1 i n 053-7481-16 FIGURE 2 2016-11-28 KMM KMM TLV TLV * Proposed groundwater and leachate sample location Proposed surface water sample location EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 PALO ALTO LANDFILLCITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNA LEACHATE ELEVATION CONTOURS OCTOBER 1999 500250 FEET 0 SCALE Topographic base map prepared for the City of Palo Alto by Mira Solutions, Inc., Union City, CA, using photogrammetric techniques. Aerial photography: April 4, 2016. IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT DESIGN PREPARED REVIEW APPROVED YYYY-MM-DD TITLE PROJECT No.Rev. PROJECTCLIENT Path: \\sunnyvale\data\Projects\Palo Alto LF\053-7481 (PAL)\Figures\ | File Name: GW_MONITORING NETWORK_2016 topo_for workplan.dwg 0 1 i n 053-7481-16 FIGURE3 2017-01-26 KMM KMM TLV TLV EXPLANATION Groundwater monitoring well monitoring (20-foot sand) Groundwater monitoring well monitoring (40-foot sand) Leachate piezometer in 1999 Leachate elevation (Ft.-MSL); Leachate elevation contour (Ft.-MSL) (Contours modified from Conor Pacific/EFW 1/19/2000) (-4.21) measured October 28, 1999 EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 PALO ALTO LANDFILLCITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNA 500250 FEET 0 SCALE Topographic base map prepared for the City of Palo Alto by Mira Solutions, Inc., Union City, CA, using photogrammetric techniques. Aerial photography: April 4, 2016. IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT DESIGN PREPARED REVIEW APPROVED YYYY-MM-DD TITLE PROJECT No.Rev. PROJECTCLIENT Path: \\sunnyvale\data\Projects\Palo Alto LF\053-7481 (PAL)\Figures\ | File Name: GW_MONITORING NETWORK_2016 topo_for workplan.dwg 0 1 i n 053-7481-16 FIGURE 4 2017-01-27 KMM KMM TLV TLV EXPLANATION Groundwater monitoring well monitoring (20-foot sand) Groundwater monitoring well monitoring (40-foot sand) Leachate piezometer in 2016 Leachate elevation (Ft.-MSL); Leachate elevation contour (Ft.-MSL) GR-21 and GR-22 are replacements for GR-4A and E-27P (7.35) measured September 30, 2016 * LEACHATE ELEVATION CONTOURS SEPTEMBER 2016 EXHIBIT A-3 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 Golder, Golder Associates and the GA globe design are trademarks of Golder Associates Corporation WORK PLAN TO EVALUATE POTENTIAL SOURCES OF SELENIUM IN LEACHATE AND GROUNDWATER Palo Alto Landfill Palo Alto, California Prepared For: City of Palo Alto For Submittal to the Regional Water Quality Control Board San Francisco Bay Region Prepared By: Golder Associates Inc. 425 Lakeside Drive Sunnyvale, Ca 94085 Distribution: (1) Copy - Regional Water Quality Control Board (via GeoTracker) (2) Copies – City of Palo Alto (2 bound with CDs) (2) Copies – Golder Associates Inc. January 2017 Project No. 053-7481-16 SE L E N I U M W O R K P L A N EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx WORK PLAN TO EVALUATE POTENTIAL SOURCES OF SELENIUM IN LEACHATE AND GROUNDWATER Palo Alto Landfill Palo Alto, California Prepared For: City of Palo Alto For Submittal to the Regional Water Quality Control Board San Francisco Bay Region Prepared By: Golder Associates Inc. 425 Lakeside Drive Sunnyvale, CA 94085 Golder Associates Inc. Tom Vercoutere, PG 4462 Käte Motroni Senior Consultant Senior Project Geologist EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 i 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx Table of Contents 1.0 INTRODUCTION .............................................................................................................................. 1 1.1 Objectives and Scope of Work ..................................................................................................... 1 2.0 SITE DESCRIPTION ........................................................................................................................ 3 2.1 Physical Setting ............................................................................................................................ 3 2.2 Geologic Setting ........................................................................................................................... 3 2.3 Groundwater Occurrence ............................................................................................................. 4 2.4 Historical Selenium Distribution. .................................................................................................. 4 3.0 WATER SAMPLES .......................................................................................................................... 5 4.0 ANALYTICAL PROGRAM................................................................................................................ 5 4.1 Stable Isotope Analyses ............................................................................................................... 5 4.2 Suggested Laboratory Facilities for Non-Standard Analyses ...................................................... 6 4.3 Post Sampling Data Analysis ....................................................................................................... 6 Tables Table 1 Selenium Concentrations in Groundwater and Leachate Table 2 Proposed Selenium Evaluation Sample Locations Figures Figure 1 Site Location Figure 2 Selenium Concentration Distribution in Groundwater Figure 3 Proposed Water Quality Sampling Locations Appendices Appendix A Sample Containers, Volumes, Preservatives, and Holding Times Appendix B Isotope Sample Procedures EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 1 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx 1.0 INTRODUCTION This work plan to evaluate the occurrence of elevated selenium in leachate and groundwater at the Palo Alto Landfill (Landfill) has been prepared in response to Waste Discharge Requirements Order No. R2- 2016-0029 (WDR), Provision C.4. - Selenium Evaluation. The WDR was adopted by the San Francisco Bay Regional Water Quality Control Board (RWQCB) in June 2016. Selenium Evaluation: The Discharger shall submit technical reports acceptable to the Executive Officer to evaluate the potential source(s) of elevated selenium in leachate and groundwater adjacent to the site. This evaluation shall include the sampling and analysis of adjacent surface waters. The Report shall include additional proposed investigation and/or proposed changes to the SMP as warranted by the evaluation. The Landfill is located at the northeast end of Embarcadero Road in the City of Palo Alto (Figure 1). The Landfill facility is sited on an area of approximately 137 acres on the western margin of San Francisco Bay in a tidal salt marsh environment. It is bounded by Mayfield Slough to the east, Matadero Creek to the south, Emily Renzel Marsh to the west, and the Palo Alto Water Quality Control Plant and a marsh area to the north. The Landfill began receiving waste in the early 1930s and operated as a Class III non-hazardous waste landfill. The landfill reached refuse capacity in July 2011, received regulatory certification in March 2016, and is now in its postclosure phase. 1.1 Objectives and Scope of Work The objectives of this work plan are to identify key geochemical processes and sources that may be responsible for an apparent increase in the selenium concentrations in groundwater beneath the Landfill over the last 20 years. The intent of the program is to investigate the nature of the selenium concentration increase and evaluate the landfill’s effect on elevated selenium in the vicinity of the property, and determine, if possible, the nature of the geochemical process that resulted in selenium concentration increases. Elevated selenium concentrations may be due to a mass transfer (i.e., point or non-point source such as a leachate release) or a phase change in the surrounding geologic material (i.e., the selenium solubility has changed). A water-quality analytical program has been designed to identify potential selenium sources at the Site. Data collected during the field program will be used to model geochemical speciation, redox conditions, and likely mineral occurrence and stability. In addition, an assessment of geochemical processes within the boundary of the site and area directly adjacent to the property will be performed. Selenium is a complex oxy-anion that has variable mobility at various redox states. It does not usually form mineral species, however, it is commonly associated with sulfur minerals due to similar chemical affinity and atomic radii. It is therefore important to understand the sources and occurrence of sulfur at the Site. The investigation will EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 2 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx focus on potential sources of selenium, including the landfill, pyritic bay muds, and other potential sources in the area (e.g., agricultural run-off, etc.). To meet these objectives the work plan includes the following tasks: Collect and analyze groundwater samples from existing monitoring wells where historically increasing selenium concentrations have been observed (G-3A, G-8-88, G-9-88, G-10-88, and G-20) and from all well pairs (G-1A/G-9-88, G-12-88/G-13-88, and G-14-88/G-15-88). See Figure 2. Collect and analyze leachate samples from approximately six existing leachate wells and piezometers to assess areal distribution of selenium in leachate. Collect and analyze groundwater samples from any accessible nearby monitoring wells to characterize potential ambient/background selenium distribution. Collect and analyze surface water samples from approximately six locations in Mayfield Slough, Matadero Creek, Emily Renzel Marsh, and the Marshland north of the Landfill to assess selenium distribution in surface water bodies adjacent to the Landfill. Proposed water quality sampling locations are shown on Figure 3. EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 3 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx 2.0 SITE DESCRIPTION 2.1 Physical Setting The Landfill was constructed in a tidal marsh and slough environment on the edge of San Francisco Bay. The original Mayfield Slough, which underlies the site (see Figure 3), was blocked at the landfill boundaries during landfill construction. It has been speculated that backfilled areas of the channels at the landfill margins may be preferential pathways for leachate migration. Mayfield Slough, which is the bay-side extension of Matadero Creek, forms the southern and eastern border of the site. In the early 1950's, the original Mayfield slough was filled at the southern and western limits of the Landfill. The slough was also filled at a point along the eastern margin of the Landfill near the southern limit of what is now Byxbee Park. The water flowing from Matadero Creek to the original Mayfield Slough was routed along the southern and eastern perimeter of the site to its present day location. At that time, the original slough was still open to the north into the yacht harbor area. Water was also present in the cut off slough that meandered inside the southern limits of the Landfill. In the early 1960's, an earth levee was constructed at the north end and the along the east side of the landfill to prevent refuse from entering Mayfield Slough. Based on early descriptions, bulky wastes and construction debris were used to fill the northern slough and were likely also previously used in the southern area of the site. By 1975, the original Mayfield Slough inside the limits of the Landfill had been completely filled. 2.2 Geologic Setting The tidal salt marsh environment on which the Landfill is constructed is underlain by approximately 6 to 16 feet of Younger Bay Mud – a very soft, unconsolidated deposit of organic-rich silt and clay with occasional lenses of sandy clay. This material is underlain by Older Bay Mud – a very stiff to firm clay, containing varying amounts of silt and lenses of sandy clay, sand, and gravel.1 In the site vicinity, the Bay Mud deposits interfinger with and grade into fine-grained alluvial deposits that have been shed off the Santa Cruz Mountains. Previous investigations at the site by various consultants have further defined the hydrogeologic conditions under and around the Landfill. Two zones of sand, designated as the 20-foot sand and the 40-foot sand, have been identified within the low-permeability Bay Mud. These sand units have been interpreted by previous investigators as being laterally continuous under part or all of the Landfill. The 20-foot sand is 2 to 4 feet thick, generally occurs at an elevation of about -20 feet mean sea level (MSL), is considered fairly continuous under the southern portion of the site, and is discontinuous or absent in the northernmost part of the site (see Figure 2). The 20-foot sand is likely below the base of the historic Mayfield Slough channel 1 Goldman, Harold B., editor. “Geologic and Engineering Aspects of San Francisco Bay Fill, Special Report 97.” California Division of Mines and Geology. 1969. EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 4 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx bottom (estimated to be approximately -5 feet MSL near the duck pond and old harbor) and was not in direct contact with pre-landfill ground surfaces. The 40-foot sand is 2 to 10 feet thick, occurs at an elevation of about -35 to -40 feet MSL, and is generally considered continuous beneath the site. The sands are fine to medium grained and poorly graded. Thin gravel layers have been encountered in some locations. 2.3 Groundwater Occurrence Surface water and shallow groundwater occur in the tidal marsh environment surrounding the Landfill. The Bay Mud deposits therefore, are fully saturated within a few feet of ground surface. The water-bearing characteristics of the Bay Mud deposits are poor (i.e., very low hydraulic conductivities), so they are not considered aquifers. Due to their higher transmissivity, the 20-foot and 40-foot sand units have been identified as the primary water-bearing zones beneath the site even though groundwater occurs at shallower depths within the low-permeability Bay Mud. The porosity of the sand units has been estimated to be 25 percent.2 Hydraulic conductivity for the sands ranges from 5.1 x 10-4 to 1.2 x 10-4 centimeter per second (cm/sec) for the 20-foot sand, and 3.0 x 10-3 to 1.3 x 10-4 cm/sec for the 40-foot sand.3 Site groundwater monitoring wells are constructed to monitor either the 20-foot sand unit or the 40-foot sand unit. 2.4 Historical Selenium Distribution. Groundwater beneath the site has been sampled and analyzed for dissolved selenium approximately once every 5 year schedule since the mid 1990s. The sampling began when selenium was listed as a constituent of concern (COC) in groundwater for compliance with the existing Waste Discharge Requirement at that time (WDR Order Number 99-026). Additional samples were collected as part of specific water quality characterization programs. Up until 2016, leachate has also been routinely analyzed for selenium for compliance with the industrial wastewater discharge permits issued by the Palo Alto Regional Water Quality Control Plant. Under the new Discharge Permit No. 16106, selenium is no longer a required parameter. Table 1 and Figure 2 present tabular and graphical summaries of the historical selenium concentrations for groundwater and leachate. Figure 2 shows the areal distribution of selenium in groundwater since 2000. The data presented in Table 1 and on Figure 2 show that the selenium concentrations in groundwater in both the 20-foot sand and the 40-foot sand increased through the 2014 COC event and have decreased since then, with only one exception. It is noteworthy that the increases and decreases in both water-bearing zones occurred simultaneously. The data also shows that selenium concentrations are typically higher in groundwater beneath the northern portion of the site relative to the southern portion of the site. 2 EMCON. Quarterly Self-Monitoring Report, Palo Alto Landfill, City of Palo Alto, California. April 1994. 3 EMCON, April 1994. EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 5 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx 3.0 WATER SAMPLES Every effort will be made to sample Site monitoring locations as well as monitoring locations and wells outside of the property boundary in order to obtain ambient data and identify potential sources. Groundwater and leachate samples will be collected at the Site from existing wells with low flow sampling bladder pumps. Proposed sample locations are listed in Table 2 and shown on Figure 3. Surface water samples will be collected as grab samples during the lower period of an ebb tide when surface water is flowing away from the edges of the landfill. Total and dissolved fractions of selenium and the other CAM 17 metals will be collected; dissolved samples will be filtered using 0.45 µm filters in the field. A duplicate sample at each location will be collected for total and dissolved selenium analysis. Samples will also be collected for nitrate/nitrite, major ion, and stable isotope analyses. Appendix A provides sampling and handling requirements and containers as well as general cost information for the water samples. Appendix B provides specific sampling and handling requirements for stable isotope sample collection. Field parameters will be measured during sampling and will include a measure of redox (dissolved oxygen [as mg/L] and/or oxidation-reduction potential [ORP]). Use of a flow-through cell is recommended to minimize error associated with contact with the atmosphere, which can alter dissolved oxygen content, ORP, and pH. 4.0 ANALYTICAL PROGRAM All samples will be analyzed for major ions, nitrate plus nitrite as nitrogen, and the CAM 17 metals. Analytical methods are included in Appendix A. The selenium samples will be analyzed by two different methods (EPA 6020 and EPA 200.8) and by two different laboratories to assess laboratory variations and possible method bias. In addition to the analysis described above, samples will be analyzed for stable isotopes as described in the following sections. 4.1 Stable Isotope Analyses Stable isotopes of certain elements (e.g., hydrogen, oxygen, sulfur, nitrogen, and carbon) provide additional information about geochemical transformations and sources that concentration data often cannot. Each element commonly has more than one stable isotope (i.e., varying number of neutrons) that slightly change the atomic mass of the element, which in turn changes reaction rates of the different isotopes, without changing its fundamental chemical properties. Contrary to radiogenic isotopes, stable isotopes do not decay, and therefore retain their mass through time. This constancy in elemental stable isotope chemistry and slight differences in reaction rate is commonly used to source reactions pathways for several elements in natural and industrial settings. In other words, stable isotopes provide a conservative tracer that can EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 6 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx provide additional information on sources and chemical processes of certain elements. These in turn provide an additional tool to assess sources of nitrate, sulfate, organic carbon, and waters. In order to provide a proper analysis, the isotopic values are compared to other isotopic values or concentration data to evaluate sources and potential geochemical transformations. For the Palo Alto Landfill investigation, stable isotope analyses will be used to identify potential geochemical pathways that may have led to increased observed selenium concentrations. Specifically, Deuterium and oxygen isotopes in water will be analyzed to determine the sources of water and potential mixing of water types, particularly between surface and groundwater. Stable isotopes in nitrate will be used to differentiate between sources of nitrate (i.e., agricultural, septic, landfill, etc.). Pyrite oxidation in the bay muds in the vicinity of the landfill, which is a potential source of selenium, will be evaluated using sulfur isotopes. Carbon stable isotopes of organic carbon will be evaluated in order to differentiate sources of dissolved organic carbon (DOC) from landfill and surrounding sources (e.g., carbon rich bay muds). 4.2 Suggested Laboratory Facilities for Non-Standard Analyses Stable isotope analyses are non-standard analyses at industrial labs, but are commonly used in academic research at universities. The Stable Isotope Laboratory at the University of California – Davis is world renowned for high quality analyses and are consistently used by academic and industrial projects, alike. Golder has often submitted samples to their facility on several occasions and recommends that nitrate, water, and DOC stable isotope samples be submitted to their laboratory facility. Nitrate stable isotopes require an appointment to submit samples ahead of time. For sulfur stable isotopes, Golder has used the Environmental Isotope Laboratory at the University of Arizona on several projects, and recommends that samples for this isotope be submitted to that facility. Appendix B provides sample requirements for isotope samples, however, specific requirements are provided on the laboratory websites, which should be used as a reference. 4.3 Post Sampling Data Analysis Data analysis will be performed using collected data in a phased approach. A geochemical characterization of the different water types will be conducted that will include piper plots of the data, Pourbaix diagrams (i.e., redox state potential [Eh] and pH diagrams), and mineral stability diagrams will be developed with the goal of identifying the unique character of each water type. Summary statistics will also be performed to provide an overview of the data and characterize the distribution of the data. Simple geochemical modeling (e.g., PHREEQC or Geochemist’s Workbench) will be performed to quantify elemental speciation and potential mineral stability in each water type. Based on statistical distribution of the data, groups of waters based on similar chemical characteristics may be consolidated in order to simplify the analysis. Stable isotope data will be evaluated to understand potential water and elemental sources and geochemical EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 January 2017 7 053-7481-16 g:\projects\palo alto lf\053-7481 (pal)\wdr workplans\selenium\selenium assessment work plan.docx transformations. Additional, more complicated analyses will be performed as needed (e.g., principal components analysis). Additionally, historical selenium data collected to date will be evaluated for laboratory procedures and potential bias based on the varying methodologies used to measure selenium concentrations. The evaluation will look for changes in concentration that correlate with changes in sampling and analytical methodology. Specifically, the original data sets will be evaluated using the EPA data validation and verification methodology for environmental samples. Moreover, the lab methods will be evaluated for application to the samples collected and recommendations for data use will be provided. EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 20-foot Detection Monitoring 40-foot Detection Monitoring Leachate G-9/88 G-13/88 G-14/88 G-16/88 G-17/88 G-19 G-1A G-3A G-8/88 G-10/88 G-12/88 G-15/88 G-20 LP-1 12/17/1996 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 <0.050 11/ 4/1999 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 3/17/2000 <0.005 9/29/2000 <0.005 11/ 2/2000 <0.005 0.024 <0.005 0.009 <0.005 0.006 0.074 <0.005 0.078 0.064 0.011 0.005 0.017 3/23/2001 <0.005 9/21/2001 <0.005 11/ 1/2001 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 <0.005 0.007 <0.005 3/26/2002 <0.005 8/ 9/2002 <0.005 11/26/2002 0.16 0.20 0.21 0.18 0.16 0.14 0.11 0.19 0.23 0.16 0.17 0.17 0.16 3/21/2003 <0.005 9/13/2003 <0.005 11/ 5/2003 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 <0.020 9/24/2004 <0.005 11/16/2004 <0.050 <0.100 <0.050 <0.050 <0.050 <0.100 <0.050 <0.100 <0.100 <0.100 <0.100 <0.050 <0.100 3/25/2005 <0.010 2/17/2006 <0.002 3/16/2007 <0.014 9/28/2007 0.050 4/ 3/2008 0.030 9/ 8/2008 0.059 3/ 3/2009 0.029 7/16/2009 0.075 11/11/2009 0.19 0.23 0.23 0.10 0.12 0.16 0.19 0.23 0.27 0.21 0.21 0.16 0.23 2/12/2010 0.060 8/18/2010 0.074 3/ 1/2011 0.19 9/23/2011 0.160 2/21/2012 0.096 8/22/2012 0.140 2/5/2013 0.076 8/8/2013 0.097 3/5/2014 0.053 9/16/2014 0.110 12/ 9/2014 0.98 0.69 0.28 0.53 0.49 0.55 0.76 0.90 1.0 1.0 0.41 0.46 0.94 2/4/2015 0.092 8/11/2015 0.068 2/23/2016 0.081 5/19/2016 0.25 0.41 0.32 0.18 0.19 0.26 0.30 0.32 0.33 0.28 0.27 0.23 0.31 0.12 12/15/2016 0.35 0.57 0.52 0.33 0.51 0.32 0.40 0.47 0.49 0.44 0.50 0.38 0.36 0.31 Detected concentration Maximum value for that event Table 1 Selenium Concentrations (mg/L) in Groundwater and Leachate Palo Alto Landfill EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 Groundwater Monitoring Wells 20-Foot Sand:G-9/88, G-13/88, G-14/88 40-Foot Sand:G-1A, G-3A, G-8/88, G-10/88, G-12/88, G-15/88, and G-20 Leachate Piezometers GR-7, GR-16, and GR-22 Leachate Extraction Wells E-5, E-19, and E-33 Leachate Outfall LP-1 Surface Water Locations Mayfield Slough:1 in the former Yacht Harbor 1 at the northeastern corner of the Landfill 1 along the eastern side of the Landfill 1 along the southeastern edge of the Landfill Matadero Creek:1 along Matadero Creek at the southern end of the Landfill Emily Renzel Marsh Area:1 west of LP-1 Table 2 Proposed Selenium Evaluation Sample Locations Palo Alto Landfill EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 0 1 i n 053-7481-16 FIGURE 2016-07-21 KMM KMM TLV TLV 1 PALO ALTO LANDFILLCITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNIA SITE LOCATON TITLE PROJECT NO.REV. PROJECTCLIENT IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT PREPARED DESIGNED REVIEWED APPROVED YYYY-MM-DD Pa t h : \ \ s u n n y v a l e \ d a t a \ P r o j e c t s \ P a l o A l t o L F \ 0 5 3 - 7 4 8 1 ( P A L ) \ F i g u r e s \ | F i l e N a m e : S i t e L o c a t i o n . d w g EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 PALO ALTO LANDFILL SELENIUM WORKPLAN CITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNIA SELENIUM CONCENTRATION DISTRIBUTION (mg/L) 500250 FEET 0 SCALE EXPLANATION Groundwater monitoring well monitoring 20-foot sand Groundwater monitoring well monitoring 40-foot sand Leachate piezometer Highest historical leachate concentrations Topographic base map prepared for the City of Palo Alto by Mira Solutions, Inc., Union City, CA, using photogrammetric techniques. Aerial photography: April 4, 2016. IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT DESIGN PREPARED REVIEW APPROVED YYYY-MM-DD TITLE PROJECT No.Rev. PROJECTCLIENT Path: \\sunnyvale\data\Projects\Palo Alto LF\053-7481 (PAL)\Figures\ | File Name: plo.dwg 0 1 i n 053-7481-16 FIGURE 2 2016-11-29 KMM KMM TLV TLV EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 PALO ALTO LANDFILL SELENIUM WORKPLAN CITY OF PALO ALTO PALO ALTO LANDFILL SANTA CLARA COUNTY, CALIFORNA PROPOSED WATER QUALITY SAMPLING LOCATIONS 500250 FEET 0 SCALEEXPLANATION Groundwater monitoring well monitoring (20-foot sand) Groundwater monitoring well monitoring (40-foot sand) Leachate piezometer Leachate extraction well GR-21 and GR-22 are replacements for GR-4A and E-27P Topographic base map prepared for the City of Palo Alto by Mira Solutions, Inc., Union City, CA, using photogrammetric techniques. Aerial photography: April 4, 2016. IF T H I S M E A S U R E M E N T D O E S N O T M A T C H W H A T I S S H O W N , T H E S H E E T S I Z E H A S B E E N M O D I F I E D F R O M : A N S I A CONSULTANT DESIGN PREPARED REVIEW APPROVED YYYY-MM-DD TITLE PROJECT No.Rev. PROJECTCLIENT Path: \\sunnyvale\data\Projects\Palo Alto LF\053-7481 (PAL)\Figures\ | File Name: GW_MONITORING NETWORK_2016 topo_for workplan.dwg 0 1 i n 053-7481-16 FIGURE 3 2016-11-28 KMM KMM TLV TLV * Proposed groundwater and leachate sample location Proposed surface water sample location EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 MEASUREMENT VOL. REQ. (ml)BOTTLE SIZE CONTAINER PRESERVATIVE HOLDING TIME METHOD Estimated Cost for Non-Standard Analyses Major Ions (Ca, Na, K, Mg, Alkalinity, SO4, Cl)500 500 Polyethylene, Glass Filter on site, cool to 4oC 14 days SM 2320B, EPA 300.0, EPA 200.7 $50 per sample Nitrate + Nitrite (as N)500 500 Polyethylene, Glass Filter on site, cool to 4oC, H2SO4 to pH< 2 28 days EPA 353.2 or EPA 300.0 $10 per sample Dissolved Metals (Sb, As, Ba, Be, Cd, Cr, Co, Cu, Pb, Hg, Mn, Ni, Se, Ag, Tl, Sn, V, Zn)500 500 Polyethylene, Glass Filter on site, cool to 4oC, HNO3 to pH<2 180 days EPA 6020B $125 per sample Total Metals (Sb, As, Ba, Be, Cd, Cr, Co, Cu, Pb, Hg, Mn, Ni, Se, Ag, Tl, Sn, V, Zn)500 500 Polyethylene, Glass Cool to 4oC, HNO3 to pH<2 180 days EPA 6020B $125 per sample Nitrate Stable Isotopes (δ15N and δ18O) 60 60 Polyethylene Filter on Site, leave a little head space, store/ship frozen, ship to UCD SIF at appointment only 180 - 360 days UCD SIF Method $36 per sample Water Stable Isotopes (D/H and δ18O)30 30 Polyethylene, Scintillation Vials Filter on Site, leave no headspace, cool to 4oC, keep in dark 90 days UCD SIF Method $18 - $30 per sample Organic Carbon Stable Isotope (δ13C)60 60 Polyethylene Filter on Site, leave some head space and freeze ASAP after sample collection, ship frozen 30 days UCD SIF Method $26.50 per sample Sulfate-Sulfur Stable Isotope (δ34S)100 100 Polyethylene Filter on Site, leave no headspace, cool to 4oC, keep in dark 90 days UA EIL Method $34 + $10 for Sample prep Note: Volume requirements, container types, preservatives, and holding times may vary. Palo Alto Landfill Sample Containers, Volumes, Preservatives, and Holding Times Appendix A EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Stable Isotope Facility http://stableisotopefacility.ucdavis.edu/docsamplepreparation.html 1/2 Analysis Pricing Sample Preparation Tips Sample Submission ANALYTICAL SERVICES Carbon and Nitrogen in Solids Oxygen and Hydrogen in Solids Sulfur in Solids Oxygen and Hydrogen of Water Dissolved Organic Carbon (DOC) in Water Dissolved Inorganic Carbon (DIC) in Water Methane (CH4) in Gas Carbon Dioxide (CO2) in Gas Nitrogen (N2) and/or Nitrous Oxide (N2O) in Gas Nitrate (NO3) in water CompoundSpecific Stable Isotope Analysis (CSIA) BILLING PEOPLE GALLERY ABOUT Dissolved Organic Carbon (DOC) Sample Preparation For 13C of DOC We recommend collecting 30mL of sample in 40 mL IChem 200 series glass vials and shipping immediately after collection. If samples need to be stored for more than a few days, collect samples in 50 mL polypropylene centrifuge tubes and freeze until ready to ship. Be sure to leave some headspace to avoid cracking the centrifuge tubes during freezing. Prior to shipping, thaw samples and transfer to IChem vials. If you prefer, you can send the frozen samples in centrifuge tubes and we will transfer them to IChem vials for an additional cost of $2.50 per sample. Preserving Samples To avoid changes in isotopic value or concentration after collection, samples should be sterilized to reduce biological activity. The SIF will not accept samples preserved with mercuric chloride (HgCl2). We recommend that samples be sterilized by filtration (0.2 micron or finer media) or poisoned with zinc chloride (ZnCl2) (add 10 µl of 50% w/v ZnCl2 per milliliter of water sample). If you are not concerned about biological activity, you may still want to filter the samples to remove particulates, as all organic carbon will be converted to CO2 during the chemical oxidation. Glass fiber filters, with a nominal pore size of 0.7um, are frequently used for this purpose. Enriched / Tracer Experiment Samples We do not accept DOC samples above 3700 per mil (5 atom %). For all enriched samples, please include an estimated enrichment in your sample list. Samples over 5at% will not be analyzed. Saline Samples The SIF does not accept saline water samples for DOC in water at this time. Samples up to a salinity of 20 can be accepted, provided the DOC concentration is greater than 1 ppm. Supplies Manufacturer / Part#Description Unit IChem / S2360040 or SB360040 200 series vials, 40 mL open top cap, 0.125" septum 72/PK or 144/PK VWR / 89093856 or 89093870 TraceClean 40 mL vials, Processed (PC), OpenTop, Amber or Clear 72/PK Shipping Wrap individual glass vials to protect them during shipping. Group samples in Ziploc bags to help minimize leaking/wet boxes during shipping. Carefully package samples in an insulated box or cooler with dry ice or ice blocks. Coolers will not be returned. Please complete and submit the online Analysis Order Form and Sample List for your samples. Include a printed copy of these forms with your samples. The SIF uses this form to track your samples and to contact you regarding receipt of samples, data, and invoicing. For mixed analysis requests, we require the completion of a separate form for each type of analysis. EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Stable Isotope Facility http://stableisotopefacility.ucdavis.edu/docsamplepreparation.html 2/2 Storage and Disposal Samples will be stored by SIF for 3 months postanalysis and then discarded. Please review your results during this 3month window. References St. Jean, G. 2003. Automated quantitative and isotopic (13C) analysis of dissolved inorganic carbon and dissolved organic carbon in continuous flow using a total organic carbon analyzer. Rapid Communications in Mass Spectrometry 17: 419428. email: sif@ucdavis.edu | phone: 5307528100 | fax: 5307524361 UC Davis Stable Isotope Facility | Department of Plant Sciences One Shields Avenue | Davis, California, 95616 | USA EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Stable Isotope Facility http://stableisotopefacility.ucdavis.edu/18owatersamplepreparation.html 1/2 Analysis Pricing Sample Preparation Tips Sample Submission ANALYTICAL SERVICES Carbon and Nitrogen in Solids Oxygen and Hydrogen in Solids Sulfur in Solids Oxygen and Hydrogen of Water Dissolved Organic Carbon (DOC) in Water Dissolved Inorganic Carbon (DIC) in Water Methane (CH4) in Gas Carbon Dioxide (CO2) in Gas Nitrogen (N2) and/or Nitrous Oxide (N2O) in Gas Nitrate (NO3) in water CompoundSpecific Stable Isotope Analysis (CSIA) BILLING PEOPLE GALLERY ABOUT Oxygen (18O) and Hydrogen (D/H) Water Sample Preparation and Organization The standard volume for water samples is 11.4 mL in a 2 mL GC vial. Contact the SIF about low volume samples. Use vials with a writeon patch or use clear tape and permanent marker to label vials. Samples should be kept refrigerated and in the dark for longterm storage. Use minimal headspace for shipping and storing water samples. Additional preservation is not necessary. We do not accept samples preserved with mercuric chloride (HgCl2) or poisoned with sodium azide (NaN3). Samples will be stored for 3 months postanalysis and then discarded. Please review your data within this window. Supplies Submit samples in standard autosampler vials (volume: 2 mL, 12 mm O.D. x 32 mm length) with widemouth 10425 screw caps and double coated (PTFE/silicon/PTFE) septa. Samples not submitted in autosampler vials will be charged a transfer fee (see Pricing). For lowvolume samples (less than 250 µL), use the appropriate polypropylene insert molded vials (C401311 and C401360A, see below). Please contact us prior to sending lowvolume samples. The following is a list of the vials we use. Other suitable vials are available from a variety of suppliers. We suggest screwtop vials with writeon labels. Only 10mm closures are acceptable. Manufacturer / Part#Description National Scientific / C40101W Vials, 2 mL, 10 mm screw thread, clear glass, writeon patch National Scientific / C401040A Screw caps with septa, 10 mm (PTFE/Silicone/PTFE) National Scientific / C401311 250 µL, polypropylene, 12x32mm, conical, 8425 screw thread vial (for samples < 100 µL) National Scientific / C401360A Screw caps with septa, for 8425 vials, (PTFE/Silicone) National Scientific / C401225 Storage rack for 50 vials, polypropylene, without lid National Scientific / C401125 Storage rack for 100 vials, polystyrene, with lid Organizing samples In order to use the correct reference waters, please group water samples into the following classes: Group δD/H δ18O Natural Abundance Up to 60 per mil Up to 6 per mil Low Enrichment 60 to 1690 per mil (0.042 at%) 6 to 263 per mil (0.25 at%) High Enrichment Over 1690 per mil (>0.042 at%) not accepted Over 263 per mil (>0.25 at%) not accepted EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Stable Isotope Facility http://stableisotopefacility.ucdavis.edu/18owatersamplepreparation.html 2/2 For tracer studies, estimates on isotope values are required and samples must be organized by increasing enrichment. Saline samples must be clearly marked with an estimate of the salinity. Organize saline samples in order of increasing salinity. Units of ppt or mS/cm are preferred. Organize water samples in order of increasing conductivity. Turbid water samples or water samples containing precipitate must be filtered prior to analysis. If SIF determines a water sample requires filtering, a $5.00 fee will be charged per sample for this service. The SIF only analyzes samples with a pH between 5 and 9. Samples outside this range must be neutralized prior to shipment to the SIF. Shipping Carefully package racks of vials in ziplock bags, small boxes, or their original boxes. Then package these sets in a larger sturdy box with styrofoam peanuts or bubble wrap. Make sure the samples are very secure; loose vials can break during shipping. If samples must be shipped with a refrigerant, be sure to insulate your samples from freezing. Avoid using dry ice as a refrigerant, as samples in direct contact with a refrigerant like dry ice will crack during shipping. Coolers will not be returned. Please complete and submit the online Analysis Order Form and Sample List for your samples. Also, be sure to include a printed copy with your samples. The SIF uses this form to track your samples and to contact you regarding receipt of samples, data, and invoicing. For mixed analysis requests, we require the completion of a separate form for each type of analysis. email: sif@ucdavis.edu | phone: 5307528100 | fax: 5307524361 UC Davis Stable Isotope Facility | Department of Plant Sciences One Shields Avenue | Davis, California, 95616 | USA EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Stable Isotope Facility http://stableisotopefacility.ucdavis.edu/no3samplepreparation.html 1/2 Analysis Pricing Sample Preparation Tips Sample Submission ANALYTICAL SERVICES Carbon and Nitrogen in Solids Oxygen and Hydrogen in Solids Sulfur in Solids Oxygen and Hydrogen of Water Dissolved Organic Carbon (DOC) in Water Dissolved Inorganic Carbon (DIC) in Water Methane (CH4) in Gas Carbon Dioxide (CO2) in Gas Nitrogen (N2) and/or Nitrous Oxide (N2O) in Gas Nitrate (NO3) in water CompoundSpecific Stable Isotope Analysis (CSIA) BILLING PEOPLE GALLERY ABOUT Nitrate (NO3) in Water Sample Preparation Appointments are required for the bacterial denitrifier preparation. Contact us prior to your sampling date, as we are often booked up to 3 months in advance. Nitrate in water samples for bacterial denitrifier preparation by the SIF should be filtered (<0.45 micron pore, preferably 0.1 micron), stored frozen, and shipped frozen. Use 3060 mL nitratefree, freezable, widemouthed, screwtop containers. A minimum of 10 mL of water sample is required, with 2030 mL preferred. Samples requiring extensive handling by the SIF (e.g., filtering) will be charged incidental fees per sample. Accurate nitrate concentrations are required for all samples. Please specify if your concentrations are NO3 vs. NO3N, μM vs. mg/L, etc. If this information is not available, please allow the SIF to refer you to an analytical facility that can determine the concentration for you. Required minimum concentration is 2 μM nitrate. Samples with missing or inaccurate nitrate concentrations will be charged for reruns and take longer to process. The bacterial denitrifier method does not discriminate between nitrate (NO3) and nitrite (NO2) nitrogen. Samples expected to contain nitrite should be prepared according to Granger and Sigman (2009) prior to submission to the SIF. Special Sample Types For enriched samples / tracer experiments, please contact the SIF prior to your experiment. The SIF no longer accepts customerprepared nitrate in water samples. Due to the nature of bacterial denitrification preparation and analysis, we cannot offer appropriate quality assurance unless we prepare the samples (and standards) ourselves. For a more detailed description of the NO3 in water preparation method, please see the denitrifier articles in the references section. We do accept KCl soil extracts and TDN digests. Please contact us for details and special requirements. For ammonium, most of our clients diffuse from solution onto acidified discs. The resulting disc is then submitted and analyzed as a solid sample. For details on performing the diffusion method, please see Holmes, et al (1998) in the references section. Supplies Manufacturer / Part# Description Unit Wheaton / 209545 LeakResistant WideMouth HDPE Bottles, 30mL, Natural w/ cap Case of 72 Wheaton / 209546 LeakResistant WideMouth HDPE Bottles, 60mL, Natural w/ cap Case of 72 Wheaton / 209626 LeakResistant WideMouth HDPE Bottles, 60mL, Amber w/ cap Case of 72 Freezing and Shipping Samples At low temperatures, both polypropylene and polystyrene become brittle and are prone to cracking. Please use only polyethylene or polycarbonate containers. Make sure the containers are nitratefree. Leave enough headspace to account for expansion during freezing, and prechill your samples in EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Stable Isotope Facility http://stableisotopefacility.ucdavis.edu/no3samplepreparation.html 2/2 a refrigerator for the first 1224 hours prior to freezing. Once frozen, carefully pack small sets of samples in ziplock bags or small boxes with dividers. Pack these sets in a larger hardwalled cooler or Styrofoam insulated shipping kit with packing peanuts or bubble wrap. Make sure the samples are well cushioned on all sides, as loose bottles can break during shipping. Do not use foamonly coolers or cardboardonly boxes for the exterior shipping container; these containers will disintegrate due to condensation and hard impacts when tossed by couriers. Keep the entire shipment frozen until time to ship. "Prechilling" your cooler will extend refrigeration time. We recommend blue ice blocks, cold packs, or ice blankets for packages sent by Overnight or 1day delivery. Dry ice is advisable for delivery times exceeding 2 days. Pack about 1520 pounds of dry ice for the first 24 hours of transit, plus an additional 510 pounds of dry ice for each additional day of transit. Fill any remaining “air space” in the cooler with newspaper or other filler to slow sublimation and protect against damage. Ship your samples by the fastest available method to arrive at the SIF midweek (Tuesday through Thursday). If you would like your cooler returned, please include a prepaid shipping label. We recommend saving a duplicate set of samples in case of sample loss, whether due to shipping loss or cracked vials. Please complete and submit the online Analysis Order Form and Sample List for your samples. Include nitrate concentrations for all samples for bacterial denitrification preparation by the SIF. Samples with missing or inaccurate nitrate concentrations will be charged for reruns and take longer to process. Be sure to include a printed copy of both forms with your samples. The SIF uses these forms to track your samples and to contact you regarding sample receipt, data, and invoicing. For mixed analysis requests, you must complete a separate set of forms for each type of analysis. Sample Storage and Retention by the SIF The SIF will store your samples in the freezer. Due to limited freezer space, please ship your samples to arrive only 1 to 3 weeks prior to your appointment. The SIF will send an email reminder approximately 4 to 6 weeks prior to your appointment. After analysis and reruns are complete, samples will be stored by SIF for 2 months and then discarded. Please review your results during this 2month window. References D. M. Sigman, K. L. Casciotti, M. Andreani, C. Barford, M. Galanter, and J. K. Böhlke. 2001. A bacterial method for the nitrogen isotopic analysis of nitrate in seawater and freshwater. Anal. Chem. 73: 41454153. K. L. Casciotti, D. M. Sigman, M. Galanter Hastings, J. K. Böhlke, and A. Hilkert. 2002. Measurement of the oxygen isotopic composition of nitrate in seawater and freshwater using the denitrifier method. Anal. Chem. 74: 49054912. J. Granger and D.M. Sigman. 2009. Removal of nitrite with sulfamic acid for nitrate N and O isotope analysis with the denitrifier method. Rapid Comm. Mass Spectrom. 23: 37533762. R. M. Holmes, J. W. McClelland, D. M. Sigman, B. Fry, and B. J. Peterson. 1998. Measuring 15NNH4+ in marine, estuarine, and fresh waters: An adaptation of the ammonia diffusion method for samples with low ammonium concentrations. Mar. Chem. 60: 235243. email: sif@ucdavis.edu | phone: 5307528100 | fax: 5307524361 UC Davis Stable Isotope Facility | Department of Plant Sciences One Shields Avenue | Davis, California, 95616 | USA EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Environmental Isotope Laboratory | Services | UA Geosciences http://www.geo.arizona.edu/node/153 1/5 University of Arizona About Us People For Grad Students For Undergrads Research Areas Events & Programs Alumni Photos Facebook Quick Links Industry Recruiting 2016 Where in the World is UA Geosciences? George H. Davis Undergraduate Research Fund Research Facilities, Programs & Resources News & Archives School of Earth & Environmental Sciences College of Science UA Mineral Museum UAConnect Email Course Pages Mime Mail Example New Publications Resilience of the Asian atmospheric circulation shown by Paleogene dust provenance Licht, A, et al. EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Environmental Isotope Laboratory | Services | UA Geosciences http://www.geo.arizona.edu/node/153 2/5 See All Geosciences Administration Departmental Forms Departmental Computing Environmental Isotope Laboratory | Services Service analyses for internal and external users include measurement of natural levels of tritium in water, stable isotope analyses of water, carbonates, brines, sulfide and sulfate minerals. The Radiocarbon Laboratory has closed. For radiocarbon dating, please contact the NSFArizona Accelerator facility. Analytical Service Rates for 2016 Analytical Method Descriptions C and N isotopes in organics, soils etc. d15N and d13C, as well as carbon and nitrogen content were measured on a continuousflow gasratio mass spectrometer (Finnigan Delta PlusXL) coupled to an elemental analyzer (Costech). Samples were combusted in the elemental analyzer. Standardization is based on acetanilide for elemental concentration, NBS22 and USGS24 for d13C, and IAEAN1 and IAEAN2 for d15N. Precision is better than ± 0.10 for d13C and ± 0.2 for d15N (1s), based on repeated internal standards. Carbonate isotopes d18O and d13C of carbonates were measured using an automated carbonate preparation device (KIELIII) coupled to a gasratio mass spectrometer (Finnigan MAT 252). Powdered samples were reacted with dehydrated phosphoric acid under vacuum at 70°C. The isotope ratio measurement is calibrated based on repeated measurements of NBS19 and NBS18 and precision is ± 0.1 ‰ for d18O and ±0.08‰ for d13C (1sigma). H isotopes in cellulose and minerals EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Environmental Isotope Laboratory | Services | UA Geosciences http://www.geo.arizona.edu/node/153 3/5 d D was measured on a continuousflow gasratio mass spectrometer (Thermo Electron Delta V). Samples were combusted at 1400 °C using an ThermoQuest Finnigan TCEA (Thermal combustion elemental analyzer) coupled to the mass spectrometer. Standardization is based on a linear calibration curve obtained by measuring three materials NIST SRM 8540 (65.7‰), IAEA CH7 (110.3‰) and our house standard benzoic acid (87.6‰) in each set of analyses. Precision is better than ± 2.5 per mil on the basis of repeated internal standards. H isotopes in organics with exchangeable hydrogen Samples were equilibrated with ambient water vapor in laboratory air with tracer standards (swan feather). They are then dried with P2O5 for at least 6 hours. d D was measured on a continuousflow gasratio mass spectrometer (Thermo Electron Delta V). Samples were combusted with excess C at 1400 °C using an ThermoQuest Finnigan TCEA (Thermal combustion elemental analyzer) coupled to the mass spectrometer. Standardization is based on the calibrated house standard benzoic acid (87.6‰) and Hexatriacontane (247, University of Indiana) in each set of analyses. A value of 1.120 is used for the fractionation between water vapor and exchangeable hydrogen in calculating the nonexchangeable dD value. Precision is better than ± 2.5 per mil on the basis of repeated internal standards. O and H isotopes in water d D and d18O were measured on a gassource isotope ratio mass spectrometer (Finnigan Delta S). For hydrogen, samples were reacted at 750°C with Cr metal using a Finnigan H/Device coupled to the mass spectrometer. For oxygen, samples were equilibrated with CO2 gas at approximately 15°C in an automated equilibration device coupled to the mass spectrometer. Standardization is based on international reference materials VSMOW and SLAP. Precision is 0.9 per mil or better for d D and 0.08 per mil or better for d18O on the basis of repeated internal standards. S isotopes in sulfates and sulfides d34S was measured on SO2 gas in a continuousflow gasratio mass spectrometer (ThermoQuest Finnigan Delta PlusXL). Samples were combusted at 1030 deg. C with O2 and V2O5 using an elemental analyzer (Costech) coupled to the mass spectrometer. Standardization is based on international standards OGS1 and NBS123, and several other sulfide and sulfate materials that have been compared between laboratories. Calibration is linear in the range 10 to +30 per mil. Precision is estimated to be ± 0.15 or better (1s), based on repeated internal standards. C isotopes in DIC d13C of DIC was measured on a continuousflow gasratio mass spectrometer (ThermoQuest Finnigan Delta PlusXL) coupled with a Gasbench automated sampler (also manufactured by Finnigan). Samples were reacted for > 1 hour with phosphoric acid at room temperature in Exetainer vials previously flushed with He gas. Standardization is based on NBS19 and NBS18 and precision is ±0.30‰ or better (1sigma). EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Environmental Isotope Laboratory | Services | UA Geosciences http://www.geo.arizona.edu/node/153 4/5 O isotopes in sulfate d18O of sulfate was measured on CO gas in a continuousflow gasratio mass spectrometer (Thermo Electron Delta V). Samples were combusted with excess C at 1350 °C using a thermal combustion elemental analyzer (ThermoQuest Finnigan) coupled to the mass spectrometer. Standardization is based on international standard OGS1. Precision is estimated to be ± 0.3 per mil or better (1s), based on repeated internal standards. Tritium Tritium was measured by liquid scintillation spectrometry on samples that were first distilled to remove non volatile solutes, and then enriched by electrolysis by a factor of about 9. Enriched samples were mixed 1:1 with Ultimagold Low Level Tritium (R) cocktail, and counted for 1500 minutes in a Quantulus 1220 Spectrometer in an underground counting laboratory at the University of Arizona. The detection limit under these conditions is 0.6 TU. Standardization is relative to NIST SRM 4361C, and water from Agua Caliente Spring in Tucson basin is used to determine background. O isotopes in organics d18O of cellulose was measured on a continuousflow gasratio mass spectrometer (Thermo Electron Delta PlusXL). Samples were combusted with excess C at 1350 °C using a thermal combustion elemental analyzer (ThermoQuest Finnigan) coupled to the mass spectrometer. Standardization is based on international standards IAEA601, IAEA602 and OGS1. Precision is estimated to be ± 0.3 per mil or better (1s), based on repeated internal standards. N isotopes in bulk DIN d15N was measured on bulk residual salt from the gentle evaporation of water to dry; this represents bulk DIN of the sample. Measurements were made using a continuous flow gasratio mass spectrometer (Finnigan Delta PlusXL) coupled to an elemental analyzer (Costech). Samples were combusted in the elemental analyzer. Standardization is based on IAEAN1 and IAEAN2 for d15N. The IAEA standards were used to calibrate d15N of the laboratory working standard, acetanilide. Precision is better than ± 0.2 for d15N (1s), based on repeated internal standards. Contact David Dettman Data Repository Environmental Isotope Laboratory Home EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 9/19/2016 Environmental Isotope Laboratory | Services | UA Geosciences http://www.geo.arizona.edu/node/153 5/5 Department of Geosciences The University of Arizona 1040 E. 4th Street Tucson, AZ 85721 Phone: 5206216000 Fax: 5206212672 CAS Login You will be redirected to the secure CAS login page. Log in using CAS Course Pages University of Arizona Copyright 2016 © Arizona Board of Regents EXHIBIT A-4 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 EXHIBIT “B” SCHEDULE OF PERFORMANCE AMENDMENT NO. 3 CONSULTANT shall perform the Services so as to complete each milestone within the date specified bellow. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestones Completion Date 1. Draft report due May 1, 2018 2. Draft report meeting May 8, 2018 3. Final report due June 1, 2018 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 EXHIBIT “C-3” COMPENSATION AMENDMENT NO. 3 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1a- Sample Collection and Analysis $7,500 Sample Collection Sample Analysis $18,500 Task 1b $10,000 Leachate Pump Testing Task 1c $32,000 Data Analysis and Report Preparation Task 1d $15,000 Optional subtask: Drill temporary wells and collect water samples Sub-total Basic Services $83,000 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $83,000 DocuSign Envelope ID: 96EBA47B-86C9-4772-B877-2859A56AE580 Additional Services (Not to Exceed) $8,300 Maximum Total Compensation $91,300 ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s 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: 96EBA47B-86C9-4772-B877-2859A56AE580 Certificate Of Completion Envelope Id: 96EBA47B86C94772B8772859A56AE580 Status: Completed Subject: Please DocuSign: S15156222- Amendment No 3.pdf Source Envelope: Document Pages: 52 Signatures: 2 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Cecilia Magana Certificate Pages: 2 AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Payments: 0 250 Hamilton Ave Palo Alto , CA 94301 cecilia.magana@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 7/17/2017 12:58:04 PM Holder: Cecilia Magana cecilia.magana@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp William Fowler bfowler@golder.com Principal Security Level: Email, Account Authentication (None)Using IP Address: 157.208.240.5 Sent: 7/20/2017 3:37:16 PM Resent: 7/21/2017 11:11:30 AM Resent: 7/24/2017 2:16:09 PM Viewed: 7/24/2017 2:18:22 PM Signed: 7/24/2017 2:19:06 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Elise Sbarbori Elise.Sbarbori@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 7/24/2017 2:19:08 PM Viewed: 7/24/2017 2:43:07 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign margaret Adkins Margaret.Adkins@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 7/24/2017 2:19:09 PM Viewed: 7/24/2017 2:19:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/24/2017 2:19:09 PM Certified Delivered Security Checked 7/24/2017 2:19:09 PM Envelope Summary Events Status Timestamps Signing Complete Security Checked 7/24/2017 2:19:09 PM Completed Security Checked 7/24/2017 2:19:09 PM Payment Events Status Timestamps City of Palo Alto (ID # 8304) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Reducing the City's current federal advocacy agreement by seven months Title: Authorize the City Manager to Execute an Amendment to Contract Number C12146667 Between the City and Van Scoyoc Associates Inc., for Federal Legislative Advocacy, to Reduce the Term by Seven Months and Reduce the Not-to-Exceed Amount by $56,000 From: City Manager Lead Department: City Manager Recommended Motion Staff recommends that Council approve the following motion: (1) Authorize the City Manager to execute Amendment No. 5 to the current agreement with Van Scoyoc Associates Inc. for federal legislative advocacy services to shorten the term length from July 31, 2018 to December 31, 2017 and decrease the not-to-exceed amount from $606,000 to $550,000. Background For many years, the City has contracted for federal legislative advocacy services. This Washington-DC based representation affords Palo Alto a presence and voice with our federal representatives. Since 2012, the City has contracted with Van Scoyoc Associates Inc. (VSA) to provide this federal representation. (Attachment A). The current agreement as amended with VSA expires on July 31, 2018. (Attachment B). On August, 22, 2016, staff recommended a two year extension with VSA, ending on July 31, 2018. During deliberations, Council raised questions regarding the federal legislative program and approved a one year extension, to July 31, 2017. However, due to an administrative oversight, the full two year contract extension was executed. As the Council approved funding for only one year, this funding terminated on July 31, 2017. Discussion Ordinarily, upon discovering this error, staff would seek Council’s approval to reduce the contract length and value to comport with Council’s directive and the length of the funding. However, this error was discovered only after initiating an RFP for federal legislative services, a process that should be complete by December 2017. The timing of the RFP process and the City of Palo Alto Page 2 expiration of funding under the City Council’s 2016 authorization leaves a gap in services of five months. The proposed Amendment 5 (ATTACHMENT C) remedies the oversight while ensuring services are maintained until December 31, 2017. As the two-year extension was a mistake, the proposed Amendment 5 reduces the term from July 31, 2018 to December 31, 2017. It also reduces the not-to-exceed amount accordingly, from $606,000 to $550,000. Had the one-year extension that the City Council approved on August 22, 2016 been properly executed, the proposed amendment would reflect an extension of five months and an increase of $45,000 of the not-to-exceed amount compared to the City Council’s 2016 authorization. Resource Impact Funding for the current contract is included in the Fiscal Year 2018 Adopted Budget for the City Manager’s Office. Award of a new contract for federal legislative services will be brought forward for Council review subsequent to the results of the RFP, expected to be complete in December 2017. Attachments: Attachment A: Original 2012 agreement with VSA Attachment B: Current contract amendment ending 2018 Attachment C: Proposed amendment 5 reducing the contract to December 31 2017 CITY OF PALO ALTO CONTRACT NO. C12146667 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND VAN SCOYOC ASSOCIATES, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this day of July, 2012, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and VAN SCOYOC ASSOCIATES, INC., a Washington DC Corporation, located at 101 Constitution Avenue, NW, Suite 600 West, Washington, D.C. 20001 (PH) 202-638- 1950,("CONSULTANT"). RECITALS The following recitals are a substantive portion ofthis Agreement. A. CITY intends to obtain Federal Legislative Representation ("Project") and desires to engage a consultant to provide Federal Legislative and Regulatory Representation to advance the City's objectives in Washington ("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 ofthis Agreement. NOW, THEREFORE, in consideration ofthe recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in 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 tenn of this Agreement shall be from the date of its full execution through 07/31120 I3 unless terminated earlier pursuant to Section 19 of this Agreement. The CITY has the option to extend this contract for two additional one year tenns. SECTION 3. SCHEDULE OF PERFORMANCE. Time is ofthe essence in the perfonnance of Services under this Agreement. CONSULTANT shall complete the Services within the tenn 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 mmmer based upon the circumstances and direction cOlmnnnicated 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. Professional Services Rev. June 2,2010 SECTION 4. NOT TO EXCEED COMPENSATION. The compensation for professional services to be paid to CONSULTANT for performance of the Services described in Exhibit "A", shall not exceed Eight Thousand Dollars ($8,000) per month and the total amount of compensation, induding professional services and reimbursables shall not exceed One Hundred One Thousand Dollars ($101,000.00) per year. The applicable monthly rate and schedule of payment are set out in Exhibit "C", entitled "COMPENSATION," which is attached to and made a part of this Agreement. SECTION 5. INVOICES. The CITY will provide the CONSULTANT with an $8,000.00 flat fee retainer from which CONSULTANT will bill for it's services. In order to request payment, CONSULTANT shall submit monthly invoices to the City. In addition, CONSULTANT shall maintain and keep on record the hours it has billed against the retainer and shall submit the invoices to the CITY upon request. Such documentation shall describe the services perfonned and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses) for work conducted on each area of the CITY's Strategic Plan. SECTION 6. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supelvision. CONSULT ANT 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 perfonn the Semces assigned to them. CONSULT ANT represents that it, its employees and subconsuitants, if permitted, have and shall maintain during the tenn of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perfonn the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perfonn Services under this Agreement. CONSULTANT shall procure all pennits and licenses, pay all charges and fees, and give all notices required by law in the perfonnance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULT ANT has prepared plans and specifications or other design documents to construct the Proj ect, CONSULT ANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Proj ect. This obligation shall survive tennination ofthe Agreement. SECTION 9. INDEPENDENT CONTRACTOR. It is understood and agreed that in perfonning 2 Professional Services Rev. June 2,2010 C: \U sers\brobinson \AppData \Local\Microsoft\ W indows\ T emp011ll'Y Intemet Files\Content. OuUook\N LXBKAJV\C 12146667 FINAL doc Rev071720 12.doe 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 the CITY. SECTION 10. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULT ANT shall not assign or transfer any interest in this Agreement nor the perfonnance of any of CONSULTANT's obligations hereunder without the prior written consent ofthe city manager. Consent to one assigmnent will not be deemed to be consent to any subsequent assigmnent. Any assigmnent made without the approval of the city manager will be void. SECTION 11. SUBCONTRACTING. CONSULT ANT shall not subcontract any portion of the work to be perfonned under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any sub consultants 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 sub consultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 12. PROJECT MANAGEMENT. CONSULTANT will assign Thane Young, Vice President, as the Project Director, to have supervisory responsibility for the perfonnance, progress, and execution of the Services, and Steve Palmer, Vice President, Laura Morgan, Director, Government Relations, and Jacqueline Sclnnitz, Director, Govermnent Relations, as the project Team 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 keypersomlel for any reason, the appointment of a substitute project director and the assigmnent of any key new or replacement persormel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove persormel who CITY finds do not perform the Services in an acceptable marmer, 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. The City's project manager is Sheila Tucker, Assistant to City Manager, Office of the City Manager, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2452, Email: sheila.tucker@cityofj)aloalto.org The project manager will be CONSULTANT's point of contact with respect to perfonnance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 13. 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 3 Professional Services Rev. June 2, 2010 C: \U sers\brobinson \AppData\Local\Microsoft\ W indows\ Temporary Intemet Files\Content. OuUook\NLXB KAJV\C 12146667 FINAL doc Rev07172012.doc property rights in favor of the CITY. Neither CONSULT ANT 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 14. AUDITS. CONSULTANT will pennit CITY to audit, at any reasonable time during the tenn ofthis 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 tennination of this Agreement. SECTION 15. INDEMNITY. 15.1. To the fullest extent pennitted by law, CONSULTANT shall protect, indemnify, defend and hold hannless 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 perfonnance or nonperfonnance 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. 15.2. Notwithstanding the above, nothing in this Section 16 shall be constrned to require. CONSULTANT to indemnify an Indeillilified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 15.3. 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 tennination ofthis Agreement. SECTION 16. WAIVERS. The waiver by either party of any breach or violation of any covenant, tenn, condition or provision ofthis Agreement, or ofthe provisions of any ordinance or law, will not be deemed to be a waiver of any other tenn, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other tenn, covenant, condition, provision, ordinance or law. SECTION 17. INSURANCE. 17.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the tenn 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. 17.2. 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 perfonn Services under this Agreement will obtain and maintain, in full force and effect 5 Professional Services Rev. June 28, 2012 C:\Users\brobinson \AppData\Local\Microsoft\ W indows\ Tempormy Intemet F iles\Content. Outlook\N LXBKAJV\C 12146667 FINAL doc Rev07172012.doc during the tenn of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 17.3. 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, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire tenn of this Agreement. 17.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereundernor 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 perfonned under this Agreement, including such damage, injury, or loss arising after the Agreement is tenninated or the tenn has expired. SECTION 18. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 18.1. The City Manager may suspend the perfonnance of the Services, in whole or in part, or tenninate 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 perfonnance ofthe Services. 18.2 . CONSULTANT maytenninate this Agreement or suspend its perfonnance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of perfonnance by CITY. 18.3. Upon such suspension or tennination, 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. 18.4. Upon such suspension or tennination 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 tennination; provided, however, if this Agreement is suspended or tenninated on accowlt 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 detennination may be made by the City Manager acting in the reasonable exercise ofhis/her discretion. The following Sections will survive any expiration or tennination of this Agreement: 14, 15, 16, 19.4,20, and 25. 18.5. 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. 6 Professional Services Rev. June28, 2012 C :\Users\brobinson\AppData\LocaJ\Microsoft\ Windows\ T emporaty Intemet Files\Content. OutIook\NLXBKAJV\C 12146667 FINAL doc Rev07172012.doc SECTION 19. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office ofthe 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 20. CONFLICT OF INTEREST. 20.1. 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. 20.2. CONSULTANT further covenants that, in theperfonnance of this Agreement, it will not employ sub consultants, 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 Govennnent Code ofthe State ofCalifomia. 20.3. Ifthe Project Manager determines that CONSULTANT is a "Consultant" as that tenn 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 Refonn Act. SECTION 21. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the perfonnance 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. CONSULT ANT 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 peliaining to nondiscrimination in employment. 7 Professional Services Rev. lune28, 2012 C :\U sers\brobinson \AppData\LocaJ\M icrosoft\ Windows\ Temporary Intemet Files\Content. Outiook\NLXB KAJ V\C 12146667 FINAL doc Rev07172012.doc SECTION 22. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REOUIREMENTS. CONSULTANT shall comply with the City'S Environmentally Preferred Purchasing policies which are available at the 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 the City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or compo sting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City'S Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy ofthis policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to veritY that pallets are not being disposed. SECTION 23. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter ofthe City of Palo Alto and the Palo Alto Municipal Code. This Agreement will tenninate without any penalty (a) at the end of any fiscal year in the event that frmds are not appropriated for the following fiscal year, or (b) at anytime 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, tenn, condition, or provision of this Agreement. SECTION 24. MISCELLANEOUS PROVISIONS. 24.1. This Agreement will be govemed by the laws of the State of Califomia. 24.2. 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 Califomia in the County of Santa Clara, State of Califomia. 24.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attomeys' 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 attomeys employed by it as well as any attomeys' fees paid to third 8 Professional Services Rev. June 28, 2012 C:\Users\brobinson\AppData\Local\Microsoft\ Windows\TemporalY Intemet Files\Content.Outlook\NLXBKAJV\C 12146667 FINAL doc Rev07172012.doc parties. 24.4. 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. 24.5. 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. 24.6. 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. 24.7. 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. 24.8 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 Infonnation"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Infonnation, and shall infonn 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. 24.9 All unchecked boxes do not apply to this agreement. 24.10 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 enti ties. 9 Professional Services Rev. June 28, 2012 C :\U sers\brobinson \AppData \LocaJ\Microsoft\ W indows\ T emporalY Internet Files\Content. Outlook\NLXBKAJV\C 12146667 FINAL doc Rev071720 12.doc 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 VAN SCOYOC ASSOCIATES, INC. . Attachments: EXHIBIT "A": EXHIBIT "B": EXHIBIT "C": EXHIBIT "D": B'~6Y~/~ Name:JI;ewart v~c Title: Pres~deilt SCOPE OF WORK SCHEDULE OF PERFORMANCE COMPENSATION INSURANCE REQUIREMENTS to Professional Services Rev. June 28, 2012 C:\Users\brobins~n\AppData \Local\Microsoft\ Windows\Temporaty Intemet Fiies\Content. Out!ook\NLXBKAJv\C 12146667 FINAL doc Rev07172012.doc EXHIBIT "A" SCOPE OF SERVICES Federal Legislative Services Analysis & Goal Setting 1. Conduct Strategic Assessment of Opportunities -gain a complete understanding of City priorities and services through input from staff and the Council to ensure that the city is taking advantage of every opportunity for federal assistance whether through appropriations or grants. 2. Assist the City to set short and long-term legislative priorities for the City and performance of an in-depth analysis of current and anticipated congressional legislation and federal funding opportunities on annual basis. 3. Develop an annual Federal Legislative Agenda and Strategic Plan -create an action plan to accomplish the City's goals and objectives and draft a Federal Legislative Agenda or Strategic Plan. Once approved by the City, this agenda will outline an approach for working with the appropriate House and Senate Members, congressional committees and the Administration. Administrative Services 1. Agency Coordination -assist City in coordinating with Federal agencies which distribute appropriation or grant funds. 2. Forms, Fact Sheets, and Letters -work with City staff to draft forms, fact sheets and letters that will be used to seek funding and oppose or support legislation. 3. Prepare the City for Washington, D.C. Visits -arrange meetings with congressional delegation and their staffs and other important federal officials; prepare the City and local officials for those visits; and gUide the city through these meetings in order to optimize effectiveness. 4. Legislative Markups -guide City's projects through the markup of spending and authorizing legislation in the relevant subcommittees and committees. 5. Legislative Tracking -track City's projects as legislation and administrative actions progress, so the City knows when, and how, to advocate for these projects at critical times. 6. Regular Reporting -provide regular status reports and updates to the City on the status of the City's Strategic Plan, legislative priorities, and funding opportunities. Projects and provide periodic written, verbal and electronic reports to the City. a. Provide weekly report on general activities in Washington and Congress. b. Provide monthly reports to City on status of strategic plan priorities, including current status, activities and next steps. c. Provide a final report prior to considering work plan for the next year 7. Attend all relevant industry meetings in Washington D.C. in order to II Due Date October October/ Ongoing November On-going On-going On-going On-going Weekly Monthly October On-going Professional Services Rev. June 28, 2012 C: \Users\brobinson \AppData \Local\Microsoft\ W indows\ T emporaty Intemet Files\Content. OUliook\N LXBKAJV\C 12146667 FINAL doc Rev07172012.doc provide up-to-the-minute intelligence. 8. Agency Implementation -The consultant will also help the City work with federal agencies that will administer any congressional appropriation projects, in order to establish funding arrangements and implement these projects. 9. Conference Calls -conduct weekly or monthly conference calls with City staff on federal activities and legislation including the City's State High Speed Rail lobbyist, to ensure the Federal Legislative Agenda or Strategic Plan is being implemented. Outreach and Advocacy 1. Work with Federal department personal and Subcommittee Staff -work directly with staff in congressional offices and Subcommittees to promote the City's projects, gather timely information, and advance efforts. 2. Stakeholder Support -work with the City and its partners to gather and effectively convey support from stakeholders in local and state government, business and educational communities, and prominent citizens, through letters, phone calls, and visits. 3. Media and News -coordinate with City on current events and its implication to the community. Prepare or review press releases as needed. 12 On-going On-going On-going On-going On-going Professional Services Rev. June 2, 2010 C:\Users\brobinson\AppData\Local\Microsoft\ W indows\ Temporary Intemet Files\Content. Outlook\NLXBKAJV\C 12146667 FINAL doc Rev07172012.doc 13 Professional Services Rev. June 2, 2010 C :\Users\brobinson\AppData\Local\Microsoft\ Windows\ Temporary llltemet Files\Colltent.Outlook\NLXBKAJV\C 12146667 FINAL doc Rev07172012.doc EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall provide the Services on a schedule in liaison with the Legislative calendar year. CONSULTANT will develop a schedule with CITY Staff to pursue projects and programs identified by CITY as priority and in line with established timelines and deadlines. CONSULTANT shall work with City Staff to develop and implement a schedule which shall maximize CITY's oppOliunities for securing Federal funding, appropriations and discretionary grants. 14 Professional Services Rev. June 2, 2010 C:\Users\brobinson\AppData\Local\Microsoft\Windows\Temporary Intemet Files\Content.Outiook\NLXBKAJV\CI2146667 FINAL doc Rev07172012.doc EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services perfonned in accordance with the tenns and conditions of this Agreement, to the reasonable satisfaction of the CITY. The CITY will provide the CONSULTANT with an $8,000.00 flat fee retainer from which CONSULTANT will bill for it's services. In order to request payment, CONSULT ANT shall submit monthly invoices to the City. In addition, CONSULTANT shall maintain and keep on record the hours it has billed against the retainer and shall submit the invoices to the CITY upon request. Such documentation shall describe the services perfonned and the applicable charges (including an identification of persOimel who perfonned the services, hours worked, hourly rates, and reimbursable expenses) for work conducted on each area of the CITY's Strategic Plan. In addition, CITY will compensate CONSULTANT for incurred Reimbursable Expenses in an amount Not to Exceed $5,000 per Year. Reasonable Expenses include directly related business expenses and travel, including but not limited to, duplicating documents, binding reports, mileage, phone, supplies, FAX, postage, travel, hotel, meals, etc. 14 Professional Services Rev. June 2, 2010 C: \Users\brobinson\AppData \Local\Microsofi\ W indows\ Temporary Intemet Files\Content. Outlook\NLXBKAJv\C 1214666 7 FINAL doc Rev07172012.doc EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), ATTHEIR SOLE EXPENSE, SHALL FOR THE TERM OFTHECONTRACTOBTAIN 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' MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALLDAMAGES $1,000,000 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 ENTlRETERM 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 LlABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADD1TlONAL INSUREDS CITY) ]TS 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. 18 Professional Services Rev June 2, 2010 C: \U sel's\brobinson\App Data\Local\Microsoft\ Windows\ T emporaty Intemet FiJes\Content. Outiook\NLXBKAJ V\C 12146667 FINAL doc Rev07172012.doc 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 I. 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 19 Professional Services Rev June 2, 2010 C;\U sers\brobinson \AppData\Local\Microsoft\ W indows\ T emponlly Internet F iles\Content. Outlook\NLXBKAJV\C 12146667 FINAL doc Rev071720 12.doc 1 of 4 Revision July 20, 2016 AMENDMENT NO. 4 TO CONTRACT NO. C12146667 BETWEEN THE CITY OF PALO ALTO AND VAN SCOYOC ASSOCIATES, INC. This Amendment No. 4 to Contract No. C12146667 (“Contract”) is entered into August 15, 2016, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and VAN SCOYOC ASSOCIATES, INC., a District of Columbia Corporation, located at 101 Constitution Avenue, NW, Suite 600 West, Washington, D.C. 20001 (PH) 202-638-1950,("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of for the provision of Federal Legislative Representation. B. CITY intends to extend the term and increase the compensation from $404,000.00 by $202,000.00 to $606,000.00 for the continuation of services as specified in Exhibit “A” Scope of Services. C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 TERM is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through July 31, 2018 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 COMPENSATION is hereby amended to read as follows: “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 One Thousand Dollars ($101,000.00). per year. Total Compensation shall not exceed Six Hundred and Six Thousand Dollars ($606,000.00). 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 “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. DocuSign Envelope ID: 36A7CF0D-8F67-42A8-AE13-18B701023D55DocuSign Envelope ID: 394AA859-AEB6-448C-8EA1-3A183A016AE2 2 of 4 Revision July 20, 2016 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 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “C” entitled “COMPENSATION”. b. Exhibit “C1” entitled “RATE SCHEDULE”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: VAN SCOYOC ASSOCIATES, INC. Attachments: EXHIBIT "C": COMPENSATION EXHIBIT "C1": RATE SCHEDULE DocuSign Envelope ID: 36A7CF0D-8F67-42A8-AE13-18B701023D55 Stewart Van Scoyoc President Corporate Secretary Janet Buckley DocuSign Envelope ID: 394AA859-AEB6-448C-8EA1-3A183A016AE2 Albert S Yang Senior Deputy City Attorney James Keene City Manager 3 of 4 Revision July 20, 2016 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the 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: 36A7CF0D-8F67-42A8-AE13-18B701023D55DocuSign Envelope ID: 394AA859-AEB6-448C-8EA1-3A183A016AE2 4 of 4 Revision July 20, 2016 EXHIBIT “C-1” SCHEDULE OF RATES Monthly Flat Fee Retainer (To be invoiced Monthly) $8,000.00 Reimbursable expenses shall not exceed $5,000.00 per year. DocuSign Envelope ID: 36A7CF0D-8F67-42A8-AE13-18B701023D55DocuSign Envelope ID: 394AA859-AEB6-448C-8EA1-3A183A016AE2 Certificate Of Completion Envelope Id: 36A7CF0D8F6742A8AE1318B701023D55 Status: Completed Subject: Please DocuSign: C12146667 Van Scoyoc Associates Contract Amendment No. 4.doc Source Envelope: Document Pages: 4 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Christopher Anastole AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 7/27/2016 9:24:35 AM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Stewart Van Scoyoc stu@vsadc.com President Security Level: Email, Account Authentication (None)Using IP Address: 64.125.172.98 Sent: 7/27/2016 9:29:34 AM Viewed: 7/27/2016 10:30:54 AM Signed: 7/27/2016 11:44:28 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Janet Buckley jbuckley@vsadc.com Corporate Secretary Security Level: Email, Account Authentication (None)Using IP Address: 38.122.2.10 Sent: 7/27/2016 11:44:29 AM Viewed: 7/27/2016 11:46:50 AM Signed: 7/27/2016 11:51:16 AM 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 Judy Ng Judy.Ng@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 7/27/2016 11:51:16 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: DocuSign Envelope ID: 394AA859-AEB6-448C-8EA1-3A183A016AE2 Carbon Copy Events Status Timestamp Khashayar Alaee Khashayar.Alaee@CityofPaloAlto.org Sr. Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 7/27/2016 11:51:17 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/27/2016 11:51:17 AM Certified Delivered Security Checked 7/27/2016 11:51:17 AM Signing Complete Security Checked 7/27/2016 11:51:17 AM Completed Security Checked 7/27/2016 11:51:17 AM DocuSign Envelope ID: 394AA859-AEB6-448C-8EA1-3A183A016AE2 AMENDMENT NO. 5 TO CONTRACT NO. C12146667 BETWEEN THE CITY OF PALO ALTO AND VAN SCOYOC ASSOCIATES, INC. This Amendment No. 5 to Contract No. C12146667 (“Contract”) is entered into August 14, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and VAN SCOYOC ASSOCIATES, INC., a District of Columbia Corporation, located at 1201 Maryland Avenue, SW Suite 880, Washington, D.C. 20024 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of Federal Legislative Representation. B. CITY intends to reduce the term and decrease the compensation from $606,000.00 by $56,000.00 to not-to-exceed $550,000.00 for the continuation of services as specified in Exhibit “A” Scope of Services. C. The parties wish to amend the Contract as previously amended. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 TERM is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2017 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 COMPENSATION is hereby amended to read as follows: “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 Fifty Thousand Dollars ($550,000.00). 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 “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”.” DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “C” entitled “COMPENSATION”. b. Exhibit “C-1” entitled “RATE SCHEDULE”. c. Exhibit “E” entitled “POLICY AND PROCEDURES 1-02/ASD” SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: VAN SCOYOC ASSOCIATES, INC. Attachments: EXHIBIT "C": COMPENSATION EXHIBIT "C-1": RATE SCHEDULE EXHIBIT “E”: POLICY AND PROCEDURES 1-02/ASD DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 President Stewart Van Scoyoc Janet Buckley Corporate Secretary 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 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. 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, per EXHIBIT “E” POLICY AND PROCEDURES 1-02/ASD, with the references to Palo Alto or the City’s offices being changed to Washington D.C. or the Consultant’s Offices. 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, including travel and meals, 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: F259C423-B91A-4811-B67F-79FDFF7E4734 EXHIBIT “C-1” RATE SCHEDULE Monthly Flat Fee Retainer (To be invoiced Monthly) $8,000.00 Reimbursable expenses shall not exceed $5,000.00 per year, or pro-rated for partial years (To be invoiced Monthly) DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 EXHIBIT "E" POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 PURPOSE The purpose of this policy is to provide procedures for the authorization of travel and payment of travel expenses for City employees attending conferences, training, and meetings. The policy will ensure that all travel related expenses are reasonable and necessary for the conduct of City business. For the purposes of this policy, City employees shall mean all full-time or part- time exempt and non-exempt employees. Temporary or contract employees must receive express authorization in advance from the Assistant City Manager or designee for all travel related expenses. Any exceptions to this policy must be approved by the Department Head and the Assistant City Manager or designee. PROCEDURE Extended Travel Authorization for Travel Prior to the commitment or expenditure of any City funds for extended travel (requiring an overnight stay or airfare), the employee shall obtain approval for the event from a Department Head or Council Appointed Officer (CAO). This authority cannot be delegated. The authorization for out-of-state extended travel must also be approved by the Assistant City Manager or designee. No individual may authorize his/her own travel. Department Head travel shall be approved by the City Manager or designee and CAO travel shall be approved by the Assistant City Manager or designee. A Pre-Travel Authorization form shall be used to request approval and to document an estimate of total expenses (i.e., registration fees, lodging, transportation, and meals). A copy of the official event brochure and/or agenda of the event that describes the schedule of sessions, provided transportation and meals, and other amenities of the event must be attached to the form. IRS per diem rates shall be used for calculating estimated meal expenditures. DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 The Pre-Travel Authorization form includes boxes that must be checked by the employee and verified by the Department Head, CAO, Assistant City Manager or designee, or City Manager or designee to indicate that: Government rates have been requested for hotel and registration Employee agrees to submit a Travel Expense Report within 30 days after return from the trip Professional Development will be used to reimburse employee for the travel or training (if applicable) Department Head/CAO/Assistant City Manager/City Manager approval indicates that: Government rates for hotel and registration have been verified The request complies with the City’s Travel Policy and Procedures Applicability of using Professional Development funds has been determined The original approved Pre-Travel Authorization form, along with the official event brochure and/or agenda of the event, should be maintained by the department and submitted with the Travel Expense Report at the appropriate time. 2) Travel Arrangements Departments are encouraged to make travel arrangements (registration fees, lodging reservations, air transportation, and rental cars) on the Internet, utilizing a procurement card for payment. A copy of the approved Pre- Travel Authorization form should be attached to the monthly procurement card activity log. 3) Reimbursable Travel Expenses Registration Fee Registration fees for those expenses indicated in the published event materials. Government rates and/or any discounts offered for early registration should be obtained whenever possible. Lodging Expense Travelers shall select single occupancy, standard, non-deluxe accommodations and should stay at hotels offering economical DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 lodging rates. Travelers attending a conference or seminar are encouraged to stay at conference hotels, which offer a negotiated conference rate. When making reservations, travelers should request government rates, if available. Traveling employees should carry their City identification cards. The City shall not reimburse any cost related to the extension of a hotel stay beyond the time necessary to complete the event. An out- of-state trip involving cross-country travel may require hotel accommodations both before and after the conference or training. Within California or adjoining states an extra night’s hotel stay should not be necessary if flight arrangements can be made the same day. The use of hotels is restricted to cities located beyond 50 miles (one- way) from the City of Palo Alto or the traveler’s residence (whichever is shortest). For example, if the destination is Sacramento and you live in Palo Alto (118 miles) or Oakland (81 miles), you would qualify for a hotel. However, if you live in Vacaville (35 miles) or Lodi (36 miles) you would not qualify for a hotel. Transportation Air Transportation Travelers shall fly economy coach class on the lowest cost flight available for the most direct route to the final destination, which could reasonably include scheduled layovers. Travelers are encouraged to make air reservations as early as feasible to obtain the greatest discount and to consider the use of alternate but nearby airports to take advantage of the lowest fares. Extension of the trip to cover a weekend stay to obtain a lower airfare does not entitle the traveler to be reimbursed for the extra day's hotel costs or meal expenses. Travelers may use City travel to qualify for frequent flyer credits, but the selection of an airline for a given trip shall not be made for the purpose of accumulating such credits. Travelers that choose to use their personal frequent flyer miles for City business shall not be reimbursed for the value of the tickets. If the airline charges for all checked baggage, the City will cover the cost for one checked bag only. Excess baggage charges are not reimbursable. DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 Rental Cars Rental cars shall only be approved, if other ground transportation, such as shuttles or taxis, is more expensive during the stay at the destination. Only economy or compact car models may be rented, unless the upgrade is provided by the rental agency at no cost. Rental car options such as GPS devices are not reimbursable. Because the City is self-insured, employees should decline any additional insurance offered by the rental company. Employees must also decline any Fuel Purchase Options (which allow for prepayment of a gas tank refill) and shall refuel prior to returning the rental car, if additional charges apply for refueling. Use of a rental car, in lieu of a private auto, to travel to and from an out-of-town event will be reimbursed either at the current IRS mileage rate or the car rental cost apportioned for the number of days used for City business, whichever is less. Private Automobiles Employees may use private automobiles for personal or group transportation on extended trips. Reimbursement shall be made at the current IRS mileage rate. The distance to be reimbursed shall be measured from the place of work and from the employee’s home, and the calculated mileage reimbursement shall be based upon which of the two distances is shorter. Mileage reimbursement shall not exceed the cost of refundable round trip air transportation (economy class) for a reservation made at least seven days in advance of the trip. City Pool Cars City pool cars normally may not be used for transportation on extended trips. Requests for use of City vehicles for this purpose should be directed to the Fleet Manager, Equipment Management Division, Public Works. For use of vehicles assigned to specific divisions and/or individuals, refer to Vehicle Use Policy and Procedures 4-1. Meals Effective April 27, 2015, the City will provide a per diem (“per day”) allowance for meals and incidentals to employees who travel overnight for official City business. Travelers will receive a flat rate for meals and will not be required to submit receipts. If travelers use a P-Card to pay for meals, it negates the per diem. DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 The per diem rate varies and is dependent on the destination of travel. The rates for the various travel destinations are available on the U.S. General Services Administration website (http://www.gsa.gov/portal/content/104877) (these amounts are subject to change every year). Each city has a dollar value for the full day depending on the relative cost of meals in that jurisdiction. When meals are provided as part of the cost of an event, that meal will be deducted from the full day per diem rate. Travelers will receive 75% of the full day per diem amount for days requiring transportation to and from the location (i.e. departure day and return day) regardless of departure and arrival times. Meals provided on days of travel shall be deducted at full-value. Travelers are required to look up the per diem rates as part of the pre-approval authorization process. Incidental Expenses Incidental expenses related to City business shall be reimbursed at cost as supported by submitted receipts. Incidental expenses may include hotel parking charges, Internet connection services, and telephone charges. The actual costs for parking will be reimbursed when approval to use a personal vehicle or rental car is obtained in advance. Travelers should use the lowest cost alternative for parking within a reasonable area from the destination. Internet connection services purchased to conduct City business are reimbursable. Employees will be reimbursed for telephone calls to City of Palo Alto offices. The hotel bill should indicate any calls that are of a business nature. Reimbursement for calls home is limited to one call per day of reasonable length. Other charges on the hotel bill, such as pay-TV movies, cleaning, laundry, room service charges (additional over cost of meal) or charges for additional guests are not reimbursable. Travel Expense Report Within thirty business days after the employee's return from the trip, a Travel Expense Report must be filed with the Accounting Division of ASD. Employees are encouraged to complete the Travel Expense Report electronically in Excel. Employees shall print and sign the Travel Expense Report. When signing the Travel Expense Report, the employee certifies that the expenses listed on the Report were incurred in conformance with DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 the Travel Policy and that the “amount due the employee” has not been received from any other source. The original Pre-Travel Authorization form must be attached to the Travel Expense Report. The filing of this report is necessary whether or not reimbursement is requested in order to document to the IRS that the travel expenses do not constitute miscellaneous income to the employee. If this report is not filed within the required thirty working days, no future travel requests will be processed for the individual until outstanding travel and expense claims are complete. The Travel Expense Report must account for all expenses, including expenses paid by the procurement card, and all expenses must be supported by itemized original receipts or copies of electronic receipts. For air transportation, the original airline ticket or flight confirmation printout should be attached. It is not sufficient to provide Internet quotes or pre-stay web confirmations for air travel or lodging. For expenses paid with the P- Card, the original receipts must be attached to the P-Card statement and copies of the receipts should be attached to the Travel Expense Report. The Travel Expense Report must be approved by the Department Head/CAO or designee. (Each department/office provides a list of designated approvers to ASD on an annual basis). Department Head travel shall be approved by the City Manager or designee and CAO travel shall be approved by the Assistant City Manager or designee. Department Head/CAO approval is required for any expenses that were not authorized on the Pre-Travel Authorization form. For missing documentation, the traveler shall attach a written explanation detailing the expenditure and reason for the missing receipt, and obtain Department Head approval. If reimbursement is due to the employee, a check will be issued to the employee using the Travel Expense Report (no separate claim voucher is needed). If the reimbursement amount is $150 or less, the employee may request reimbursement via petty cash. Local One-Day Travel Employees shall obtain verbal approval for one-day local travel (not requiring airfare and/or an overnight stay) from his/her Department Head, Assistant Department Head, Deputy Director, Division Head or designee prior to the traveler’s departure. Designees must be management staff. A Pre-Travel Authorization form is not required for local travel. Typical reimbursable expenses for local travel include mileage, public transportation, parking, bridge tolls, meeting or conference registration fees, DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement Revised: January 28, 2016 and meal expenses. Only expenditures supported by itemized receipts will be reimbursed. Travelers may be reimbursed for meal expenses. Itemized receipts for meals must be maintained. The maximum reimbursement amount for meals shall be: $15.00 for breakfast, $16.00 for lunch, and $28.00 for dinner. Under no circumstances will expenses for alcoholic beverages be reimbursed by the City. Meal reimbursements for local conferences, meetings, or training conducted between the hours of 8 a.m. and 5 p.m., will be limited to lunch. When meals are provided as part of the cost of an event, travelers will not be reimbursed for the actual expenses of these meals. Local travel meal expenses that do not meet the IRS definition of “business related” will be considered taxable income and added to the employee’s W-2. For a meal to be considered non-taxable, it must be “directly related” and “associated with” the active conduct of City business. To meet this definition, business must be conducted during the meal period. Meal expenses associated with training do not meet the IRS definition of a business related meal. Such meals will be considered taxable income and added to the employee’s W-2. For all meal expense reimbursements, the form should include an explanation of why the meal was necessary for the conduct of City business. Night Meeting Meals Meals taken by management employees assigned to attend night meetings will be reimbursed for actual dinner expenses up to $20. Itemized receipts for meals must be maintained. Reimbursement should be requested on a Citywide Petty Cash Reimbursement form. To obtain the form, refer to the City’s Petty Cash Policy. The Petty Cash Reimbursement form must be accompanied by the meeting agenda. Night meeting meal reimbursements are considered taxable income and will be added to the employee’s W-2. SEIU Overtime Meals Meals taken by SEIU employees working emergency and non-emergency overtime will be reimbursed in accordance with the contract between the City and SEIU, currently in the amount of $10 for breakfast, $15 for lunch, and $20 for dinner. No receipts are required. Reimbursement should be requested on a Citywide Petty Cash Reimbursement form. DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 Revision July 20, 2016 Reimbursement for Personal Vehicle Use on City Business City pool cars, assigned vehicles or public transportation should be used for trips between City facilities, to local meetings/training, or other events outside the City limits but within the Bay Area whenever possible. If a city vehicle or public transportation is not available or feasible, personal cars may be used and mileage will be reimbursed at the prevailing IRS rate for the distance between the employee’s home and the destination or work and the destination, whichever is less. Mileage reimbursement requests shall include the number of miles driven, the employee address, and the purpose of the trip. Reimbursement requests that cover more than one date will be accepted on one form if the trips are for the same purpose or meeting. Recipients of an automobile expense allowance may not receive personal vehicle mileage reimbursement, except in the case of business travel beyond the Bay Area counties of Santa Clara, Alameda, Contra Costa, Solano, Napa, Marin, San Francisco, San Mateo and Sonoma. In addition, CAO’s and Department Heads who receive an automobile expense allowance in lieu of exclusive use of a City automobile may not use City pool cars for business use except on an emergency basis, which is documented by memo to the City Manager. NOTE: Questions and/or clarification of this policy should be directed to the Administrative Services Department. DocuSign Envelope ID: F259C423-B91A-4811-B67F-79FDFF7E4734 Certificate Of Completion Envelope Id: F259C423B91A4811B67F79FDFF7E4734 Status: Completed Subject: Please DocuSign: C12146667 Van Scoyoc Associates Contract Amendment No. 5.pdf Source Envelope: Document Pages: 12 Signatures: 2 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Christopher Anastole Certificate Pages: 2 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 7/11/2017 7:46:09 AM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Stewart Van Scoyoc stu@vsadc.com President Security Level: Email, Account Authentication (None)Using IP Address: 168.235.188.18 Sent: 7/11/2017 7:58:39 AM Viewed: 7/11/2017 8:09:04 AM Signed: 7/11/2017 8:09:43 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Janet Buckley jbuckley@vsadc.com Corporate Secretary Security Level: Email, Account Authentication (None)Using IP Address: 168.235.188.18 Sent: 7/11/2017 8:09:44 AM Viewed: 7/11/2017 8:10:17 AM Signed: 7/11/2017 8:10:31 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cash Alaee Khashayar.Alaee@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 7/11/2017 8:10:32 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Heather Dauler Heather.Dauler@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 7/11/2017 8:10:32 AM Viewed: 7/11/2017 10:47:21 AM Carbon Copy Events Status Timestamp Electronic Record and Signature Disclosure: Not Offered via DocuSign Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/11/2017 8:10:33 AM Certified Delivered Security Checked 7/11/2017 8:10:33 AM Signing Complete Security Checked 7/11/2017 8:10:33 AM Completed Security Checked 7/11/2017 8:10:33 AM Payment Events Status Timestamps City of Palo Alto (ID # 8314) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Request for Approval to Purchase Self-Contained Breathing Apparatus (SCBA) Title: Approval of a Contract With Bauer Compressors in the Amount of $697,519 for the Purchase of Fire Fighting Self-Contained Breathing Apparatus, Face Masks, Air Cylinders, Maintenance and Support Equipment, and Authorize the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $102,481 From: City Manager Lead Department: Fire Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to make purchases from the attached quote with Bauer Compressors in an amount not-to-exceed $697,519 in total purchase orders for the acquisition of Self-Contained- Breathing-Apparatus (SCBA), face masks, air cylinders, and maintenance and support equipment manufactured by Mine Safety Appliance, Co. (MSA) as part of the Capital Improvement Program project FD-18000; and 2. Authorize the City Manager or his designee to negotiate and approve one or more revisions to quote from Bauer Compressors for related, additional but unforeseen work or equipment that may develop during the project, the total value of which shall not exceed $102,481 in total purchase orders. Background The Fire Department’s SCBAs have reached the end of their useful service life. SCBAs provide respiratory protection to firefighters operating in dangerous atmospheres. SCBAs are essential safety equipment that allow firefighters to enter immediately dangerous to life or health (IDLH) environments, and SCBAs are required to conduct rescue, firefighting, and hazardous materials mitigation operations. Federal and State Occupational Safety and Health Agencies (OSHA) strictly mandate SCBA use and the Fire Department must comply with these regulations. Firefighter health and safety are paramount, as is the ability to effectively serve the community. City of Palo Alto Page 2 On June 27, 2017, Council approved Capital Improvement Project FD-18000 in the amount of $800,000 to replace the SCBAs for the Fire Department. Discussion The Fire Department inventory of SCBAs are between nine (9) and twenty (20) years old, have become costly to maintain and repair, and the safety technology is outdated. Industry standards recommend a 10-year replacement cycle due to safety and technology advances as well as the exposure to hazardous environments. The United States Department of Labor, Occupational Safety and Health Standards require that the City provide firefighters with personal protective equipment to include respiratory protection (Standards – 29 CFR 1910.134). California Occupational Safety and Health Administration (Cal OSHA) standards augment those developed by Federal OSHA. Cal OSHA Title 8 Regulations mandate respiratory protection using SCBAs (Title 8, Subchapter 7, Group 16, Article 107, Subsection 5144 – Respiratory Protection). Many of the standards were developed as a direct result of workplace accidents resulting in injury or death. In addition to the OSHA requirements, the National Fire Protection Association (NFPA) sets technical standards for SCBAs. NFPA Standards ensure that current respiratory protection and safety technology is incorporated into an important component of firefighter personal protective equipment (PPE). The two standards that apply to SCBAs are NFPA 1981: Standards on Open Circuit Self-Contained Breathing Apparatus for Emergency Services, and NFPA 1982: Selection, Care and Maintenance of Open Circuit Self Contained Breathing Apparatus. The NFPA recommends that SCBAs be replaced every 10 years. The goals for compliance and standards are: Firefighter safety Professional performance to recognized standards Reduced exposure to liability. In anticipation of the SCBA replacement, the Fire Department, in conjunction with regional fire agencies, conducted extensive field testing of models from three different manufacturers. These included Scott Safety, Interspiro, and MSA. The MSA SCBAs were rated as the most suitable for the Fire Department through a series of objective tests. The MSA SCBA is designed to the current NFPA standards. Of importance, the recommended SCBA includes an advanced safety feature which allows firefighters to see through smoke. Known as an integrated thermal imagining camera (TIC), this makes the MSA unique compared to the other tested models. A summary of MSA’s proprietary features that supported this recommendation are included in Attachment A. City of Palo Alto Page 3 Bauer Compressors is the sole distributor of MSA SCBAs in California (Attachment B). The Fire and Purchasing Departments have reviewed the quote to ensure a competitive price and compliance with City Policies. To maintain firefighter safety and standardization, all of the equipment is recommended to be replaced at once. Each firefighter is issued a mask that is uniquely sized and fitted to their face. This face mask is a part of the Department-issued PPE and each mask must fit with the harness assembly. The face mask is not universal and must be paired with the appropriate SCBA. Using SCBAs from different manufacturers would be confusing for firefighters, expensive and cumbersome. To support fire service regionalization in Santa Clara County, the Fire Department “dropped borders” with the Mountain View Fire Department essentially creating a single response force for all service calls within the Cities of Palo Alto and Mountain View as well as Stanford University. When providing firefighting or technical rescue services that require the use of an SCBA, the safety benefits of the same model are immeasurable. Both agencies are purchasing the MSA SCBA which creates a group purchase resulting in lower costs. This standardized SCBA will provide both departments the ability to deliver seamless services and would support opportunities to join resources for training, repairs, maintenance, and annual OSHA testing. Resource Impact Funding for the replacement of SCBA’s in the amount of $800,000 is included in the Fiscal Year 2018 Capital Improvement Plan project FD-18000, adopted by Council on June 27, 2017. The cost of outfitting the Fire Department with new SCBAs is $697,519 (Attachment C). There is a $102,481 contingency for any changes or additions to the quoted equipment purchase. Staff will acquire the equipmented through individual purchase orders that in total will not exceed $697,519 and the contingency amount of $102,481. As part of ongoing contract negotiations, Staff anticipates that Stanford will contribute 23% of the total cost, or approximately $160,429, plus any change orders. Policy Implications There are no impacts or changes to City Policy. Timeline The purchase of the SCBA assemblies will happen as soon as possible after Council approval. The plan is to have all equipment on site by January 2018 and in service by February 2018. City of Palo Alto Page 4 Environmental Review This project is not subject to CEQA pursuant to Title 14 California Code of Regulations Section 15061(b)(3). Attachments: Attachment A: Justification for MSA G1 Attachment B: Bauer-Palo Alto FD-Santa Clara FD-7-7-17 Attachment C: Palo Alto FD-2017-Q3-1-G1 SCBA Justification for the purchase of the MSA G1 Self-Contained Breathing Apparatus (SCBA) There are several safety features on the MSA G1 SCBA that are proprietary and innovative. These features do not exist on the brands of other SCBA’s and are the reasons why the PAFD has selected this particular SCBA over any other brand. 1) Yellow LED’s that signal 50% air volume. At 50% air, OSHA recommends that a firefighter exit the hazardous area to ensure that they have enough breathable air to exit the structure. On the MSA G1, two flashing yellow lights appear in the face piece indicating 50% air and alerting the firefighter that it is time to exit the structure. In addition, four (4) Buddy Lights on the back of the SCBA, the PASS Console and the top button on the user’s regulator also turn to yellow to alert nearby firefighters that the user is at 50% air. This feature increases situational awareness on the fireground. 2) Universal Air Connection (UAC) with auto illumination. The MSA G1 is also the only SCBA with Auto Illumination of the UAC. At the same time that the low air warning activates, the SCBA sounds its primary end of service time indicator (a bell). When the bell activates, a white light automatically shines on the user’s UAC fitting. This greatly enhances firefighter safety by allowing the Rapid Intervention Team (RIT) to see where they need to connect emergency air. 3) Thermal Imaging Camera built into the SCBA PASS Console. A Thermal Imaging Camera (TIC) was adopted by the fire service to enhance rescue and suppression capabilities by allowing firefighters to see into spaces that might otherwise be invisible due to heavy smoke. Fire and people can be identified and accessed much sooner because of this technology. The MSA G1 is the only SCBA in the fire service that provides a thermal imaging sensor integrated in the user’s SCBA Personal Alert Safety System (PASS). This technology allows the user to switch from reading their cylinder pressure to seeing a thermal image on their LCD screen. This reduces the amount of gear carried by the fire fighter and provides each member self-rescue technology in the event they become lost or disoriented in a structure fire. 4) 100 percent electronic free face piece. Utilizing proprietary technology, the G1 SCBA offers an in mask display, voice amplification, and thermal imaging without mounting electronics onto the fire fighter’s face piece. This greatly diminishes the profile on the mask, which in turn, reduces the chance for it to snag or be dislodged while in use. In addition, it lessens the weight carried on the fire fighter’s face, decreasing the chance for head and neck injury. In addition to these valuable safety features, the MSA G1 also offers the only SCBA with a Rechargeable Battery. The MSA G1 operates on the industry’s only rechargeable and environmentally friendly power supply. Not only does this battery eliminate the use of alkaline batteries that would be discarded into landfills, it greatly reduces the cost of purchasing alkaline batteries over the life of the battery. These are the features that have convinced us to purchase the MSA G1 SCBA. July 7, 2017 Deputy Fire Chief Catherine Capriles Palo Alto Fire Department 250 Hamilton Ave Palo Alto, CA 94301 Dear Deputy Chief Capriles: Thank you, Palo Alto Fire Department for your interest in the MSA product line. This letter confirms that Bauer Compressors is the only MSA distributor for the Municipal Fire Service Market for Santa Clara County, California for both the sale and CARE certified authorized service of MSA SCBA and SCBA accessories. By way of background, in the fire service / first responder markets, MSA imposes specific requirements upon our distributors, which can result in a small number of distributors authorized to call upon a particular region. We impose these requirements because the equipment we manufacture and sell requires the involvement of partners with special knowledge, training and experience. Accordingly MSA’s distributors are obligated to acquire and maintain extensive knowledge, training, and experience necessary to properly educate, assist and service our end user customers before, during and after the sale. MSA’s fire service / first responder distributor qualification requirements are likewise intended to ensure the highest possible end user customer experience. If you desire additional information about MSA, its product lines, or channel partners, please do not hesitate to contact me. Thank you for your interest in our products. Sincerely, Scott McGuire North American Sales Channels Specialist Phone: 724-742-8028 Email: scott.mcguire@MSAsafety.com 2 1 G a mm a Quote: Date: July 7, 2017 To:267 East Airway Blvd. Livermore , CA 94551 www.bauersf.com Phone:925 787 3155 Email:Catherine.Capriles@cityofpaloalto.org Qty Part #Description LIST Price Unit Price Line Total 76 G1FS-442MA2C4LER MSA G1 SCBA CONFIGURED: SYSTEM_PRESSURE 4500 PSIG CYLINDER_CONNECTION CGA Quick Connect Remote Con HARNESS Standard wth Chest Strap CRADLE_TYPE Metal Band LUMBAR_TYPE Adjustable Swivel Lumbar Pad REGULATOR_TYPE Solid Cover Left Shd. REGULATOR_HOSE_TYPE Continuous EMERGENCY_BREATHING_SUPPORT Hose & Pouch SPEAKER_MODULE Left Chest PASS PASS Right Shoulder i-TIC BATTERY_TYPE Rechargeable Lithium(HARNESS DOES NOT INCLUDE CYLINDER OR MASK) $9,320.50 $5,270.50 400,558.00$ 148 10175708 Cyl. Assy, G1,RC,4500 psig,45min,LP,Pkgd & Quick Connect Adapter (CUSTOM CYLINDER LOGO & RED COLOR BAND) $1,477.00 $799.00 118,252.00$ 123 10156459 MSA G1 MASK CONFIGURED: APPLICATION F FIRE FACEBLANK_SIZE M MEDIUM FACEBLANK_MATERIAL 1 HYCAR NOSECUP M MEDIUM HEAD_HARNESS 4 4 PT ADJUSTABLE NECK_STRAP 0 NONE REGULATOR_CONNECTION 1 FIXED PUSH TO CONNECT $392.00 $228.28 28,078.44$ 9 10162403 Quick Connect Adapter for Fill Stations $450.00 $267.35 2,406.15$ 1 10144231-SP G1 APR Adapter $113.00 $70.45 70.45$ 6 10158385 Charging Station G1 $624.00 $374.40 2,246.40$ 24 10148741-SP Battery Pack G1 rechargeable $343.00 $205.70 4,936.80$ 5 A-G1FS442MA2C4LAR G1 SCBA (HAZMAT) PASS DIVICE DISABLED* (LESS MASK & CYLINDER)$7,620.50 $4,439.00 22,195.00$ 14 10175710 Cyl. Assy, G1,RC,4500 psig,60 min,LP,Pkgd & Quick Connect Adapter (2-RIT, 10-HAZMAT, 2- AIRCART) CUSTOM CYLINDER LOGO & RED COLOR BAND) $1,816.00 $998.12 13,973.68$ 75 10083875 Key Tag, G1, Motorola APX Radio $38.00 $23.69 1,776.75$ 2 10158407 Tag Reader Writer, G1 $624.00 $389.08 778.16$ 1 10164448 Deluxe G1 Tool Kit $4,794.00 $2,820.00 2,820.00$ 1 10107535 Technical Rescue Cart $6,071.33 $3,997.30 3,997.30$ 9 484225 PVC Airline Hose, 100ft Sections $357.62 $218.78 1,969.02$ 6 631870 CEJN Socket Female Quick-Disconnect $91.00 $55.67 334.02$ 3 479026 CEJN Male Locking Quick-Disconnect $17.89 $10.94 32.82$ 6 479009 CEJN Locking Socket Assembly $141.47 $86.47 518.82$ 1 10100435 Posi Chek Test Software MSA $1,115.00 $655.88 655.88$ 76 N/A Additional 5-year warranty on each i-TIC Thermal Imaging Cameras for G1 SCBA $500.00 $275.00 20,900.00$ 5 N/A MSA SCBA Technicial Class for 5 individuals hosted by Palo Alto FD/ BAUER $850.00 $0.00 -$ 3 A-PCG41DA2P1 PREMAIRE CADET ESCAPE G1: KEVLAR BAG CARRIER, SHOULDER STRAP, 10-MIN CARBON ESCAPE CYLINDER, G1 2ND STAGE, MED G1 MASK, Cejn STEEL AIRLINE FITTING, HARD CASE $2,420.00 $1,676.16 5,028.48$ 2 10169711 G1 RIT PACK 4500 PSI, QUICK FILL HOSE, G1 2ND STAGE, MED MASK $5,158.00 $4,198.54 8,397.08$ Subtotal 639,925.25$ 9.00%$57,593.27 Shipping and Handling $0.00 Total 697,518.52$ Palo Alto Fire Department Chief Catherine Capriles Note: Prices do not include shipping/handling charges or sales tax unless specified. Quotation prices are valid for 60 days. Call 925-449-7210 if past expiration date. Thank you for the opportunity to submit this quotation. If you have any questions please give us a call. Sincerely, Dan Kroetch Phone: +1 (925) 449-7210 Cell: +1 (510) 909-6157 Fax: + 1 (925)-449-7201 City of Palo Alto (ID # 8322) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Extend Term with PCJPB for Shuttle Administration Title: Approval of Amendment Number 3 to the Agreement With the Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Administration to Extend the Term of the Agreement for one Year and to Provide an additional $128,200 for Community Shuttle Service on the Existing Embarcadero Shuttle Route From July 2017 Until June 2018 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council authorize the City Manager to execute the attached amendment (Amendment 3) to the Rail Shuttle Bus Administration Agreement with the Peninsula Corridor Joint Powers Board (JPB), extending the term of the agreement through June 30, 2018 and adding $128,200 to cover the City’s Embarcadero shuttle route operating costs during the period July 1, 2017 through June 30, 2018. Executive Summary The City and the JPB have an agreement under which the JPB provides the Embarcadero shuttle service, which is partially funded by the JPB and partially funded by the City. The proposed amendment to the agreement provides for continued service in the current fiscal year, with the City paying 56% of the total cost of operating the shuttle. Funds have been budgeted in Fiscal Year (FY) 2018 for this purpose. Background In 1999, the City and JPB entered into the Rail Shuttle Bus Service Administration agreement for the provision of shuttle services in Palo Alto, as part of the JPB rail shuttle bus program. In 2014, JPB staff updated and standardized the original Rail Shuttle Bus Service Administration Agreement from 1999 and a new base agreement was executed on August 18, 2014. The City of Palo Alto Page 2 agreement provides that the agencies may extend the term of the agreement upon mutual consent. The JPB agreement contains terms and conditions for the Embarcadero route, which is part of the rail shuttle program and subsidized by the JPB. While the Embarcadero route is considered part of the Palo Alto free shuttle program and is partially funded by the City, the service is provided by an operator under contract to the JPB, and the JPB funds a portion of the service. The Embarcadero route is one of two Palo Alto free shuttle routes. The other route is the Crosstown Route operated by MV Transportation. In May 2017, the City Council approved a two year contract extension with MV Transportation to provide service for Crosstown route. The Crosstown route is funded exclusively by City. Discussion The third amendment to the agreement (Attachment A), provides for continued shuttle services for the Embarcadero route from July 1, 2017 through June 30, 2018. Staff was not able to agendize this item for Council approval prior to the end of the fiscal year; however, JPB has continued to provide uninterrupted shuttle service on the Embarcadero route during the interim until the contract extension is approved by the City. The cost of operating the Embarcadero route for twelve months from July 1, 2017 through June 30, 2018 is estimated to be $228,800. The JPB's maximum contribution during this term of the Agreement will be $100,600, which is 44% of the estimated total operating costs for the route, as determined by the JPB. The agreement with the JPB stipulates that the City will reimburse the JPB for 56% of the total actual costs of operating the Shuttle Service, which is estimated to be $128,200, subject to a final adjustment. Last year, JPB’s financial contribution was 46.5% and City’s financial share was 53.5% of the total operating costs of the route. However, in 2015, the Embarcadero route received a subsidy of $53,000 from the Bay Area Air Quality Management District (BAAQMD) thus the City only was required to contribute 32.5% of the funding. In 2016, the Embarcadero route did not qualify for this grant funding. This is primarily the result of emission reduction projections generated from rider survey travel information. With no other grant opportunities available, JPB is requested that the City increase its contribution. For July 2016- March 2017, estimated ridership on Embarcadero Shuttle is 38,699. In this timeframe the cost per ride was $4.71. City of Palo Alto Page 3 Approval of this contract amendment would continue the operation of the Embarcadero Shuttle Route for the remainder of Fiscal Year 2018. Policy Implications This request is consistent with prior Council direction to continue and expand the Palo Alto shuttle and with policies in the Comprehensive Plan regarding reducing congestion and increasing the use of alternatives to the private automobile. Resource Impact Staff anticipated an increase in the cost of this shuttle service for Fiscal Year 2018 and budgeted accordingly. There is sufficient Shuttle Budget in the Fiscal Year 2018 Adopted Operating Budget to cover this expense and the current costs of the Crosstown Shuttle. No additional resources are required. The execution of this agreement with the JPB has no impact on the contract with MV Transportation. Environmental Review On August 2, 1999, the City Council approved a Negative Declaration finding the shuttle project would not result in any significant environmental impact. Funding continuation of an existing service is also categorically exempt from review pursuant to Section 15301 (Class One, Existing Facilities) of the State CEQA Guidelines. Attachments: Attachment A - Caltrain Joint Powers Board Agreement Amendment No 3 (PDF) City of Palo Alto (ID # 8327) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Resolution of Local Support for OBAG 2 Grant Title: Adoption of a Resolution of Local Support for Grant Funding as Required by the Metropolitan Transportation Commission (MTC) for the One Bay Area Grant Program (OBAG) Cycle Two and Vehicle Emissions Reductions Based at Schools (VERBS) Funding Programs From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council adopt the attached resolution (Attachment A) to authorize the Santa Clara Valley Transit Authority (VTA) to submit an application for the El Camino Real Pedestrian Safety and Streetscape Project (PL-18000), the Street Resurfacing Project (PE- 86070), and Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project (PL-04010) to the Metropolitan Transportation Commission (MTC) and to commit local funding for the projects. Executive Summary The Metropolitan Transportation Commission (MTC) requires that all project sponsors who have been awarded grant funds adopt a Resolution of Local Support to provide assurance that the projects will be completed and local matching funds will be provided, as necessary. MTC is expected to award the City of Palo Alto $5,664,000 in One Bay Area Grant Program (OBAG) Cycle Two funding and $919,354 in Vehicle Emissions Reductions Based at Schools (VERBS) funding. For OBAG, the City was approved for $1,009,000 in guaranteed funding for Street Resurfacing and $4,655,000 in competitive funding for the El Camino Real Pedestrian Safety and Streetscape Project. The Street Resurfacing Program Improvements will include street resurfacing; replacement of curb, gutter, and sidewalk; and upgrading curb ramps. The City of City of Palo Alto Page 2 Palo Alto will provide $140,000 in matching funds. The El Camino Real Pedestrian Safety and Streetscape Project will include curb extensions, median refuges, pedestrian hybrid beacons, median shade trees, and pedestrian scale lighting on the segment of El Camino Real between Stanford Avenue and Sheridan Avenue. The City of Palo Alto will allocate $645,000 in local match funding for this project. For VERBS, the City is expected to be approved for $919,354 for the Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project. The project will make upgrades to and widen Waverley Path, install a protected bicycle facility on East Meadow, and reconfigure Fabian Way with a travel lane reduction to add protected bicycle facilities. The City of Palo Alto will allocate $200,000 in local match funding for this project. Background The City is seeking and has been tentatively awarded funding from two different regional transportation grant programs as described below. One Bay Area Grant (OBAG) Cycle 2 The VTA released a call-for-projects for the OBAG Cycle 2 program on May 9, 2016, with project proposals due July 15, 2016. The OBAG program includes two elements, a Countywide Guaranteed Fund element and a Competitive Complete Streets element. In response to the Countywide Guaranteed Fund element, the City submitted a grant proposal for the Street Resurfacing project. Palo Alto’s share in the Guaranteed Fund is $1,009,000. In response to the Complete Streets Competitive Program, the City submitted two grant proposals. Of the two project submittals, the El Camino Real Pedestrian Safety and Streetscape project ranked high in the OBAG Program scoring process and was awarded $4,655,000 in OBAG funding. The second submitted proposal was for the California Avenue District Bike Station. Because the proposal did not meet the grant score cutoff, it was not awarded any funding from the OBAG program. The VTA Board of Directors approved the El Camino Real Pedestrian Safety and Streetscape project and Street Resurfacing project on January 5, 2017 and has made a recommendation to MTC for Federal grant funding of the projects. Vehicle Emissions Reductions Based at Schools (VERBS) VTA released a call-for-projects for the VERBS Grant program on April 7, 2017, with project proposals due May 1, 2017. In response to the VERBS Grant program, the City submitted a grant proposal for the Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project and was awarded $919,354 in VERBS funding. The VTA Board of Directors is expected to approve the Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project on August 1, 2017 and make a recommendation to MTC for Federal grant funding of the project thereafter. City of Palo Alto Page 3 Discussion The proposed resolution authorizes filing of the El Camino Real Pedestrian Safety and Streetscape Project and the Street Resurfacing Project for the OBAG Program and filing of the Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project for the VERBS Grant Program managed by the Metropolitan Transportation Commission (MTC) with Federal funding from the Congestion Mitigation and Air Quality Improvement (CMAQ) program and/or Surface Transportation Program (STP). Street Resurfacing The Public Works Engineering Services Division manages construction contracts for concrete repair, preventive maintenance, resurfacing and reconstruction of various city streets on an annual basis. The candidate streets are surveyed biannually by Public Works Engineering Services staff and then rated by a computerized pavement maintenance management system (PMMS). Since 2011, the average Pavement Condition Index (PCI) score has increased from 72 to 83 due to additional project budget and aggressively seeking grant funding. Staff expects to achieve a citywide average PCI of 85 by 2019. The OBAG Cycle 2 guaranteed funding will be used in the FY 2019 Street Resurfacing Program. Improvements may include street resurfacing; replacement of curb, gutter, and sidewalk; and upgrading curb ramps in compliance with the American with Disabilities Act requirements. Streets will be selected based on condition of the road surface and utility coordination. Public Works and Utilities Department staff meet monthly to review and coordinate upcoming projects. Some streets planned for maintenance using these OBAG funds in FY 2019 include: Arastradero Road, Channing Avenue and Waverley Street. El Camino Real Pedestrian Safety and Streetscape Project The El Camino Real Pedestrian Safety and Streetscape Project will install complete streets improvements focused on pedestrian safety at controlled and uncontrolled crosswalks, enhanced bus operations at two existing major transit stops, and new urban design amenities between Stanford Avenue and Sheridan Avenue. The project includes: curb extensions; median refuges; two pedestrian hybrid beacons at a new and existing uncontrolled crosswalks; median shade trees; pedestrian scale lighting. The proposed project will strengthen pedestrian connections to local schools, transit, jobs, and retail services while providing environmental benefits through increased landscaping and green infrastructure, which will complement the streetscape elements. The El Camino Real Pedestrian and Streetscape project is scheduled to follow the anticipated completion date of the Grand Boulevard Initiative: Creating Safe and Healthy Corridor Communities, a fully funded planning project, scheduled to start summer 2016 and complete winter 2019. This planning project will produce up to 30 percent design documents, which will City of Palo Alto Page 4 serve as the foundation for final design and construction milestones within the streetscape project. The City is scheduled to begin the Environmental Assessment and Preliminary Design for the project in winter 2019 and to begin construction in May 2020. The total project budget is estimated at $5.6 million (includes $0.3 million expected staff costs) and the grant from OBAG program would comprise $4.7 million. Approximately $645,000 in local match funding has been planned for allocation in Fiscal Year 2019 to support the Environmental Assessment and Design phases of the project. Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project The Fabian Way Enhanced Bikeway and the Meadow St/El Camino Way/Los Robles Enhanced Bikeway are identified in the City of Palo Alto’s 2012 Bicycle and Pedestrian Transportation Plan (BPTP) as key projects for the City. The Fabian Way Enhanced Bikeway reconfigures Fabian Way with a travel lane reduction to add protected bicycle facilities. The west end of the Meadow Drive/El Camino Way/Los Robles Bikeway was recently completed by the City, so this proposal requests funding for the installation of a protected facility on the East Meadow segment only. The third corridor, the Waverley Multi-Use Path, is an essential part of the School Commute Corridors Network. This Class 1 path on Palo Alto Unified School District (PAUSD) land was identified for upgrades and widening in the 2010 VERBS-funded Walk and Roll Recommendations Maps for the adjacent schools. Taken together, the three components will provide significant safety improvements for students and families accessing the ten public and private schools serviced by Fabian Way and East Meadow Drive, both challenging corridors for young cyclists. While the bicycle mode share at adjacent schools is relatively high for Santa Clara County, Palo Alto parents note that the current state of bicycle infrastructure (unprotected bike lanes) on these high speed and/or heavily traveled corridors limits growth in the bicycle mode share for school commutes. Parents are unlikely to bike with their children next to multiple lanes of fast-moving traffic (Fabian Way) or in congested school zones (East Meadow Drive) without the protection of buffer zones or physical barriers such as bollards. In fact, in November of 2015, the Palo Alto City Council directed staff to develop a Class 4 separated bikeway on East Meadow, representing an increased measure of design safety than what was envisioned in the 2012 Bicycle and Pedestrian Transportation Plan for this corridor. The total project budget is estimated at $1,119,354 and the grant from VERBS program would comprise $919,354. Approximately $200,000 in local match funding has been allocated to support the Environmental Assessment, Design, and Construction phases of the project. Policy Implications City of Palo Alto Page 5 Adoption of the attached resolution is consistent with City policy documents including the Palo Alto Climate Protection Plan (2007), El Camino Real Master Planning Study Public Review Draft (2007 update), Grand Boulevard Multimodal Transportation Corridor Plan (2010), Palo Alto Bicycle + Pedestrian Transportation Plan (2012), and the City of Palo Alto Complete Streets Resolution (2015). In addition, the Comprehensive Plan goals, policies, and programs that support the development of the El Camino Real Pedestrian Safety and Streetscape Project, the Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project include: 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. Resource Impact Street Resurfacing Matching funds in the amount of $140,000 for the OBAG Cycle 2 guaranteed funding is available in Capital Improvement Program (CIP) Project PE-86070 Street Maintenance. El Camino Real Pedestrian Safety and Streetscape Project City of Palo Alto Page 6 The resolution commits the City of Palo Alto to provide a local match of $645,000, which is included in CIP Project PL-18000, the El Camino Real Pedestrian Safety and Streetscape Project targeted for FY2019 in the Fiscal Year 2018 Adopted Capital Budget. Environmental Design Construction Total Total Cost $10,000 $635,000 $4,655,000 $5,600,000* OBAG 2 Funding $0 $0 $4,655,000 $4,655,000 Local Match $10,000 $635,000 $0 $645,000 *Includes $0.3 million estimated City staff costs to support the project over three years Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project The resolution commits the City of Palo Alto to provide a local match of $200,000 which is included in CIP Project PL-04010, the Bicycle and Pedestrian Transportation Plan Implementation project, targeted for FY19 in the Fiscal Year 2018 Adopted Capital Budget. Environmental Design Construction Total Total Cost $15,000 $118,394 $985,960 $1,119,354 VERBS Funding $0 $0 $919,354 $919,354 Local Match $15,000 $118,394 $66,606 $200,000 Timeline The Street Resurfacing project funded by this grant would be constructed in FY 2019. The El Camino Real Pedestrian Safety and Streetscape Project would be implemented in 2019 and 2020 as follows: Environmental Design Construction Start Date (MM/YY) 03/19 05/19 05/20 The Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project would be implemented in 2019 and 2020 as follows: Environmental Design Construction Start Date (MM/YY) 01/19 07/19 01/20 Environmental Review Street Resurfacing Street resurfacing is categorically exempt from the California Environmental Quality Act (CEQA) City of Palo Alto Page 7 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. El Camino Real Pedestrian Safety and Streetscape The proposed project will be subject to environmental review prior to final design and construction. Since the proposal does not significantly alter the transportation network, it is anticipated this project will be categorically excluded and all proposed improvements are within existing public right of way. Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project The environmental review for portions of this project is included in the Mitigated Negative Declaration for the City of Palo Alto Bicycle + Pedestrian Transportation Plan 2012. The City will initiate CEQA review, as needed for the additional segments. Attachments: Attachment A - Resolution of Local Support OBAG 2 ECR and Street Resurfacing (PDF) Not Yet Approved EP/Planning/2017-7-13 RESO Supporting OBAG 2 Funding Application Resolution No. ___ Resolution of the Council of the City of Palo Alto Supporting Palo Alto’s Application for $5,664,000 of Funding from the Second Round of the One Bay Area Grant Program and $919,000 of Funding from the Vehicle Emissions Reductions Based at Schools Grant Program Adopted by the Metropolitan Transportation Commission for the El Camino Real Pedestrian Safety and Streetscape Improvements, Street Resurfacing, and Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways PROJECTS R E C I T A L S A. City of Palo Alto (the CITY) is submitting an application to the Metropolitan Transportation Commission (MTC) for funding in the amounts of $4,655,000, $1,009,000, and $919,000 for three projects assigned to MTC for programming discretion, which includes federal funding administered by the Federal Highway Administration (FHWA) and federal or state funding administered by the California Transportation Commission (CTC) such as Surface Transportation Block Grant Program (STP) funding, Congestion Mitigation and Air Quality Improvement Program (CMAQ) funding, Transportation Alternatives (TA) set-aside/Active Transportation Program (ATP) funding, and Regional Transportation Improvement Program (RTIP) funding (herein collectively referred to as REGIONAL DISCRETIONARY FUNDING) for the PROJECT 1: El Camino Real Pedestrian Safety and Streetscape Improvements Projects, PROJECT 2: Palo Alto OBAG 2 Streets Resurfacing Project, and PROJECT 3: Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways Project (PROJECTS) for the second round of the One Bay Area Grant (OBAG 2) Program and Vehicle Emissions Reductions Based at Schools (VERBS) Grant Program (PROGRAMS) B. The United States Congress from time to time enacts and amends legislation to provide funding for various transportation needs and programs, (collectively, the FEDERAL TRANSPORTATION ACT) including, but not limited to the Surface Transportation Block Grant Program (STP) (23 U.S.C. § 133), the Congestion Mitigation and Air Quality Improvement Program (CMAQ) (23 U.S.C. § 149) and the Transportation Alternatives (TA) set-aside (23 U.S.C. § 133). C. The state statutes, including California Streets and Highways Code §182.6, §182.7, and §2381(a)(1), and California Government Code §14527, provide various funding programs for the programming discretion of the Metropolitan Planning Organization (MPO) and the Regional Transportation Planning Agency (RTPA). D. Pursuant to the FEDERAL TRANSPORTATION ACT, and any regulations promulgated thereunder, eligible project sponsors wishing to receive federal or state funds for regionally- significant projects shall submit an application first with the appropriate MPO, or RTPA, as applicable, for review and inclusion in the federal Transportation Improvement Program (TIP). E. MTC is the MPO and RTPA for the nine counties of the San Francisco Bay region. Not Yet Approved EP/Planning/2017-7-13 RESO Supporting OBAG 2 Funding Application F. MTC has adopted a Regional Projects Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of REGIONAL DISCRETIONARY FUNDING. G. The CITY is an eligible sponsor for REGIONAL DISCRETIONARY FUNDING. H. As part of the application for REGIONAL DISCRETIONARY FUNDING, MTC requires a resolution adopted by the responsible implementing agency stating the following: 1) The commitment of any required matching funds; and 2) That the sponsor understands that the REGIONAL DISCRETIONARY FUNDING is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional REGIONAL DISCRETIONARY FUNDING; and 3) That the PROJECTS will comply with the procedures, delivery milestones and funding deadlines specified in the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised); and 4) The assurance of the sponsor to complete the PROJECTS as described in the application, subject to environmental clearance, and if approved, as included in MTC's federal Transportation Improvement Program (TIP); and 5) That the PROJECTS will have adequate staffing resources to deliver and complete the PROJECTS within the schedule submitted with the PROJECTS’ application; and 6) That the PROJECTS will comply with all project-specific requirements as set forth in the PROGRAMS; and 7) That the CITY has assigned, and will maintain a single point of contact for all FHWA- and CTC-funded transportation projects to coordinate within the agency and with the respective Congestion Management Agency (CMA), MTC, Caltrans, FHWA, and CTC on all communications, inquires or issues that may arise during the federal programming and delivery process for all FHWA- and CTC-funded transportation and transit PROJECTS implemented by the CITY; and 8) In the case of a highway projects, the PROJECTS will comply with MTC Resolution No. 4104, which sets forth MTC’s Traffic Operations System (TOS) Policy to install and activate TOS elements on new major freeway PROJECTS; and 9) In the case of an RTIP projects, state law requires PROJECTS be included in a local congestion management plan, or be consistent with the capital improvement program adopted pursuant to MTC’s funding agreement with the countywide transportation agency. I. The CITY is authorized to submit an application for REGIONAL DISCRETIONARY FUNDING for the PROJECTS. J. There is no legal impediment to the CITY making applications for the funds. K. There is no pending or threatened litigation that might in any way adversely affect the proposed PROJECTS, or the ability of the CITY to deliver such PROJECTS. Not Yet Approved EP/Planning/2017-7-13 RESO Supporting OBAG 2 Funding Application L. The CITY authorizes the City Manager or designee to execute and file an application with MTC for REGIONAL DISCRETIONARY FUNDING for the PROJECTS as referenced in this resolution. M. MTC requires that a copy of this resolution be transmitted to the MTC in conjunction with the filing of the application. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES, as follows: SECTION 1. CONDITIONS OF GRANT APPROVAL. 1) The CITY is authorized to execute and file an application for funding for the PROJECTS for REGIONAL DISCRETIONARY FUNDING under the FEDERAL TRANSPORTATION ACT or continued funding. 2) The CITY will provide any required matching funds. 3) The CITY understands that the REGIONAL DISCRETIONARY FUNDING for the PROJECTS is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the CITY from other funds, and that the CITY does not expect any cost increases to be funded with additional REGIONAL DISCRETIONARY FUNDING. 4) The CITY understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Projects Funding Delivery Policy (MTC Resolution No. 3606, revised) and the CITY has, and will retain the expertise, knowledge and resources necessary to deliver federally-funded transportation and transit projects, and has assigned, and will maintain a single point of contact for all FHWA- and CTC-funded transportation projects to coordinate within the agency and with the respective Congestion Management Agency (CMA), MTC, Caltrans, FHWA, and CTC on all communications, inquires or issues that may arise during the federal programming and delivery process for all FHWA- and CTC-funded transportation and transit projects implemented by the CITY. 5) The PROJECTS will be implemented as described in the complete application and in this resolution, subject to environmental clearance, and, if approved, for the amount approved by MTC and programmed in the federal TIP. 6) The CITY has reviewed the PROJECTS and has adequate staffing resources to deliver and complete the PROJECTS within the schedule submitted with the PROJECTS’ application. 7) The PROJECTS will comply with the requirements as set forth in MTC programming guidelines and project selection procedures for the PROGRAMS. 8) In the case of a highway projects, the CITY agrees to comply with the requirements of MTC’s Traffic Operations System (TOS) Policy as set forth in MTC Resolution No. 4104. 9) In the case of an RTIP projects, PROJECTS are included in a local congestion management plan, or is consistent with the capital improvement program adopted pursuant to MTC’s funding agreement with the countywide transportation agency. 10) The CITY is an eligible sponsor of REGIONAL DISCRETIONARY FUNDING funded projects. 11) The CITY is authorized to submit an application for REGIONAL DISCRETIONARY FUNDING Not Yet Approved EP/Planning/2017-7-13 RESO Supporting OBAG 2 Funding Application for the PROJECTS. 12) There is no legal impediment to the CITY making applications for the funds. 13) There is no pending or threatened litigation that might in any way adversely affect the proposed PROJECTS, or the ability of the CITY to deliver such PROJECTS. 14) The CITY authorizes the City Manager or designee to execute and file an application with MTC for REGIONAL DISCRETIONARY FUNDING for the PROJECTS as referenced in this resolution. 15) A copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application. 16) The MTC is requested to support the application for the PROJECTS described in the resolution, and if approved, to include the PROJECTS in MTC's federal TIP upon submittal by the PROJECTS’ sponsor for TIP programming. SECTION 2. CEQA. The Council finds that the adoption of this resolution to support the City of Palo Alto’s application for funding is not a project as defined by the California Environmental Quality Act, and therefore, no environmental assessment is necessary. SECTION 3. Effective Date. This resolution shall take effect immediately upon its passage. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager ____________________________ Director of Planning and Community Environment City of Palo Alto (ID # 8315) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: 425 Portage Avenue: Approval of Retail Preservation Waiver Title: 425 Portage Avenue: Approval of the Planning and Community Environment Director's Determination to Authorize a Waiver From the Retail Preservation Ordinance. Environmental Assessment: Exempt in Accordance With the California Environmental Quality Act (CEQA) Section 15061(b)(3) Guidelines From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council ratify the Director’s decision approving the subject waiver request. Background This report transmits the Planning and Community Environment Director’s tentative approval for a waiver from the retail preservation ordinance adopted by Council on March 20, 2017. Pursuant to that ordinance and Section 18.40.160 of the Municipal Code, owners of properties outside the Ground Floor (GF) and Retail (R) combining districts may apply for an adjustment or waiver from ground floor retail protections based on a showing that the a permitted retail or retail-like use is not viable, that the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation, and that the proposed use will encourage active pedestrian-oriented activity and connections. Applicants must provide substantial evidence to support their application and bear the burden of proof. The Director renders a tentative decision, which is then placed on the City Council’s Consent agenda. The Council may accept this decision on Consent, or alternatively, three councilmembers may pull this item and require a future public hearing before Council. Discussion & Policy Implications City of Palo Alto Page 2 The owner of the property at 425 Portage requested a waiver from ground floor retail protections on June 29, 2017 and provided supporting information about leasing efforts over the past 16 months, tenant/broker inquiries, surrounding land uses, the lack of on-site parking to support retail and retail-like uses and other information (Attachment B). The last known tenant to occupy the building was the Pet Food Depot. At the time the interim ground floor retail protection ordinance was enacted in May and June of 2015, this use was operating and included a retail services component. Retail services were never authorized by the City at this location and could not have been approved based on the lack of on-site parking to support that land use. Prior uses were warehouse and storage related. The property owner provided testimony to the Council regarding the waiver provisions when the updated ground floor retail protection ordinance was being considered, suggesting that the interim ordinance provided too difficult a standard for this owner and other owners to meet. Accordingly, the Council, when enacting the current ordinance, sought to include an additional standard that would still be protective of most ground floor retail uses, but that provided an opportunity to grant a waiver under appropriate conditions and locations. The ordinance gives the director the authority to waive the provision requiring preservation of a retail or retail-like tenant space. This decision is based on a determination that a retail or retail-like use is not viable at the location, that an alternative use will support the purposes of the zoning district and comprehensive plan, and that the proposed use will encourage active pedestrian-oriented activity and connections. The Director reviewed the attached waiver request including the supporting information that was provided, and believes that it meets the standards of the Section 18.40.160(c)(1)(B). In accordance with the provisions of the ordinance, the Director’s decision letter is included with this report as Attachment A. The subject site is zoned Service Commercial (CS) and has a similar designation in the Comprehensive Plan. The CS zone is intended for services that “may be inappropriate in… pedestrian-oriented shoping areas, and which generally require automotive access for customer convenience…” (18.16.101(d)). While there is no identified replacement use, staff anticipates another warehouse or storage use would occupy the building, which is consistent with the historic use of the site. Surrounding land uses are mostly office, though an office use would not be permitted at this site due to a lack of on-site parking. Redevelopment is also a possibilty, and any new project would be subject to applicable codes with provisions to ensure adequate parking, compatible design, and appropriate pedestrian access. This is the first request the City has received for a waiver pursuant to the new provision in Ordiancne No. 5407 approved in March 2017. It is unclear if this proposed waiver request will City of Palo Alto Page 3 encourage others to similarly seek relief from the retail preservation ordinance. The subject waiver approval is not precedent setting, however, as each request received will be evaluated on its own merits and be subject to Council acceptance. Any future use of the site must comply with applicable zoning regaulations and the Comprehensive Plan. Resource Impact The recommendation in this report has no significant budget or fiscal impacts. However, granting relief from the retail presevation ordinance is anticipated to address the long standing vacancy of the site, which may have marginal fiscal benefits to the city and other unquantifiable benefits to area businesses. Timeline Council’s acceptance of this determination takes place immediately and is final. A request to pull this item would result in a future public hearing before Council in October. Environmental Review This determination is exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines in that it can be seen with certainty that there is no possibility the decision to waive this property from the city’s retail preservation ordinance will not cause a significant effect on the environment. Attachments: Attachment A: 425 Portage Ave Waiver Determination (PDF) Attachment B: 425 Portage Ave Waiver Request (PDF) CITY OF PALO ALTO PLANNING & COMMUNITY ENVIRONMENT 250 Hamilton Avenue. 5th Floor Palo Alto, CA 94301 650 329 2441 July 5, 2017 Lund Smith O&B Properties 3260 Ash Street Palo Afto, CA 94306 Subject: 425 Portage Avenue: Retail Preservation Waiver Determination Dear Mr. Lund, In accordance with Palo Alto Munlcipal Code Section 18.40.160 (c){l){b), your request for a waiver from the city's retaH preservation ordinance is tentatively approved. This determination will be placed on the City Council's August 14, 2017 consent calendar agenda. If pulled by three or more council members, you will be notified of a future public hearing on the request. If accepted on consent, this decision will be final. The determination is based on information prov~ded to the city, including effort over the last 16 months to lease the property, information on tenant/broker inquires, surrounding land uses, substandard parking spaces to support retail and reta il-like uses, testimony from your last tenant, and, a ten year history of previous land uses. It is further noted that the last tenant's transition from warehousing to retail services was not authorized by the city and would not have been approved due to the lack of required on-site parking to support retail services. Adoption of the retail preservation ordinance required the subject location remain as retail even though it was never developed, intended or approved to be a retail use. Based on the foregoing information, I find that retail and retail-like uses are not viable at this location at this time. Any future non-retail or retail-like uses that complies with the underlying zoning for permitted and conditionally permitted uses, and other applicable provisions of the municipal code, would be consistent with the purposes of the zoning district and consistent with the city's Comprehensive Plan. In terms of encouraging active pedestrian-oriented activity and connections, the existing site does little to advance and promote these objectives. To the extent a future tenant requires building improvements or upon site redevelopment, the dty through it's discretionary design review process will encourage design elements that enhance pedestrian connections, as appropriate. If you have any questions regarding this determination, please do not hesitate to contact me, or Assistant Director, Jonathan Lait. c ltyO f Pa I oA lto.org Printed with soy·based inks on 100% recyclad paper processed without chlorine Page 1 of 2 D&B Properties ______________________________________________________________________ 3260 ASH STREET • PALO ALTO, CA 94306 • TELEPHONE (650) 493-5484 June 29, 2017 City of Palo Alto Attn: Hillary Gitelman Director of Planning and Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 Re: Waiver from enforcement of City of Palo Alto Retail Preservation Ordinance 18.40.180 for 425 Portage Avenue, Palo Alto, CA. (Building). Dear Hillary Gitelman: Pursuant to multiple conversations and meetings we have had with Jonathan Lait and Amy French, as well as written and oral communications we have made to the Palo Alto City Council, we respectfully request approval in waiving the City of Palo Alto Retail Preservation Ordinance 18.40.180 for 425 Portage Ave, Palo Alto, CA. Retail use for this Building is not viable due to i) site constraints and existing parking that make our building suited for warehouse, not retail, use (ii) a location whose surrounding uses lack retail vibrancy, accessibility, and visibility, and (iii) an existing building design that is unsuitable to support a retail use. We have marketed the space since March of 2016, and retail businesses have again and again shown no interest in our warehouse building. For this Building, Palo Alto’s Retail Preservation Ordinance 18.40.180 has created a vacancy that does not serve public safety or appeal for the area. Instead, the vacancy allows for potential homeless trespassing, vandalism and criminal activity. For 15 months, we have been actively marketing the Building to prospective retail tenants at an annual square foot price of $21, and later, $18 (per square foot annually). According to Exhibit 1 (attached), we are offering the Building at 60% to 75% below the Palo Alto market rents. Our marketing includes hiring Cushman and Wakefield to engage in a widespread marketing of the building including internet advertisements, email distribution to retailers in the area, mailers to retail brokers, building sign, and targeted phone calls to pet food stores and other retail showroom tenants in the area. In addition, we have posted full page advertisements in the Palo Alto Weekly on several occasions and advertised on Craigslist. See Exhibit 2 (attached) showing advertisements. Despite our efforts, no retail tenant has expressed serious interest. Please refer to Exhibit 3 (attached) that provides a detailed list of tenant/broker inquiries who have expressed initial interest for their clients and subsequently declined. Even with offering the Building at deeply discounted rent and using all marketing efforts possible, we have had only eleven inquiries from prospective tenants in 15 months and of the eleven inquires, only eight would comply with the retail ordinance. Each prospective tenant has subsequently declined interest in leasing the Building due to the following viability issues: 1) Site characteristics: Insufficient parking for retail use: The Building offers 9 parking spaces, and the City of Palo Alto requires 24 parking spaces for the least intensive retail use of the Building. A restaurant or health club would require significantly more parking. For Palo Alto parking requirements, refer to Exhibit 4 (attached). Additionally, there are no opportunities to expand the existing parking, given the small lot size and shared fire easement with the adjacent office building at 435 Portage Avenue. The property was originally developed in the 1950’s in conjunction with 435 and 455 Portage as three freestanding warehouse structures with minimal surface parking. Today the narrow site of 425 2014-TD Retail Lease Comps in Palo Alto Size & Price InformationProperty Information Year Built: Tenant Imp:$10000 Effective Rent:$55.43 NNN Base Rate:$52.20 Free Rent:none NNN Cost:$4.35 Date Signed:06/06/2014 Lease Term:60M Lease Start:07/01/2014 Rentable SF: 06/30/2019 935 SF Lessee: 1 PA-El Camino Corridor 1962 Zone: Unit: Major Use: Sublease: Lessor: ADDRESS WITHHELD (PROPRIETARY) Retail Neigh Ctr GLA:4,702 Retail Anchor... Rental Adjustments... 3% annual increases NNN Lease Expiration:CA Year Built: Tenant Imp:$22 Effective Rent:$54.15 NNN Base Rate:$51.00 Free Rent:none NNN Cost:$0.00 Date Signed:02/01/2015 Lease Term:60M Lease Start:02/01/2015 Rentable SF: 01/31/2020 1,131 SF Lessee: 2 PA-Bayshore 1973 Zone: Unit: Major Use: Sublease: Lessor: Retail Office GLA:20,660 Retail Anchor... Rental Adjustments... NNN Lease Expiration: ADDRESS WITHHELD (PROPRIETARY) CA Year Built: Tenant Imp:$20 Effective Rent:$54.15 NNN Base Rate:$51.00 Free Rent:none NNN Cost:$0.00 Date Signed:02/01/2015 Lease Term:60M Lease Start:02/01/2015 Rentable SF: 01/31/2020 1,269 SF Lessee: 3 PA-Bayshore 1973 Zone: Unit: Major Use: Sublease: Lessor: GLA:20,660 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp: Effective Rent:$61.90 NNN Base Rate:$54.00 Free Rent: NNN Cost:$0.00 Date Signed:08/01/2014 Lease Term:120M Lease Start:08/01/2014 Rentable SF: 07/31/2024 1,628 SF Lessee: 4 PA-Bayshore 1968 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:1,905 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Page:1June 28, 2017 THE INFORMATION CONTAINED HEREIN HAS BEEN GIVEN TO US BY THE OWNER OF THE PROPERTY OR OTHER SOURCES WE DEEM RELIABLE.WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. ALL INFORMATION SHOULD BE VERIFIED PRIOR TO PURCHASE OR LEASE. EXHIBIT 1 OfficeRetail ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Cushman & Wakefield Proprietary Information Withheld 2014-TD Retail Lease Comps in Palo Alto Size & Price InformationProperty Information Year Built: Tenant Imp:$25 Effective Rent:$53.65 NNN Base Rate:$0.00 Free Rent: NNN Cost:$0.00 Date Signed:06/09/2015 Lease Term:120M Lease Start:06/09/2015 Rentable SF: 06/09/2025 4,291 SF Lessee: 5 PA-El Camino Corridor 1955 Zone: Unit: Major Use: Sublease: Lessor: Retail Mixed Use GLA:9,235 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp:$15 Effective Rent:$54.00 NNN Base Rate:$54.00 Free Rent: NNN Cost:$11.00 Date Signed:05/09/2014 Lease Term:90M Lease Start:06/01/2014 Rentable SF: 11/30/2021 1,100 SF Lessee: 6 PA-Bayshore 1956 Zone: Unit: Major Use: Sublease: Lessor: Retail Strp Ctr GLA:36,300 Retail Anchor... Rental Adjustments... Flat for 7.5 years then a 15% increase. NNN Lease Expiration:CA Year Built: Tenant Imp:$20 Effective Rent:$54.00 NNN Base Rate:$54.00 Free Rent:None NNN Cost:$11.86 Date Signed:01/17/2014 Lease Term:84M Lease Start:03/01/2014 Rentable SF: 02/28/2021 2,397 SF Lessee: 7 1949 Zone: Unit: Major Use: Sublease: Lessor: GLA:136,350 Retail Anchor... Rental Adjustments... 5% every 30 months NNN Lease Expiration:CA Year Built: Tenant Imp:As Is Effective Rent:$86.23 NNN Base Rate:$78.00 Free Rent:0M NNN Cost:$12.84 Date Signed:02/10/2016 Lease Term:120M Lease Start:02/10/2016 Rentable SF: 02/08/2026 1,389 SF Lessee: 8 PA-Downtown 0 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:0 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Page:2June 28, 2017 THE INFORMATION CONTAINED HEREIN HAS BEEN GIVEN TO US BY THE OWNER OF THE PROPERTY OR OTHER SOURCES WE DEEM RELIABLE.WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. ALL INFORMATION SHOULD BE VERIFIED PRIOR TO PURCHASE OR LEASE. ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Retail ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Cushman & Wakefield Proprietary Information Withheld 2014-TD Retail Lease Comps in Palo Alto Size & Price InformationProperty Information Comments & Agent Information Year Built: Tenant Imp:As Is Effective Rent:$82.55 NNN Base Rate:$88.92 Free Rent:4M NNN Cost:$12.84 Date Signed:08/29/2016 Lease Term:38M Lease Start:09/01/2016 Rentable SF: 10/31/2019 693 SF Lessee: 9 PA-El Camino Corridor 1949 Zone: Unit: Major Use: Sublease: Lessor: Retail Neigh Ctr GLA:136,350 Retail Anchor... Rental Adjustments... 3% annual; 4M Free NNN Lease Expiration:CA Year Built: Tenant Imp: Effective Rent:$34.92 NNN Base Rate:$34.32 Free Rent: NNN Cost:$0.00 Date Signed:12/22/2016 Lease Term:60M Lease Start:03/01/2017 Rentable SF: 02/28/2022 875 SF Lessee: 10 PA-El Camino Corridor 1940 Zone: Unit: Major Use: Sublease: Lessor: In Line Retail GLA:5,726 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp:$35.00 Effective Rent:$88.19 NNN Base Rate:$65.00 Free Rent:2M NNN Cost:$15.27 Date Signed:12/22/2015 Lease Term:120M Lease Start:04/01/2016 Rentable SF: 03/31/2026 5,598 SF Lessee: 11 0 Zone: Unit: Major Use: Sublease: Lessor: GLA:6,000 Retail Anchor... Rental Adjustments... 3% annual; 2M Free NNN Lease Expiration:CA Year Built: Tenant Imp:As Is Effective Rent:$32.11 NNN Base Rate:$26.87 Free Rent:none NNN Cost:$0.00 Date Signed:09/30/2014 Lease Term:240.7M Lease Start:10/14/2015 Rentable SF: 10/31/2035 8,000 SF Lessee: 12 PA-El Camino Corridor 0 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:5,000 Retail Anchor... Rental Adjustments... 12% increase every five years NNN Lease Expiration:CA Page:3June 28, 2017 THE INFORMATION CONTAINED HEREIN HAS BEEN GIVEN TO US BY THE OWNER OF THE PROPERTY OR OTHER SOURCES WE DEEM RELIABLE.WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. ALL INFORMATION SHOULD BE VERIFIED PRIOR TO PURCHASE OR LEASE. PA-El Camino Corridor Retail ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Cushman & Wakefield Proprietary Information Withheld 2014-TD Retail Lease Comps in Palo Alto Size & Price InformationProperty Information Comments & Agent Information Year Built: Tenant Imp:None Effective Rent:$45.96 NNN Base Rate:$48.00 Free Rent:7M NNN Cost:$15.00 Date Signed:01/24/2014 Lease Term:84M Lease Start:05/01/2014 Rentable SF: 05/01/2021 1,093 SF Lessee: 13 PA-Downtown 2014 Zone: Unit: Major Use: Sublease: Lessor: Retail Retail GLA:59,000 Retail Anchor... Rental Adjustments... Flat rate for years 1-5 and 15% increases for years 6 & 7 NNN Lease Expiration:CA Year Built: Tenant Imp:None Effective Rent:$39.00 NNN Base Rate:$36.00 Free Rent:none NNN Cost:$15.00 Date Signed:11/11/2014 Lease Term:120M Lease Start:01/01/2015 Rentable SF: 12/31/2024 1,499 SF Lessee: 14 PA-Downtown 2014 Zone: Unit: Major Use: Sublease: Lessor: Retail Retail GLA:59,000 Retail Anchor... Rental Adjustments... 2% annual increases NNN Lease Expiration:CA Year Built: Tenant Imp:None Effective Rent:$46.56 NNN Base Rate:$43.80 Free Rent:3M NNN Cost:$10.80 Date Signed:09/21/2015 Lease Term:60M Lease Start:12/01/2015 Rentable SF: 11/30/2020 1,590 SF Lessee: 15 PA-Bayshore 1951 Zone: Unit: Major Use: Sublease: Lessor: GLA:10,000 Retail Anchor... Rental Adjustments... 3% annual increases NNN Lease Expiration:CA Year Built: Tenant Imp:Carpet & Paint Effective Rent:$39.00 NNN Base Rate:$34.20 Free Rent:2M NNN Cost:$10.20 Date Signed:09/02/2015 Lease Term:120M Lease Start:01/15/2016 Rentable SF: 01/14/2026 5,145 SF Lessee: 16 PA-Bayshore 1956 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:9,151 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Page:4June 28, 2017 THE INFORMATION CONTAINED HEREIN HAS BEEN GIVEN TO US BY THE OWNER OF THE PROPERTY OR OTHER SOURCES WE DEEM RELIABLE.WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. ALL INFORMATION SHOULD BE VERIFIED PRIOR TO PURCHASE OR LEASE. Retail ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Cushman & Wakefield Proprietary Information Withheld 2014-TD Retail Lease Comps in Palo Alto Size & Price InformationProperty Information Comments & Agent Information Year Built: Tenant Imp: Effective Rent:$52.92 NNN Base Rate:$49.80 Free Rent: NNN Cost:$0.00 Date Signed:08/14/2016 Lease Term:120M Lease Start:01/23/2017 Rentable SF: 01/22/2027 3,084 SF Lessee: 17 PA-Bayshore 1952 Zone: Unit: Major Use: Sublease: Lessor: Retail Strp Ctr GLA:7,470 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp:$40 Effective Rent:$85.15 NNN Base Rate:$72.00 Free Rent: NNN Cost:$0.00 Date Signed:05/01/2016 Lease Term:144M Lease Start:05/01/2016 Rentable SF: 04/30/2028 2,585 SF Lessee: 18 PA-Downtown 0 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:2,585 Retail Anchor... Rental Adjustments... 3% annual increases NNN Lease Expiration:CA Year Built: Tenant Imp: Effective Rent:$66.99 NNN Base Rate:$58.44 Free Rent: NNN Cost:$0.00 Date Signed:06/01/2014 Lease Term:120M Lease Start:06/01/2014 Rentable SF: 05/30/2024 1,600 SF Lessee: 19 PA-Bayshore 1956 Zone: Unit: Major Use: Sublease: Lessor: Retail Neigh Ctr GLA:18,275 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp:As Is Effective Rent:$86.13 NNN Base Rate:$86.13 Free Rent: NNN Cost:$12.00 Date Signed:10/05/2015 Lease Term:60M Lease Start:02/01/2017 Rentable SF: 01/31/2022 4,185 SF Lessee: 20 PA-El Camino Corridor 1955 Zone: Unit: Major Use: Sublease: Lessor: Retail Mall GLA:1,380,000 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Page:5June 28, 2017 THE INFORMATION CONTAINED HEREIN HAS BEEN GIVEN TO US BY THE OWNER OF THE PROPERTY OR OTHER SOURCES WE DEEM RELIABLE.WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. ALL INFORMATION SHOULD BE VERIFIED PRIOR TO PURCHASE OR LEASE. ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Cushman & Wakefield Proprietary Information Withheld 2014-TD Retail Lease Comps in Palo Alto Size & Price InformationProperty Information Comments & Agent Information Year Built: Tenant Imp:$30 Effective Rent:$74.42 NNN Base Rate:$64.92 Free Rent: NNN Cost:$0.00 Date Signed:11/01/2015 Lease Term:120M Lease Start:02/01/2016 Rentable SF: 01/31/2026 3,304 SF Lessee: 21 PA-Downtown 1910 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:5,000 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp: Effective Rent:$88.67 NNN Base Rate:$81.00 Free Rent: NNN Cost:$0.00 Date Signed:11/01/2014 Lease Term:84M Lease Start:11/01/2014 Rentable SF: 10/31/2021 2,066 SF Lessee: 22 PA-Downtown 1925 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:2,400 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp: Effective Rent:$72.77 NNN Base Rate:$63.48 Free Rent: NNN Cost:$0.00 Date Signed:05/01/2015 Lease Term:120M Lease Start:05/01/2015 Rentable SF: 04/30/2025 9,986 SF Lessee: 23 PA-Downtown 1973 Zone: Unit: Major Use: Sublease: Lessor: GLA:8,800 Retail Anchor... Rental Adjustments... NNN Lease Expiration:CA Year Built: Tenant Imp:As Is Effective Rent:$90.26 NNN Base Rate:$94.96 Free Rent:none NNN Cost:$20.07 Date Signed:07/05/2016 Lease Term:60M Lease Start:10/01/2016 Rentable SF: 09/30/2021 2,850 SF Lessee: 24 PA-Downtown 1925 Zone: Unit: Major Use: Sublease: Lessor: Retail GLA:2,850 Retail Anchor... Rental Adjustments... 3% annual increases NNN Lease Expiration:CA Page:6June 28, 2017 THE INFORMATION CONTAINED HEREIN HAS BEEN GIVEN TO US BY THE OWNER OF THE PROPERTY OR OTHER SOURCES WE DEEM RELIABLE.WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. ALL INFORMATION SHOULD BE VERIFIED PRIOR TO PURCHASE OR LEASE. Retail ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) ADDRESS WITHHELD (PROPRIETARY) Cushman & Wakefield Proprietary Information Withheld EXHIBIT 2 EXHIBIT 3 425 Portage Avenue (Tenant/Broker Inquiries) Prospective Client Inquiry Use Date Reason for Not Pursuing AltSchool school February, 2016 Does not comply with retail ordinance Book Store from Mountain View retail March, 2016 Not a retail friendly location and un-insulated and un-air conditioned Health club recreational use April, 2016 Use requires more onsite parking than can be provided The Learning Experience school August, 2016 Does not comply with retail ordinance Gym / Personal Training recreational use October, 2016 Use requires more onsite parking than can be provided Art gallery showroom October, 2016 Not a retail friendly location Coupa Café warehouse / café November, 2016 Not a retail friendly location, un-insulated, un-air conditioned, and lack of parking Golden Road Brewing restaurant December, 2016 Significantly short of parking requirement Planet Granite rock climbing gym February, 2017 Use requires more onsite parking than can be provided C&W Services Warehouse March, 2017 Very interested in the space, but does not comply with retail ordinance Samsung retail showroom March, 2017 Lack of parking and unsuitability of structure (un- insulated and un-air conditioned) YELLOW HIGHLIGHT: Even with offering the Building at deeply discounted rent for over one year and using all marketing efforts possible, 8 client inquires would comply with the retail ordinance, yet most declined due to insufficient parking. Fergus Garber Young Architects 81 Encina Avenue Palo Alto CA 94301 phone 650/473-0400 June 27, 2017 City of Palo Alto Hillary Gitelman Director of Planning and Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 Re: 425 Portage – Waiver from Retail Preservation Ordinance Request Parking requirements for CS Zone allowed uses 425 Portage = 8,352 sf gross sf Existing Site provides 9 parking spaces CS Zone Allowed Uses Vehicle Parking Requirement Required Spaces Business & Trade Schools 1 per 250 gross sf 33 spaces Churches & Religious Institutions 1 per each 4-person capacity1 38 spaces Private Schools & Education(a)(b) 2 per teaching station 2 8 spaces Private Schools & Education (c) 4 per teaching station 2 16 spaces Private Clubs or Lodges 1 per each 4-person capacity1 25 spaces Office/General Business Uses 1 per 250 gross sf 33 spaces Eating & Drinking 1 per 60 gross sf 3 70 spaces 1 per 200 gross sf 3 21 spaces 91 spaces total Retail – Intensive 1 per 200 gross sf 42 spaces Retail – Extensive 1 per 350 gross sf 24 spaces Service Use – Animal Care 1 per 350 gross sf 24 spaces Service Use – Banks & Financial 1 per 250 gross sf 33 spaces Service Use – Personal Service 1 per 200 gross sf 42 spaces Commercial Recreation 1 per each 4-person capacity4 30 spaces Warehouse 1 per 1,000 gross sf 8 spaces Allowed Uses as per PAMC 18.16.040 Parking requirements as per PAMC 18.52.040 Required Parking less than .5 space rounded down 1Assume 150 person capacity 2Assume 4 teaching stations 3Assume 50% of space is public service and 50% is other areas (service/back of house) 4Assume 120 person capacity Exhibit 4 FE R G U S G A R B E R Y O U N G A R C H I T E C T S 81 E N C I N A A V E N U E P A L O A L T O , C A 9 4 3 0 1 PH O N E : 6 5 0 . 4 7 3 . 0 4 0 0 © FERGUS GARBER YOUNG ARCHITECTS 2017 42 5 P o r t a g e A v e . - Ex i s t i n g S u r r o u n d i n g U s e s Mo n d a y , J u n e 2 6 , 2 0 1 7 RM-30 R-1 CS CS PF CS CS CS CS CS GM SU B J E C T PR O P E R T Y OF F I C E / R&D OF F I C E OF F I C E OF F I C E AU T O S E R V I C E S RES I D E N T I A L / STO R A G E OFF I C E / R&D OF F I C E OF F I C E OF F I C E OF F I C E OF F I C E OF F I C E AUT O M O T I V E SER V I C E S OF F I C E OF F I C E / R&D HO T E L OFF I C E H O T E L RES T A U R A N T CO M M E R C I A L REC R E A T I O N SF H UTI L I T Y FA C I L I T Y (AT &T) PA R K (PU B L I C FA C I L I T Y ) OF F I C E / R& D OF F I C E / R&D OF F I C E SIN G L E F A M I L Y H O M E S PRO P O S E D MIX E D -USE OF F I C E / R& D RE T A I L S E R V I C E S HO T E L PRO P O S E D MIX E D -USE SF H SF H RET A I L SER V I C E S RES T A U R A N T HO T E L AUT O M O T I V E SER V I C E S AU T O M O T I V E SE R V I C E S MUL T I -FA M . RES . OF F I C E RE T A I L SE R V I C E S & R E T A I L SER V I C E S RETAIL USES - RETAIL SERVICES - EATING & DRINKING SERVICES OFFICE, SERVICE, RECREATION & RESIDENTIAL USES - OFFICE/R&D, COMMERCIAL RECREATION, AUTOMOTIVE SERVICES, SINGLE FAMILY & MULTIFAMILY HOMES PROPOSED MIXED-USE PROJECTS - CURRENTLY IN REVIEW WITH THE CITY OF PALO ALTO PUBLIC FACLITY - CITY PARK RES T A U R A N T EXHIBIT 5 EXHIBIT 6 425 Portage Avenue (10 Year History of the Site) Square Footage Time Frame Tenant Suite # Use Prior to 2010 Windows System Group A 4,773 Warehouse with 1,500 SF of office Windows System Group B 3,579 Storage TOTAL: 8,352 01/01/2010 - 12/31/2011 Windows System Group A 4,773 Warehouse with 1,500 SF of office Pet Food Depot B 3,579 Storage / warehouse TOTAL: 8,352 01/01/2010 - 3/31/2016 Pet Food Depot A 4,773 Wholesale sales with 1,500 SF of office Pet Food Depot B 3,579 Storage / warehouse TOTAL: 8,352 04/01/2016 - 2/28/2017 Pet Food Depot stopped paying rent, and we allowed them to stay and try to sell their business, but no retailer was interested due to its site constraints and location. We then allowed them to liquidate their inventory and close their business. (Property was marketed for rent beginning March 2016) 03/31/2017 - PRESENT VACANT EXHIBIT 7 PET FOOD DEPOT 425 Portage Avenue, Palo Alto, CA 94306 650.852.1277 February 10, 2017 Mayor Gregory Scharff & The Palo Alto City Council Members: Liz Kniss, Tom DuBois, Eric Filseth, Karen Holman, Adrian Fine, Lydia Kou, Greg Tanaka, and Cory Wolbach Palo Alto City Hall, 7th Floor 250 Hamilton Avenue Palo Alto, CA 94301 Dear Mayor Gregory Scharff, Vice Mayor Liz Kniss, and City Council Members Tom DuBois, Eric Filseth, Karen Holman, Adrian Fine, Lydia Kou, Greg Tanaka, and Cory Wolbach: I am Heghnar Balian and my father, Hrair (Harry) Tashjian is the owner of the Pet Food Depot, Inc. I Have helped my father run our family business since 2001. In January of 2012 we moved from our El Camino Real location where Equinox now sits to the 425 Portage site. We moved to the warehouse on Portage because we had no choice. We were given 30 days to move and in that short time frame there was nothing else available. We had no choice but to settle for a warehouse building. Since our occupancy at the 425 Portage Avenue location, our business has struggled to survive. We have not been able to attract new customers because it is not a retail location given its poor location, lack of visibility, lack of parking, and the fact that the building is a warehouse. Specifically the move from El Camino to this location resulted in a drop of sales of about 45% and unfortunately we are closing shop because we cannot survive. We have no doubt that new business trying to establish itself here would fail given the constraints we mention above. It is simply put not a retail building or a retail location and the parking shortfall has a major hindrance on attracting customers to the location. Our landlord, Mr. Boyd Smith has been very generous and helpful. He even substantially reduced our rent in order to help us. Despite our landlord’s help in reduced rents and despite our making every effort to make the business profitable, retail just doesn’t work here. EXHIBIT 8 A few years ago, we approached the City about purchasing the City’s pet supplies from our store. We were told the City does its purchasing online. It’s unfortunate that the City of Palo Alto does not support its own small businesses. The City can mandate whatever it wants, but that doesn’t make it a reality. This property is not conducive as a retail business location. Our experience has shown that this property should be used for a non-retail use that does not require visibility, parking, and can operate in a warehouse building. Sincerely yours, Hrair Tashjian and Heghnar Balian Pet Food Depot, Inc. EXHIBIT 9 City of Palo Alto (ID # 8337) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: PAPMA Contract Extension Title: Approval of a Side Letter of Agreement Between the City of Palo Alto and the Palo Alto Police Managers' Association (PMA) From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the City Council approve and authorize the City Manager to sign the attached Side Letter Agreement setting certain wages, benefits, and terms and conditions of employment for employees represented by the Palo Alto Police Managers’ Association. Unit Background The Palo Alto Police Managers Association (“PAPMA”) was recognized by the City as a bargaining unit in October of 2009. It was recognized to represent all fulltime regularly employed Police Lieutenants and Police Captains. PAPMA currently covers 7 City Employees; 5 Lieutenants and 2 captains. Current contract The term of the current Memorandum of Agreement (“MOA”) between the City and PAPMA is from January 11, 2016 to June 30, 2017 and included some of the following: Compensation: Upon ratification of the former MOA, the Captain and Lieutenant classifications received a 2.5% general salary increase as well as a 3% market/equity adjustment. On June 30, 2016 and June 30 2017, the Captain and Lieutenant classifications received an additional 2.5% general salary increase as well as a 0.5% market/equity adjustment. Active Health Benefits: In 2014, the City moved to health premium contributions based on fixed dollar amounts rather than percentage contributions for employees in the SEIU and Management/ Professional units. Under the former MOA, the City’s contributions for PAPMA were converted to fixed dollar contributions and will continue under the recommended Side Letter Agreement. City of Palo Alto Page 2 Retirement Contributions: Currently, all unit members pay the full 9% PERS Member contribution. The parties have agreed to modify the Member Contribution by increasing the contribution to the Employer share of Pension by 3% over the term of the agreement which is currently in the process of being implemented. Discussion In July of 2016 Council directed staff to begin investigating the possibility of extending the current PAPMA contract. The Council authorized the City team to pursue an extension agreement with terms similar to those within the 3rd year of the Palo Alto Peace Officers (PAPOA) which PAPMA was receptive to exploring. This authority included up to 2.5% in salary increases based on a survey of the regional market, and any other housekeeping or maintenance items required for an additional year. The terms of the recommended Side Letter Agreement include the following provisions, would extend the contract to June 30, 2018 and align the contract term with the PAPOA contract: 1) Increase base wages up to 2.5% based on a market survey; and 2) Align medical reimbursement with Citywide flat rates for 2018. Policy Implications Approval of the recommended Side Letter Agreement and adoption of the associated resolutions is consistent with the Council’s policy direction. Resource Impact The 12-month costs associated with this extension is estimated at $58,000 comprised of salary and variable benefit costs of approximately $51,000 and flat rate medical, vision, and dental healthcare costs of approximately $7,000. These figures assume the implementation of the employee contribution to the CalPERS Employer Contribution at a 3 percent rate. It is anticipated that the Police Department will absorb these additional costs in FY 2018 and ongoing implications will be factored into the development of the annual budget in subsequent years. Environmental Review Approval of the Side Letter Agreement and adoption of the associated resolutions are not projects for purposes of the California Environmental Quality Act and therefore no environmental review is required. Attachments: Attachment A: Executed Side letter extension agreement CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR August 14, 2017 The Honorable City Council Palo Alto, California Policy and Services Recommendation to Accept the Continuous Monitoring Audit: Payments The Office of the City Auditor recommends acceptance of the Continuous Monitoring Audit: Payments. At its meeting on April 25, 2017, the Policy and Services Committee approved and unanimously recommended that the City Council accept the report. The Policy and Services Committee minutes are included in this packet. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Continuous Monitoring Audit: Payments (PDF) Attachment B: Policy and Services Committee Meeting Minutes Excerpt (April 25, 2017) (PDF) Department Head: Harriet Richardson, City Auditor Page 2 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR April 25, 2017 The Honorable City Council Palo Alto, California Continuous Monitoring Audit: Payments In accordance with the Fiscal Year 2016 Annual Audit Work Plan, the Office of the City Auditor has completed the Continuous Monitoring Audit: Payments. The audit report presents two findings with a total of seven recommendations. The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Continuous Monitoring Audit: Payments. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Continuous Monitoring Audit: Payments (PDF) Department Head: Harriet Richardson, City Auditor Attachment A Page 2 Attachment A Continuous Monitoring Audit: Payments April 13, 2017 Office of the City Auditor Harriet Richardson, City Auditor Houman Boussina, Senior Performance Auditor Marisa Lin, FISCal Intern Attachment AAttachment A Page intentionally left blank Attachment AAttachment A OFFICE OF THE CITY AUDITOR EXECUTIVE SUMMARY Continuous Monitoring Audit: Payments April 13, 2017 PURPOSE OF THE AUDIT: The audit objective was to determine if data analytics and continuous monitoring can help the City identify duplicate vendor or vendor payment records. REPORT HIGHLIGHTS Finding 1: Implementing a continuous monitoring process can help the City identify duplicate invoice payments. The City recovered 17 (71 percent) of 24 confirmed duplicate invoice payments (Page 6). Duplicate invoice payments result in both financial loss and operational inefficiency associated with recovery efforts. Our data analytics showed that the City paid at least 24 duplicate invoices totaling $57,000 from July 2013 through October 2015. City staff recovered 17 (71 percent), or $55,000 (97 percent) of those 24 duplicate payments prior to the audit. Although City staff recovered most of those duplicate payments, the City did not have effective procedures or tools to prevent or identify all duplicate payments. Continuous monitoring can help to more efficiently and predictably identify duplicate invoice payments and minimize the potential for financial loss. Key Recommendations to that ASD: • Build a continuous monitoring reporting process into the new ERP system to assist it in identifying potential duplicate invoices and seek recovery when duplicate payments have been made. • Update its policies and procedures to require unique invoice numbers and to use credit memorandums or other accounting entries to correct invoice errors. • Review the 121 potential duplicate invoice payments that were not in our sample and seek recovery of confirmed duplicate payments. Finding 2: Numerous unneeded vendor records increase the risk of inappropriate an erroneous payments and payment records, as well as incorrect tax reporting (Page 2). Unneeded vendor records, including duplicate or unused records that have not been inactivated, increase the risk of erroneous or duplicate payments, incorrect vendor payment records and tax reporting, inefficiency, and fraud. Almost 41,000 (94 percent) of the City’s 43,642 active vendor records in SAP are unused, duplicates, inconsistent, and/or incomplete, which increases the risk of duplicate, erroneous, and fraudulent payments, as well as incorrectly reported tax information. Almost 36,000 (82 percent) of the 41,000 vendor records had not been used since before 2012. The City does not currently have monitoring procedures to identify duplicate or unused vendor records or effective procedures to prevent their entry or inactivate them in SAP. Key Recommendations to ASD: • Update its policies and procedures to provide clearer guidance regarding when to create a new vendor record, when to inactivate a vendor record, and to provide a coding standard for consistency. Attachment AAttachment A • Build a continuous monitoring reporting process into the new ERP system to identify and inactivate duplicate, incomplete, or unused vendor records. • Develop a requirement for the new ERP system to support multiple addresses, on an exception basis, for the same vendor. • Clean the vendor master file before merging it into the new ERP system. Attachment AAttachment A TABLE OF CONTENTS OBJECTIVE .................................................................................................................................................. 1 BACKGROUND ............................................................................................................................................. 1 SCOPE ....................................................................................................................................................... 2 METHODOLOGY .......................................................................................................................................... 2 FINDING 1: Implementing a continuous monitoring process can help the City identify duplicate invoice payments. The City recovered 17 (71 percent) of 24 confirmed duplicate invoice payments. ........ 6 Finding 1 Recommendations ............................................................................................................. 8 FINDING 2: Numerous unneeded vendor records increase the risk of inappropriate and erroneous payments and payment records, as well as incorrect tax reporting. ............................................................... 10 Finding 2 Recommendations ........................................................................................................... 14 APPENDIX 1: City Manager’s Response ................................................................................................... 15 ABBREVIATIONS ASD Administrative Services Department EDD Employment Development Department ERP Enterprise Resource Planning IRS Internal Revenue Service Attachment AAttachment A Page intentionally left blank Attachment AAttachment A Continuous Monitoring Audit: Payments 1 INTRODUCTION Objective The audit objective was to determine if data analytics and continuous monitoring can help the City identify duplicate vendor payments or vendor records. Background The Administrative Services Department (ASD) is responsible for ensuring accurate, timely, and reliable financial transactions and reporting. ASD uses the City’s SAP Enterprise Resource Planning (ERP) system to store and maintain vendor records and to process payments. Exhibit 1 shows the City’s payments by invoice dollar and count from July 2013 through October 2015. Exhibit 1 Invoice Payments and Count – July 2013 through October 2015 RE: Invoices associated with contracts and purchase orders; excludes some wired payments (see Scope section below). KR: Invoices not associated with a contract or purchase order, such as an employee expense reimbursement. PV: Transactions associated with payroll, such as tax withholding payments submitted to the Internal Revenue Service (IRS). KA: Other, such as invoice reversals and credit memos. Source: Palo Alto SAP system and ASD staff $318 million (85%) $51 million (14%)$7 million (2%) 0%20%40%60%80%100% Invoice Dollars RE KR PV KA 31,514 (72%)9,364 (21%) 2,679 (6%)280 (1%) 0%20%40%60%80%100% Invoice Count RE KR PV KA Attachment AAttachment A 2 Continuous Monitoring Audit: Payments Continuous monitoring and data analytics Monitoring is one of five components of an effective internal control system.1 Monitoring involves evaluating results so management can take corrective action as necessary and in a timely manner to achieve organizational goals and objectives. Although effective internal controls should prevent duplicate payments, periodic monitoring activities can help identify duplicate payments that slipped through the prevention controls. Continuous monitoring involves management’s proactive review of data at regular intervals, often through an automated process, to identify errors or erroneous or incomplete data, such as duplicate invoices and payments; missed cost savings; and potential fraud, waste, or abuse. The results help management identify areas where its procedures can be strengthened. Data analysis software is often used to efficiently access business data and to develop and automate monitoring processes. Scope We used data analytic and sampling methodologies to identify duplicate vendors and vendor payments associated with invoices paid from July 2013 through October 2015. The SAP vendor payment data shown in Exhibit 1 exclude wire payments that the City processes outside of the SAP purchase order and invoice payment systems, including about $600,000 in monthly payment card payments. We did not assess these wire payments or the detailed payment card data for duplicate payments. Our review of vendor records focuses only on those that the City used from January through October 2015. Scope limitation We could not apply data analytics to invoices that did not have an invoice number, which was 37 (0.1 percent) of 44,000 transactions. These 37 invoices totaled about $2.3 million (0.6 percent) of $376 million. Methodology To accomplish our audit objective, we: • Interviewed ASD staff responsible for accounts payable, 1 Internal control is the system of processes that an entity’s oversight body, management, and other personnel implement to provide reasonable assurance that the organization will achieve its operational, reporting, and compliance objectives. The five components are control environment, risk assessment, control activities, information and communication, and monitoring. See U.S. Government Accountability Office, “Standards for Internal Control in the Federal Government,” Washington, D.C., 2014, p. 9, available at http://www.gao.gov/products/GAO-14-704G. Attachment AAttachment A Continuous Monitoring Audit: Payments 3 procurement, and the City’s SAP system to gain an understanding of the relevant data, system configurations, policies, and procedures. • Conducted a risk assessment to identify and prioritize accounts payable and procurement risks that could be mitigated using continuous monitoring and data analytics. • Reviewed manuals, published audit reports, whitepapers, and industry presentations on data analytics. • Extracted SAP invoice and vendor data and used ACLTM Analytics software to identify potential duplicate invoices, vendors, and unreliable or inconsistent data. • Met with ASD staff to validate the data analytics results and to understand underlying causes for “false positives,” or normal payments that our methodology flagged as anomalous.2 • Reviewed judgmental and random samples of invoices to understand causes of duplicate payments and to estimate the rate of occurrence, regardless of whether the City or the vendor later identified or corrected the duplicate payment. Sampling methodology We used sampling methods to determine if implementing continuous monitoring processes for accounts payable would benefit the City: • We judgmentally selected and reviewed a sample of 15 duplicate invoices, which included a variety of payment types, vendor types, and invoice amounts that we identified through our analytics methodology, to understand the root causes for duplicates and false positives. Because we identified actual duplicate payments in our judgmental sample, we subsequently selected a statistically reliable random sample from the potentially duplicate payments identified through our data analytics to get a more precise estimate of the frequency of duplicate payments. • We used ACLTM Analytics software to identify potential duplicate invoices and an industry-recognized methodology that searches for invoices with the same invoice number and amount. We 2 A false positive is something that looks like it fits within the criteria used but actually does not. These payments were flagged because they had the same invoice number and amount as a prior invoice. Attachment AAttachment A 4 Continuous Monitoring Audit: Payments applied this methodology to accounts payable transactions that mostly consisted of invoices but also included transactions associated with payroll, invoice reversals, and credit memos (see Exhibit 1). We used analytics to eliminate duplicate invoice payments that had been refunded or blocked. Our procedures identified 295 potential duplicate invoice payments, which does not include the original invoice. Because there was sometimes more than one potential duplicate invoice, we summarized the 295 invoices into 174 invoice groups (i.e., groups of invoices with the same invoice number and amount). • We selected 120 of the 174 invoice groups, based on a 95 percent confidence level and a targeted margin of error of ±5 percent. This means that for every 100 random samples of such invoices, the true rate of one or more duplicate payments will be within the margin of error 95 percent of the time. Because this was a statistically reliable sample from the duplicate invoices that our data analytics flagged, our conclusions can be projected to the population of duplicate invoices flagged, but not to the entire population of 44,000 invoices. Based on the availability of records, we reduced our final sample size to 113 duplicate invoice groups, which included 287 invoices and increased the margin of error to ±7.4 percent. The increased margin of error did not impact our meeting the audit objective. • We also judgmentally selected and reviewed a sample of 12 vendors that the City paid using different vendor accounts to determine if the City issued accurate tax forms. The sample included a variety of vendor types and total payment amounts. Because these were judgmental samples, our conclusions cannot be projected to the total population of duplicate invoices and duplicate vendor accounts. Data reliability We used ACLTM Analytics software to assess the accuracy and completeness of relevant data. We also interviewed ASD staff who were knowledgeable about the data and brought data reliability concerns to their attention. We have included some of these concerns in the audit findings. Except as discussed under the Scope Limitation section above, the data were sufficiently reliable for the purposes of this report. Attachment AAttachment A Continuous Monitoring Audit: Payments 5 Compliance with government auditing standards We conducted this audit in accordance with our Fiscal Year 2016 Annual Audit Work Plan and generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. We would like to thank management and staff in the Administrative Services Department for their time, cooperation, and assistance during the audit process. Attachment AAttachment A 6 Continuous Monitoring Audit: Payments Finding 1 Implementing a continuous monitoring process can help the City identify duplicate invoice payments. The City recovered 17 (71 percent) of 24 confirmed duplicate invoice payments. Our data analytics showed that the City paid at least 24 duplicate invoices totaling $57,000 from July 2013 through October 2015. Although City staff recovered most of the duplicate payments prior to the audit, the City did not have effective procedures or tools to prevent or identify all duplicate payments. Continuous monitoring can help to more efficiently and predictably identify duplicate invoice payments and minimize the potential for financial loss. The City paid 24 duplicate invoices Duplicate invoice payments result in both financial loss and operational inefficiency associated with recovery efforts. Exhibit 2 shows that our data analytics identified 295 potential duplicate payments totaling about $820,000. We confirmed that the City paid duplicate invoices totaling $57,000 for 23 (20 percent) of the 113 invoice groups that we randomly selected and that one invoice group included two duplicate payments, for a total of 24 duplicate payments. Exhibit 2 Data Analytics and Random Sample – July 2013 through October 2015 Note: The bars show the 295 potential duplicate payments, totaling $820,000, that we identified through our data analytics. The Unrecovered, Recovered, and False Positive segments show the results of the 174 invoice groups that we selected for our random sample. Source: Palo Alto SAP system and ASD staff 7 (2%)17 (6%) 150 (51%)121 (41%) 0%20%40%60%80%100% Potential Duplicate Payment Count Unrecovered Recovered False Positive Not Confirmed $1,900 (0.2%)$54,800 (7%) $412,200 (50%)$351,500 (43%) 0%20%40%60%80%100% Potential Duplicate Payment ($) Unrecovered Recovered False Positive Not Confirmed Attachment AAttachment A Continuous Monitoring Audit: Payments 7 City staff recovered 17 of 24 duplicate invoice payments prior to our audit ASD staff reported that the City had recovered 17 (71 percent) of the 24 confirmed duplicate payments, or $55,000 (97 percent) of $57,000, prior to the audit through periodic account analysis, contract monitoring, and vendor relationships. However, these informal practices are not included in the City’s policies and procedures and may not reliably and efficiently identify duplicate invoices in SAP. Data analytics can supplement these practices to more efficiently, timely, and predictably identify duplicate payments and minimize the potential for financial loss. Although there is no specific industry-established duplicate invoice payment rate for either the number or dollar amount of duplicate payments, one SAP analytics specialist estimates that continuous monitoring can result in duplicate payment recoveries of up to 0.02 percent of the amount of payments.3 Based on this estimate, continuous monitoring could help the City recover duplicate payments totaling about $30,000 (0.02 percent) of $150 million in average annual expenditures. SAP configuration does not prevent all duplicate invoices The City’s SAP system has not been configured to prevent all duplicate invoice payments. A more restrictive configuration could better prevent duplicate payments and identify them if they occur. However, SAP cannot be configured to prevent duplicate invoice payments if a duplicate invoice has a different number (e.g., 1 and 1a), a duplicate invoice with a different date, or a different vendor number. Finding 2 discusses duplicate vendors in the City’s master vendor file. Invoice error corrections not always recorded in SAP City staff entered credit memorandums for 3 (18 percent) of the 17 duplicate invoice payments that ASD resolved prior to the audit. Vendors sometimes issue credit memorandums to acknowledge invoice errors such as duplicate payments. Credit memorandums entered in SAP correct contract payment histories and budgets, vendor accounts, and financial statements. City departments often identify duplicate invoice payments and may recover funds before ASD accounting staff do, but because the City does not require the use of credit memorandums or other corrective entries, staff might 3 Martin Riedl, CEO, The dab:Group, “Cash Recovery Data Analytics,” recorded webinar available at http://www.highwateradvisors.com/webinar/cash-recovery-data-analytics-watch Attachment AAttachment A 8 Continuous Monitoring Audit: Payments not correct the associated contract payment and budget history, vendor account, and financial statement entry. City staff sometimes collect a reimbursement check or arrange for the vendor to apply overcharges to future invoices without a credit memorandum or alternate corrective entries. Vendor account and purchase order errors can result in inaccurate contract budgets, vendor tax forms, City financial records used to track expenditures, and budgets by category. When City staff do enter credit memorandums, they do not always reference the erroneous or duplicate invoice. In those instances, data analytics and manual account reviews cannot readily identify that corrective action was already taken. Unique invoice numbers could prevent false positives and increase reliability of analytic results Ninety (80 percent) of the 113 potentially duplicate invoice payments that we randomly selected from our data analytics were false positives. The City does not require vendors to use unique invoice numbers or City departments to generate unique, sequential invoice numbers for employee reimbursements, recurring lease payments, and other City-generated payments. ASD staff stated that they cannot require vendors to submit unique invoice numbers or credit memorandums; however, other organizations have implemented such policies.4 Recommendations We recommend that ASD: 1.1. Build a continuous monitoring reporting process into the new ERP system to identify potential duplicate invoices based on information such as vendor, date, invoice number, and amount, and run the report at least monthly. ASD should review the results, seek recovery of duplicate payments, and identify and correct process deficiencies that allowed the duplicate payments to be processed. 1.2. Update invoice processing policies and procedures, and disseminate the updated policies to appropriate City staff, to require: 4 See following examples: https://finance.ocfo.gsa.gov/webvendors/OnlineInstructions.aspx, http://www.unm.edu/~fssc/docs/P&APPolicies&Proc.pdf https://www.osc.state.ny.us/agencies/guide/MyWebHelp/Content/XII/5/B.htm https://www.progressive.com/Content/pdf/suppliers/supplier-invoice-requirements.pdf Attachment AAttachment A Continuous Monitoring Audit: Payments 9 a. Unique invoice numbers on all documents submitted for payment. b. Use of credit memorandums or other accounting entries to correct invoice errors such as duplicate invoices. c. Referencing of the erroneous or duplicate invoice using a unique identifier (e.g., invoice number) in credit memorandum entries in SAP. 1.3. Review the 121 unconfirmed potential duplicate invoice payments (see Exhibit 2), totaling about $351,500, that were not in our sample and prioritize recovery of confirmed duplicates with a focus on more recent and high dollar duplicates. As part of its review, ASD should identify what caused the duplicate payment to occur and implement process improvements to reduce the potential for future duplicate payments. Attachment AAttachment A 10 Continuous Monitoring Audit: Payments Finding 2 Numerous unneeded vendor records increase the risk of inappropriate and erroneous payments and payment records, as well as incorrect tax reporting. Almost 41,000 (94 percent) of the City’s 43,642 active vendor records in SAP are unused, duplicates, inconsistent, and/or incomplete, which increases the risk of duplicate, erroneous, and fraudulent payments, as well as incorrectly reported tax information. The City does not currently have monitoring procedures to identify duplicate or unused vendor records or effective procedures to prevent their entry or inactivate them in SAP. Many unneeded vendor records increase risk of erroneous payments and payment records From January through October 2015, the City used only 2,659 (6 percent) of the 43,642 vendors in its master vendor file and, as shown in Exhibit 3, has not used 35,878 (82 percent) of the vendor records since before 2012. About 27,500 (63 percent) of the vendor records had not been used since before 2008. ASD staff stated that most of those vendor records were probably carried over from the City’s prior financial system into SAP. EXHIBIT 3 Active but Unused City Vendors – Most Recent Calendar Year Paid Source: Auditor’s Analysis of SAP Payment Data Unneeded vendor records, including duplicate or unused records that have not been inactivated, increase the risk of erroneous or duplicate payments, incorrect vendor payment records and tax reporting, inefficiency, and fraud. For example: • The City provided an inaccurate tax form to a vendor because the City used two separate vendor records to pay the vendor in calendar year 2014. Consequently, the City did not report to the 35,878 (82%)5,105 2,659 0%10%20%30%40%50%60%70%80%90%100% Vendors (#) Last paid prior to 2012 Last paid in 2012 to 2014 Last paid in 2015 Attachment AAttachment A Continuous Monitoring Audit: Payments 11 Internal Revenue Service (IRS) $30,392 of reportable payments for that vendor. • SAP cannot prevent or identify duplicate payments if the City pays a duplicate invoice using different vendor records. Duplicate vendor records are a leading cause of duplicate payments and one of the reasons for duplicate payments in the City (Finding 1). • Inefficiency results when staff have to search numerous unneeded or duplicate vendor records to pay the appropriate vendor. Time is also wasted to update, purge, or inactivate unneeded vendor records. To process 1099 tax forms each year, staff manually identify and add together taxable payments for vendors that have duplicate records because the City does not have an automated process for doing this. • Fraud could occur if an employee were to set up a fictitious vendor or modify the address on an unused vendor record and then use the record to submit false invoices. While the City has procedures to ensure payment accuracy and staff periodically review master vendor file changes, the risk of not identifying fraud increases with a large, uncontrolled vendor master file. Many duplicate vendor records Of the 2,952 vendors that the City paid from July 2008 through October 2015, 433 (15 percent) had the same tax identification or social security number as another vendor. Of the 2,659 vendors that the City paid from January through October 2015, 22 (1 percent) had the same tax identification or social security number as another vendor. While best practices recommend maintaining tight control over the vendor master file and eliminating duplicates, City procedures sometimes require creation of duplicate vendor records: • Staff create duplicate vendor records to process invoices for a vendor that has a different “remit to” address than the vendor’s purchase order. An Institute of Management Administration guide suggests only entering the actual payment address in the vendor master file because the headquarters’ address is generally not needed. • Staff previously created duplicate vendor records to reimburse some vendors for nontaxable payments. Although the City has stopped this inappropriate practice, it has not updated its procedures to reflect that change. Attachment AAttachment A 12 Continuous Monitoring Audit: Payments Incomplete vendor identifying information Many of the 2,659 vendors did not have complete identifying information: • 1,751 (66 percent) vendors did not have a phone number. • 980 (54 percent) of 1,808 corporate and sole-proprietor vendors did not have either a tax identification or social security number, which would prevent the City from reporting income to the IRS on a 1099 tax form; 4 of the 980 were flagged as having reportable income. ASD Purchasing staff stated that they now require an Request for Taxpayer Identification Number and Certification (IRS Form W-9) for all vendors. • 497 (19 percent) vendors either had only a post office box address or no address at all. ASD Purchasing staff stated that they now require a physical address for all vendors. • 11 vendors did not have a vendor name, but we confirmed that there was no payment history for any of these vendors. Inconsistent vendor identifying information Many active vendors had inconsistently formatted information: • Social security numbers were not formatted as “999-99-9999” and tax identification numbers were not formatted as “99-99999” for 30 (2 percent) of the 1,808 corporate and sole- proprietor vendors with a unique identifying number that the City paid in 2015. • Address information was generally inconsistent throughout for capitalization, punctuation, and abbreviations (e.g., “DRIVE” vs. “Dr.”) because the City does not have coding standards for its vendor master file. One City employee who enters vendor records is aware of the California Employment Development Department’s (EDD) coding standards, which could be used as a basis for consistency in the City, because the City submits a list of sole proprietors to the EDD every 21 days and receives feedback if the address list does not meet the EDD’s standards. Data analytics work best to identify duplicates if there is a consistent naming convention and format. Risk of IRS fines, inefficiency, and duplicate payments due to duplicate vendor records Incomplete and inaccurate vendor records raise the risk of incurring IRS fines for inaccurate tax forms, inefficiency associated with potentially misrouted payments and maintenance of inconsistent vendor records, and duplicate payments due to undetected duplicate vendor records. Internal Revenue Code section 6723 prescribes a Attachment AAttachment A Continuous Monitoring Audit: Payments 13 penalty of $50 per occurrence, up to $100,000 per year, for reporting incorrect information or not reporting all required information. ASD staff is not aware of the IRS ever having fined the City for incomplete or inaccurate reporting of payments to vendors. No procedures to validate the vendor master file The City does not have monitoring procedures to identify and correct duplicate, incomplete, inaccurate, or unused vendor records or procedures to ensure complete and consistent entry of vendor information. Continuous monitoring can mitigate some risks associated with incompatible duties5 The City does not restrict SAP access to prevent accounts payable staff from performing incompatible vendor payment tasks, such as having separate staff enter invoices, approve invoices for payment, and issue checks.6 This increases the risk for errors or fraudulent activity for the City’s $150 million in annual payments. For example, in what is known as a “fictitious-vendor scheme,” the same person could create or modify a vendor record, enter a fraudulent invoice, and print a check. In another scenario, an employee could temporarily modify one of the many unused vendor records to route payment for a fraudulent invoice to his or her own address and alter the vendor record afterwards to hide the activity. City staff said that they avoid performing incompatible duties and that they have an informal procedure to periodically review changes to the vendor master file. Continuous monitoring to validate the City’s vendor master file and ensure that payments are restricted to authorized and properly identified vendors is an efficient and objective way to reduce fraud risk. Other analytic techniques not within the audit scope, such as “Benford’s Law” digital analysis, can also assist in identifying erroneous or fraudulent payments.7 5 “Incompatible duties” is a term used to describe multiple tasks in a process that should be performed by more than one person to limit the potential for errors and to prevent the employee from committing fraud and being able to cover it up. 6 In practice, City staff enter invoices in SAP for their department’s purchases and authorized supervisors sign an SAP printout of purchases that they forward to ASD staff who review supporting documentation, enter final approval in SAP, and issue checks using SAP. 7 Benford’s Law is a proven mathematical technique that predicts the expected frequencies of digits in a list of numbers (i.e., the number 1 is expected to be the first digit in a number 30 percent of the time, the number 2 is the first digit 18 percent of the time, the number 3 is the first digit 12 percent of the time, etc.). Deviations from the expected pattern can be an indicator of fraud. Attachment AAttachment A 14 Continuous Monitoring Audit: Payments Recommendations We recommend that ASD: 2.1. Update its policies and procedures to provide clear guidance regarding: • Information needed to create complete and accurate vendor master records. • Not to create a new vendor record when one already exists for a vendor or its parent or subsidiary companies unless, on an exception basis, there is a documented business need that cannot be met (e.g., tracking payments and creating payments for a vendor with multiple taxpayer identification numbers). • A coding standard for entering vendor information that includes guidance on punctuation, capitalization, spacing, abbreviation, special characters, and other potential variables in formatting identifying information in order to prevent duplicate records. This change should be incorporated in the new ERP system. 2.2. Build a continuous monitoring process into the new ERP system to: • Review the vendor master file at least annually to identify duplicate, incomplete, or unused vendor records (i.e., vendor records not used during a time frame determined by ASD). • Inactivate duplicate vendor records, enter missing identifying information based on reliable source documents such as a vendor-provided IRS Form W-9, and inactivate or archive unused vendor records. 2.3. Develop a requirement for the City’s proposed new ERP system to support multiple vendor addresses to accommodate, on an exception basis, the need to create more than one vendor record for a business entity. 2.4. Clean the City’s vendor master file in accordance with recommendations 2.1 and 2.2 before merging the data into the City’s proposed new ERP system. Attachment AAttachment A Continuous Monitoring Audit: Payments 15 APPENDIX 1 – City Manager’s Response TO: Harriet Richardson, City Auditor FROM: James Keene, City Manager DATE: April 12, 2017 PREPARER: Lalo Perez, Chief Financial Officer SUBJECT: City Manager’s Response to the Procure to Pay Audit The Administrative Services Department would like to thank the City Auditor and staff for their cooperation during the procure to pay audit. Overall, the Administrative Services Department (ASD) agrees with recommendations in the Procure to Pay Audit and will address the points made in the recommendations. (Specific responses to the recommendations are provided in the audit response matrix.) ASD would like to provide additional data to provide context to the audit. The following is summary data going back to 2011 (except as noted): Average number of checks issued per year 10,931 Average number of invoices processed per year 18,736 Average value of PCard purchases processed per year (since 2013) $6,587,935 Average value of checks issued and PCard purchases per year (since 2014) $126,525,315 Accounts Payable consists of a team of four. The group processes a high volume of activity as presented in the data above with a high degree of accuracy. The team works closely with all city departments to uphold the city policy on travel reimbursements, invoice payments, business reimbursements and procurement card transactions. This involves providing training and guidance to city staff in addition to processing payments. The audit points to 24 confirmed duplicate payments. While it may be ideal to have zero duplicate payments, staff believes that to be unrealistic given the extended timeframe such a review would require and the need to process all payments within a timely turn-around. However, staff believes with a new configuration in the SAP system there will be an enhanced ability to flag possible duplicate payments and for staff to intervene before making a payment. Of the 24 duplicate payments, 17 were identified by staff and resolved before the audit. When considering 24 duplicate payments against the average number of invoices processed per year, the figure is small or 0.1 percent. The potential value of these duplicates, if confirmed, is $4,797 or 0.004 percent of the average value of checks issued and PCard purchases per year. Attachment AAttachment A 16 Continuous Monitoring Audit: Payments The City Manager has agreed to take the following actions in response to the audit recommendations in this report. The City Manager will report progress on implementation six months after the Council accepts the audit report, and every six months thereafter until all recommendations have been implemented. Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status Finding: 1. Implementing a continuous monitoring process can help the City identify duplicate invoice payments. The City recovered 17 (71 percent) of 24 confirmed duplicate invoice payments. 1.1. Build a continuous monitoring reporting process into the new ERP system to identify potential duplicate invoices based on information such as vendor, date, invoice number, and amount, and run the report at least monthly. ASD should review the results, seek recovery of duplicate payments, and identify and correct process deficiencies that allowed the duplicate payments to be processed. ASD Concurrence: Agree Target Date: TBD (date of ERP implementation) Action Plan: ASD agrees that a continuous monitoring reporting process should be part of the accounts payable process. ASD and City staff currently detects and recovers duplicate payments through periodic account analysis, contract monitoring and notifications from vendors. Per the auditor’s recommendation, ASD will develop and document an internal control process to identify duplicates for the new ERP system. ASD is in the process of implementing a hard stop in the City’s SAP system if the invoice date, invoice number, and invoice amount are the same. Previously, only a warning was issued and it was possible to still enter a duplicate invoice. This more restrictive configuration should decrease the number of duplicate payments. It is important to note that no system can prevent 100% of duplicate payments. However strong internal controls and entity -wide coordination can prevent most duplicates. With technological advances and changing requirements we have seen an increase in duplicate invoices arriving in Accounts Payable. Invoices come in to Accounts Attachment AAttachment A Continuous Monitoring Audit: Payments 17 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status Payable from multiple sources, and while previously a best practice, requiring original invoices is no longer practical. Invoices are now emailed by the vendor, sent via DocuSign, by internal departments and sometimes also sent via U.S. mail. 1.2. Update invoice processing policies and procedures, and disseminate the updated policies to appropriate City staff, to require: a. Unique invoice numbers on all documents submitted for payment. b. Use of credit memorandums or other accounting entries to correct invoice errors such as duplicate invoices. c. Referencing of the erroneous or duplicate invoice using a unique identifier (e.g., invoice number) in credit memorandum entries in SAP. ASD Concurrence: Partially Agree Target Date: 12/31/17 Action Plan: a. ASD will request invoice numbers from vendors, however it may not be practical to require all vendors to provide for unique invoice numbers on all documents submitted for payment. Some vendors such as phone companies do not provide invoice numbers. To follow-up with all vendors that do not provide an invoice number would slow down payment and require additional staff hours. However ASD staff will be more proactive in working with vendors that submit invoices without invoice numbers. We have created a “Master Invoice Key” to improve consistency for non- invoice payment requests such as employee reimbursements, rebates and refunds, dues, subscriptions and registration fees. This should mitigate risk of duplicate payments on these invoices. b. ASD requests a credit memo from the vendor, when possible. Not all vendors are set up to issue credit memos and sometimes a reimbursement check is Attachment AAttachment A 18 Continuous Monitoring Audit: Payments Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status generated before we were aware of the duplicate payment. Sometimes the departments request that the vendor apply the credit or duplicate payment amount to future invoices without ASD staff’s knowledge. ASD staff will include in the disseminated policy and procedures instructions to the departments explaining the process when/if they detect or are informed of a duplicate payment. c. Credit memorandums typically have their own unique identifier. This unique identifier often does not have any relationship to the invoice number on the invoice that that was paid more than once. ASD will add instructions in the Accounts Payable manual to reference the duplicate payment in the text field. However this field was not used in the audit and therefore would not have reduced the false positives. Attachment AAttachment A Continuous Monitoring Audit: Payments 19 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status 1.3. Review the 121 unconfirmed potential duplicate invoice payments (see Exhibit 2), totaling about $351,500, that were not in our sample and prioritize recovery of confirmed duplicates with a focus on more recent and high dollar duplicates. As part of its review, ASD should identify what caused the duplicate payment to occur and implement process improvements to reduce the potential for future duplicate payments. ASD Concurrence: Agree Target Date: 06/30/17 Action Plan: The data provided by the Auditor's office contained 132 unconfirmed potential duplicates, totaling approximately $521K. In a preliminary review of the data, ASD determined that 118 of the 132 were not duplicates ($506,103); 2 were duplicate entries but they were corrected before a payment was issued ($5,388); 3 were duplicates that are resolved ($4,888); 1 is an unresolved duplicate payment ($275); and 8 require further research in order to make a determination ($4,797). Finding: 2. Numerous unneeded vendor records increase the risk of inappropriate and erroneous payments and payment records, as well as incorrect tax reporting. 2.1. Update its policies and procedures to provide clear guidance regarding: • Information needed to create complete and accurate vendor master records. • Not to create a new vendor record when one already exists for a vendor or its parent or subsidiary companies unless, on an exception basis, there is a documented business need that cannot be met (e.g., tracking payments and creating payments for a vendor with multiple taxpayer identification numbers). • A coding standard for entering vendor information that includes guidance on punctuation, Concurrence: Agree Target Date: 12/31/17 Action Plan: ASD will update policies and procedures to provide information needed to create complete and accurate vendor master records. In some cases, for business needs, duplicate vendor records are needed in the current configuration of SAP to allow for different payment addresses, for instance. As part of the new ERP system City staff will clean- up and establish new vendors for a fresh start with the new ERP vendor database. Attachment AAttachment A 20 Continuous Monitoring Audit: Payments Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status capitalization, spacing, abbreviation, special characters, and other potential variables in formatting identifying information in order to prevent duplicate records. This change should be incorporated in the new ERP system. 2.2. Build a continuous monitoring process into the new ERP system to: • Review the vendor master file at least annually to identify duplicate, incomplete, or unused vendor records (i.e., vendor records not used during a time frame determined by ASD). • Inactivate duplicate vendor records, enter missing identifying information based on reliable source documents such as a vendor-provided IRS Form W9, and inactivate or archive unused vendor records. ASD Concurrence: Agree Target Date: TBD (date of ERP implementation) Action Plan: ASD agrees that a continuous monitoring process should be built into the new ERP system. When the new ERP is implemented, ASD will prepare a plan to review the vendor master file at least annually and inactivate unused, incomplete or inactive vendors. Part of the annual review of the master vendor file will also entail identifying and deleting and delete duplicate vendors. In addition, staff will also update the missing vendor record using information from sources mentioned in the recommendation. ASD staff will also work with ERP Team to explore other options to accommodate different “Remit To” addresses without creating a new vendor number. 2.3. Develop a requirement for the City’s proposed new ERP system to support multiple vendor addresses to accommodate, on an exception basis, the need to create more than one vendor record for a business entity. ASD Concurrence: Agree Target Date: N/A Action Plan: This request has already been made to ERP Consultants in their fact finding stage and is part of ERP requirements. Attachment AAttachment A Continuous Monitoring Audit: Payments 21 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status 2.4. Clean the City’s vendor master file in accordance with recommendations 2.1 and 2.2 before merging the data into the City’s proposed new ERP system. ASD Concurrence: Agree Target Date: TBD with adoption of new ERP system Action Plan: In order to provide consistency, ASD intends to begin from scratch with the Master Vendor File when the City adopts a new ERP. Attachment AAttachment A POLICY AND SERVICES COMMITTEE TRANSCRIPT EXCERPT Special Meeting Tuesday, April 25, 2017 Chairperson Wolbach called the meeting to order at 7:00 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: DuBois, Kou, Wolbach (Chair) Absent: Kniss Agenda Items 2. Continuous Monitoring Audit: Payments. Chair Wolbach: It looks like you're still on the docket Harriet for the next... Harriet Richardson, City Auditor: Yeah, I'm on all night long. Chair Wolbach: ......all evening. Alright, so let's move onto - thank you, everybody, for that one. As people get resettled, out next one also is another audit. The continuous monitoring audit payments, item two on tonight's agenda. Ms. Richardson: This is our audit of continuous monitoring of payments. To start, it's probably helpful for me to define the terms of continuous monitoring, which is a process for proactively reviewing data or information at regular intervals often through an automated process that uses some sort of data analytic software and it helps identify errors or erroneous information or incomplete data or information in records. In this audit, we used data analytic software to see if it would help the City identify duplicate payments - vendor payments or vendor records, which can increase the risk for duplicate or fraudulent payments. It's also important to note that monitoring is one of the five components of an effective internal control system, which are the processes that an organization implements to provide reasonable assurance that it will achieve its operational reporting and compliance objectives. There really is an expectation to be monitoring what you're doing and taking corrective action as necessary. The audit had two findings; the first one is that implementing a continuous monitoring process can help the City identify duplicate invoice payment and vendor records. I want to give you a little bit of background on the Attachment B Page 2 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT process we went through because there was an article in Palo Alto online which I think slightly misstated what we actually found so I want to make sure that it's understood tonight what we - how we actually approached it and what we actually found. We started by identifying invoices that had the same invoice amount and invoice number, which identified about 1,400 potential duplicate payments out of the 44,000 invoices that the City paid from July 2013 - October 2015. We eliminated what's called a false positive, which are the records that the data analytic software identifies as potential duplicate payments but that we could confirm were not actually duplicate payments through some other piece of information. By starting with the same invoice number and same amount, we might realize that oh, there's a different date on them or it's a different vendor or it's a vendor that bills on monthly basis and it's a set amount and so it's not a duplicate payment. We eliminated all of those and by doing that, we narrowed the potential duplicate payments down to 295, which we sorted into about 174 invoice groups, meaning that, you had your original due payment, your duplicate payment and in some cases, there was more than one duplicate payment on the same invoice. Those totaled to about $820,000 and that's where the number that was in the news article came from. Of those 174, we randomly selected 113 of the invoice groups and we confirmed that the City had made 24 duplicate payments for a total of $57,000. In working with ASD, we had confirmed that the City had recovered 17 of those 24 payments, totaling $55,000 of the $57,000 prior to the audit. ASD is here tonight, again, they'll be able to address later, the work they have done since the audit to address the remaining duplicate payments, as well as the ones that we didn't look at through our audit sample. Our second finding, because of the duplicate - some of the duplicate payments were the result of having more than one record in our SAP system for the same vendor, we did additional work on the vendor master file, which led to our second finding that there are numerous vendor records in SAP that increased the risk of inappropriate and erroneous payments, as well as incorrect tax reporting. We again used the data analytic software to identify duplicate vendor records but we also found that by doing that, that the majority of the vendor records aren't even used anymore. Out of the 43,600 or so active vendor records in SAP, almost 41,000 hadn't been used since before 2015 and about 36,000 hadn't been used since before 2012. We also identified several errors in the vendor records, which increased the risk of incorrect tax reporting including making payments to different addresses for the same vendors and incomplete or inaccurately formatted vendor identification number. We identified one instance where this caused the City to under report $30,000 of reportable payments for a vendor to the IRS. One of the Attachment B Page 3 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT main reasons for having duplicate vendor records is that the City use to separate - create two records for a vendor when they determined that some income was reportable to the IRS and some of it was not and they would make one payment, under one vendor number and one under the other. Since that time, more recently, ASD has corrected that practice and recognizing that it’s up to the vendor to determine what they report to the IRS and not up to us. Since that change, that should reduce the creation of the duplicate vendor records in the future. The audit includes seven recommendations including building a continuous monitoring reporting process into the new Enterprise Resource Planning System, to search for potential duplicate vendor payments and vendor records at regular intervals. We recommended updating policies and procedures regarding how to correct duplicate payments and what is needed to create a complete and accurate vendor master record. We also recommended that they review the 121 duplicate invoice payment groups that we did not review and that they clean the City's vendor master file before the records get transferred into the new ERP system, once that is implemented. The City Manager's Office agreed with six of the recommendations and partially agreed with one of the recommendations. That completes our presentation on that audit and I'm ready for questions. Chair Wolbach: Thank you very much, Harriet and I'll turn it back to my colleagues. Lydia and Tom, do you have any questions that you want to start with? Lydia, go ahead. Council Member Kou: Harriet, can you tell me why the manager’s office partially went with that one last one that you said? Ms. Richardson: Yes, so that recommendation had to do with requiring vendors to use unique invoice numbers and they said that they can’t require -they can't direct vendors what to do as far as how they number their invoices. We did find some policies and procedures of other jurisdictions, where they actually do require that. I'm not quite sure how they get around that. Maybe the just don't do business with someone who won't comply with what their organization needs but it really had to do with how the organization submits their invoices. Council Member Kou: Is there discussion of a resolution for that? Ms. Richardson: We have not had an additional discussion about that since the audit. Chair Wolbach: Tom? Attachment B Page 4 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT Council Member DuBois: Yeah, just to pick up on that. So, is that the primary reason we get duplicates because the invoice numbers aren't unique? Ms. Richardson: That's one of the reasons, invoice are not unique. Some it was that sometimes they would submit a duplicate invoice and we'd pay both of them. Sometimes an invoice would get paid - it would be paid because it was submitted from an electronic copy or end of the paper copy. There were various reasons why we got duplicate payments so I think just having a system where you can check on it regularly - right now, we have - they rely somewhat on the vendors to say we - you paid us twice. We'll give you a credit or something like that but having a program - an active process is really the best approach to identifying those rather than relying on the manual systems that they currently rely on to identify those. Council Member DuBois: I'm just trying to understand. When you make a payment, don't you make it against an invoice so... Ms. Richardson: Sometimes a vendor will submit a second invoice for the same i t e m . Council Member DuBois: With a different number? Ms. Richardson: It may have the same number. That's how - that's originally how we identified it. They had the same number. The same invoice number. There were some - there may be some other payments that there were no invoice numbers and so we couldn't match them up but the ones that we identified had that the same invoice number. Council Member DuBois: It sounds like the total dollar amount was relatively low? Ms. Richardson: In the end, it ended up being relatively low. Council Member DuBois: Ok, and what's the status of the ERP system? Ms. Richardson: They are planning to issue an RFP. They have finished identifying the technical requirements and th last I heard, they were in the process of confirming those with departments. They were having meetings and they were planning to issue an RFP late summer time frame or so. Somewhere around there, August or September. Council Member DuBois: Ok. Ms. Richardson: It's going to be a staged implementation process and I Attachment B Page 5 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT don't know that they've gotten to the point of figuring all of that out yet. Council Member DuBois: If we just look at the recommendation I guess, in the back, I guess all of your recommendations here are going to be worked on? Ms. Richardson: Yes. They agreed with all of them. They've given us an action plan on all of them except recommendation 1.2 and that's the one they partial agreed with but they actually gave us an implementation plan for how they will attempt to approach that. Council Member DuBois: Ok. Since you stayed, do you want to add anything or make any comments? David Ramberg, Assistant Director of Administrative Services: Yeah, I want to... Chair Wolbach: If you could just identify yourself again for the record. Mr. Ramberg: Sorry, no problem. Chair Wolbach: Thank you. Mr. Ramberg: David Ramberg, Assistant Director of the Administrative Services Department. We oversee the accounts payable division and for - what we're - a couple comments. One, we - as you guys know, we run the SAP system here for the City's Enterprise Resource Planning System. We have a - the system is currently configured to identify when there might be an invoice that has the same number on it. The question that you were just asking and it's currently not a hard stop on the system, meaning it can be overwritten. In some of these instances that were found as duplicates, we had human error that had over - improperly overwritten an invoice, creating a duplicate invoice. In many of the instances where a duplicate was created, we caught it later on in the process before it was issued as payment. What we're doing now with SAP is within our current ability to configure SAP without any additional cost, we can put in a hard stop rather than a Staff override. That hard stop, what that will do is it will prevent that one individual - we only have three people that do this for the whole City so we can't have perfect segregation of duties but what we can do is we can create a hard stop and this is what we are configuring right now. So, probably the next update that we come back to you on this one, we'll have this done because it's in testing right now. Where a second - probably a supervisor will come over and review that hard stop and have to give an approval for it to go to the next stage and so we'll have a separate Attachment B Page 6 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT set of eyes on that potential duplicate that the system would f lag. Council Member DuBois: But what - maybe it's not in the SAP but it would be in the new system. When that invoice comes up, does it shows payments made against the invoice? Mr. Ramberg: There is a payment history for the vendor, yes. There would be - I haven't seen the screen myself but there would - I would presume there - depending on which - one of the issues with SAP is that there are lots of levels and so you have to dig down sometimes to get to the relevant information. In this case - I don't know, Harriet, if you guys know off hand but I think - depending on what screen you're at, you can certainly get to additional payment information but it may not be at that exact screen where you're seeing the possible duplicate. That part I just don't know right now. Council Member DuBois: Ok. Ms. Richardson: Right. We have to extract things from – that would appear on different screens to actually see the duplicate payments. Mr. Ramberg: Right. Council Member DuBois: And... Mr. Ramberg: That sounds about right. Council Member DuBois: ...I assume p-cards are - there's an expense report filed after the fact? Mr. Ramberg: Correct, so the purchase card is actually in a separate system. The high-level dollar amounts come over into SAP so that every department knows how much they spent because SAP is our final depository of all spending activity but for the p-card system, the detailed spend activity is in the JP Morgan cloud base hosted solution. Those - I don't think we found any duplicates there because that's... Council Member DuBois: That was my question. Does this audit cover those payments? Mr. Ramberg: Yeah, those are the - those are very much locked down on the Visa network and it's - I think it's - it would be very hard to duplicate those but in terms of review of those transactions - I didn't cover this before so this is probably salient. There's the purchase card holder, which is a Staff person. This purchase card holder has a supervisor so all the transactions of a purchase card holder are Attachment B Page 7 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT reviewed every month by a supervisor and approved to accounts payable. Accounts payable then looks at all transactions across the City and selects a population to audit every month and they audit transactions for appropriateness and for other adherence to policies and procedures. Sometimes around travel, sometimes around the appropriateness of other purchases including green purchases and sometimes we'll flag - if we find something that's out of policy, we'll flag that and we'll bring that to the attention of the cardholder and we'll have corrective action if needed. Council Member DuBois: Thank you. My last question - I mean, there are a lot of inactive vendors in the system so is there an idea with the new ERP system that maybe have the system automatically deactivate a vendor if they are not used for a number of years because it seems like it would build up over time. Mr. Ramberg: Yeah, that's exactly right. I think Harriet cited some figures about how old our vendor database is and the majority of them are quite old; prior to 2012 and the reason for that is that we did not do a cleaning of our vendor database prior to bringing our vendor database into SAP. Our prior legacy system was something called [IFAS] back in the early - late 90's and early 2000s and when we went to SAP in, I think about 2003 or 2004, we just brought over all of those vendors. That's not good practice. We should have cleaned and cleansed the data more and that's the biggest reason for that large percentage. They have just been carried over but I think - Exactly. In the new system, what we want to do is a better practice, of course, is scrubbing - only bringing over active vendors. The ones that are actually part of active contracts or have had payments let's say, in the past 1-2 years orsomething like that. Coming up with criteria and then running some data tools against it to make sure that the vendor database is clean and then bringing over only 2,000-3,000 and I think that's what our current list of active vendors is. Council Member DuBois: Yeah, so I mean that seems like a big part of it but then also - just a comment. If you can put in that automatic cleaning role kind of going forward so that not only do you clean it once but if you had some policy that a vendor deactivates if they are not used in 2- years that... Mr. Ramberg: That's a really good point. Council Member DuBois: Yeah, so thank you. Chair Wolbach: Lydia? Council Member Kou: Just so I'm clear when you transferred all the old Attachment B Page 8 of 8 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT vendors, it's still into the SAP system... Mr. Ramberg: Correct. Council Member Kou: ...or is it the ER - what is - the ERP or SAP? (Crosstalk) Ms. Richardson: SAP is in the ERP, correct. Council Member Kou: SAP is in the ERP. Ms. Richardson: It is an ERP. (Crosstalk) Enterprise Resource Planning system. Council Member Kou: Ok. Chair Wolbach: SAP is a vendor. Ms. Richardson: Yes, and SAP is a vendor yes. (crosstalk) Council Member Kou: I got it. Ms. Richardson: The City is in the process of planning a new replacement financial system that would-be Enterprise Resource Planning system so when we talk about the new ERP system, we're talking about something that is currently in the planning stages that would replace SAP. Chair Wolbach: Great. I will once again - you two have asked great questions and I don't have any questions that I think would be useful I think, to add at this point so I'll ask if anyone wants to make a Motion? Council Member Kou: I'll make the motion to recommend that the City Council accept the continuous monitoring audit for payments. Chair Wolbach: I'll second that. Would you like to speak to your Motion? Council Member Kou: I think it's all said, thank you. Chair Wolbach: Likewise. Ok, all in favor? Aye. That passed unanimously with Council Member Kniss absent. Thank you very much. MOTION: Council Member Kou moved, seconded by Chair Wolbach to recommend the City Council accept the Continuous Monitoring Audit: Payments. MOTION PASSED: 3-0 Kniss absent Attachment B 1 of 1 TO: HONORABLE CITY COUNCIL FROM: HARRIET RICHARDSON, CITY AUDITOR DATE: AUGUST 14, 2017 SUBJECT: AGENDA ITEM NUMBER 16 ‐ Policy and Services Committee Recommendation to Accept the Audit of Green Purchasing Practices Attached is the April 25, 2017, memo to City Council regarding the Audit of Green Purchasing Practices. This was inadvertently excluded from the packet item. Harriet Richardson City Auditor CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR April 25, 2017 The Honorable City Council Palo Alto, California Audit of Green Purchasing Practices In accordance with the Fiscal Year 2016 Annual Audit Work Plan, the Office of the City Auditor has completed the Audit of Green Purchasing Practices. The audit report presents one finding with a total of eight recommendations. The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Audit of Green Purchasing Practices. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: • Attachment A: Audit of Green Purchasing Practices (PDF) Department Head: Harriet Richardson, City Auditor CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR August 14, 2017 The Honorable City Council Palo Alto, California Policy and Services Committee Recommendation to Accept the Audit of Green Purchasing Practices The Office of the City Auditor recommends acceptance of the Audit of Green Purchasing Practices. At its meeting on April 25, 2017, the Policy and Services Committee approved and unanimously recommended that the City Council accept the report. The Policy and Services Committee minutes are included in this packet. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Audit of Green Purchasing Practices (PDF) Attachment B: Policy and Services Committee Meeting Minutes Excerpt (April 25, 2017) (PDF) Department Head: Harriet Richardson, City Auditor Page 2 Attachment A THIS IS AN UPDATED VERSION WITH REVISIONS TO THE EXECUTIVE SUMMARY AND TEXT ON PAGES 10 AND 21. Audit of Green Purchasing Practices April 13, 2017 Office of the City Auditor Harriet Richardson, City Auditor Lisa Wehara, Performance Auditor II Attachment A Page intentionally left blank for double-sided printing Attachment A Office of the City Auditor ● 250 Hamilton Avenue, 7th Floor ● Palo Alto, CA 94301 ● 650.329.2667 Copies of the full report are available on the Office of the City Auditor website at: http://www.cityofpaloalto.org/gov/depts/aud/reports/performance/default.asp OFFICE OF THE CITY AUDITOR EXECUTIVE SUMMARY: Audit of Green Purchasing Practices April 13, 2017 PURPOSE OF THE AUDIT The objective of the audit was to determine whether the City of Palo Alto complies with applicable green purchasing requirements in purchases. REPORT HIGHLIGHTS Finding: The City does not always comply with applicable requirements in its green purchasing policies (Page 7) The City’s green purchasing policies and goals are not fully achieved because the City does not have consolidated, formal written procedures to implement the Environmentally Preferred Purchasing Policy; other procedures have not been updated; there is a lack of a clear governance structure and a lack of awareness of policies and procedures; and the City does not have technical tools to track green purchases. •Only 59 percent of Staples paper product purchases and only 19 percent of paper product purchases from other office supply vendors met or most likely met the recycled content requirement. •The City purchased and distributed drinking water in plastic bottles against policy. Staff identified this issue and took corrective action during the audit. •The City’s janitorial contractor that services most City facilities did not always use green products or provide reports of bulk chemicals as required by the contract, nor did the City monitor the products to ensure they were green. •All of the $1.0 million in computers, notebooks, and monitors that the City purchased were Electronic Product Environmental Assessment Tool certified, and in May 2016, received the 2016 Electronic Product Environmental Assessment Tool Sustainable Purchasing Award, which recognizes excellence in sustainable electronics procurement. •Public Works has not formally documented its assessment of the suitability of battery-electric or plug-in hybrid vehicles during its review of the fleet replacement capital improvement plan in the annual budget process. Key Recommendations: •The City Manager’s Office should clearly define the department(s) responsible for implementing green purchasing policies, determine if additional staffing and funding is needed to implement the policies, and provide the responsible department(s) with the authority to implement green purchasing across the City. The responsible department(s) should then: •Consult with the Attorney’s Office to align the Municipal Code as needed with green purchasing policies. Attachment A •Write and distribute consolidated procedures to implement green purchasing policies, including the 10 different areas in the Environmentally Preferred Purchasing Policy, and update existing policies and procedures to reflect current requirements, including recycled paper and procurement card guidance. •Evaluate if the new e-procurement system and proposed enterprise resource planning system or other specialized software can help with tracking and reporting green purchases. As part of the planned transition of the Annual Performance Report to the City Manager’s Office, determine what green purchasing performance measures to track and report on, such as the number and percentage of green products purchased and their environmental benefits. The Sustainable Procurement Playbook for Cities provides potential criteria for what to track. Attachment A TABLE OF CONTENTS Objective ................................................................................................................................................. 1 Background ............................................................................................................................................. 1 Scope ...................................................................................................................................................... 4 Methodology .......................................................................................................................................... 5 Finding: The City does not always comply with applicable green purchasing requirements in purchases .... 7 Recommendations ........................................................................................................................... 16 Appendix 1: Environmentally Preferred Purchasing Policy ................................................................. 18 Appendix 2: City Manager’s Response ................................................................................................. 21 ABBREVIATIONS ASD Administrative Services Department EPEAT Electronic Product Environmental Assessment Tool EPP Environmentally Preferred Purchasing P-card Procurement Card USDN Urban Sustainability Directors Network Attachment A Page intentionally left blank for double-sided printing Attachment A Audit of Green Purchasing Practices 1 INTRODUCTION Objective The objective of the audit was to determine whether the City of Palo Alto (City) complies with applicable green purchasing requirements in purchases. Background Triple bottom line Sustainable, or “green” purchasing, includes environmental stewardship, along with social responsibility and economic equity. These are often referred to as the “triple bottom line” or the “three pillars of sustainability.” The City’s green purchasing efforts began in the early 1990s when the City Council approved two policies for the procurement of recycled products and recycled paper and paper products. The City adopted a policy expressing support for sustainability in April 2000, and the City Council approved a revised policy in June 2007. The City’s intent was to be a sustainable community – “one which meets its current needs without compromising the ability of future generations to meet their own needs.” By adopting this policy, the City accepted its responsibility for the triple bottom line, through its operations, programs, and services, to: •Enhance the quality of air, water, land and other natural resources by minimizing human impact on local, regional and global ecosystems through greater conservancy, reduced pollution, increased efficiency, and protection of native vegetation, fish, wildlife habitats and other ecosystems. •Continuously improve the quality of life for all Palo Alto community members without adversely affecting others. •Maintain a healthy, thriving and well-balanced economy comprised of a blend of large and small business, which encourages the development of independent businesses and is resilient to the changes common to California’s economy. All products have environmental impacts, and among the benefits of green products are that their environmental impacts are less than those of similar products. However, the greenest option may be avoiding buying a product, if possible, for example, by repairing an item to extend its life or converting to a paperless file management system to reduce the need for paper and ink. Attachment A 2 Audit of Green Purchasing Practices No direct federal or state mandates or goals for green purchasing There are no direct federal or state mandates or goals for green purchasing in local governments, except in certain cases where specific federal or state grants may require green purchasing. Cities may have both direct and indirect requirements related to green procurement through permits tied to state or federal legislation. Green purchasing initiatives can also help local governments meet other state environmental goals. City’s Green Purchasing Policies Green purchasing in Palo Alto includes areas such as goods and services, energy and gas purchases, green building materials, and the use of pesticides. Some of Palo Alto’s green purchasing policies are the: • Environmental Preferred Purchasing (EPP) Policy • Procurement of Recycled Paper and Recycled Paper Products Policy • Extended Producer Responsibility Policy • Vehicle and Equipment Use, Maintenance and Replacement Policy • Green Information Technology Purchasing Policy Environmentally Preferred Purchasing Policy The City adopted the EPP Policy, also known as the Green Purchasing Policy, in February 2008 (see Appendix 1). Its purpose was to align the City’s purchases and purchasing policies and procedures with the City’s many environmental and sustainability policies and programs to: • Protect and conserve natural resources. • Minimize the City’s contributions to global warming, solid waste, local and global pollution, and toxic chemical exposures to people and the environment. • Promote human health and well-being. The policy required the City Manager to convene a Sustainable Purchasing Committee, including management-level staff from key departments, to implement the policy by creating a plan and procedures to address 10 different areas (see Appendix 1). Procurement of Recycled Paper and Recycled Paper Products Policy The City adopted the Procurement of Recycled Paper and Recycled Paper Products Policy in June 2003. This policy requires the City to purchase paper products consisting of at least 50 percent secondary and postconsumer waste, whenever the recycled alternative meets the City’s requirements and specifications for paper products, and within the constraints of staff time and cost factors. Attachment A Audit of Green Purchasing Practices 3 Extended Producer Responsibility Policy Green purchasing also includes product packaging. The City’s Extended Producer Responsibility Policy acknowledges that producers have the greatest ability to minimize impacts and, therefore, the most responsibility. The policy creates requirements for manufacturers and suppliers to reduce waste and pollutant releases in the City. It also requires City vendors of designated products to minimize and reduce packaging and take back designated products and packaging for reuse, recycling, or responsible disposal, when convenient and at a nominal additional cost. This policy aligns with the Single-use Plastics Policy discussed in the “Drinking water in plastic bottles purchased against policy” section. Vehicle and Equipment Use, Maintenance and Replacement Policy The City revised its Vehicle and Equipment Use, Maintenance and Replacement Policy in March 2016 and includes a section on alternative fuel vehicles which was originally adopted in April 2015. The City’s policy is to acquire “plug-in electric vehicles upon replacement or for new needs when they are available, and meet needed range, load and emergency response requirements.”1 Green Information Technology Purchasing Policy The Green Information Technology Purchasing Policy established specific guidelines for purchasing Electronic Product Environmental Assessment Tool (EPEAT) certified computer equipment and packaging to reduce plastics. Information Technology staff were previously unaware of this policy, but stated that it needs to be updated, and it is unclear whether the City approved the policy (see discussion in the “Lack of awareness of environmental and green purchasing policies” section). Sustainable Procurement Playbook for Cities The Sustainable Procurement Playbook for Cities, issued in October 2016, provides practical advice, best practices, resources, and tools to help cities with their sustainable procurement efforts. The playbook is a project of the Urban Sustainability Directors Network (USDN) and was written primarily by Alicia Culver, the City’s green purchasing consultant and the executive director of the Responsible Purchasing Network, with input from 19 cities, including Palo Alto.2 The USDN is a peer-to-peer network of local government professionals from over 135 cities in the United States and Canada. 1 The current terminology is “battery-electric or plug-in hybrid vehicles.” Policy terminology should be updated accordingly. 2 Alicia Culver, et al. Sustainable Procurement Playbook for Cities, Urban Sustainability Directors Network, October 2016, available at http://usdn.org/uploads/cms/documents/rpn-usdn-sustainable-purchasing-playbook-101216_final.pdf Attachment A 4 Audit of Green Purchasing Practices Green Purchasing Activities and Accomplishments The City’s green purchasing activities and accomplishments include: • Developed environmental performance specifications for priority goods and services including landscaping services, landscaping and structural pest control, computer equipment, office supplies, lighting, custodial supplies, and single-use plastics. • Developed green purchasing workplans beginning in October 2008; the most recent one is for 2015-2017. • Created a flowchart to guide decision-making about when to specify green products. • Revised City contract terms and conditions to include vendor responsibilities for waste reduction and pollution prevention. • Revised processes for petty cash reimbursements to restrict City purchases of disallowed products such as single-use plastics. • Made recommendations to City departments regarding policies, permits, or other goals, using the green purchasing consultant services as needed. • Participated in developing the USDN Sustainable Procurement Playbook for Cities. • Received the 2010 Green California Leadership Award. Scope Because the City does not track green purchases, the total amount of potential green purchases is not known. We reviewed the City’s purchases of office supplies, cleaning supplies, and computers to assess whether purchases complied with the City’s green purchasing policies. For each category, we included the City’s purchases made with procurement cards (p-cards) from July 1, 2014, through June 30, 2016. In addition: • We evaluated the City’s compliance rate for recycled content of paper product purchases from its main office supply vendor, Staples, from July 1, 2014, through June 30, 2016. • We reviewed the cleaning supplies purchased by the City’s janitorial service contractor from January 2016 through the beginning of July 2016.3 • We reviewed bulk computer and monitor purchases from purchase orders in April 2014, January 2015, and May 2015.4 We did not review vehicle purchases because Public Works had not formally documented its assessment of the suitability of battery- electric or plug-in hybrid vehicles during its review of the fleet 3 The most recent calendar year information available at the time of our review. 4 The most recent large purchase orders for computers and monitors at the time of our review. Attachment A Audit of Green Purchasing Practices 5 replacement capital improvement plan in the annual budget process (see the discussion in the “Battery-electric or plug-in hybrid vehicles” section). Methodology To accomplish our audit objective, we: • Reviewed the relevant data and policies and procedures and interviewed Public Works, Administrative Services, and Office of Sustainability staff. • Obtained information from the City’s green purchasing consultant from the Responsible Purchasing Network and the City Attorney’s Office regarding federal and state mandates and goals that apply to green purchasing. • Conducted a risk assessment to identify and prioritize risks associated with green purchasing. • Obtained and reviewed data from the City’s main office supply vendor, Staples, to evaluate the City’s compliance with minimum recycled content required for paper products. • Reviewed a sample of the City’s purchases of office supplies, cleaning supplies, and computers to assess the extent to which purchases are made in compliance with the City’s green purchasing policies. Sampling methodology We selected a statistical, stratified random sample of 87 p-card purchases using a 95 percent confidence level and a 10 percent confidence interval. We selected the sample items in proportion to the total number of p-card purchases in each category: office supplies, cleaning supplies, and computers. We also selected statistical random samples for office supplies not purchased from Staples and for computer purchases. However, green purchasing was not applicable to the majority of items in these samples. We chose these sample designs to ensure that we reviewed an appropriate number of items from each category to support our conclusions regarding the City’s compliance with its green purchasing policies. Although this was a statistical sample of p-card purchases within these categories, we did not project our conclusions to the population of purchased items because the total population of potential green purchases is not known. Data reliability To assess the reliability of the data needed to answer the audit objective, we reviewed the data for completeness, consistency, and Attachment A 6 Audit of Green Purchasing Practices reasonableness, and obtained an understanding of the data by discussing with knowledgeable City and Staples staff. For the data review, we reviewed receipts for p-card data, matched receipts to Staples data, and compared both p-card and Staples data to the City’s SAP enterprise resource planning system. From these efforts, we believe the information is sufficiently reliable for this report. Compliance with government auditing standards We conducted this audit of Green Purchasing Practices in accordance with our Fiscal Year 2016 Annual Audit Work Plan and generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objective. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objective. We would like to thank management and staff in the Public Works and Administrative Services Departments, and the Office of Sustainability for their time, cooperation, and assistance during the audit process. Attachment A Audit of Green Purchasing Practices 7 Finding The City does not always comply with applicable requirements in its green purchasing policies The City’s green purchasing policies and goals are not fully achieved because the City does not have consolidated, formal written procedures to implement the Environmentally Preferred Purchasing Policy; other procedures have not been updated; there is a lack of a clear governance structure and a lack of awareness of policies and procedures; and the City does not have technical tools to track green purchases. • Only 59 percent of Staples paper product purchases and only 19 percent of paper product purchases from other office supply vendors met or most likely met the recycled content requirement.5 • The City purchased and distributed drinking water in plastic bottles against policy. Staff identified this issue and took corrective action during the audit. • The City’s janitorial contractor that services most City facilities did not always use green products or provide reports of bulk chemicals as required by the contract, nor did the City monitor the products to ensure they were green. • All of the $1.0 million in computers, notebooks, and monitors that the City purchased were EPEAT certified, and in May 2016, received the 2016 EPEAT Sustainable Purchasing Award, which recognizes excellence in sustainable electronics procurement. • Public Works has not formally documented its assessment of the suitability of battery-electric or plug-in hybrid vehicles during its review of the fleet replacement capital improvement plan in the annual budget process. Paper products not always at least 50 percent recycled as required From July 1, 2014, through June 30, 2016, the City purchased paper products that were less than the required 50 percent recycled content: • 62,100 (59 percent) of 106,000 pounds of Staples paper product purchases met the requirement. • 2 (4 percent) of 53 paper product purchases from other office supply vendors met the requirement. Another 8 (15 percent) most likely met the requirement because, although the recycled 5 Paper products include copy machine paper, envelopes, business cards, and forms. Attachment A 8 Audit of Green Purchasing Practices percentage was not cited on the invoice, the merchant’s website for those purchases states that it has an eco-friendly commitment and uses 100 percent post-consumer waste recycled white paper and an earth-friendly line of color paper. • 28 (53 percent) of 53 purchases of paper product purchases from other office supply vendors had insufficient information to determine whether the purchases met the required recycled content. Our November 2012 audit, Contract Oversight: Office Supplies, also cited the City’s noncompliance with this policy by showing that the City had spent about $230,000 on 30 percent recycled paper instead of buying 50 percent recycled paper, from late 2005 to mid-2012. Some departments with high production printing needs did not use higher recycled content paper due to concerns about performance deficiencies, such as paper jams in the equipment and poor duplex print quality. The equipment, rather than the paper, could have been a factor since 100 percent recycled content paper has been used successfully for several years by many public organizations. The Purchasing Division in the Administrative Services Department (ASD) advises departments on policies and procedures and best practices when there are questions, but departments are responsible for complying with the policy and returning any goods that do not conform to policy. Effect of paper purchases on the environment The City’s paper product purchases used about 60 tons of wood, from about 400 trees. If all 106,000 pounds of paper products purchased had met the 50 percent recycled content requirement, about 130 fewer trees would have been used. Manufacturing the paper products that the City purchased produced greenhouse gas emissions equivalent to the emissions from about 20 cars per year. If all 106,000 pounds of paper products purchased had met the 50 percent recycled content requirement, the greenhouse gas emissions produced would have been reduced by an amount equivalent to the emissions from about one car per year. If the City had purchased all 100 percent recycled content paper, the Attachment A Audit of Green Purchasing Practices 9 greenhouse gas emissions produced would have been reduced by an amount equivalent to the emissions from about three cars per year.6 Drinking water in plastic bottles purchased against policy The City purchased and distributed drinking water in single-use plastic bottles although City policy states that single-use plastic water containers shall not be purchased, distributed, or sold after December 31, 2009. The City adopted the Single-use Plastics Policy in 2009, recognizing that single-use plastic containers, including plastic water bottles, can end up as litter that harms the environment and affects global warming by using energy that creates carbon dioxide. However, several City departments have purchased drinking water in plastic bottles for training and other events. Staff identified this issue and took corrective action during the audit, including updating procedures and blocking the purchase of drinking water in plastic bottles on the Staples website. Cleaning supplies and paper products not monitored to ensure they were green The janitorial contractor that services most City facilities used about 520 cases of 100 percent recycled fiber paper towels with 20 percent postconsumer fibers, although the contract requires that paper towels contain the highest postconsumer content available, but not less than the minimum 40 percent postconsumer fibers recycled content standard established by the United States Environmental Protection Agency.7 Public Works staff said they did not enforce the contract requirement because when the City selected paper towel dispensers years ago, the only paper towels available to fit the dispensers had no more than 20 percent postconsumer fibers. Public Works staff has not yet evaluated the quality, performance, and cost of the 40 percent postconsumer fiber paper towels that are now available. The contract also requires the contractor to use cleaning chemicals and floor care products that meet a Green Seal environmental certification standard and to provide periodic reports of total products used. Green Seal-certified products reduce the use of hazardous chemicals and natural resources while delivering the 6 We used the Environmental Paper Network Paper Calculator, Version 3.2.1, to calculate the estimated environmental impact. For more information, visit www.papercalculator.org. 7 Recycled fiber paper towels can be made from preconsumer- or postconsumer-recycled content. Preconsumer-recycled content is made from manufacturer waste that is repurposed into something new. Postconsumer-recycled content is made from waste used by consumers, disposed of, and diverted from landfills, which is more environmentally friendly than using preconsumer-recycled content. Attachment A 10 Audit of Green Purchasing Practices performance that consumers expect. Although most of the cleaning chemicals and floor care products used by the contractor were bought in bulk, the City did not require the contractor to provide reports of these bulk products, nor did the City monitor the products used to ensure they met the certification requirement. About 6,300 ounces (73 percent) of the nonbulk cleaning chemicals and floor-care products that the contractor used were not Green Seal-certified products. These products represented a small portion of the total cleaning products that the contractor used. Although not required by the contract, the City could increase its use of other green products, such as Green Seal-certified soap and trash bags with recycled content. City staff also bought cleaning supplies and paper products that were not green, such as floor polish, paper towels, and toilet tissue. Although one of the EPP Policy goals is to conserve natural resources, 10 (71 percent) of 14 cleaning supply and paper product purchases, totaling about $2,200, were not green products. Computer purchases were green and saved energy All of the $1.0 million in computers, notebooks, and monitors that the City purchased were EPEAT certified (about $850,000 Gold certified and $150,000 Silver certified).8 EPEAT provides environmental product ratings based on manufacturers’ information on the ability of the products to meet required and optional criteria that address the full product lifecycle, from design and production to energy use and recycling. The City received an EPEAT Sustainable Purchasing Award in 2016, which recognizes excellence in the procurement of sustainable electronics. The Public Works Department is also working with the Information Technology Department to find ways to reduce plastics packaging for computer purchases, including new specifications to address both EPEAT and packaging for future computer purchases in accordance with the City’s Extended Producer Responsibility Policy and the Green Information Technology policy (see the discussion in the “Lack of awareness of environmental and green purchasing policies” section). Effect of EPEAT-certified purchases These EPEAT purchases resulted in an estimated 69,200 kilowatt hours of first-year energy savings, which is equivalent to greenhouse 8 Gold certified products meet all required criteria and at least 75 percent of optional criteria while silver certified products meet all required criteria and at least 50 percent of optional criteria. Attachment A Audit of Green Purchasing Practices 11 gas emissions from about 10 passenger vehicles driven for one year or the energy use of about 5 homes for one year. The lifetime energy savings of the EPEAT purchases is estimated to be 262,000 kilowatt hours, which is equivalent to greenhouse gas emissions from about 39 passenger vehicles driven for one year or the energy use of about 19 homes for one year. 9 Battery-electric or plug-in hybrid vehicles The City’s policy is to acquire “plug-in electric vehicles upon replacement or for new needs when they are available, and meet needed range, load and emergency response requirements.” Public Works staff developed a checklist that departments must use when submitting a Vehicle/Equipment Request and Analysis form for vehicles that are requested outside of the annual budget process. However, Public Works has not formally documented its assessment of the suitability of battery-electric or plug-in hybrid vehicles during its vehicle review of the fleet replacement capital improvement plan in the annual budget process. Instead, Public Works staff evaluate vehicles based on their general knowledge of what is available, as well as feedback after providing staff in other departments the opportunity to test drive electric cars and motorcycles. The City has bought two battery-electric vehicles in an effort to start greening its fleet but has not bought more due to concerns regarding range limitations, vehicle and battery costs, lack of maintenance and parts support, lack of infrastructure, vehicle charging time, and employees forgetting to charge the vehicles. There are different perspectives on the costs of plug-in electric vehicles compared to gas vehicles. For example, one cost comparison showed that it is about $4,100 more expensive in total lifecycle costs over seven years to operate a 2014 Ford Focus electric vehicle compared to a 2014 Ford Focus gas vehicle for a vehicle driven about 13,000 kilometers (8,078 miles) per year but that the total lifecycle costs of the electric vehicle is about $2,800 less than the gas vehicle if the annual mileage increases to 20,000 kilometers (12,427 miles) and the vehicle is kept for ten years.10 In contrast, a study of public fleets in disadvantaged communities found that fleets could save nearly 9 We used the Electronics Environmental Benefits Calculator from the United States Environmental Protection Agency to calculate the estimated environmental impact. 10 Finding the Business Case for EVs in Public Fleets, West Coast Electric Fleets, February 29, 2016, available at http://www.westcoastelectricfleets.com/wp-content/uploads/2016/03/Full-Slide-Deck-Feb-29-Compressed.pdf. Attachment A 12 Audit of Green Purchasing Practices 25 percent of the total cost of ownership over the life of a vehicle by replacing certain cars with plug-in electric vehicles.11 However, neither of these comparisons factors in the environmental costs incurred (such as the price of carbon) by operating a gasoline- powered vehicle or available federal and state tax credits if the vehicle is leased. Buying green vs. not - examples of different costs The comparison of cost involves more than simply looking up prices on the internet because the actual costs of green products may vary based on different vendors, and the City may also be able to negotiate discounts based on a core list or market basket of green products. The whole picture should be considered when comparing costs. For example, if the City reduces its overall copy paper use and has cost savings from other products in a contract, the cost savings could offset the price difference in buying higher recycled content copy paper. Also, conventional products generally do not include the cost of environmental impacts. Although the direct cost of buying green can be more expensive than buying conventional products, this is not always the case as demonstrated in the following examples, which show it can cost about: • 69 percent less for a green cleaner than for bleach. For example, it cost $1.77 to make one gallon of disinfectant cleaner from a concentrated product recommended by the City’s consultant. In contrast, germicidal bleach cost $5.65 for almost one gallon. • 5 percent more for 50 percent recycled content copy paper (current policy) than paper without recycled content. For example, it cost $3.80 for a ream of 50 percent recycled paper and $3.62 for a ream of paper without recycled content. • 12 percent more for 100 percent recycled content copy paper (policy revision pending) than paper without recycled content. For example, it cost $4.07 for a ream of 100 percent recycled paper and $3.62 for a ream of paper without recycled content. Fewer trees are used for recycled paper. 11 Electric Vehicle Suitability for Public Fleets in Disadvantaged Communities, Center for Sustainable Energy, October 2016, available at https://cleanvehiclerebate.org/sites/default/files/attachments/EVSA-Summary-Report-2016_0.pdf. Attachment A Audit of Green Purchasing Practices 13 • 14 percent less for remanufactured toner cartridges than new cartridges. For example, it cost $60.52 for a remanufactured toner cartridge and $70.42 for a regular toner cartridge. The City should not necessarily buy conventional products simply because they cost less individually because, as described above, the City may be able to negotiate discounts for green products, and conventional products may not consider the environmental impacts. Although it can be more expensive to buy green, the City’s policy goals look beyond cost to protect and conserve natural resources; minimize the City's contributions to global warming, pollution, and toxic chemical exposures; and promote health and well-being. The United States Environmental Protection Agency’s website identifies several potential impacts that products can have on our health and the environment through toxic exposures, air and water pollution, climate change, natural resource use, waste disposal and ecosystem damages. Buying green products helps protect our health and the environment. No formal written procedures to implement EPP Policy The City’s green purchasing policies and goals are not fully achieved because the City does not have consolidated, formal written procedures to implement the EPP Policy. The policy requires the City Manager to convene a Sustainable Purchasing Committee, including management-level staff from key departments, to implement the policy by creating a plan and procedures addressing 10 different areas (see Appendix 1). However, the Sustainable Purchasing Committee, also known as the Green Purchasing Team, has not created centrally located comprehensive, formal, written procedures that address the 10 areas. Other requirements in the City’s green purchasing policies also have not been fully implemented. For example, except for purchases from Staples, the City has not required annual vendor reports on sustainable product purchases that track units purchased, dollars spent, and other information. Attachment A 14 Audit of Green Purchasing Practices Some procedures and Municipal Code not updated The City’s petty cash procedures have been updated to disallow the purchase of pesticides, single-use plastic water containers and plastic foam products. However, other City procedures that could be affected by the EPP Policy have not been updated to implement green purchasing goals. For example, March 2016 revisions to the p- card guidebook that address green purchasing policies, including pest management and single-use plastics such as drinking water in plastic bottles, have not been approved and distributed to City staff. There also has not been an assessment of whether Municipal Code amendments are necessary to implement City goals. For example, there is a conflict between the City’s green purchasing policies and the Municipal Code requirement to obtain goods and services at the lowest cost possible.12 Successful sustainable procurement programs establish clear and comprehensive procedures for employees and vendors to follow to ensure consistent implementation of sustainable purchasing policies. Lack of awareness of environmental and green purchasing policies There is also a lack of awareness of the City’s environmental and green purchasing policies. For example, several City departments may have purchased drinking water in plastic bottles because they were not aware of the policy and reasons for not buying it. In another example, the City is working to reduce foam packaging included with computer and monitor purchases although the policy addressing this was adopted in 2009. In addition, Public Works staff brought to our attention a December 2009 Green Information Technology policy. However, Information Technology staff were previously unaware of this policy, which needs to be updated, and it is unclear whether the City approved the policy. Public Works staff stated that greater and more frequent education is needed to increase awareness of environmental and green purchasing policies. Lack of clear governance structure The City’s sustainability policies and goals are not fully achieved because there is a lack of clear governance structure. The Sustainable Procurement Playbook for Cities says that it is a best practice when the policy clearly delineates staff roles and responsibilities in carrying out the goals and requirements of the jurisdiction’s sustainable purchasing policy. It also says that a sustainable procurement policy 12 Palo Alto Municipal Code Sections 2.30.010, 2.30.400, and 2.30.440. Attachment A Audit of Green Purchasing Practices 15 is stronger if it assigns specific tasks to staff or departments and includes guidance on how everyone will work together. Three City employees are involved in green purchasing efforts: a project manager in the Public Works Department, the chief procurement officer in ASD, and the chief sustainability officer in the Office of Sustainability. However, green purchasing is not part of their core responsibilities, and they estimate their total combined time to be about one-fourth of a full-time equivalent (0.25 FTE). Public Works staff contribute most of the staff time to maintain green purchasing, but the department does not have authority to implement green purchasing across the City or immediate knowledge or access to other departments’ processes and purchases to make necessary and relevant operational and policy changes in other department’s processes. The Sustainable Purchasing Committee, also known as the Green Purchasing Team, also has responsibilities, as described in the EPP Policy. Its members include the three employees above, along with other staff from the Administrative Services, Information Technology, and Public Works Departments. The team is informally structured and meets as needed to discuss green purchasing topics. Inadequate technical tools to track green purchases Without adequate technical tools, including software to track green purchases, the City cannot ensure that its plans, goals, and objectives are met. Other jurisdictions have used their e-procurement systems, accounting systems, and vendor reports to determine the amount spent on specific products and services. Current reporting systems, both external and internal, do not provide sufficient information to evaluate and manage green purchasing. For example, although the City currently receives monthly spend and environmental reports from Staples, ASD’s Purchasing Division uses only the spend reports to analyze the amounts spent. ASD and Public Works have suggested to Staples that the environmental reports include more granular information and trends for green purchases so the City can use the reports to determine compliance with green purchasing requirements. Purchasing Division staff indicated that they need a means to identify or flag purchase orders with green items to report on green purchasing activity. Attachment A 16 Audit of Green Purchasing Practices The Public Works Department has tried using checklists to trigger green purchases, but stopped because the checklists usually came too late in the process. Public Works staff said that a new and improved enterprise resource planning (ERP) system could flag purchasers and green purchasing stakeholders when a contract or service is up for renewal so discussion could be prompted early in the procurement cycle. Other jurisdictions have used their e- procurement systems, accounting systems, and vendor reports to determine the amount spent on specific products and services. This indicates that an improved ERP system or specialized software could help the City flag high priority goods and services and allow for better tracking of items purchased. Recommendations 1. The City Manager’s Office should clearly define the department(s) responsible for implementing green purchasing policies, determine if additional staffing and funding is needed to implement the policies, and provide the responsible department(s) with the authority to implement green purchasing across the City. The responsible department(s) should then: 2. Consult with the Attorney’s Office to align the Municipal Code as needed with green purchasing policies. 3. Write and distribute consolidated procedures to implement green purchasing policies, including the 10 different areas in the EPP Policy and update existing policies and procedures to reflect current requirements, including recycled paper and p-card guidance. 4. Educate staff on green purchasing policies and procedures through various means, which could include citywide emails, p- card and other training, department staff meetings, and new employee orientations. 5. Evaluate the quality, performance, and cost of 40 percent postconsumer fiber paper towels, monitor the janitorial contractor’s use of cleaning supplies and paper products to ensure compliance with the green purchasing contract requirements, and evaluate the feasibility of including other green products such as Green Seal certified soap and green can liners in the next janitorial contract, as appropriate. Attachment A Audit of Green Purchasing Practices 17 6. Evaluate if the new e-procurement system and proposed enterprise resource planning system or other specialized software can help with tracking and reporting green purchases. As part of the planned transition of the Annual Performance Report to the City Manager’s Office, determine what green purchasing performance measures to track and report on, such as the number and percentage of green products purchased and their environmental benefits. The Sustainable Procurement Playbook for Cities provides potential criteria for what to track. 7. To the extent possible, require approved vendors to provide data on the amounts of green products and services that the City purchases from them annually. 8. Develop and implement a process to formally document the assessment and suitability of battery-electric and plug-in hybrid vehicles and an evaluation of the cost effectiveness as part of the fleet replacement capital improvement plan budget process. The assessment should consider lifecycle costs and environmental impacts in addition to the initial cost of the vehicle. Attachment A 18 Audit of Green Purchasing Practices APPENDIX 1 – City of Palo Alto Environmentally Preferred Purchasing Policy Attachment A Audit of Green Purchasing Practices 19 Attachment A 20 Audit of Green Purchasing Practices Attachment A Audit of Green Purchasing Practices 21 APPENDIX 2 - City Manager’s Response The City Manager has agreed to take the following actions in response to the audit recommendations in this report. The City Manager will report progress on implementation six months after the Council accepts the audit report, and every six months thereafter until all recommendations have been implemented. Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status Finding: The City does not always comply with applicable green purchasing requirements in purchases 1. The City Manager’s Office should clearly define the department(s) responsible for implementing green purchasing policies, determine if additional staffing and funding is needed to implement the policies, and provide the responsible department(s) with the authority to implement green purchasing across the City. The responsible department(s) should then: ASD/CMO Concurrence: Agree Target Date: August 1, 2017 Action Plan: Staff will prepare a document identifying the responsibilities, funding, and staffing needs as suggested. 2. Consult with the Attorney’s Office to align the Municipal Code as needed with green purchasing policies. ASD/Attorney Concurrence: Agree Target Date (see related Action Plan targets below): a) September 15, 2017 b) September 15, 2018 Action Plan: a) Determine which parts of municipal code, if any, need to be revised to reflect City policies. b) Revise municipal code as needed. Attachment A 22 Audit of Green Purchasing Practices Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status 3. Write and distribute consolidated procedures to implement green purchasing policies, including the 10 different areas in the EPP Policy and update existing policies and procedures to reflect current requirements, including recycled paper and p-card guidance. CMO/ASD/PWD support Concurrence: Agree Target Date (see related Action Plan targets below):: a) July 1, 2017 b) September 1, 2017 c) April 22, 2018 d) Ongoing. Action Plan: a) Short term (12-18 months): Identify funding and/or staff to implement. This could be via consultant services or Office of Sustainability staff. b) P-Card: Confirm proposed revisions to P-Card guidelines, and integrate into PCard Guidelines, training, and approval process. c) Revise Recycled Paper Policy and procedures and develop an integrated City-wide paper reduction and recycled-content paper procurement plan. d) Draft/implement/revise policies and procedures as needed. 4. Educate staff on green purchasing policies and procedures through various means, which could include citywide emails, p-card and other training, department staff meetings, and new employee orientations. ASD Concurrence: Agree Target Date: Ongoing as milestones in this document are achieved. Action Plan: Ongoing as milestones in this document are achieved. Attachment A Audit of Green Purchasing Practices 23 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status 5. Evaluate the quality, performance, and cost of 40 percent postconsumer fiber paper towels, monitor the janitorial contractor’s use of cleaning supplies and paper products to ensure compliance with the green purchasing contract requirements, and evaluate the feasibility of including other green products such as Green Seal certified soap and green can liners in the next janitorial contract, as appropriate. PWD/Facilities Concurrence: Agree Target Date (see related Action Plan targets below): a) April 22, 2018 (see 3c) b) Ongoing c) September 1, 2017 Action Plan: a) Include evaluation of custodial paper products under 3c. b) Continue to monitor custodial contractor’s use of Green Seal products. c) Analyze more environmentally preferable options for trashcan liners. 6. Evaluate if the new e-procurement system and proposed enterprise resource planning system or other specialized software can help with tracking and reporting green purchases. As part of the planned transition of the Annual Performance Report to the City Manager’s Office, determine what green purchasing performance measures to track and report on, such as the number and percentage of green products purchased and their environmental benefits. The Sustainable Procurement Playbook for Cities provides potential criteria for what to track. ASD/PWD support Concurrence: Agree Target Date (see related Action Plan targets below):: a) December 1, 2017 b) September 1, 2018 Action Plan: a) Form City-wide stakeholder committee to recommend green purchasing performance measures for ERP system to track number and percentage of green products purchased. If ERP system cannot achieve this, consider other options. b) Identify best indicators to track environmental performance for select Attachment A 24 Audit of Green Purchasing Practices Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status contracts and services (e.g., less GHG, waste reduction). 7. To the extent possible, require vendors to provide data on the amounts of green products and services that the City purchases from them annually. ASD/PWD support Concurrence: Agree. Target Date (see related Action Plan targets below): a) September 1, 2017 b) Ongoing Action Plan: a) Identify selected services and goods requiring vendor data and specify data needed. b) Monitor and enforce data collection. 8. Develop and implement a process to formally document the assessment and suitability of battery-electric and plug-in hybrid vehicles and an evaluation of the cost effectiveness as part of the fleet replacement capital improvement plan budget process. The assessment should consider lifecycle costs and environmental impacts in addition to the initial cost of the vehicle. PWD/Fleet Concurrence: Agree Target Date: Sept 30, 2017 Action Plan: a) Establish a process to formally document the suitability of battery electric and plug-in hybrid vehicles within the design and planning process of capital replacements. b) Conduct an evaluation of the cost effectiveness of battery electric and plug-in hybrid vehicles in coordination with the budget office and the Chief Sustainability Officer. This will include life cycle costs and environmental impacts. Attachment A POLICY AND SERVICES COMMITTEE TRANSCRIPT EXCERPT Special Meeting Tuesday, April 25, 2017 Chairperson Wolbach called the meeting to order at 7:00 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: DuBois, Kou, Wolbach (Chair) Absent: Kniss Agenda Items 1.Audit of Green Purchasing Practices. Chair Wolbach: Our first item is an audit of Green Purchasing Practices. I'll turn it over to the auditor for a Staff Report? Harriet Richardson, City Auditor: Good evening Mr. Chair and Members of the Committee. Harriet Richardson, City Auditor, here to present the audit of Green Purchasing Practices. With me is Lisa Wehara, who worked on this audit. So, we wanted to start off with a couple of positive things. The green purchasing activities and their accomplishments before we get into what the audit found. Right here is a list of things that they've accomplished. Just a couple of them is that they've created a flow chart to help them with decision making on green products. They've written some performance specifications. They have incorporated contract terms and conditions regarding vendor responsibilities for waste reduction and pollution prevention. They've developed a sustainable procurement playbook for Cities. They were a participant in developing that and the City also received a Green California Leadership Award in 2010. There's more detail in the audit report on Page 13 of your packet. It has a more complete list of the accomplishments. The objective of this audit was to determine whether or not the - whether the City of Palo Alto complies with the applicable green purchasing requirements in its purchases. In Palo Alto, green purchasing includes areas such as goods and services, energy and gas purchases, green building materials, and use of pesticides. I'm going to turn it over to Lisa to talk a little bit about what she did and what she found during the audit. Lisa Wehara, Performance Auditor: Lisa Wehara, Performance Auditor Attachment B Page 2 of 7 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT II, and the audit focused on the City’s purchases of office supplies, cleaning supplies and computers. To assess whether purchases complied with the City's green purchasing policies mostly during the period of July 1st, 2014 thru June 30th of 2016. The audit shows that the City's green purchasing policies and goals were not fully achieved primarily because there are no consolidated formal written procedures to implement the environmental preferred purchasing policy, which is also known as the Green Purchasing Policy. There are other procedures not updated and there's a lack of awareness of policies and procedures. There's also a lack of a clear governance structure that clearly defines who is responsible for implementing various components of the Green Purchasing Policy. The City does not have adequate technical tools to track green purchases. Some examples of what we found are all of the $1 million in computers, notebooks and monitors that the City purchased were electronic product environmental assessment tool or EPEAT certified In May 2016, the City received the 2016 EPEAT Sustainable Purchasing award, which recognizes excellence in sustainable electronics procurement. Only fifty- nine percent of Staples and paper product purchases and only nineteen percent of paper product purchases from other office supply vendors met or most likely met the recycled content requirement. The City purchased and distributed drinking water in plastic bottles, which is against policy. Staff had identified this issue and took corrective action during the audit. We also found that the City's janitorial contractor that services most City facilities didn't always use green products or provide reports of bulk chemicals as defined by the contract, nor did the City monitor the products to ensure that they were green. Public Works has not formally documented its assessment of the suitability of battery electric or plug-in hybrid vehicles during its review of the fleet replacement capital improvement plan in the annual budget process. We have some key recommendations up on the screen. The audit report includes eight recommendations, including that the City Manager's Office should clearly define the departments responsible for implementing green purchasing policies, determine if additional Staffing and funding are needed to implement the policies and provide the responsible departments with the authority to implement green purchasing across the City. The responsible department should then consult with the attorney's office to align the Municipal code as needed with green purchasing policies. It should write and distribute consolidated procedures to implement green purchasing policies including the ten different areas in the environmentally Preferred Purchasing Policy and update existing policies and procedures to reflect current requirements, including recycled paper and procurement card guidance. Also, the Attachment B Page 3 of 7 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT responsible department should then evaluate if the new e-procurement system and proposed Enterprise Resource Planning System or other specialized software can help with tracking and reporting green purchases. Then as part of the planned transition of the annual performance report to the City Manager's Office to determine what green purchasing performance measures to track and report, such as the number and percentage of green products purchased and their environmental benefits. The Sustainable procurement playbook for Cities provides potential criteria for what to track and also, the City Manager's Office and the departments, Public Works, administrative services and the Office of Sustainability agreed with all recommendations in our report and specified their corrective action plan in appendix two, which should be on Page 30 of the packet. Ms. Richardson: Yeah, I wanted to - oops. I wanted to also point out that you have an At Places memo in front of you regarding this audit. Subsequent to the audit, one of the vendors that we looked at information from, revised information on its website so, on your Packet Page 19, the first paragraph says that cleaning supplies and paper products were not monitored to ensure that they were green. It states that about 7,600-ounces of the non-bulk cleaning chemicals and floor care products that the contractor used where not green sealed certified. That should say, now 6,300-ounces, which is seventy-three percent instead of eighty-eight percent. Then, we also forgot to label appendix two as appendix two so the City Manager's response beginning Packet Page 30 should be labeled as Appendix 2. That completes our presentation and we are ready to answer any questions you have. Chair Wolbach: I'll turn it over to my Colleagues. Tom or Lydia, do either... Ms. Richardson: Also, we have representatives from several departments here too - available for questions. Chair Wolbach: Excellent. Tom or Lydia, would either of you like to kick us off on questions? Council Member DuBois: Does all of the City's purchasing go through the purchasing department? David Ramberg, Assistant Director of Administrative Services: David Ramberg, Assistant Director of Administrative Services Department. The purchasing division is within the Administrative Services Department and we are a centralized purchasing operation for the City Attachment B Page 4 of 7 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT so all purchases do make their way through to - through the purchasing division, except for purchases that are made on p-card. Those are made at - individual - purchase card - Visa purchase card. Those are made by the individual purchases in departments, up to a level of a maximum of $10,000 per purchase. Council Member DuBois: Ok, thanks. I was just wondering in terms of awareness. If the Purchasing Department could kind of make people aware of the policy and also kind of enforce it I guess. Mr. Ramberg: We can. Our primary - and we do. I think part of what this audit brings forward is possibly a more centralized effort for making the green purchasing requirements prevalent throughout the City. What we are - our primary mission in the purchasing division is to make sure that we're accomplishing the procurement of goods and services in a timely manner. To ensure that departments have the contracts to provide the services that they need through - to the community. We are operating to try to be as efficient as possibly to put contracts in place. So, where we can and where we work in close collaboration with the rest of the sustainability team here at the City. We build in the green requirements as we can, into the contracts that have them appropriate. I think what this audit points to a better dissemination of the green purchasing requirements throughout all aspects of the purchases that go on throughout the City. That can be at the p-card level, for those individual purchasers who make purchases up to $10,000, it can be through the contracting process, it can be in the RFP process, it can be in the specification process for when contracts are being put together at the department level. James Keene, City Manager: If I just might add to that? I think David hit this well but at the same time - I mean the Procurement Department really needs to be something of a safety net because a lot of the specs are developed in the departments so we've got to make sure that people are thinking about it at that level. Also, it's a lot to expect that everyone purchasing would be sort of experts in the environmental standards that we want to pursue so it is distributed. Council Member DuBois: The policies, it's a preferred policy, right? Not a requirement. Are there situations where either for cost or speed that you would not make the environmental purchase? Julie Weiss, Project Manager for Public Works: I'm Julie Weiss, I'm in Attachment B Page 5 of 7 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT our Public Works Watershed Protection Program and in the policy itself, the Green Purchasing Policy itself, it doesn't state that certain things are required but we have a number of other policies the City has adopted that say it is required. For example, we have a Mercury and Dioxide Reduction Policy that said that we need to purchase a certain type of lighting and paper that has less chemicals in them that we're concerned about that we see in San Francisco Bay. We have a less Toxic Management Policy that says that we're going to be doing things to purchase less toxic pesticides. We have a number - we have other policies like that. We have other policies that are attached to and relevant to the green purchasing policy. Ms. Richardson: One thing that I would like to point out is that I think Julie is the one who did this. They've tried to pull together a lot of those policies on the City's intranet more recently because they were kind of scattered and so I think it may be clear in the future to people what all those are policies are because they are grouped together now. There are quite a few separate policies. Council Member DuBois: Great. Ok. Thank you and thank you for the audit. Council Member Kou: I'm new to all this so the p-card, can you give me a little bit more understanding of what it does and does it - is it the holder up to $10,000 can order anything or does it go through the Procurement Department? How does that work? Mr. Ramberg: Right, so a little history. We've had a purchase card - we use to be on the CAL-Card programs which was a State program through the State of California, it was called the Cal Card. About 5- years ago, we wanted to update our system so that we can have an online review of activity and so we switched over to a modern purchase card system through JP Morgan Chase. Part of that purchase card program - they are one of the leading providers of corporate purchase cards through -- in the Country and they have a massive system and we're able to get rebates. A rebate revenue as well so we get something in the neighborhood of about $60,000 a year in terms of rebate revenue based on our spending. We have about $6-$7 million in spend right now on p-card. That's all what we call very small purchases, ok? Certainly under $10,000, very few even get close to &10,000. These are -- a very typical purchase card purchase is buying office supplies through our Staples contract. We have a contract with Staples for office supplies and they are supposed to provide our office supplies at a very competitive rate that we've contracted for. We make all of our purchases from Staples on Attachment B Page 6 of 7 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT purchase cards - on Visa purchase cards. That's a classic example of how we use our p-card. Council Member Kou: So, what kind of products does the - what goes to the Procurement Department? I mean, do we - does the purchaser and the p- card check with the Procurement Department or the inventory list before they go out purchasing more? I mean, just how does it work? Mr. Ramberg: That's a good question. The Municipal Code allows for small dollar purchases under $10,000 to be purchased by an individual without a solicitation. That means that those do not need to go through the Procurement Department because there is no solicitation required but in many cases, the p-card is buying items that have already been contracted for at a contracted low price. In the case of offices supplies, we have a contract with Staples that is competitively bid for low price office supplies, compared to competitors and we make all the purchases on the p-card so that's one example. If an individual has an urgent need in a department, let's say in the Community Services Department and it's a summer camp and they need to go out and buy water because it's a very hot day. They can go down to the local store and buy water or buy whatever else is needed on their p-card and there would be no issues with that. It would be a small purchase and it would be appropriate for business use. Chair Wolbach: Any other questions? I didn't have any additional questions beyond that. Does anyone want to offer a Motion? Council Member DuBois: I'll make a Motion that we accept the audit of Green Purchasing Practices. Though, I don't know, did you want to say something? Chair Wolbach: Gil? Gil Friend, Chief Sustainability Officer: Yeah, Council Member. Gil Friend, Chief Sustainability Officer. I just wanted to add an additional response to your question about whether this is a preferred policy or a required policy. The way the policy was original written, it encourages us to buy greener products where feasible or where not too expensive and so forth and this is a fairly typical approach for most Cities. A year ago, the City Manager suggested to the Staff or directed the Staff to default to green. In other words, to revise the priority and say let's buy the greener product as the basic assumption, except where it is not feasible, not practical, doesn't meet service requirements or is too Attachment B Page 7 of 7 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT expensive. It's a subtle change but it directs us to look in a different direction as we implement. Chair Wolbach: So, I think you were trying your hands in a Motion. Do you want to finish it up and see if there's a second? MOTION: Council Member DuBois moved, seconded by Council Member Kou to recommend the City Council accept the Audit of Green Purchasing Practices. Chair Wolbach: Alright, we have a motion by Council Member DuBois, seconded by Council Member Kou. Any other - anything you would like to say on speaking to the motion or second? Alright, all in favor? Aye. Passes unanimously with Council Member Kniss absent. Thank you very much for that one. MOTION PASSED: 3-0 Kniss absent Attachment B TO: FROM: DATE: CITY OF PALO ALTO HONORABLE CITY COUNCIL HARRIET RICHARDSON, CITY AUDITOR AUGUST 14, 2017 COUNCIL MEETING ~ 08/14/2017 16 '!!!!tzl""'Re_c_e-ive .... d_B_e"°!'fo_r_e -M-ee-t-in-g SUBJECT: AGENDA ITEM NUMBER 16 -Policy and Services Committee Recommendation to Accept the Audit of Green Purchasing Practices Attached is the April 25, 2017, memo to City Council regarding the Audit of Green Purchasing Practices. This was inadvertently excluded from the packet item. Harriet Richardson City Auditor 1of1 CITY OF PALO ALTO CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR The Honorable City Council Palo Alto, California Audit of Green Purchasing Practices April 25, 2017 In accordance with the Fiscal Year 2016 Annual Audit Work Plan, the Office of the City Auditor has completed the Audit of Green Purchasing Practices. The audit report presents one finding with a total of eight recommendations. The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Audit of Green Purchasing Practices. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: • Attachment A: Audit of Green Purchasing Practices (PDF) Department Head : Harriet Richardson, City Auditor CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR August 14, 2017 The Honorable City Council Palo Alto, California Policy and Services Recommendation to Accept the Utilities Department: Cross Bore Inspection Contract Audit The Office of the City Auditor recommends acceptance of the Utilities Department: Cross Bore Inspection Contract Audit. At its meeting on June 13, 2017, the Policy and Services Committee approved and unanimously recommended that the City Council accept the report. The Policy and Services Committee minutes are included in this packet. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Utilities Department: Cross Bore Inspection Contract Audit (PDF) Attachment B: Policy and Services Committee Meeting Minutes Excerpt (June 13, 2017) (PDF) Department Head: Harriet Richardson, City Auditor Page 2 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR June 13, 2017 The Honorable City Council Palo Alto, California Utilities Department: Cross Bore Inspection Contract Audit In accordance with the Fiscal Year 2017 Annual Audit Work Plan, the Office of the City Auditor has completed the Utilities Department: Cross Bore Inspection Contract Audit. The audit report presents two findings with four recommendations. The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Utilities Department: Cross Bore Inspection Contract Audit. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Utilities Department: Cross Bore Inspection Contract Audit (PDF) Department Head: Harriet Richardson, City Auditor Attachment A Page 2 Attachment A Utilities Department: Cross Bore Inspection Contract Audit June 1, 2017 Normal Sewer and Gas Pipeline Alignment Gas Line Crossbored Through Sewer Pipeline Office of the City Auditor Harriet Richardson, City Auditor Steve Hendrickson, Management Specialist Houman Boussina, Senior Performance Auditor Attachment AAttachment A Page intentionally left blank Attachment AAttachment A Office of the City Auditor ● 250 Hamilton Avenue, 7th Floor ● Palo Alto, CA 94301 ● 650.329.2667 Copies of the full report are available on the Office of the City Auditor website at: http://www.cityofpaloalto.org/gov/depts/aud/reports/performance/default.asp OFFICE OF THE CITY AUDITOR EXECUTIVE SUMMARY Utilities Department: Cross Bore Inspection Contract Audit June 1, 2017 PURPOSE OF THE AUDIT To determine if Hydromax USA, LLC, (Hydromax) met its contract requirements for inspecting City sewer pipelines to rule out cross bores and whether the City exercised appropriate contract oversight. Finding 1: Hydromax inspected 10,791 (60 percent) of 18,028 laterals and could not complete nearly half of its attempted inspections because of adverse conditions in sewer lines (Page 6) Hydromax invoiced 13,725 lateral inspections under its contract with the City to inspect 18,028 laterals. Although the contract required Hydromax to inspect all mains and laterals for cross bores and to document lateral conditions, Hydromax invoices show that it could not complete 6,625 (48 percent) of 13,725 lateral inspections due to unanticipated field conditions. Furthermore, Hydromax inspection records contain inaccurate, incomplete, and potentially duplicative information. The City paid $2.95 million for the work Hydromax performed under the $3.5 million contract. Recommendation to the Utilities Department: Identify and prioritize sewer pipelines that Hydromax did not fully inspect or attempt to inspect for inspection under a future contract(s). Finding 2: City oversight and NASSCO contracting guidelines can help ensure accurate, complete, and cost effective future inspections (Page 9) The City’s management of its cross bore inspection contract did not ensure that the City obtained accurate and complete inspection data in accordance with NASSCO standards and anticipated contract costs. The City can ensure it obtains accurate, complete, and cost effective sewer pipeline inspection data by incorporating NASSCO contracting guidelines, ensuring consistency of its contract documents, and providing sufficient oversight of contracted work and key deliverables. Key Recommendations to the Utilities Department: • Identify missing data in the City’s laterals database. • Incorporate relevant and useful provisions from NASSCO’s contract template in future sewer inspection contracts. • Identify gaps in staff expertise needed to monitor and facilitate field inspections and to review and track inspection data. Attachment AAttachment A Page intentionally left blank Attachment AAttachment A TABLE OF CONTENTS OBJECTIVE .................................................................................................................................................. 1 BACKGROUND ............................................................................................................................................. 1 SCOPE ....................................................................................................................................................... 3 METHODOLOGY .......................................................................................................................................... 3 FINDING 1: Hydromax inspected 10,791 (60 percent) of 18,028 laterals and could not complete nearly half of its attempted inspections because of adverse conditions in sewer lines ........................................ 6 Finding 1 Recommendations ............................................................................................................. 8 FINDING 2: City oversight and NASSCO contracting guidelines can help ensure accurate, complete, and cost effective future inspections .............................................................................................................. 9 Finding 2 Recommendations ........................................................................................................... 13 APPENDIX 1: City Manager’s Response ................................................................................................... 14 ABBREVIATIONS ASD Administrative Services Department NASSCO National Association of Sewer Service Companies U.S.C. United States Code Attachment AAttachment A Page intentionally left blank Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 1 INTRODUCTION Objective The purpose of this audit was to determine if Hydromax USA, LLC, (Hydromax) met its contract requirements for inspecting City sewer pipelines to rule out cross bores and whether the City exercised appropriate contract oversight. Background Sewer Pipelines: Laterals and Mains Exhibit 1 shows a typical layout of sewer pipelines that includes privately-owned upper and City-owned and maintained lower sewer laterals that carry indoor sewage (i.e., wastewater) to the City’s wastewater mains in the street. This report uses the generic term, “sewer pipeline,” when an inspection record did not specify the type of sewer pipeline or when the distinction is not relevant. EXHIBIT 1: Layout of Sewer Pipelines Source: City of Palo Alto Special Wastewater Utility Rule and Regulation 23 Sewer pipelines in City records The City has a database of about 18,000 City-owned and maintained laterals. The resident- or business-owned, connected Attachment AAttachment A 2 Utilities Department: Cross Bore Inspection Contract Audit laterals may branch out for various functional or design reasons and are not included in the City’s database. Federal gas pipeline safety requirements Federal law (47 U.S.C. § 192.1005 - 192.1007) requires gas distribution operators to develop and implement procedures to identify, monitor, and address gas pipeline risks such as damage, equipment failure, and leaks. Cross bore safety risks Cross bores are intersections of one utility pipeline through another, such as when a gas pipeline is inadvertently installed through a sewer pipeline. Cross bores generally occur when a gas line is installed using a trenchless method that prevents visibility of the underground sewer pipeline. Residents or plumbers may accidentally cut through a crossbored utility pipeline (e.g., a gas pipeline) when opening (e.g., clearing roots) the sewer pipeline. If the cutting device damages a gas pipeline, gas may be introduced into the connected structure (e.g., a home), which could cause an explosion. The City has installed mechanical gas pipeline safety valves on about 7,500 (43 percent) of 17,500 gas service lines. These valves shut off gas if there is a sudden surge in flow, which mitigates safety risks, but not all gas pipelines have the valves and, in rare cases, they may malfunction. NASSCO inspection standards The National Association of Sewer Service Companies (NASSCO) sets industry standards for assessing, maintaining, and rehabilitating underground infrastructure and to assure the continued acceptance and growth of trenchless technologies. NASSCO trains and certifies inspectors to objectively and consistently assess and document sewer pipeline conditions based on a standardized grading system. NASSCO also certifies software used to record condition codes that enable utility operators to identify, plan, prioritize, manage, and renovate their sewer pipelines. Hydromax contract In July 2011, the City entered into an 18-month, $3.5 million contract with Hydromax to use closed circuit television inspection methods to inspect mains and the 18,000 laterals to identify gas cross bores and document lateral conditions in accordance with NASSCO standards. The Utilities Department assumed that there would be one contiguous, privately-owned lateral for each of the 18,000 City-owned and maintained laterals in its records. The contract required Hydromax to fully inspect and document lateral Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 3 conditions according to NASSCO standards but only to document basic observations and major defects for mains (e.g., start, stop, footage, major defect). The contract did not include separate compensation for inspecting mains. The City later amended the contract to increase the maximum compensation to $4.3 million and extend the expiration date to December 31, 2013. Final project status A June 2016 Utilities Department presentation to the Utilities Advisory Commission showed that as of December 31, 2013, Hydromax had inspected about 13,000 (72 percent) of the 18,000 laterals and had identified 26 gas cross bores but that inspection attempts did not rule out cross bores for about 5,900 (45 percent) of the 13,000 inspected laterals. The City paid Hydromax a total of $2.9 million - $2.5 million for lateral inspections and $407,000 for other work and let the contract expire without the remaining work being done due to unanticipated field conditions that required services beyond the contract scope. The Utilities Department estimated an additional $3.3 million in future costs to inspect about 1,900 high priority laterals (e.g., laterals serving high occupancy properties), including laterals that Hydromax did not inspect. Scope We assessed Hydromax inspection and billing data from July 2011 through January 2015 that was associated with the City’s $4.3 million contract, which expired on December 31, 2013. We assessed relevant City contract and contract oversight documents to determine whether Hydromax met key contract requirements and whether the City exercised appropriate contract oversight. We did not engage Hydromax, the Utilities Operations Division, or subject matter experts who may have relevant information concerning the audit findings. Although our methodology (below) included a general assessment of the reliability and completeness of the City’s sewer pipeline inspection data, we did not assess whether inspections met NASSCO standards or legal mandates. Methodology To accomplish our audit objective, we: •Conducted a risk assessment to identify and prioritize risks associated with the City’s cross bore inspection program. •Identified and reviewed applicable laws and sewer pipeline inspection best practices. Attachment AAttachment A 4 Utilities Department: Cross Bore Inspection Contract Audit •Reviewed and identified key provisions of the City’s contract with Hydromax. •Interviewed Utilities Department, Administrative Services Department, and City Attorney’s Office staff to understand contract requirements. •Reviewed Utilities Department invoice and inspection tracking documents and interviewed Utilities Department staff to assess whether contract oversight was sufficient to ensure that the City paid for Hydromax inspections that were completed and invoiced in accordance with contract terms. •Assessed the reliability and completeness of the City’s sewer pipeline inspection data. •Verified Hydromax inspector certification numbers using NASSCO’s online verification tool. Data reliability We used ACLTM Analytics and Excel software to assess the accuracy and completeness of Hydromax inspection records by searching for missing, inaccurate, and incomplete data based on our understanding of NASSCO requirements and database integrity principles. We interviewed Utilities Department staff who were knowledgeable about the data and brought data reliability concerns to their attention. We have included some of these concerns in the audit finding. We selected and reviewed a sample of Hydromax inspection records for 10 sewer pipelines to determine the causes and potential impact of multiple inspection records that inspectors entered for the same sewer pipeline. We used judgmental sampling to focus on completed inspections that appeared to have been finalized and to include inspections from a variety of Hydromax inspectors. Because this was a judgmental sample, our conclusions cannot be projected to the total population of inspection records. Compliance with government auditing standards We conducted this audit of the City’s cross bore inspection contract in accordance with our Fiscal Year 2017 Annual Audit Work Plan and generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 5 believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. We would like to thank management and staff in the Utilities and Administrative Services Departments for their time, cooperation, and assistance during the audit process. Attachment AAttachment A 6 Utilities Department: Cross Bore Inspection Contract Audit Finding 1 Hydromax inspected 10,791 (60 percent) of 18,028 laterals and could not complete nearly half of its attempted inspections because of adverse conditions in sewer lines Summary Hydromax invoiced 13,725 lateral inspections under its contract with the City to inspect 18,028 laterals. Although the contract required Hydromax to inspect all mains and laterals for cross bores and to document lateral conditions, Hydromax invoices show that it could not complete 6,625 (48 percent) of 13,725 lateral inspections due to unanticipated field conditions. Furthermore, Hydromax inspection records contain inaccurate, incomplete, and potentially duplicative information. The City paid $2.95 million for the work Hydromax performed under the $3.5 million contract. Unanticipated sewer pipeline conditions hampered inspections Hydromax invoiced the City for 13,725 lateral inspections. Although invoices do not specify sewer lines, Hydromax’s inspection records show that it inspected 10,791 of 18,028 laterals in the City’s records. Exhibit 2 shows that Hydromax invoiced $1.3 million for 7,100 completed lateral and branch lateral inspections and $1.2 million for 6,625 incomplete inspections. Hydromax could not complete all inspections because of sewer pipeline conditions, obstructions, and lateral branches hampered inspections and would have required services beyond the contract scope. The incomplete inspections may have still served to reduce or eliminate cross bore risks, which was the primary contract objective. EXHIBIT 2: Hydromax invoices for 13,725 lateral inspections Source: Utilities Department 6,870 Complete Inspections $1,270,950 (50%) 6,625 Incomplete Inspections $1,225,625 (48%) 230 Complete Branch Inspections $42,550 (2%) Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 7 In an effort to facilitate completion of the inspection project, the City added services to the original contract scope through change orders to address: •Obstructions that required construction and repair – Hydromax said it would complete inspections after the required work at no additional cost. •Sewer pipelines that required cleaning to facilitate traversing or televising the pipeline – Hydromax invoiced an hourly rate to supplement City’s efforts to clean pipelines. •Branch laterals longer than 15 feet – Hydromax charged the City $185 to inspect branch laterals longer than 15 feet. •Longer than anticipated lateral lengths – Hydromax reported an average lateral length of 84 feet versus the 65 feet stated in the contract, which may have resulted in cost savings to the City. The extra length required specialized equipment, additional inspection, and additional condition coding. •Mains with diameters of 6 inches or less, including mains with tree roots and other obstructions – Hydromax reported that these conditions increased costs because it had to use extra camera crews and specialized equipment. The contract with Hydromax required payment for incomplete inspections after reasonable attempts. The City paid Hydromax $2.54 million for the inspections performed, whether completed or not, and for 230 lateral branches that were longer than 15 feet, and another $407,000 for other services, some of which were added to the contract through the change orders. The City also extended the contract timeline from December 31, 2012 to December 31, 2013. Inspection records inconsistent, incomplete, and potentially duplicative Hydromax recorded 21,940 inspections for 15,121 sewer pipelines. Inspection records did not include information regarding invoicing, so we could not assess which inspections were included in invoices shown in Exhibit 2. Under the contract terms, the City relied on Hydromax to assess and quality control all inspection videos to definitively detect or rule out cross bores. Inspection records were not all consistent and complete and may have included duplicates. The City did not have a process to validate Hydromax inspection data and allowed the contract to lapse before Hydromax attempted to inspect at least 7,237 laterals. Attachment AAttachment A 8 Utilities Department: Cross Bore Inspection Contract Audit About 12,900 (59 percent) of the 21,940 inspection records cited an inspection status (e.g., “complete”, “cannot complete”, “incomplete”) and 5,274 (24 percent) included condition scores. Hydromax inspectors recorded the final inspection status using nonstandardized, narrative text that does not fully support analysis (e.g., summaries by status) and does not always make clear the inspection status (e.g., “rerun push camera”). Although the primary contract purpose was to identify cross bores, inspection records that are not unique, do not show progress status, and/or do not include condition scores may not be useful to validate invoices, identify incomplete inspections, and repair, maintain or upgrade sewer pipelines. During the contract term, the City did not have any NASSCO-certified staff to interpret the inspection data (see related discussion in Finding 2). Recommendations The Utilities Department should: 1.1. Identify sewer pipelines that Hydromax did not fully inspect or attempt to inspect. Prioritize these sewer pipelines for inspection under a future contract(s). To the extent possible, based on past experience, predict potential inspection challenges, such as poor pipeline conditions, that may hinder future inspections. Disclose these challenges in future contract solicitations. Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 9 Finding 2 City oversight and NASSCO contracting guidelines can help ensure accurate, complete, and cost effective future inspections Summary The City’s management of its cross bore inspection contract did not ensure that the City obtained accurate and complete inspection data in accordance with NASSCO standards and anticipated contract costs. The City can ensure it obtains accurate, complete, and cost effective sewer pipeline inspection data by incorporating NASSCO contracting guidelines, ensuring consistency of its contract documents, and providing sufficient oversight of contracted work and key deliverables. City monitored contract but did not enforce all performance objectives or NASSCO standards Utilities Department Engineering staff reviewed Hydromax’s invoices and work progress but did not have NASSCO-certified staff or access to NASSCO manuals to ensure that Hydromax met the contract requirement to perform inspections in accordance with NASSCO. Utilities staff could not interpret the inspection information and use it for sewer pipeline operation and maintenance purposes. Although the primary contract objective was to rule out cross bores, providing condition codes (i.e., overall condition assessment scores) was also an objective and could have provided useful information for the City to prioritize future sewer pipeline work. Finding 1 discusses concerns about the reliability of inspection data. Since the end of the contract, one employee has become certified, and the Utilities Department has adopted NASSCO inspection standards. Hydromax inspectors may have misrepresented their certification status NASSCO issues certificate numbers that uniquely identify certified inspectors. NASSCO-certified inspection software requires inspectors to enter their certificate number when recording inspection data. The City did not ensure that Hydromax’s inspectors were properly certified, and our search in NASSCO’s online verification tool did not validate any of the inspector certificate numbers that Hydromax submitted to the City with the inspection records.1 Multiple Hydromax inspectors entered the same certificate number, and most of the certificate numbers were obviously invalid, containing only zeroes or other invalid formats. A NASSCO representative told us that although NASSCO-certified software requires entry of certificate numbers, it does not validate the certificate. 1 The NASSCO certificate verification tool is accessible at https://www.nassco.org/. Attachment AAttachment A 10 Utilities Department: Cross Bore Inspection Contract Audit Condition assessment of sewer pipelines provides advantages Condition assessments of underground sewer pipelines is an ongoing process that provides information to avoid emergencies, prioritize repair and replacement projects, plan for the future, and enhance the ability to make technically sound judgments regarding asset management. The Utilities Department did not ensure that Hydromax complied with the contract requirement to code sewer pipeline conditions in accordance with NASSCO standards. Utilities Department staff stated that condition scores have limited value to them and may be misleading due to ongoing condition changes (e.g., new construction). Finding 1 discusses concerns that not all Hydromax inspection records included condition assessment scores. Exhibit 3 summarizes sewer pipeline condition assessment costs and benefits. EXHIBIT 3: Costs and Benefits of Sewer Pipeline Condition Assessments Costs Benefits Inspection equipment and labor Early problem identification resulting in use of less expensive repair methods Monitoring equipment and data collection Reduced emergency costs and consequences Post-inspection planning, data analysis, and reporting Reduced operating and maintenance costs Service disruptions due to inspection work Avoided service disruptions Avoided or mitigated sanitary sewer overflows or pipeline breaks Avoided public health costs Improved planning and prioritizing of rehabilitation and replacement projects Reduced backlogs of deferred maintenance Identification and prediction of future capital renewal needs More effective and efficient operations and maintenance Source: United States Environmental Protection Agency Contract terms inconsistent; NASSCO guidelines not incorporated The City’s cross bore inspection contract with Hydromax had inconsistent provisions and did not incorporate NASSCO’s recommended contract language for billing, data, and inspector certification requirements that could help the City more effectively Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 11 meet its inspection program goals and objectives.2 The City’s contract: •Required Hydromax to code laterals in accordance with NASSCO standards in one section but in another required inspections that allow for future coding according to standards, if desired. •Did not require Hydromax to meet inspection standards prior to being paid. •Did not specify data requirements. NASSCO guidelines provide a detailed list of required and optional data that can be customized and incorporated into contracts. •Did not require proof of inspector certification. NASSCO contract guidelines require contractors to provide proof of certification for both inspectors and individuals performing coding prior to the start of work. Costs higher than anticipated Including incidental and change order costs, the City effectively paid $215 per Hydromax lateral inspection (i.e., $2.95 million ÷ 13,725 invoiced lateral inspections) as opposed to the anticipated, effective rate of $200 per lateral inspection (i.e., contracted inspection and associated costs ÷ 13,725 invoiced lateral inspections). The contract required payment for incomplete inspections after reasonable attempts but did not include construction services needed to complete some inspections that were hampered by obstructions. The original contract scope assumed that the benefits of inspection attempts were greater than the costs, especially in comparison to rates that other jurisdictions paid during project term. A June 2016 Utilities Department presentation to the Utilities Advisory Commission showed that Hydromax had identified 26 gas cross bores. Contract disclosures may reduce change orders and costs The request for proposal documents disclosed that the City anticipated access challenges during inspections and provided some clarification on payment terms. These disclosures and clarifications were not all included in the final contract, which supersedes any preliminary contract documents. Specifically, the City disclosed to contractors placing bids: •80 percent of laterals would have some to a significant amount of roots. 2 NASSCO template contracts are at https://www.nassco.org/resources/guideline-specs. Attachment AAttachment A 12 Utilities Department: Cross Bore Inspection Contract Audit •The City does not track resident-owned laterals or know their exact lateral lengths. •For payment purposes, each branch lateral serving the same structure is one lateral. Had the City included these disclosures and clarifications in the final contract, it may have avoided the need for the change orders, amendments, and additional contract costs discussed in Finding 1. More flexible contract model may have been appropriate The contract with Hydromax required inspection of all 18,000 City laterals in City records for a fixed price of $3.5 million, but the City did not have sufficiently detailed information regarding the condition, length, quantity, and diameter of its sewer pipelines, which resulted in greater than anticipated effort for Hydromax. Contracts should result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance. NASSCO’s contract guidelines recommend payment terms based on linear foot inspected rather than the number of laterals inspected, which was the basis for payment in the Hydromax contract. As discussed in Finding 1, the City negotiated change orders and amendments with Hydromax to address the expanded scope of work, but Hydromax still could not complete all contracted inspections due to unanticipated conditions that required additional work outside the contract scope. Utilities Department staff do not know the number or conditions of remaining laterals and branches, or the extent of maintenance or construction necessary to enable inspectors to inspect the remaining laterals. Given the uncertainty about laterals remaining to inspect, the NASSCO contract billing model may offer the City more flexibility and more incentive to future contractors. The contract required the City to pay for incomplete inspections after Hydromax made reasonable attempts. However, the City may have been able to negotiate an alternative pricing structure with Hydromax given the large number of inspections that Hydromax could not complete because of field conditions. Utilities staff stated that the City still benefited from inspection attempts because Hydromax identified cross bores at reasonable costs compared to fees paid by other jurisdictions. Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 13 City has prioritized remaining lateral inspections but may not have complete data A complete, independent list of laterals can help track inspection progress, identify sewer pipelines still at risk, and plan sewer pipeline maintenance and upgrades. Utilities staff have created a priority list of laterals remaining to inspect. However, many Palo Alto parcels in City records do not have a corresponding lateral record, so the priority list may not be complete and accurate. Although the Utilities Department does not have a process to ensure the completeness of its laterals data, the City’s cross bore inspection process identified laterals that were connected to the City’s main sewer lines using closed circuit television methods. This process should have identified laterals that were not in the City’s records. Recommendations The Utilities Department should: 2.1. Identify missing data in its laterals database by comparing it with independent databases such as Hydromax inspection data. Update its laterals database to ensure it can effectively serve to track inspection progress. 2.2. Incorporate relevant and useful provisions from NASSCO’s contract template, such as linear foot pricing and prior verification of inspector certifications, in future sewer inspection contracts. Consult with the Administrative Services Department’s purchasing staff and the City Attorney’s Office to determine if City can enforce NASSCO template provisions that it plans to incorporate. 2.3. Identify gaps in staff expertise needed to monitor and facilitate field inspections and to review and track inspection data. Develop a training and certification plan for field staff who should have the expertise to help meet the City’s inspection goals and objectives. Attachment AAttachment A 14 Utilities Department: Cross Bore Inspection Contract Audit APPENDIX 1 – City Manager’s Response The City Manager has agreed to take the following actions in response to the audit recommendations in this report. The City Manager will report progress on implementation six months after the Council accepts the audit report, and every six months thereafter until all recommendations have been implemented. Finding: 1. Hydromax inspected 10,791 (60 percent) of 18,028 laterals and could not complete nearly half of its attempted inspections because of adverse conditions in sewer lines. 1.1 Identify sewer pipelines that Hydromax did not fully inspect or attempt to inspect. Prioritize these sewer pipelines for inspection under a future contract(s). To the extent possible, based on past experience, predict potential inspection challenges, such as poor pipeline conditions, that may hinder future inspections. Disclose these challenges in future contract solicitations. Utilities Concurrence: Agree Target Date: Late 2018 Action Plan: Staff will review a previously generated prioritization list based on assessment of risk for property classifications, review inventory of parcels that do not have an associated lateral, and develop a final prioritization list and cost estimates based on experience and data from the original crossbore contract. Implementation of next phase will proceed based on available funding. Finding: 2. City oversight and NASSCO contracting guidelines can help ensure accurate, complete, and cost effective future inspections. 2.1 Identify missing data in its laterals database by comparing it with independent databases such as Hydromax inspection data. Update its laterals database to ensure it can effectively serve to track inspection progress. Utilities Concurrence: Agree Target Date: Mid 2018 Action Plan: Staff will utilize existing data to review and update the City’s GIS to reflect missing active City-owned laterals. This will be done in conjunction with the inventory of parcels referenced in Finding 1.1. 2.2 Incorporate relevant and useful provisions from NASSCO’s contract template, such as linear foot pricing Utilities Concurrence: Agree Target Date: Mid to Late 2018 Action Plan: Attachment AAttachment A Utilities Department: Cross Bore Inspection Contract Audit 15 and prior verification of inspector certifications, in future sewer inspection contracts. Consult with the Administrative Services Department’s purchasing staff and the City Attorney’s Office to determine if City can enforce NASSCO template provisions that it plans to incorporate. Staff will review the NASSCO contract template and look for provisions to incorporate in a future City contract, as applicable. 2.3 Identify gaps in staff expertise needed to monitor and facilitate field inspections and to review and track inspection data. Develop a training and certification plan for field staff who should have the expertise to help meet the City’s inspection goals and objectives. Utilities Concurrence: Agree Target Date: Late 2018 to Start of future contract Action Plan: Staff will continue to review staffing gaps for office and field personnel. If gaps are identified and are not resolved by training, additional expertise will be identified within the City or via contract. Attachment AAttachment A POLICY AND SERVICES COMMITTEE TRANSCRIPT EXCERPT Page 1 of 14 Special Meeting Tuesday, June 13, 2017 Chairperson Wolbach called the meeting to order at 6:06 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: Kniss, Kou, Wolbach (Chair) Absent: DuBois Agenda Items 5. Utilities Department: Cross Bore Inspection Contract Audit. Chair Wolbach: Alright, we’re now back on track to end by 9 o’clock, hopefully, or earlier. We might end earlier if possible. Let Staff enjoy – oh, here we go. So now we’re going to move onto item five, our last real item of the evening and that is Utilities Department Cross Bore Inspection Contract audit. We have one member of the public to speak to this. Any other speaker cards now is a good time to get them in. Again, I will turn to Staff for a presentation and then we will go to the public and then back to the Committee. Vice Mayor Kniss: Not something that I am terribly familiar with; cross bores. Mr. Shikada: Not familiar, that’s a good thing. Harriet Richardson, City Auditor: Good evening Mr. Chair and Members of the Committee. Harriet Richardson, City Auditor here with Senior Auditor Houman Boussina to present the cross bore inspection contract audit. So, to address Council Member Kniss’s comment, we start off – if you look up at the screen, there is a picture of what a cross bore is on the right side. It’s when one utility line, such as a gas line is inadvertently installed through another – it cuts through another such as a sewer line and that’s what we are showing in the picture on the right there. The picture on the left is the desired installation. The picture on the right is not and so if you end up with a cross bore and a plumber or resident accidentally cuts into the gas line when they are opening a cross bore sewer line, gas may be introduced into the connected structure – the building that you see there - and that can cause an explosion. The federal law requires the City to develop and Attachment B TRANSCRIPT EXCERPT Page 2 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 implement a procedure to identify, monitor and address gas pipeline risk. In 2011, the City entered into an 18-month, $3.5 million contract with Hydromax USA to use closed circuit television inspection methods to inspect the City’s main and lateral sewer lines to identify cross bores and document sewer line conditions in accordance with industry standards set by the National Association of Sewer Service Companies or NASSCO. Our audit focused on assessing Hydromax’s compliance with key contract terms, such as inspection of all 18,000 known City laterals and connected privately owned laterals and the City’s oversight of the contract. One thing that I want to point out is that we did this audit at the request of the City Manager’s Office because this contract was not able to be completed as anticipated and in knowing that they would want to go out for a future contract where the work can be completed, the City Manager’s Office wanted to know what they could do differently to ensure success on a future contract. At this point… Vice Mayor Kniss: Just one, I just have to know how could you do that? How could you – do you just accidentally not know where there’s another pipe and you cut into it? Ms. Richardson: The – do you want to address – I’ll let—Utilities is here to address that. They could probably explain it… Vice Mayor Kniss: It just seems as though… Ed Shikada, Assistant City Manager: This is really a phenomenon after the advent of trenchless technologies so the gas line itself was bored in after an existing structure was already there. In some cases, the sanitary sewer could be in place for decades and not documented as to the location. So, Robert, why don’t you go ahead. Vice Mayor Kniss: So, you really could bore right through one that already exists, is that the case? Robert Item, Senior Engineer for Utilities: Yes. Vice Mayor Kniss: You wouldn’t know because it’s boring rather than trenching? Mr. Item: Correct. Vice Mayor Kniss: That helps because I couldn’t quite figure out how you could have even happened. Attachment B TRANSCRIPT EXCERPT Page 3 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Mr. Shikada: Not know if it was there. Mr. Item: Yeah, many times you can imagine too in your residence, you have – yes, excuse me. I am Robert Item, I am a Senior Engineer with the Utilities Department. I have involved in the cross bore project from the inception to currently. So, many times in a residence, we – they have fancy landscapes and all kinds of things going on there. So, there’s a real tradeoff between actually trying to trench at which would appear at first to be maybe less costly if you add all these other costs to it versus drilling. Drilling has been a preferred method as a matter of fact. Some of these other projects here in the future you will see gas and water being drilled in the – as well as open cut. That was a choice that was made with the new technologies to minimize the open cut work and initially, it saves a significant cost. However, there are some drawbacks and this is one of them. Just making sure that there are no cross bores and most times, it’s fairly obvious. Many homeowners will sit there and tell you that, I’ve been here 40-years and I know where my sewer lateral is and you guys are over here with your gas service; there’s no cross bore. Just the same, many of those obvious ones we end up finding a cross bore. Vice Mayor Kniss: Oh, really? Mr. Item: Yes, there was one – we have many laterals that may go to one house and then all of a sudden it branches off to the house adjacent and it’s unknown. Vice Mayor Kniss: Have we had any terrible accidents in the City? Mr. Item: Thankfully we haven’t and this is one of the things – I mean this is a relatively costly program. You start talking about millions of dollars but the flip side of it is if you have one accident that you, God forbid, kill anyone or all this, that’s tens of millions probably in this area. Vice Mayor Kniss: So, Lydia, you must know all about this already? I didn’t know anything about – I am going to go home and see if we’re cross bored; no telling. Mr. Item: Yes. So, I mean I guess I can let it progress on here and I’ll answer anything… Ms. Richardson: Houman Boussina is going to discuss the audit findings and recommendations. Attachment B TRANSCRIPT EXCERPT Page 4 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Houman Boussina, Senior Performance Auditor: Ok, I am Houman and senior performance auditor. This audit has two findings, the first one focuses on the actual contract work that Hydromax completed in the second – the City’s oversight. Hydromax invoiced the City about $2.95 million for 13,725 lateral inspections. The invoices show that Hydromax could not complete 6,625 or forty-eight percent of the 13,725 attempted inspections because of obstructions in the City’s sewer lines that would have required construction services that were beyond the contract scope. The City’s contract required payment for incomplete inspections after reasonable attempts, which is one of the reasons the dollar amount despite not completing all of the inspections. Hydromax inspection records show that it inspected 10,791 or sixty percent of the 18,000 sewer lines in the City’s records. Hydromax inspection records were inconsistent and incomplete, potentially duplicative, so we could not determine which inspections Hydromax included in this invoices that I discussed prior. City oversight and incorporating NASSCO contracting guidelines in future contracts can help ensure that future sewer line inspections are accurate, complete and cost-effective. Finding 2 makes several important points. One of the key points is that although the City monitored the Hydromax contract, it did not enforce all the performance objectives cited in the contract or NASSCO standards and did not have NASSCO certified staff or access to the NASSCO manuals to ensure Hydromax conducted the inspections in accordance with the contract requirements and NASSCO standards. Another key point is that we could not validate any of the names or certificate numbers that Hydromax inspectors entered into NASSCO’s certified inspection software, which means that Hydromax inspectors may have misrepresented their certification status. Another key point was that some provisions within the contract were inconsistent with other provisions and the contract did not incorporate some of NASSCO’s recommended contract language that could have helped the City meet inspection programs, goals and objectives. The final key point is that the City’s sewer pipeline records may be incomplete. Hydromax inspected some pipelines that were not in the City’s records and there are many parcels in City’s records that do not have a corresponding lateral record and the audit report goes into more detail on these issues. The audit report includes four recommendations to the Utilities Department, including identifying and prioritizing sewer pipelines remaining to inspect, identifying missing data in the City’s lateral database, incorporating NASSCO provisions in future inspection contracts and identifying gaps in Staff expertise needed to provide oversight of future inspections. Ms. Richardson: So that concludes our presentation and we’re open for questions. Vice Mayor Kniss: So… Attachment B TRANSCRIPT EXCERPT Page 5 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Chair Wolbach: Liz? Vice Mayor Kniss: …(inaudible). Ms. Richardson: Oh, I do want to point out that the City Manager’s Office agreed with all of our recommendations and they submitted an implementation plan with their response. Vice Mayor Kniss: I quite frankly, most things I feel pretty comfortable with but I don’t feel really comfortable with sewer pipelines and cross bores and I am not being flip about it. I just – I don’t know enough. I would certainly accept what you have said and certainly be ready to support a motion but – and I am sure this is the kind of thing Lydia would be interested in as well. When we lived in an Eichler, we had the most very unusual sewer system and I think it was called Orange… Mr. Item: Orangeburg Pipe. Vice Mayor Kniss: Yes, so I wonder does that still exist in parts of the City because it was certainly not desirable? Mr. Item: Yeah, Orangeburg pipe is basically a cardboard tube with a coal tar – basically an oil base coating and that was pretty typical, especially after the late 40’s, early 50’s. Vice Mayor Kniss: Yeah, when most of the Eichlers were built, right. Mr. Item: Unfortunately, we’re still finding some and I think in a lot of Eichlers, they’re slabs and so a lot of that underneath – specifically the house, you're pretty well encased but once you get outside, we found some sewer lines that are barely holding up. Vice Chair Kniss: I was trying to think what I could add that would sound like I knew something but I just – it sounds like you have done a terrific job. I’m glad to know about cross boring but I don’t know if I will be using it a lot on a daily basis but thank you; good report. Mr. Shikada: Chair and Members of the Committee, at the appropriate time, I would like to make some comments for the Staff. Attachment B TRANSCRIPT EXCERPT Page 6 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Chair Wolbach: Go right ahead and then we’ll hand it over to Lydia if you’re (inaudible). Mr. Shikada: So, I would like to thank the auditor and Houman for the work. As Harriet noted, I actually requested this audit early on when I first joined the Utilities Department, recognizing the magnitude of dollars that were expended on this contract, as well as the inability to ultimately complete the goals that were originally laid out. I appreciate the work and the forensic review on helping us identify some really important recommendations on how we move forward with this. I also had the opportunity through the audit process to I think, provide or learn some important context in terms of how this contract originally came together. I think it is notable that the contract itself was originally put in place within a year after San Bruno and the explosion and much of the follow-up work that was done both in terms of identifying some of the key risk areas, as well as then undertaking this contract to address any potential risk here in Palo Alto. The effort undertaken immediately after that really had been carried on for a number of years, maybe a little too long before we identified the need to revisit the contract, so I think we’re at the point that as we take the audit recommendations going forward, this will give us some good baseline information for the next version of the contract. As I think you may have read, both in the audit as well as in our Staff report on this topic that one of the major learnings through this original contract was that what had originally been established as an inspection contract, ultimately, we’ve concluded that it needs to also involve the inclusion of repairs as a part of the scope of work so that you could address the issues immediately once blockages were identified. Not just sewer blockages but maybe the result of roots and the like to enable going forward. Why don’t I stop there and we can talk maybe about some of the particulars as needed. Chair Wolbach: I apologize (inaudible) to Herb Borock, our one public speaker on this issue. I want to give you three minutes to share your comments with us. Herb Borock: As I understand, the reports to the Committee and to the Utilities Advisory Commission last year, this audit refers to work that was done – that was completed by the end of 2013, which is what, 3 ½ years ago. It came – first, it came to the Utilities Advisory Commission a year ago on June 1st and at that point, it was over 13,000 pipes that had been inspected. Now, to find that it’s over 13,000 invoices but 3,000 less pipes that have been inspected by a company that didn’t have apparently the appropriate skills that we now know are needed to do this and that asked for extensive contract amendments and additions of payments that were approved. I don’t have the confidence based upon what I have seen that Attachment B TRANSCRIPT EXCERPT Page 7 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 there’s any way to know whether we overpaid. Whether we actually got what they said they had given us. That’s a substantial amount of money. Also, I am concerned about the amount of time that it’s taken to make it this far. Even accounting for the time of the audit, if you subtract the time of the audit, it’s still a long time to follow this. The other is whether this approach of doing the entire City was the right one because if we had done a smaller piece that we could found these problems that needed to be corrected at that time. For example, doing it at the same time as say a sewer project that was being done in a particular neighborhood. That you are doing that piece of the system or when someone is doing a development project requiring it be done because as I understand it, the camera looks at the entire lateral hole – through the entire property that is being serviced – the entire part of the lateral that’s the responsibility of the property owner. There have been, as reported to the Utilities Advisory Commission, there are other cross bores in other utilities that were found in the sewers and in addition, a larger number of suspected cross bores. That’s my main thing is the financial thing because the contract thing would be been written differently and the bidding might have been different if those additions had been part of the contract. Thank you. Chair Wolbach: Thank you, Mr. Borock. Lydia, do you have any questions or comments on this one? Council Member Kou: I guess I’d ask how confident are we that this contractor had done their job correctly? So, the ones that they have inspected and how confident are we that they’ve done it right? Ms. Richardson: I think that would be a better question for Utilities because we don’t have the technical skills to address that. Council Member Kou: Rob? Chair Wolbach: (Inaudible) utilities here, Director? Mr. Shikada: I’ll let Robert take the first crack at it. Mr. Item: Ok, first a little bit more background that when we chose this contractor, we chose it at a time that this was a legacy cross bore inspection which we’re investigating cross bores after the fact, was – we’re kind of in the – more of the cutting edge. Especially when we’re talking from our sewer main street or yes, sewer main on the street, all the way to the structure. There were several – there were a couple other cities that have investigated Attachment B TRANSCRIPT EXCERPT Page 8 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 their legacy cross bores but they usually all stopped right at the property line and so they were much shorter. Council Member Kou: Like this right? Mr. Item: Correct, so our inspection was -- the intent and it varies from house to house, was to go in generally from the sewer main in the street all the way to the structure and so in that per se, we did this with a thinking that we would have multi-levels of inspection, which at the time, that was something that wasn’t – we – you can get a person like Roto-Rooter, they’ll go out and they’ll snake it through and they’ll go we’re done; here’s a video. From our experience – because in the past we knew that this was an issue throughout our cross bore projects, we have required the contractor that was doing the work to actually video tape it and then they would submit it to us in-house and we would review it. This has been the common practice to ensure that there haven't been cross bores. When we embarked on this project, we understood that we weren’t – how safe are you if a – not to say anything about the Staff in general but a person that doesn’t always look for cross bores on the kind of day-to-day basis if you would or if it was just one view through the pipe, then you have one level of inspection. This contractor was with three levels of inspection and so you would have the initial person doing the inspection in the field, then you would have another person in the office then coding the NASSCO coding. Then you would you have another person again, reviewing the tapes, looking at a – we gave it our GIS so they would be able to identify any crossing gas lines on the – that we know about, any crossing gas lines on the sewer path. Then that person would look at it further to say hey, was there a problem there? Let me take a look at it. So far through this program, we have not had a thing where our ops. crews have found another cross bore in one inspected – from one that was inspected by Hydromax. A matter of fact, they actually had but they found out that it happened after Hydromax was there. So, far you ask how good – it’s kind of like over time the proof is in the pudding kind of thing. We’ll see and we try to be – there’s always a risk. I mean, are you ninety-nine percent certain? Ninety-nine point nine nine and it goes on and on. Obviously, as you get into the small fractions, the cost goes up and it's beyond. Again, along with the findings, we’re focused on actually seeing that it’s going to involve construction and construction is expensive. We’re focused on prioritizing what we have and narrowing it down to what – to the ones that are the most critical and then working from there. Council Member Kou: Ok, thank you for the explanation. Then, I think Ed had answered that because I said – I had a question of the one that are Attachment B TRANSCRIPT EXCERPT Page 9 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 cross bored, is it going to be needed to be corrected? So, you did mention that now with the new… Mr. Shikada: To include repairs as a part of the scope. Mr. Item: Yes, in the past it’s been part of scope and it continues to be part of the scope. Whether our crews are doing the drilling because our crews drill services in currently, to if a contractor is out there doing the work. Council Member Kou: How do you connect with the homeowner to let them know that you are going to be looking into their lines? Mr. Item: In a general sense, we give a notice and the intent originally of the Hydromax contract was to lateral launch as much as possible. That means that they are going into the main in the street and then launching up the lateral and so hopefully, that was the original idea and the homeowners wouldn’t even know that we were going up to their house. They might see a person walking around with a vest tracking that – where the camera was or is at that point in time but that was pretty much it. It was noninvasive, although as we found out through this project, it involved much more customer interaction because we – because our lines were relatively small, there were issues in terms of offsets and things where the lateral launch camera could not traverse up the main. We ended up having to have the second crew – Hydromax had the second crew to come in and they would first identify with a smaller camera where the laterals were and then have a second crew come in from the top side – now dealing with the homeowner much more intimately, and then videotape that lateral. Sometimes they would have to pull toilets, on the roof, go from the back yard if there is nothing in the front yard to access it. So, there were a number of challenges and as you can probably imagine, there are probably every different kind of combination out there in terms of lateral configurations. We had a lateral that actually went three-quarters of the way around the house. Council Member Kou: I know in my neighborhood, actually there is a lateral that goes past the back neighbor's property and comes out to the street behind. I mean there are some weird ones out there but anyways. I was wondering, so I never quite understand how – when you put an RF – it’s not the RFP but you know when you put out a proposal to ask for the contractors to come in with a bid. How do you choose the bid and why does it always end up being the lowest? Is there a State law for that, if I understand that correctly? Attachment B TRANSCRIPT EXCERPT Page 10 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Mr. Shikada: For construction contract, that would be the case. This one was a professional service, correct Robert? Mr. Item: Yes. Council Member Kou: So, a level of how much they know. Mr. Shikada: It could be a selection based on criteria, as opposed to the lowest responsible bidder which would be typical of construction contracts. Council Member Kou: Ok, so this is different. Mr. Shikada: Right. This is done as a professional service. Council Member Kou: Very good. Ok, I think I’m – I’m also good with the recommendations but thank you. Chair Wolbach: I just wanted to follow up on something that we heard from the public and just ask for clarification, have we really checked whether we were overcharged for the work delivered and if we were, is there a mechanism by which we plan to recover any excess payments? Ms. Richardson: We couldn’t actually determine that because there wasn’t a clear link between the invoices and what those – what laterals were inspected for those invoices so, we couldn’t actually determine that. We did check with the City Attorney’s Office as we were doing this audit about whether there was any potential for recovery and it wasn’t – I didn’t ask for a formal opinion, we just had a little discussion—side discussion and she told me that the period of time – the statute of limitations for being able to go back to collect if we had been overcharged was either three or four years. So, whether it was three years or four years, we’re beyond that period of time. Mr. Shikada: If I could add one more thing. That as noted in the audit, one of the learnings is the structure of the contract and this contract required payment for incomplete inspections after reasonable intent – attempts. So, that standard basically said that if they tried and they made reasonable attempts to try and survey the line, that we would be responsible for payment. That set a relatively permissive bar for the contract. Attachment B TRANSCRIPT EXCERPT Page 11 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Ms. Richardson: When you look at that, there is – I have to find which page it is on – we did calculate that it did cost – cause us to pay more per lateral inspection than the actual contract terms. Chair Wolbach: Yeah, like a 7 1/2 percent extra or something. Wasn’t it like $215 instead of $200? Ms. Richardson: Correct, I am looking for the actual number, yes. Chair Wolbach: Yeah, I am just pulling off… Ms. Richardson: Yes, $200 -- $215, yes. Chair Wolbach: So, just about 7 1/2 percent. So, how do we plan to review future contract work in a cost-effective way but in a time efficient way so that if we, in the future – this is really a question for the City – and ask Utilities Director Shikada in his role as Assistant City Manager Shikada because this doesn’t just apply to one department. It’s a broader question for the organization of the City. How do we plan to make sure that in the future, after the contract is done, that we do a little Monday morning review and see if it was screwed up? See if we overpaid and if necessary, recover before the statute of limitations run out? I think that was one of the key questions that is before us to consider. If there – I just want to have some reassurance that we’re at least trying to figure out how to answer that question, even if we haven’t answered that question yet. Mr. Shikada: Well, and to be completely frank, that is the reason we are doing this – we did this audit to start with. In my opening comments, I made the point that perhaps just in passing that this probably went too long before we got to this point and decided to initiate the audit but that said, that would certainly be one of the areas. In addition, again, going back to the origins of this contract. This is not an activity that the City would consider routine. I mean it somewhat became routine because of the magnitude of the project and the volume of laterals that needed to be inspected but this is not the kind of activity that we would expect to be doing 10-years from now and beyond. It was done as a specific remediation for a situation that was identified as a priority that needed to be addressed as quickly as possible. So, on that basis, I think that again, if we both in hindsight, as well as going forward on the scope of an effort like this, we’d want to take advantage of best practices as have been discussed to ensure that the structure of the contract, as well as the timeliness and the magnitude of the contract, would allow for more ‘as you go’ review in ensuring that it was done in a most cost-effective manner. Attachment B TRANSCRIPT EXCERPT Page 12 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Chair Wolbach: I appreciate that and I know there’s – I think the City Auditor and Assistant City Manager and the Utilities Director weren’t here at the time but I just want to make sure that we’re learning – that we really are learning from this as an organization, right? That we don’t repeat these mistakes and that we really use, as you’ve indicated, use this as a learning opportunity; since we can’t use it as a cost recovery opportunity at this point. So, tell me if I am wrong but the way I see it is the City Manager’s Office is really responsible for ensuring that any contracting done by any department has the real support that that Staff needs and that department needs to be able to go out, craft that scope, the RFP, evaluate respondents, pick a respondent, finalize the contract, review the contract and review the work and to go through all of those steps. I don’t think that that’s – I don’t think that should just be – even though we want to empower departments to be active and empower Staff to be active. I don’t think it’s entirely up to them to feel like they are shooting in the dark without some support from the City Manager’s department and from ASD. I just want to make sure that is the case across all departments in the City, especially, when it’s a nonroutine contract as was just indicated, right? So, in the future when there is a nonroutine contract, where the department participating in it or in seeking the contract is doing something that is not routine for them, that they have that support from ASD and guidance from ASD, City Attorney, and City Manager’s Office. I just want to make that comment and see if there are any thoughts about that. Mr. Shikada: Oh absolutely, I completely agree. The partners so to speak that you just described, I think are really critical. There’s a technical expertise that comes from the department. There’s the procurement that ASD would be involved with. There’s the structure of the agreement that the City Attorney’s Office advises on but again, all -- none of these are exclusive domains for any of the folks that are involved. Again, from the City Manager’s Office perspective, really trying to ensure that the resources are provided. At the same time, recalling the last agenda item, having positions filled, ensuring that the people filling positions have the appropriate qualifications. Those kinds of things are equally important so we operate as part of an eco-system so to speak and it’s really our ongoing effort to make sure that those bases are all covered and balanced. Chair Wolbach: I appreciate that and I think that’s really the point, right? That all of us in our respective roles have our areas of expertise and especially when we are doing something that is outside of our usual scope, that we can rely on other people within the organization and that we feel supported in the work that we are doing. I think we -- again, not wanting to micromanage departments from the Council, we really look to the City Manager’s Office as the place to make sure that coordination is happening Attachment B TRANSCRIPT EXCERPT Page 13 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 and I think that’s what we will look for in the future. With that said, I don’t think it’s something appropriate to include in the motion tonight but I would just put out for consideration that when the next contract on this comes forward, we might want to consider putting it as an action item and not a consent item for the Council. Vice Mayor Kniss: But this isn’t action tonight, is it? Mr. Shikada: It’s just accepting the audit. Chair Wolbach: (Crosstalk) Right, right but I – that’s right. I said that I don’t think it should be in the motion but just – I want to put that out there for… Mr. Shikada: I think you are referring to the next contract… Chair Wolbach: Yeah, next contract… Mr. Shikada: …related to cross bores. Chair Wolbach: Thank you for clarifying that. That is exactly what I meant. So, with that, any motions? Vice Mayor Kniss: I move that we accept the report as given. Chair Wolbach: I’ll second it and any other discussion? Do you need to speak to your motion? I don’t think I need to speak any more to my second. Lydia, any other thoughts or questions? Ok, all in favor? Aye. Passes unanimously. Thank you very much for bringing this up. This was an important one and I really appreciate it. MOTION: Vice Mayor Kniss, seconded by Chair Wolbach to recommend the City Council accept the Utilities Department: Cross Bore Inspection Contract Audit. MOTION PASSED: 3-0 DuBois absent Vice Mayor Kniss: Was this motivated by San Bruno? Mr. Shikada: Yes, (inaudible). Chair Wolbach: The original investigation [Audio cut out] and then the audit had asked for. Attachment B TRANSCRIPT EXCERPT Page 14 of 14 Policy and Services Committee Special Meeting Transcript Excerpt 06/13/17 Mr. Shikada: (Inaudible) Vice Mayor Kniss: This company was hired during the recession, right? Mr. Shikada: 2011 to (crosstalk)(inaudible) Attachment B City of Palo Alto (ID # 8338) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Establishing GO Bond Tax Levy Title: Adoption of a Resolution Establishing Fiscal Year 2017-18 Secured and Unsecured Property Tax Levy for the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N) From: City Manager Lead Department: Administrative Services Recommendation Adopt a resolution (Attachment A and Exhibit A) approving the establishment of the Fiscal Year 2018 property tax levy of $11.77 per $100,000 in Assessed Value (AV) for the secured and utility tax roll and $12.90 per $100,000 in AV for the unsecured tax roll for the City of Palo Alto's Measure N General Obligation Bond Library Bonds (First and Second Series). Background On November 4, 2008, City voters passed Measure N which gave the City authority to issue a maximum amount of $76,000,000 of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Main libraries and to the Mitchell Park community center. The City successfully sold the Bonds in two series to provide $76 million in funds for the design and construction costs. Both Standard and Poor's (S&P) and Moody's awarded their highest credit ratings, Triple A, to both series of Bonds. On March 1, 2016, Council approved the decommissioning of the Library Bond Oversight Committee and accepted a financial report showing approximately $3.0 million in project savings (CMR: 6632). In addition, bond premium of $3.1 million could be used to redeem and/or defease bonds. On June 6, 2016, Council authorized the use of $6.1 million of the Series 2010A & 2013A General Obligation (Measure N) Bonds to defease and/or retire a portion of outstanding bonds and to pay associated redemption costs (CMR: 6993). To maximize savings to property owners the longest bonds were paid off; total savings of $11 million were realized which includes $4.9 million in interest savings over time. Of the $11 million, $5.4 million will be saved through FY 2040 while $5.6 million will be saved from FY 2041 through FY 2044. City of Palo Alto Page 2 Discussion Debt service payments on these Bonds are paid through ad valorem taxes on all taxable land and improvements (both secured and unsecured assessment roll) within the City. Staff is seeking Council approval of the attached resolution (Attachment A and Exhibit A) which authorizes the placement of an ad valorem property tax levy in the amount of $0.01177 per $100 or $11.77 per $100,000 in AV for the secured tax roll; and $0.01290 per $100 or $12.90 per $100,000 in AV for the unsecured tax roll. In comparison, prior years secured and unsecured tax levy was $12.90 and $14.77, respectively, per $100,000 of AV. The assessment rate for FY 2017-18 is decreasing for both the secured and unsecured property taxes. The rate decreases is attributable to the rise in the Assessed Valuation for properties throughout Palo Alto by 7.8 percent, an increase of $2.5 billion. In addition, the rise in Assessed Valuation during FY 2016-17, due to property sales and new construction, resulted in $0.4 million in excess collections which further reduced the FY 2018 annual assessment. As for the unsecured property taxes, per the County of Santa Clara’s methodology, the prior year’s secured tax rate becomes this year’s unsecured tax rate as a result this rate won’t benefit from the coming year’s Assessed Value increase until FY 2018-19. With the new assessment for FY 2018, a house with an assessed value of $1.0 million, for example, would see an annual assessment of $117.70 on their property tax bill. In FY 2017, a $1.0 million home had an assessment of $129.00. Resource Impact The bond issuances result in a 2018 calendar year debt service expenditure of approximately $4.5 million and Council approval of the attached resolution will result in ad valorem tax levy revenue of $4.1 million with the $0.4 million difference attributable to available funds on hand. Again, secured and unsecured property owners will see a levy of $11.77 and $12.90, respectively, per $100,000 of AV on their 2017-18 property tax statement. Environmental Review There is no environmental review required for this report. Attachments: Attachment A: Resolution Establishing FY 2017-18 Property Tax Levy Exhibit A: General Obligation Bonds, Election of 2008, Series 2010 and 2013 Tax Rate Calculation Based on 2016-17 AV NOT YET APPROVED 170719 th 0140182 1 Resolution No. Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2018 Property Tax Levy of $11.77 Per $100,000 of Secured and $12.90 Per $100,000 of Unsecured Assessed Valuations for the City’s General Obligation Bond Indebtedness (Measure N Library Projects) R E C I T A L S A. The City of Palo Alto’s (“City”) general election held on November 4, 2008, more than two thirds of voters approved Measure N, authorizing the issuance of general obligation bonds in the amount not to exceed $76,000,000 (the “Authorization”) to fund construction of a new Mitchell Park Library and Community center and renovation and improvements to Downtown and Main libraries. B. Pursuant to the Authorization, the City issued two series (Series 2010A and 2013A) of general obligation bonds in June 2010 and June 2013 that yielded $75.8 million for project needs. C. The City is obligated to levy ad valorem taxes on all property within the City subject to taxation by the City, without limitation on rate or amount (except with respect to certain personal property which is taxed at limited rates), for the payment of the debt service on the Bonds. D. The City is obligated to direct the County of Santa Clara to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service on the Bonds. E. The amount of the annual ad valorem tax levied by the City to repay the Bonds is determined by the relationship between the assessed valuation of taxable property in the City and the amount of debt service due on the bonds. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to the Authorization, an ad valorem property tax is hereby established to be levied on all land and improvements in the City of Palo Alto during fiscal year 2017-18 in the amount of $0.01177 per $100 in assessed value for the secured and utility tax roll and $0.01290 per $100 in assessed value for the unsecured tax roll based on the calculations set forth in the attached Exhibit "A". SECTION 2. The City’s Director of Administrative Services shall cause a certified copy of this Resolution to be delivered to the Auditor of the County of Santa Clara for entry in the assessment book of the respective sums in dollars and cents. NOT YET APPROVED 160718 jb 0131538 2 SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ______________________________ City Attorney City Manager ______________________________ Director of Administrative Services A) Assessed Valuations (AV) 1)2017-18 Taxable Secured Assessed Valuation (AV)32,512,568,702.00$ 2)2017-18 Taxable Unsecured AV 1,922,170,300.00$ 3 ) Less: Estimated Delinquency 0.00%- 4 ) Net Taxable Unsecured AV 1,922,170,300.00 5 ) Total Assessed Valuation (AV)34,434,739,002.00$ B) Tax Levy Requirement 5)2017-18 Debt Service Payments 6)2010 GO Bonds - February 1,2018 1,075,584.38$ 7)2010 GO Bonds - August 1, 2018 2,300,584.38 3,376,168.76 8)2013 GO Bonds - February 1,2018 337,200.00$ 9)2013 GO Bonds - August 1, 2018 752,200.00 1,089,400.00 10 )Total Calendar Year 2018 Debt Service Payments 4,465,568.76 11 ) Excess Funds on Hand Applied Toward Debt Service (400,000.00) 12 ) Sub-total 4,065,568.76 13 ) Santa Clara County Administration Fee (0.25% of Principal & Interest)10,163.92 14 )Total 2017-18 Annual Debt Service Requirement 4,075,732.68 C) Secured and Unsecured Tax Rate 15 )2017-18 Unsecured Tax Rate per $100 of Unsecured AV (Prior Year's Secured Tax Rate)0.01290$ 16 )2017-18 Unsecured Tax Rate per $100,000 of Unsecured AV 12.90$ 17 )2017-18 Estimated Revenue from Unsecured AV (line 4 divide by 100 times by line 12) 247,959.97$ 18 )2017-18 Estimated Revenue from Secured AV (line 11 minus line 13) 3,827,772.71 19 )Total 2017-18 Annual Debt Service Requirement 4,075,732.68$ 20 )2017-18 Secured Tax Rate per $100 of Secured AV (line 14 divided by line 1*100) 0.01177$ 21 )2017-18 Secured Tax Rate per $100,000 of Secured AV (line 14 divided by line 1 times 100,000) 11.77$ Exhibit A City of Palo Alto General Obligation (GO) Bonds, Election of 2008, Series 2010 and 2013 Tax Rate Calculation Based on 2017-18 Assessed Values CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR August 14, 2017 The Honorable City Council Palo Alto, California Policy and Services Committee Recommendation to Accept the Auditor's Office Quarterly Report as of March 31, 2017 The Office of the City Auditor recommends acceptance of the Auditor’s Office Quarterly Report as of March 31, 2017. At its meeting on April 25, 2017, the Policy and Services Committee approved and unanimously recommended the City Council accept the report. The Policy and Services Committee minutes are included in this packet. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Auditor's Office Quarterly Report as of March 31, 2017 (PDF) Attachment B: Policy and Services Committee Meeting Minutes Excerpt (April 25, 2017) (PDF) Department Head: Harriet Richardson, City Auditor Page 2 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR April 25, 2017 The Honorable City Council Palo Alto, California Auditor's Office Quarterly Report as of March 31, 2017 RECOMMENDATION The City Auditor’s Office recommends the Policy and Services Committee review and recommend to the City Council acceptance of the Auditor’s Office Quarterly Report as of March 31, 2017. SUMMARY OF RESULTS In accordance with the Municipal Code, the City Auditor prepares an annual work plan and issues quarterly reports to the City Council describing the status and progress towards completion of the work plan. This report provides the City Council with an update on the third quarter for FY 2017. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Auditor's Office Quarterly Report as of March 31, 2017 (PDF) Department Head: Harriet Richardson, City Auditor Attachment A Page 2 Attachment A Quarterly Report as of March 31, 2017 Office of the City Auditor “Promoting honest, efficient, effective, economical, and fully Accountable and transparent city government.” Attachment A Fiscal Year (FY) 2017 Third Quarter Update (January – March 2017) Overview The audit function is essential to the City of Palo Alto’s public accountability. The mission of the Office of the City Auditor, as mandated by the City Charter and Municipal Code, is to promote honest, efficient, effective, economical, and fully accountable and transparent city government. We conduct performance audits and reviews to provide the City Council and City management with information and evaluations regarding how effectively and efficiently resources are used; the adequacy of internal control systems; and compliance with policies, procedures, and regulatory requirements. Taking appropriate action on our audit recommendations helps the City reduce risks and protect its good reputation. Activity Highlights •We published and presented to Council the 2016 Performance Report, National Citizen Survey™, and Citizen Centric Report. •We presented the Community Services Department: Fee Schedule Audit to the Policy and Services Committee on February 14, 2017. •Presented proposed changes to the Fraud, Waste, and Abuse Hotline protocols to the Policy and Services Committee on February 14, 2017. Audit and Project Work Below is a summary of our audit and project work for the third quarter of FY 2017: Title Objective(s) Start Date End Date Status Results/Comments Citywide Analytic Development and Continuous Monitoring: Procure-to-Pay Determine if data analytics and continuous monitoring can help the City detect duplicate vendor or vendor payment records. 06/15 04/17 In Process The audit is in the reporting phase. The scheduled date to present this audit to the Policy and Services Committee is April 2017. Fee Schedules Audit Evaluate City processes for establishing fees to determine if the fees cover the cost of services provided when expected. The audit focused on Community Services fees. 06/15 12/16 Completed The audit was presented to the Policy and Services Committee on February 14, 2017. Utilities: Water Billing Accuracy Audit Evaluate whether the Utilities Department accurately billed customers for water services. 06/15 05/17 In Process The audit is in the reporting phase. The estimated date for presenting the audit to the Policy and Services Committee is June 2017. Citywide Analytic Development and Continuous Monitoring: Overtime Determine if implementing a continuous monitoring process for overtime could improve the City’s oversight and management of overtime. 06/15 05/17 In Process The audit is in the reporting phase. The scheduled date of presentation to the Policy and Services Committee is June 2017. Sustainable Purchases Assess purchasing practices to determine if the City complies with applicable green purchasing requirements in purchases. 03/16 04/17 In Process The audit is in the reporting phase. The estimated date for presenting the audit to the Policy and Services Committee is April 2017. Attachment A Title Objective(s) Start Date End Date Status Results/Comments Hydromax Crossbore Contract Evaluate the work performed under this contract to determine if the City is took an appropriate approach to this work, including whether it received appropriate sewer line inspection data from this effort and allocated an appropriate level of contractor oversight. 09/16 06/17 In Process The audit is in the reporting phase. The estimated date of presentation to Policy and Services Committee is June 2017. ERP Nonaudit Service Provide advisory services to the Department of Information Technology regarding its planning of a new enterprise resource planning (ERP) system. 09/16 Ongoing During the third quarter of FY 2017, we attended 27 ERP system requirement validation sessions and three strategic and tactical team meetings, providing verbal and written advice based on our technical expertise and best practice information readily available to us. We also issued a memo do the IT Director that discusses what is going well with the project and challenges we identified. National Citizen Survey™ Obtain resident opinions about the community and services provided by the City of Palo Alto and benchmark our results against other jurisdictions. 07/16 01/17 Completed We presented the National Citizen Survey™ to the Council at the annual retreat on January 28, 2017. Annual Performance Report Provide citywide information for key areas, including spending, staffing, workload, and performance. 10/16 01/17 Completed We presented the Annual Performance Report to the Council at the annual retreat on January 28, 2017. Attachment A Other Monitoring and Administrative Assignments Below is a summary of other assignments as of March 31, 2017: Title Objective(s) Status Results/Comments Sales and Use Tax Allocation Reviews 1) Identify businesses that do business in Palo Alto that may have underreported or misallocated their sales and use tax and submit inquiries to the state for review and tax reallocation. 2) Monitor sales taxes received from the Stanford University Medical Center Project and notify Stanford of any differences between their reported taxes and state sales tax information, in accordance with the development agreement. 3) Provide Quarterly Status Updates and Sales Tax Digest Summaries for Council review. Ongoing 1) Total sales and use tax recoveries for the third quarter were $2,978 from our inquiries and $852 from the vendor inquiries, for a total of $277,365 year-to-date. Due to processing delays at the State Board of Equalization, there are 69 potential misallocations waiting to be researched and processed: 26 from our office and 43 from the vendor. 2) We receive calendar-year sales tax information for the Stanford project about six months after the end of the calendar year. We will report the sales tax information for this project in our June 2017 quarterly report. 3) Quarterly sales tax reports are published on the Office of the City Auditor website at www.cityofpaloalto.org/gov/depts/aud/reports/defaul t.asp. City Auditor Advisory Roles Provide guidance and advice to key governance committees within the City. Ongoing The City Auditor serves as an advisor to the Utilities Risk Oversight Committee, Information Security Steering Committee, and Information Technology Governance Review Board. We are also serving as an advisor for the strategic and technical planning groups for planning the new Enterprise Resource Planning (ERP) system (see comment in the Audit and Project Work section above). Status of Audit Recommendations Seventy-three recommendations were open at the beginning of the third quarter of FY 2017, and none were closed. We did not add any additional recommendations during the third quarter of FY 2017. However, we sent notifications to each of the departments with open audit recommendations, and the updated responses have started coming in. We have started reviewing those and expect to report in our next quarterly report that many of the open recommendations have been closed. Below is a summary of open audit recommendations, by audit, as of March 31, 2017: Audit Title Report Date Status Report Dates Due Date of Next Status Report Total Recommendations Implemented During Quarter Open Citywide Cash Handling and Travel Expense 09/15/10 11/10/15 09/23/14 09/10/13 10/22/12 04/19/11 Past Due 11 0 2 Contract Oversight: Trenching and Installation of Electrical Substructure 11/05/13 12/15/15 09/23/14 Past Due 6 0 2 Attachment A Audit Title Report Date Status Report Dates Due Date of Next Status Report Total Recommendations Implemented During Quarter Open Inventory Management 02/18/14 09/23/14 Past Due 14 0 14 Utility Meters: Procurement, Inventory, and Retirement 03/10/15 None Past Due 15 0 15 Police Department: Palo Alto Animal Services 04/22/15 03/22/16 Past Due 8 0 8 Parking Funds 12/15/15 None Past Due 8 0 8 Disability Rates and Workers’ Compensation 05/10/16 None 02/14/17 15 0 15 Cable Franchise and Public, Education, and Government (PEG) Fees 06/14/16 None 03/08/17 9 0 9 Community Services Department: Fee Schedule Audit 02/14/17 None 3 0 3 Fraud, Waste, and Abuse Hotline Administration The hotline review committee, composed of the City Auditor, the City Attorney, and the City Manager, or their designees, meets as needed to review hotline-related activities. We received and closed two hotline complaints during the third quarter of FY 2017, one of which was related to a previous case. The chart below summarizes the status of complaints received in each fiscal year since the hotline was implemented. 0 0 0 00 2 4 6 8 10 Q1 Q2 Q3 Q4 FY 2017 Quarter # Implemented Recommendations 73 3 0 20 40 60 80 100 FY 2017 # Open Recommendations From Prior Fiscal Years From Fiscal Year 2017 Attachment A Source: City of Palo Alto hotline case management system as of March 31, 2017 We sent a survey to about 60 local government audit offices that manage a hotline to seek input about how they manage their hotlines to ensure they receive calls when fraud, waste, or abuse are suspected and how they triage and investigate valid complaints. We received about 25 responses and compiled the results. We presented a discussion item on this topic at the Policy & Services Committee meeting on March 28, 2017. 7 3 2 15 9 0 2 4 6 8 10 12 14 16 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Status of Complaints Received by Fiscal Year Closed Complaints Open Complaints Attachment A POLICY AND SERVICES COMMITTEE TRANSCRIPT EXCERPT Special Meeting Tuesday, April 25, 2017 Chairperson Wolbach called the meeting to order at 7:00 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: DuBois, Kou, Wolbach (Chair) Absent: Kniss Agenda Items 3. Auditor's Office Quarterly Report as of March 31, 2017. Chair Wolbach: For Item Three, again, Harriet, convenient that we have you here. Item three on tonight's agenda is auditor's office quarterly report as of March 31st, 2017 and Harriet, once more. Harriet Richardson, City Auditor: Then you, yes and I don't have a PowerPoint on this one. This is our quarterly report on the third quarter of Fiscal Year '17 ending in March. Some - so, three activity highlights for the quarter. We published the 2016 performance report, National Citizen Survey and citizen center report and presented those to the Council at their annual retreat on January 28th. We also presented the Community Services Department fee schedule audit to the Policy and Services Committee and that was on February 14th. On February 14th, we also discussed at Policy and Services the proposed changes to the fraud, waste and abuse hotline protocols. During this quarter, we completed two additional audits to -that we presented tonight that where the continuous monitoring of payments and the green purchasing audit and as I mentioned, the fees schedule audit. We have several other audits in progress. One is the utilities water billing and accuracy audit - water billing accuracy audit. That one is in - the report is being drafted at this point. That says that - in this report, I say that we expect to present that at the June Policy and Services Committee meeting. As of today, it looks like we'll publish it before the end of June but it will probably be presented at the August meeting. There's some juggling going on with some things right now. The continuous monitoring and other continuous monitoring audit, this one is of overtime to look at whether or not a continuous monitoring process for overtime could improve the City's oversight and management of Attachment B Page 2 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT overtime. That one is also being drafted right now and it is scheduled to be presented at the June Policy and Services Committee meeting. We're also doing an audit of the Hydromax cross bore contract. That was to evaluate the work performed under a contract to see if the City took an appropriate approach to the work including whether it received appropriate inspection data from the effort and allocated an appropriate level of oversight over that contractor. That audit is also being drafted right now. It's almost completed and it's scheduled for the June Policy and Services Committee meeting. We also have been doing what we call a non-audit service, an Enterprise Resource Planning project and this is really an advisory service that we're doing where we're attending meetings, looking at what they’re finding as far as the requirements, their approach to planning the RFP, then providing technical advice to them based on what we see. The main purpose of this is to identify issues up front so that we wouldn't - don't come back 3-years later and say oh, you should have done this instead of being more proactive and preventing things. During this quarter, one of my auditors attended twenty-seven system requirement validation sessions so those were meetings with individual departments where the consultant went over what they identified as the requirements for that specific department. Then she also attended three strategic and tactical team meetings and provided verbal advice during those meetings. We also issued a memo to the IT director that discusses what's going well with the project and some of the challenges we identified. I'm in the process of scheduling a meeting with him now so that we can discuss that memo in more detail. Each quarter, we're planning to issue a memo letting him know what we're seeing and what we're finding so as he goes to that, he can make some changes along the way and not end up with a failed project, which is common with government ERP systems. I already mentioned that we completed the National Citizen Survey and national performance - annual performance report. Throughout the year, we monitor the City's sale tax revenues and we identify - we look for businesses that - we have access to a database that allows us to see where there's changes in what a business has reported as their sale tax to the City or if there's a new business and we aren't seeing sales tax reported. We can report to the State Board of Equalization and they can look at that and say, did they under report or did they misallocate their sale tax to another jurisdiction, which is sometimes common when they do business in more than one jurisdiction. During the third quarter, our office recovered about $23 - well, just about $3,000 in sale tax from our increase and we also contract with a consultant who recovered $852. Year to date, we're recovered a total of $277,000. There are quite a few requests out to the State Board of Equalization. Right now, 69 are waiting to be researched and processed. 26 of those are from our office and 43 are from the Attachment B Page 3 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT vendor. At the end of June, we receive sales tax information for the Stanford Hospital project and we'll report that information about what the City recovered under the special agreement we have for the City to get the sale tax on that project. We published the quarterly reports on our City website - on the City auditor website and I have a link there to that. We also participate in several advisory roles. We serve as an advisory on the Utility Risk Oversight Committee, the Information Security Steering Committee and the Information Technology Governance Review Board and as I already mentioned, we're also doing advisory - providing an advisory service on the ERP system. That completes the main part of the work that we've done this past quarter. We are getting ready because we have several audits wrapping up. We are getting ready to start some new audits on our - that are on our audit plan and so those will be listed on the next quarterly report. The status of audit recommendations, in 2014, the Council changed the way we do that so it used to be that our office would ask the departments to provide us the status of their recommendations and we would report to the Council on that. In 2014, the Council decided that they wanted the departments to report directly and more often than once a year, which is what we were doing. We still track what's outstanding and we have nine audits on this list. The last one, the community services fee schedule audit, is not past due. The others are all past due and as you can see, the oldest one from 2010, has two open recommendations. Some of those others have not been reported on at all. The worker disability rates and worker's compensation and the cable franchise and peg fee audits have not had any reports. The other ones are all past due. In mid-March, we sent an email to all of the departments that are affected by these audits, saying that we need to get - start getting these going again. So, we're starting to get the responses to those and my Staff is validating the responses so that we can say to the Council when the departments present them that yes, we agree with the status that they reported. In some cases, we're going back for more information but you should start seeing those coming to Policy and Services probably August/September on those agendas. I think - from what I'm hearing from my Staff, we're probably going to be able to clear out quite a few of these in the next few months. Then, the hotline is the last thing on our report. We received and closed two hotline complaints during the third quarter. One of which was related to a previous case. So, at this point, we have no open hotline cases. They have all been closed. The two that came in this - during this quarter, both were unsubstantiated and I mentioned in here about the survey that we sent to other jurisdictions and that I had presented that as a discussion item at the March Policy and Services Committee meeting. That's all I have on that and I'm open for questions. Attachment B Page 4 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT Chair Wolbach: Any questions? Tom. Council Member DuBois: You don't have any audits right now in kind of the design or all the collections fees? Ms. Richardson: We are just getting ready. We - I'm going to send down audit notice on the code enforcement audit this week so we are doing a little bit of work to get that one ready to start. Then these ones that are wrapping up, I'm going to have three auditors ready to start new audits in the next couple of weeks so we are going to start on those ERP audits that we have planned. Council Member DuBois: What are the new ones? Ms. Richardson: Code enforcement is definitely - that one - she's already doing a little bit of work but we haven't set out - sent out the audit start letter yet. Then we have three ERP planning audits so one is data reliability, which kind of goes back to the issue, for example, of the vendor master file. That's one example but what we're going to do is look at a variety of data sets that are in the SAP system and see where cleanup needs to be done before data gets transferred over to - into the new system. We've got one that we're calling segregation of duties. That's audit jargon for when two people shouldn't do the same - have the ability - one person shouldn't have the ability to do too many tasks that could allow them to do bad things like commit fraud. So, looking at how the system is set up to make sure that they have the right separation of duties so that we can make sure that the City's protected. The third one is governance - IT governance and that's really looking at - as an example, right now, when we do an audit and we want a data set and we go to a department and we ask for information about the data that they use, for example, say in utilities, what data goes into making a utility bill and they will say oh, I don't know. Go ask IT and IT will say no, go check with the department. The department is the data owner but a lot of times they have not had the training or they don't have the knowledge to know what is - goes on behind the screen that they see and so really looking at what that structure should be and what kind of training those people should get so that they know what their responsibilities are and that they - it reduces the chance for error when people know how the system works and how their reports are developed so really focusing a lot on that kind of thing. Council Member DuBois: I think in past years, you've sent around a list of potential audits for prioritization. I mean, are we kind of at that Attachment B Page 5 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT time? It sounds like... Ms. Richardson: We're getting close to that time. I will probably be bringing a list at the first Policy and Services Committee meeting after - so, I'll be sending an email out in the near future. Council Member DuBois: Ok. Ms. Richardson: I can probably do that - I can probably send that out next week and get that going. Council Member DuBois: Let’s send it to the whole Council. Ms. Richardson: I do, I do. Council Member DuBois: Ok. On National Citizen Survey, you did present at the retreat. We didn't really have a lot of time to talk about it. Did you feel like you covered everything that you wanted to cover? Ms. Richardson: I think so. I think - one thing that really came out pretty clearly on that from the question that was asked was that there are certain areas that continuously rate low, like the built environment but that question is fairly broad. This year, what we're going to do -I've already talked to the Planning Director and the Community Services Director and we're going to sit down and develop some custom questions that will try and dig down deeper into what it is that causes people to think that the built environment is low. We're going to try and focus on just a couple of areas. Most of them tie directly to the Council priorities and develop our custom questions around those areas this year. Council Member DuBois: I don't know what you guys think. I mean we might want to have a study session to actually talk about the survey a little bit deeper. I didn't really feel like we had a chance. Chair Wolbach: Are you thinking something for Policy and Services or for the Council? Council Member DuBois: No, I meant for the Council. Like a short study session at Council. Chair Wolbach: Well, maybe that something that we can bring up with Jim and I'm not sure (inaudible) agenda item right now but I think we can definitely, as individuals, ask Jim and I'm sure Staff here will mention it. Let's- I'd be comfortable with that. Attachment B Page 6 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT Council Member DuBois: Just going onto sale tax, so we had the vendor collect $800. I'm just curious how much we paid the vendor to do that? Ms. Richardson: We pay a percentage of what they collect so we pay twenty percent but you - I think it's also important to remember that although that was a small amount, they have quite a number of requests out to the State. They have 43 requests out to the State waiting to be processed and when you look at that large $277,000 number that we've collected year-to-date. Most of that was from the vendor. Council Member DuBois: Right, so I think the last couple of times it's been very low and we keep hearing it's delayed at the State. Is there anything we can do to unjam that? Ms. Richardson: I don't think so. It's based on their Staffing and I do - I'm looking at, right now, -- so we have 69 outstanding - right, inquiries outstanding right now. A year ago, we had 56 at this time. The year before that we had 43 so that log seems to be growing. Council Member DuBois: Two hundred and seventy-seven thousand sounds like a large number but my recollection is that it's usually over a million. It's quite large. Ms. Richardson: Not the part that we actually recover on the misallocations. Council Member DuBois: Ok, there had been years where we recovered quite a bit. Ms. Richardson: Not - never - no, actually I have a chart here that I've started looking-trying to track. Going back to 2007 and the highest year - actually, this $277,000 puts us at the highest year and that was due to one really large recovery effort. Prior to that, the largest amount was $169,000 and that was in 2014. Council Member DuBois: Ok, alright. I stand corrected. Ms. Richardson: Yeah, we've had it as low as $24,000 and that was 2011. Council Member DuBois: Ok. I think I brought this up last time but it looks like the sale tax reports on the website are still like -- the most current one is June of 2016. Ms. Richardson: There should be two more since then. I'll have to look. Attachment B Page 7 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT I know we have one pending that needs to go to - on the website and that should be going out - it's done, it just needs to be posted. Council Member DuBois: If you could just check on that. It looks really out of date. Then, you know, we do this every quarter I guess and it comes back and we haven't had any implemented recommendations for a long time. You're saying next time we're going to be seeing a bunch. Ms. Richardson: I think you'll - yeah, you'll start seeing some because we do have those emails out and we have started receiving responses to them. Council Member DuBois: I'd like to make a request that next time this comes back, could you provide more detail on these 76 items. Ms. Richardson: What they recommend... Council Member DuBois: Maybe even - yeah, maybe even just attach a table of what they are. Ms. Richardson: Ok. Council Member DuBois: If there's a status of either fixed or decided that we're never going to fix it or it's still outstanding, I think that would be really useful. Some of these are quite old, right? Ms. Richardson: Right. Council Member DuBois: (Inaudible) Ms. Richardson: I think most of the ones that are here are ones that will be implemented. I have worked primarily with ASD on some of these where the recommendations - we looked - we went back and looked at them and said that they aren't really feasible at this point or they don't make sense anymore due to other operational changes. Council Member DuBois: It would be really nice just to see that clearly and we could clear some of these out that are so old. Ms. Richardson: I'm also trying to work closely with departments to make sure that when we make the recommendations up front, that they make sense. Council Member DuBois: Great, ok, thank you. Chair Wolbach: Any other questions? Lydia, quick question? Go for it. Attachment B Page 8 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT Council Member Kou: Harriet, do you know - the food trucks, how the sale tax collected from those? They move all around. Ms. Richardson: That's a good question. I don't know. I would have to check on that. Council Member Kou: Ok. Alright. I always wondered so I thought... Chair Wolbach: Ok, I'll move the Staff recommendation that we recommend to the City Council the acceptance of the auditor's office quarterly report as of March 31st, 2017. Council Member DuBois: I'd like to propose that we make a very soft - we suggest that there's a study session on the National Citizen Survey as part of the acceptance. Chair Wolbach: I'm not sure it's really apropos for this particular motion but I'm happy to have us discuss it and... Council Member DuBois: Yeah, I'm not saying that we do it. I'm saying we ask Staff to consider doing it basically. Chair Wolbach: Right. What I am saying is I think that (crosstalk) (inaudible) Council Member DuBois: I think that we are accepting the National Citizen Survey and so it's up to you to say if we accept it or if we want to discuss it. Chair Wolbach: Actually, let me look to the Staff for any thoughts on that. Ms. Richardson: I'm not certain how that works. I would probably have to differ to the Clerk or the City Attorney. Chair Wolbach: And City attorney, you are thinking that there's anything wrong with adding that to this motion from a legal standpoint? Terence Howzell, Principal Attorney: (Inaudible) It would be a soft recommendation that we (inaudible) to put in on the Council's calendar for (inaudible) Council Member DuBois: Yeah, exactly. Chair Wolbach: I'd be fine with that Amendment. It will be to recommend that the City Council accept the auditor's office quarterly Attachment B Page 9 of 9 Policy and Services Committee Special Meeting Transcript Excerpt 04/25/17 TRANSCRIPT EXCERPT report as of March 31st, 2017 and also recommend scheduling a full Council study session regarding the National Citizen Survey. Council Member DuBois: Great, thanks. Chair Wolbach: Any other discussion? Alright, all in favor? Aye. Alright, passes unanimously with Council Member Kniss absent. Alright, thank you very much, Harriet. MOTION: Chair Wolbach moved, seconded by Council Member DuBois to recommend the City Council accept the Auditor's Office Quarterly Report as of March 31, 2017, and to recommend the National Citizen Survey be discussed at a future City Council Study Session. MOTION PASSED: 3-0 Kniss absent Attachment B City of Palo Alto (ID # 8102) City Council Staff Report Report Type: Action Items Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: VTA Next Network Final Plan & Palo Alto Transit Vision Plan Title: Approval of the Draft Palo Alto Transit Vision Plan and Direction to Staff to Pursue Funding for Local Shuttle Service Enhancements From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council review the draft Palo Alto Transit Vision Plan (Attachment A), and 1) Approve the Palo Alto Transit Vision Plan including the following recommended enhancements (contingent on funding): a) Design of a new South Palo Alto Route b) Expansion of the Crosstown and Embarcadero Routes c) Rebranding and marketing strategy 2) Direct Staff to seek Measure B and other available funding for the proposed service enhancements. Executive Summary The Valley Transportation Authority (VTA) is implementing reductions in bus service in Palo Alto at the same time that Palo Alto has been exploring potential expansions in local shuttle service. Any expansion of local shuttle service is contingent on funding. This evening’s agenda item allows for a discussion of VTA’s service reductions (which is currently scheduled to be effective in December 2017) and possible local shuttle service enhancements which can only be implemented if the City is successful at securing funding from County Measure B and other sources. (VTA has for now rejected the idea of providing funds to backfill bus service reductions with local shuttle service.) City staff is also requesting direction to pursue funds for a new branding and marketing strategy for the Palo Alto Free Shuttle. Expanded transit service is one of many strategies that the City is pursuing to address parking demand and traffic in the City. Other strategies include transportation demand management City of Palo Alto Page 2 (TDM) strategies such as establishment and support for a new Transportation Management Association, parking management programs, and additional parking supplies. Background The City of Palo Alto Comprehensive Plan, adopted in 1998, identified “Goal T-2: A Convenient, Efficient, Public Transit System that Provides a Viable Alternative to Driving.” This goal led to the establishment of the Palo Alto Free Shuttle in 1999. The City of Palo Alto has historically provided free public transit service via a shuttle program that included two routes: the Crosstown and the Embarcadero. In 2014, the Palo Alto Free Shuttle Program introduced a new shuttle route in partnership with the City of East Palo Alto, bringing the total number of shuttle routes in the program to three. However, this third route was discontinued by the City of East Palo Alto on September 30, 2016. The Palo Alto Free Shuttle service complements transit services provided by the Valley Transportation Authority (VTA), as well as shuttle services provided by Stanford University, private companies, and other transit operators. The Crosstown Shuttle provides a north-south connection from the Palo Alto Transit Center to Crescent Park, Midtown, the Charleston Road area, and several community centers, libraries, senior centers, neighborhoods, and schools in between. The north-south connection is also supported by the VTA route 21, which follows Middlefield Road from the Palo Alto Transit Center to the Mountain View city limits, continuing on to downtown Mountain View. The Crosstown Shuttle route is funded 100% by the City’s General Fund and operates Monday through Friday during the daytime period, excluding some holidays. The Embarcadero Shuttle provides an east-west connection from the Palo Alto Transit Center to the businesses located in the Baylands at the east end of Embarcadero Road. The City currently contracts with the Peninsula Corridor Joint Powers Board (PCJPB) to operate the Embarcadero Shuttle, which is a part of the Caltrain peak-hour commuter shuttle program and subsidized 46.5% by the PCJPB in Fiscal Year 2017. Beginning in Fiscal Year 2018, the PCJPB will subsidize 44%. The remaining 56% is funded by the City of Palo Alto General Fund. The shuttle operates Monday through Friday during peak periods only, excluding some holidays. Table 1, below, provides time of day ridership figures for the Crosstown Shuttle Route taken from two weekdays in March 2017. As this data suggests, and as indicated in the attached report, a large percentage of the ridership consists of students using the shuttle to get to and from school, but it also shows fairly consistent use throughout the day. Table 1: Crosstown Shuttle Ridership by Hour (Average taken from two weekdays in March 2017) City of Palo Alto Page 3 Source: Planning and Community Environment Department, July 2017 Table 2 below compares the Palo Alto Free Shuttle operation to peer operators; both the Emery Go Round in Emeryville and the Irvine iShuttle operate similar free shuttles. The table also compares the Palo Alto Free Shuttle to both VTA (at current service levels) and SamTrans systemwide service. Table 2: Peer Operator Comparisons Boardings/Revenue Hour Boardings/Revenue Mile Palo Alto Free Shuttle: Crosstown 33 2.8 Embarcadero 21 1.4 Emery Go Round: Hollis 47 3.7 Shellmound/Powell 70 5.5 Watergate 65 3.4 Irvine iShuttle: A 14 0.9 B 16 1 C 46 2.6 D 12 1.1 VTA: Systemwide 26 2.2 SamTrans: Systemwide 22 2 Source: Planning and Community Environment Department, July 2017 City of Palo Alto Page 4 In 2015, with the vision of expanding mobility options for Palo Alto residents, employee and visitors of all ages and abilities, staff retained Nelson\Nygaard Consulting Associates, Inc. to develop the Palo Alto Transit Vision Plan (Attachment A). In January 2017, VTA released its Next Network Initiative Draft Plan. The Final Transit Plan was approved by the VTA Board on May 4, 2017 and is included as Attachment B.. VTA’s draft plan proposed the elimination of several transit routes in Palo Alto and addressing gaps which would result from these service changes was a key consideration in the development of transit route concepts in the Palo Alto Transit Vision Plan. The City also requested that VTA provides funding to backfill planned reductions in bus service with local shuttle service. The VTA Board of Directors approved the Final Transit Plan on May 4, 2017, and did not indicate their support for shuttle funding. Instead, the Board requested that VTA staff work on a “framework for working with cities.” VTA staff believes that this framework will focus on uses of the Transit Operations category of Measure B funding. Thus it appears that Palo Alto’s next opportunity for funding from VTA will be through a competitive process for Measure B funding when it becomes available. More discussion of VTA’s final plan is included below. Discussion In 2015, Staff engaged Nelson\Nygaard Consulting Associates, Inc. to develop the Palo Alto Transit Vision Plan. This study was intended to move the vision of a citywide fare-free transit network forward by developing an expanded system concept for consideration by elected officials and residents alike. The plan is intended to serve as a blueprint for implementing new transit services within Palo Alto that connect residential areas to key employment, shopping, recreation, and school destinations. The vision outlined within the plan also seeks to improve regional connectivity with linkages to Caltrain and other transit providers (e.g. VTA, SamTrans, AC Transit), and take appropriate measures to address and fill gaps which may be presented by the elimination or modification of some VTA transit service in Palo Alto. This Palo Alto Transit Vision Plan was developed in close consultation with current shuttle users, residents, commuters and visitors. The planning process included the following phases: Community Engagement and Market Analysis (October 2015 to January 2016) - market demand analysis, community survey and community meeting Route Concept Development (January 2016 to March 2016) - development of universe of route concepts derived from community goals and objectives, community meeting, and high-level operational analysis Route Concept Screening and Service Plan Development (February 2016 to March 2016) - screening of universe of route concepts against goals and service criteria and development of a five-year service plan including phased implementation of additional service Monitoring VTA Next Network Initiative (April 2016 to January 2017) – study paused City of Palo Alto Page 5 while Staff engaged in advocacy and coordination around the proposed route restructuring by VTA Route Concept Development Phase 2 (January 2017 to March 2017) – route concepts refined based on VTA Next Network Initiative draft plan and pre-release discussions around the final plan VTA Next Network Initiative Update In January 2017, VTA released the Next Network Initiative Draft Plan, which focused on a reduction in coverage-based transit service in order to provide more robust and frequent service to higher ridership routes within the VTA service area. This draft plan included a service concept that was 90% focused on high-ridership routes and 10% oriented toward providing service coverage to other areas. In early April, VTA released the Next Network Initiative final plan, which proposed 83% of operating funding be used to improve higher ridership routes and 17% of funding for routes serving coverage goals. The VTA Board of Directors approved the Next Network Initiative Plan calling it the “Final Transit Plan” on May 4, 2017 which included modification to fixed-route service in Palo Alto as described in Table 3 below: Table 3: VTA Next Network Initiative Final Plan - Projected Impacts to Palo Alto Route Number Description of Change Routing Change Frequency Change 21 (New) The existing routes 35 and 32 would become route 21 and connect the Palo Alto Transit Center with San Antonio Shopping Center, San Antonio Caltrain Station, Downtown Mountain View, Downtown Sunnyvale and the Santa Clara Caltrain Station. NO NO 22 The route will remain but the frequency will be reduced. NO YES 35 Current route 35 will be discontinued and replaced with new Route 21. YES YES 88/288 (New) Current routes 88, 88L and 88M will be replaced with three new routes 288, 288A and 288B that will only run once in the morning and twice in the afternoon. One bus on each of the three routes will travel to Gunn High School and the VA Medical Center in the morning and one bus on each of the three routes will depart the school at dismissal time. One bus on one route will depart at a later time to be determined jointly by the school administration, PTA, greater school community, City and VTA. YES YES 89 Route 89 will continue to operate as is between the California Avenue Caltrain Station, Stanford Research Park and VA Medical Center. NO NO 102/103/10 No changes to express routes proposed at this time. NO NO City of Palo Alto Page 6 4/182 Subject to change pending outcome of the upcoming VTA Express Bus study. 522 The route will remain with increased frequency proposed to begin in April 2017. VTA has agreed to analyze the addition of more stops within Palo Alto. NO YES Paratransit Service Paratransit service area will contract with the reduction in fixed-route service, increasing the fare for paratransit service for residents along the west side of the US 101 freeway on the east side of Palo Alto. The elimination of the all-day route 88 service will move these residents from the standard paratransit area to the extended paratransit service area. These residents could see their paratransit fare increase from $4.00 to $16.00 per trip. YES NO Source: Planning and Community Environment Department, July 2017 March 2017 At the January 24, 2017 City Council meeting, VTA staff presented the Next Network Initiative Draft Plan and received feedback from the Councilmembers. Subsequent to the meeting, both the Mayor and City Manager drafted letters to the VTA Chair and Executive Director, respectively. The City received a response dated June 22, 2017. All of these letters are included as Attachment C. Throughout the last phase of the development of the Palo Alto Transit Vision Plan, Staff has worked to identify solutions to the proposed reduction in fixed-route transit service for Palo Alto residents. In order to address this, the plan identifies specific expansion opportunities for the Palo Alto Free Shuttle Program. Currently, 74% of Palo Alto residents are within walking distance (1/4 mile) of fixed-route transit service. Under the Next Network Initiative Final Plan, it is anticipated that this would be reduced to 61% of Palo Alto residents (Note: this amount increased slightly between the draft and final plans). With the implementation of the recommendations of the Palo Alto Transit Vision Plan, 77% of Palo Alto residents would be within walking distance (1/4 mile) of fixed-route transit service. This exceeds the mobility goal of 75% within the draft Sustainability and Climate Action Plan. Palo Alto Transit Vision Plan Recommended Shuttle Route Modifications and Extensions Based on current transit coverage in Palo Alto and gaps in coverage identified through the transit walkshed analysis, proposed changes to the VTA network, and community needs as expressed through the outreach process, a full set of route concepts were developed and screened as part of the visioning process. From this information, the Consultant and Staff developed proposed route modifications to the Crosstown and Embarcadero routes, as well a new South Palo Alto route. The recommended route modifications and extensions seek to enhance coverage, frequency, and span within the Palo Alto Free Shuttle Program while addressing the VTA reduction in fixed-route and paratransit services. City of Palo Alto Page 7 South Palo Alto Shuttle [Potential New Route] The Palo Alto Transit Vision Plan identifies a new route: the South Palo Alto Shuttle (Attachment A, pages 43-44). The South Palo Alto Shuttle would begin at the California Avenue Caltrain Station and terminate at the VA Medical center, serving schools and other destinations along Colorado Avenue, Louis Road, Fabian Way, East Charleston Road, West Charleston Road, Arastradero Road, and Miranda Avenue along the way. A special school run in the morning and afternoon would extend from the California Avenue Caltrain Station to Palo Alto High School, connecting the small sliver of the school’s attendance zone south of Oregon Expressway to the school. This route would provide replacement service for the areas currently served by VTA Route 88, with much more direct and seamless connections to local services and the regional transit network. Implementation of this route in coordination with the new VTA route 288/288L/288M could enable residents, employees and students along the route to depend much more regularly on transit, and increase overall transit utilization along the corridor. Staff was hoping this route could be implemented through a financial partnership with the VTA at the same time the Next Network Initiative route changes take effect, but the VTA Board has not shown an interest in doing so, instead asking VTA staff to develop a “framework” for collaborating with local jurisdictions like Palo Alto. Staff estimates that this new Route could provide 156,000 passenger trips annually. Crosstown Shuttle Modification Options There are two options to be considered for extension of the Crosstown Shuttle, Variant A and Variant B. Staff estimates that the enhanced Crosstown Route could provide an additional 266,079 annual passenger trips. Crosstown Variant B (Attachment A, pages 39-40), which would run primarily on Middlefield Road. This overlaps the current (and Final transit Plan’s) VTA Route 21 within Palo Alto and, with coordination, could result in 15-minute headways all day long along Middlefield Road. Coupled with the high-frequency service along El Camino Real, this would put a large number of Palo Alto residents and employees within walking distance of high-frequency fixed-route transit service. As part of the concept service plan, the Crosstown Shuttle is targeted for significant increases in frequency and service span. Implementation of this variant in coordination with the new VTA Route 21 could enable residents and employees along the Middlefield Road corridor to depend much more regularly on transit, and increase overall transit utilization along the corridor. The other Crosstown Shuttle alternative, Crosstown Variant A, would generally follow the Middlefield Road corridor, but deviate to serve libraries, community centers and schools, providing greater coverage but resulting in significantly less frequency along Middlefield Road. This variant, along with Crosstown Variant B, includes an extension to the Stanford Shopping Center, San Antonio Caltrain Station and San Antonio Shopping Center. These key destinations City of Palo Alto Page 8 were identified during our community engagement process and would likely lead to an increase in ridership. In its letter dated June 22, 2017, VTA requested that Variant A be Palo Alto’s preferred option, as VTA is concerned that the duplication of service from the Crosstown Variant B with Route 21 would negatively impact ridership on Route 21. Embarcadero Shuttle Extension Staff recommends modifying the Embarcadero Shuttle (Attachment A, pages 41-42) by extending the current route to serve municipal service buildings and other businesses along West Bayshore Road and East Bayshore Road, as well as the portion of San Antonio Road nearest to US 101, which includes the Oshman Family Jewish Community Center and other important trip generators. The segment along West Bayshore Road would provide new fixed- route transit access to several existing multi-family housing communities, as well as the Palo Alto residents who would see their VTA paratransit access reduced under the Next Network Initiative final plan. This modification could allow for the expansion of the City’s Caltrain Go Pass program to employees that work at the Municipal Service Center and on Elwell Court. Currently, the Embarcadero Shuttle is managed and operated by Caltrain, but 53.5% of the service's funding comes from the City of Palo Alto. When the route began, the City of Palo Alto only funded 25%, but this has increased as Caltrain and transportation grant funds have tapered off. With the change in funding allocation, staff recommends that the City of Palo Alto initiate discussions with Caltrain on taking ownership of the management and operation of the service (subject to available funding), which can allow for the synergy of marketing, branding, and provide a unified customer service experience across City-funded shuttle services. Several other variations of the Embarcadero Shuttle were brought into the Route Concept Screening and Service Plan Development phase but were not moved forward. These are included in Appendix C of the Palo Alto Transit Vision Plan. Staff estimates that the enhanced Embarcadero Route could provide an additional 55,214 annual passenger trips. Funding and Operational Challenges As discussed further in the Resource Impact section below, the proposed shuttle service enhancements presented in this staff report can only be implemented if additional funding is identified. The current Palo Alto Free Shuttle routes are funded via the City’s General Fund (approximately $436,000) and Caltrain (approximately $117,000). The City contracts with a private company for the Crosstown service and has an agreement with the Peninsula Corridor Joint Powers Board (Caltrain), which contracts with the same private company for the Embarcadero Route. City of Palo Alto Page 9 To increase the visibility of the shuttle program, maintain service coverage for Palo Alto residents, increase ridership, and reduce local auto trips, the Palo Alto Transit Vision Plan suggests that the City expand service and rebrand the system as explained in this report. Possible funding sources include VTA, County Measure B, future parking revenues, and other public or private sources. Policy Implications The following Goals, Policies and Programs from the Comprehensive Plan are directly related to this discussion: • Goal T-1: Less Reliance on Single-Occupant Vehicles • Policy T-2: Consider economic, environmental, and social cost issues in local transportation decisions. • Policy T-3: Support the development and expansion of comprehensive, effective programs to reduce auto use at both local and regional levels. • Goal T-2: A Convenient, Efficient, Public Transit System that Provides a Viable Alternative to Driving • Policy T-4: Provide local transit in Palo Alto. • Policy T-5: Support continued development and improvement of the University Avenue and California Avenue Multi-modal Transit Stations, and the San Antonio Road Station as important transportation nodes for the City. • Policy T-6: Improve public transit access to regional destinations, including those within Palo Alto. • Policy T-7: Support plans for a quiet, fast rail system that encircles the Bay, and for intra- county and transbay transit systems that link Palo Alto to the rest of Santa Clara County and adjoining counties. • Policy T-9: Work towards integrating public school commuting into the local transit system. • Policy T-11: Support efforts to integrate train, bus, and shuttle schedules at multi-modal transit stations to make public transit use more time-efficient. • Policy T-43: Provide and/or promote demand-responsive paratransit service. Resource Impact The recommended action suggests that the City pursue funding for local shuttle service enhancements aimed at backfilling reductions in bus service and increasing ridership. Currently, no funding for these additional services is recommended or identified in this report. It is staff’s intent to develop a funding plan that would provide ongoing annual funding and minimize the financial impacts on the General Fund. VTA staff believes that the next opportunity for this type of funding would be from the competitive Transit Operations category of Measure B funding. The Measure B Transit Operations Program is expected to receive $500 million of funding over the 30 years of the sales tax. Per the sales tax measure resolution City of Palo Alto Page 10 adopted by the VTA Board, Transit Operations will be allocated within four categories: 1. Expand mobility options & fares for most vulnerable population 2. Enhance frequent core network 3. Improve bus stop amenities 4. First/last mile connections As shown in Table 4, below, the estimated additional cost for The South Palo Alto Route with 30-minute frequency is $625,107 annually. The estimated additional costs for expanded Crosstown Route with 30-minute frequency is $864,118 and the expanded Embarcadero Route with 30-minute frequency is $376,902. The total estimate for these three enhancements is $1,866,127. (Increased frequencies would cost more.) If the Council agrees with the proposed service enhancements and adopts the recommended action, staff will seek funding from Measure B and will seek any other funding sources that become available. Staff will develop an implementation plan consistent with funding options and will seek to leverage the existing annual General Fund expenditures on the Palo Alto Free Shuttle System and the Caltrain contributions to the operations of the Embarcadero Shuttle. A new Transportation Impact Fee, for which a nexus study is being prepared, may provide funding for capital infrastructure required to operate the Palo Alto Free Shuttle, but not operational costs. Planning-level cost estimates shown in Table 4 will be refined in the implementation plan, which will return to the Council for approval. The implementation plan will also include a schedule for rebidding the current contract for operation of the Crosstown shuttle route, which is currently operated by MV Transportation. Table 4: Planning-level Cost Estimates for Recommended Shuttle Route Expansions and Modifications Menu of Proposed Service Options Current Annual Operating Costs Estimated Enhanced Service Level Annual Operating Costs Coverage Benefit Ridership Benefit Current Crosstown (FY2018) $ 302,976** -- NA NA Expanded Crosstown (30-minute frequency) -- $864,118 Medium High Current Embarcadero Route (FY2018) $ 228,800* -- NA NA Expanded Embarcadero (30-minute frequency) -- $376,902** Medium Medium South Palo Alto Route (30-minute frequency) -- $625,107 High Medium Totals $531,776 $1,866,127 City of Palo Alto Page 11 *In Fiscal Year 2018, the City pays 56% of costs, and the JPB pays 44% (up to $100,600). $135,100 was the amount the City paid in FY17. In FY18, the City will pay $128,200 (Staff Report 8322). **Does not include the cost of shuttle service for special events. Estimates Source: Nelson/Nygaard, March 2017 Timeline The current schedule of actions related to the VTA Final Transit Plan is detailed below: May 4, 2017 - Final Transit Plan was approved by VTA Board of Directors August 14, 2017 – City’s agreement with Caltrain for funding the Embarcadero Route proposed for renewal (on the City Council Consent agenda) December 2017 (dependent on date of BART Berryessa Extension opening) – Implementation of fixed-route service changes identified in VTA’s Final Transit Plan January 2018 – VTA’s estimated timeframe for the competitive process for the Transit Operations category of Measure B funding June 30, 2019 – City’s current contract with MV Transportation for operating the Crosstown Route expires, which would be the ideal time to enter into a new contract for expanded service (contingent on available funding) A new branding and marketing strategy for the Palo Alto Free Shuttle Program would be presented to Council concurrently with any roll-out of shuttle route expansions and modifications when funding is identified. All recommended actions are contingent on funding. Environmental Review On August 2, 1999, when creating the Palo Alto Free Shuttle Program, the City of Palo Alto City Council approved a Negative Declaration finding that the operation of the Palo Alto Free Shuttle Program would not result in any significant environmental impact under the California Environmental Quality Act. The service expansions that are proposed in this report are minor expansions of existing routes and a new route that would replace existing service that is currently provided by VTA. Therefore, there is no substantial evidence that the project may have a significant effect on the environment. This program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the acceptance of this plan or the Palo Alto Free Shuttle service changes may have a significant effect on the environment. Attachments: Attachment A - Palo Alto Transit Vision (PDF) Attchment B - VTA Final Transit Plan (PDF) Attachment C Letters from City to VTA - VTA to City (PDF) PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates Inc. | i PALO ALTO TRANSIT VISION DRAFT March 2017 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates Inc. | i Table of Contents Page 1 Executive Summary ............................................................................................................ 1 Purpose of The Plan ............................................................................................................................................ 1 Palo Alto Shuttle System Goals ........................................................................................................................ 1 Plan Development Process ................................................................................................................................. 2 2 Introduction ......................................................................................................................... 6 Purpose of The Plan ............................................................................................................................................ 6 Overview of the Palo Alto Shuttle ................................................................................................................... 6 Other Transit Services in Palo Alto .................................................................................................................. 7 Integration with VTA Next Network ................................................................................................................ 8 Report Organization .......................................................................................................................................... 8 3 Current Transit Conditions ................................................................................................ 10 Palo Alto Shuttle Routes ................................................................................................................................... 10 Other Operators Within Palo Alto ................................................................................................................ 12 Transit Access Within Palo Alto ...................................................................................................................... 20 4 VTA Next Network............................................................................................................ 22 Transit Access with VTA Next Network ......................................................................................................... 25 5 Palo Alto Transit Vision .................................................................................................... 27 Proposed Route Modifications ........................................................................................................................ 36 Service Plan and Implementation ................................................................................................................... 45 6 For Further Consideration ................................................................................................. 49 Other Service Delivery Models ...................................................................................................................... 49 Appendix A Community Profile ............................................................................................. 52 Appendix B Concept List and Screening Process ................................................................... 55 Appendix C Other Route Variants Considered ...................................................................... 66 Embarcadero Route Variants .......................................................................................................................... 66 South Palo Alto Route Variants ...................................................................................................................... 70 Southwest Route ................................................................................................................................................. 74 Table of Figures Page Figure 1 Concept Service Plan ............................................................................................................... 2 Figure 2 Service Implementation Summary .......................................................................................... 4 Figure 3 Sample Route Package and Associated Operating Costs ............................................... 5 Figure 4 Overview of Current Palo Alto Shuttles ............................................................................. 11 Figure 5 VTA Ridership .......................................................................................................................... 12 Figure 6 SamTrans Ridership ................................................................................................................ 13 Figure 7 Other Existing Transit Serving Palo Alto ............................................................................ 14 Figure 8 Access to Transit within a Quarter-Mile in Palo Alto ....................................................... 21 Figure 9 VTA Transit Route in Palo Alto ............................................................................................. 22 Figure 10 Current VTA Network Coverage (left) and Proposed VTA Network Coverage (right) in Palo Alto ................................................................................................................... 24 Figure 11 Proposed Route 88 Changes ................................................................................................ 25 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates Inc. | ii Figure 12 Transit Accessibility Walkshed Incorporating VTA Network Changes ......................... 26 Figure 13 Survey Response: What is your affiliation with Palo Alto? ............................................ 29 Figure 14 Survey Response: How often do you use the shuttle? ...................................................... 30 Figure 15 Survey Response: Why don’t you use the shuttle? ............................................................ 30 Figure 16 Survey Response: What would motivate you to use the shuttle more often? ............. 31 Figure 17 Survey Responses: Key Destinations .................................................................................... 31 Figure 18 Survey Responses: Key Destinations of Survey Respondents ......................................... 32 Figure 19 Survey Comment Analysis ..................................................................................................... 33 Figure 20 Crosstown Route Variant A ................................................................................................... 38 Figure 21 Crosstown Route Variant B .................................................................................................... 40 Figure 22 Embarcadero Route Modification ........................................................................................ 42 Figure 23 South Palo Alto ........................................................................................................................ 44 Figure 24 Service Implementation Summary ........................................................................................ 45 Figure 25 Sample Route Package and Associated Operating Costs ............................................. 46 Figure 26 Transit Access Walkshed Analysis – Sample Route Package ........................................ 47 Figure 27 Bus Stop Amenity Guidelines ................................................................................................ 48 Figure 28 TNC partnership Model Pros and Cons .............................................................................. 49 Figure 29 Point Deviation/Anchored Flex Service Model Pros and Cons ...................................... 50 Figure 30 Dynamically Routed Flex Service Model Pros and Cons ................................................ 51 Figure 31 Population Density in Palo Alto ............................................................................................ 52 Figure 32 Employment Density in Palo Alto ......................................................................................... 53 Figure 33 Transportation Goals of the Current Comprehensive Plan ............................................. 54 Figure 34 Palo Alto Shuttle Improvement Concepts – Initial List ...................................................... 56 Figure 35 Shuttle Improvement Concept Screening Criteria ............................................................. 59 Figure 36 Shuttle Concept Screening Process and Assigned Scores ............................................... 61 Figure 37 Embarcadero Route Variant A ............................................................................................. 67 Figure 38 Embarcadero Route Variant B ............................................................................................. 69 Figure 39 South Palo Alto – Variant B .................................................................................................. 71 Figure 40 South Palo Alto – Variant C ................................................................................................. 73 Figure 41 Southwest Route ...................................................................................................................... 75 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 1 1 EXECUTIVE SUMMARY With increasing interest in expanding mobility options for residents and workers of all ages, the City of Palo Alto is seeking to develop and implement a citywide fare-free transit system that focuses on innovation, usefulness, and sustainability to maximize car-free mobility and provides convenient accessibility to key destinations and regional connections. The City of Palo Alto also seeks to evaluate and address gaps in transit service which may result from the route modifications or eliminations included in the Draft VTA Next Network. PURPOSE OF THE PLAN This study helps move the vision of a citywide fare-free transit system forward by developing an expanded system concept for consideration by elected officials and residents alike. The plan serves as a blueprint for implementing new transit services within the City of Palo Alto that connect residential areas to key employment, shopping, recreation, school destinations. The vision outlined within this plan also seeks to improve regional connectivity with linkages to Caltrain and countywide transit providers (e.g. VTA, SamTrans) and take appropriate measures to address and fill gaps which may be presented by the elimination of some VTA transit service in Palo Alto. Responding to Draft VTA Next Network Changes In January 2017, VTA released its Draft Next Network plan, which included modifications and proposed elimination of several transit routes in Palo Alto. Addressing gaps which would result from the VTA Next Network changes in Palo Alto was a key consideration in the development of transit route concepts in this study. VTA is expected to release their Final Next Network plan in April 2017 and may include changes to the proposal for VTA service in Palo Alto. Any changes will be reflected in a new iteration of the Palo Alto Transit Vision. PALO ALTO SHUTTLE SYSTEM GOALS To guide development of a transit vision for Palo Alto, three simple yet highly descriptive goals for the system were developed along with specific objectives. These goals help guide the service concept development process and their related objectives allow for further definition and refinement of service characteristics. 1. Convenient and Accessible – With all transit trips beginning or ending with a walk trip, all residents and businesses should be within a reasonable walking distance of a transit stop along a route providing frequent, all day service. 2. Frequent and Reliable – All transit routes and services within the City should provide frequent and reliable all day service in order to serve the wide variety of trip types that compose overall travel need. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 2 3. Visibility and Ease of Use – The system should be convenient to use and serve all important destinations while having friendly and exciting branding that generates awareness. PLAN DEVELOPMENT PROCESS This transit vision was developed in close consultation with City of Palo Alto staff, as well as the community of residents and visitors to Palo Alto. The planning process included the following phases: Community Engagement and Market Analysis (October 2015-January 2016), based on market demand data and the results of a community survey. Concept Development (January-March 2016), including the development of full list of route concepts using established goals and objectives, findings from community outreach, and market analysis. Concept Screening and Service Plan Development (February-March 2016), including screening of concepts against goals and service criteria and development of a five-year service plan including phased implementation of additional service. See Appendix B for more on this process. Concept Development Phase 2 (January-February 2017), which is the basis for this version of the transit vision in which concepts are refined in light of release of draft VTA Next Network. Service Plan Expansion of the Palo Alto Shuttle system, with consideration of, and adherence to, the stated system goals of vastly improving coverage and frequency, will require a substantial investment well above today’s expenditure on shuttle operation. The service plan presented below is considered illustrative and conceptual. Figure 1 describes the preferred variants of current or new routes, developed through the screening of initial concepts and feedback from the community, including the public survey and meetings. These concepts also take into consideration the proposed changes to the VTA transit network in Palo Alto, discussed further in Chapter 4. Additional variants on these routes were considered by staff and can be found in Appendix C. Figure 1 Concept Service Plan Route Current/New Route Key Destinations Crosstown A Current Stanford Medical Center, Stanford Shopping Center, Palo Alto Transit Center, downtown Palo Alto, Lytton Gardens, Rinconada library, Jordan Middle School, Midtown, JLS Middle School, Mitchell Park and Library, Cubberley, senior residences/centers, San Antonio Caltrain, San Antonio Shopping Center Crosstown B (VTA 21 Supplemental) Current Stanford Shopping Center, Palo Alto Transit Center, downtown Palo Alto, Jordan Middle School, Midtown, JLS Middle School, Mitchell Park and Library, Cubberley, senior residences/centers, San Antonio Caltrain, San Antonio Shopping Center Embarcadero Current Palo Alto Transit Center, downtown Palo Alto, Town & Country Village, Paly High School, Lytton Gardens, Rinconada library, Greer Park, Girls’ Middle PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 3 School, Bayshore/Fabian employers, senior residences/centers including Moldaw, Palo Alto Animal Services and Municipal Services South Palo Alto New California Avenue Caltrain, Midtown and Palo Verde neighborhoods, Mitchell Park and Library, Senior residences/centers (i.e. Moldaw Residences), Terman Middle School, Gunn High School, VA Hospital Service Implementation Concepts Annual service hour costs are presented for each route concept at two service levels – initial and full. Initial service levels are typically all-day service at 30-minute frequencies without weekend service. Full service indicates all-day service, into the evenings, at 15-minute peak frequencies and the introduction of weekend service at 40-60 minute frequencies. Full buildout of the system, including 15-minute peak, 30-minute midday, and 30-60 minute evening/weekend service on two existing modified routes and one new route would dramatically increase the total number of revenue hours needed to operate the system. A summary of the concept service changes is provided in Figure 2. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 4 Figure 2 Service Implementation Summary Light Level of Service Full Level of Service Route Name Description of Service Annual Service Hours Annual Cost1 Description of Service Annual Service Hours Annual Cost Crosstown Route – Variant A 7 AM to 7 PM weekday service; 30-minute frequency all day, 40 minute in evenings, no weekend service 11,985 $864,118 7 AM to 9 PM weekday service; 15-minute peak frequency, 30-minute midday and 40-minute evening; 8 AM to 8 PM weekend service with 40-minute frequency 21,705 $1,564,930 Crosstown Route – Variant B 6 AM to 10 PM weekday service with 30-minute frequency all day; 8 AM to 8 PM weekend service with 45-minute frequency 14,640 $1,055,544 6 AM to 10 PM weekday service with 30-minute frequency all day; 8 AM to 8 PM weekend service with 45-minute frequency2 14,640 $1,055,544 Embarcadero Route 6:50 AM to 7 PM weekday service with 20 minute frequency during peak, no midday service, 40-minute evening; no weekend service 5,228 $376,902 7 AM to 9 PM weekday service with 15-minute frequency in peak, 30-minute frequency in midday and evening; 8 AM to 8 PM service on weekends with 60-minute frequency 11,400 $821,940 South Palo Alto 7 AM to 7 PM weekday service with 30-minute frequency all day and 60-minute evening frequency; no weekend service 8,670 $625,107 7 AM to 9 PM weekday service with 15-minute frequency in peak, 30-minute midday, 60-minute evening; 8 AM to 8 PM weekend service with 60-minute frequency 14,240 $1,026,704 A sample route package incorporating Crosstown Route Variant A, the modified Embarcadero Route, and South Palo Alto Variant A has been produced in Figure 3. This comparison shows the 1 Assuming service hour cost of $72.10 2 Based on proposed service specifications on VTA Route 21 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 5 operating cost differences between the estimated annual operating costs of the existing shuttle network and both an initial and full service implementation of this sample package. Figure 3 Sample Route Package and Associated Operating Costs Route and Variant Current Annual Operating Costs Annual Costs – Enhanced Service Level Annual Costs – Full Service Level Crosstown A $281,911 $864,119 $1,564,931 Embarcadero $252,400 $376,903 $821,940 South Palo Alto -- $625,107 $1,026,704 TOTAL $534,311 $1,866,129 $3,413,575 Note: The Embarcadero shuttle is funded in partnership with the Joint Powers Board (JPB). The JPB currently pays 46.5% of the operating cost (up to $117,300 per year). The breakdown of current operating costs is $135,100 per year from the City of Palo Alto and $117,300 from the JPB per year. As the above table shows, the investment in an expanded shuttle system will require significantly more funding on an annual basis; however, with the elimination of multiple existing VTA routes, expansion of the Palo Alto Shuttle system is important to maintaining strong transit coverage and access for Palo Alto residents and visitors. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 6 2 INTRODUCTION Palo Alto has had its own shuttle system for many years, providing fare-free “last mile” connections to and from Caltrain and “community shuttle” routes for use by students, seniors, and other riders interested in accessing destinations along the routes. With only three routes currently in operation, not all residents and workers are served by the shuttle, and most trips that are not close enough for walking are made by car, other transit providers, and bike, in that typical order of magnitude. With increasing interest in expanding mobility options for residents and workers of all ages, the City of Palo Alto is seeking to develop and implement a citywide fare-free transit system that focuses on innovation, usefulness, and sustainability to maximize car-free mobility and provides convenient accessibility to key destinations and regional connections. This study report helps move this vision forward by developing an expanded system concept for consideration by elected officials and residents alike. PURPOSE OF THE PLAN The primary purpose of the Palo Alto Transit Vision is to better serve the mobility needs of Palo Alto residents (who live and/or work in the City) and workers. It is also a response to — and was largely informed by — the comments and preferences communicated by the Palo Alto community members who responded to the Palo Alto Shuttle community survey in 2015. The plan serves as a blueprint for implementing new transit services within the City of Palo Alto that connect residential areas to key employment, shopping, recreation, school destinations as well as improve regional connectivity with linkages to Caltrain and countywide transit providers (VTA, SamTrans). Further, it provides a framework for ongoing guidance of future service change efforts through proposed system goals and objectives, service design guidelines, and performance standards. All service concepts presented in this plan are currently unfunded and would require substantial investment on behalf of the City to realize new routes or expansion of service hours on existing routes. A two-phase implementation strategy is presented as part of this plan to help frame the effort and cost needed to achieve a citywide fare-free transit system. OVERVIEW OF THE PALO ALTO SHUTTLE The Palo Alto Shuttle Program began in 1999 and has historically provided free service that included two routes: Crosstown Shuttle Route and Embarcadero Shuttle Route. In 2014, the Phase One expansion of the Palo Alto Shuttle Program introduced a new shuttle route in partnership with the City of East Palo Alto, bringing the total number of shuttle routes in the program to three. However, the East Palo Alto route was discontinued by the City of East Palo Alto in 2016 with some portions replaced by SamTrans route 280. In 2015, the City increased PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 7 midday service frequency on the Crosstown Shuttle route to improve the service to local schools and community facilities. The City of Palo Alto currently operates the following two shuttle routes: The Crosstown Shuttle provides a north-south transit connection from Charleston Road to the Palo Alto Transit Center (University Avenue) via Middlefield Road and several community neighborhoods. This route is funded 100% by the City and operates Monday through Friday during the daytime period, excluding some holidays. Average daily ridership on the Crosstown route in February 2016 was 276 boardings per day. This represents a cost of $3.49 per boarding. The Crosstown route had an average 81% on-time performance in fall 2015. Estimated annual cost to operate the existing Crosstown shuttle route is about $282,000. The Embarcadero Shuttle connects the business parks on the east side of the City along Embarcadero Road to the University Avenue Caltrain Station. The City currently contracts with the Peninsula Corridor Joint Powers Board (JPB) for the Embarcadero Shuttle, which is a part of the Caltrain peak hour commuter shuttle program and subsidized 46.5% by the JPB (including BAAQMD funding). The remaining 53.5 is subsidized by the Palo Alto Shuttle Program. This route operates Monday through Friday. Average daily ridership on the Embarcadero route in October 2015 was 268 boardings per day. The cost per boarding and on-time performance statistics are unknown as the City of Palo Alto does not hold the contract or pay the full price of the service. The estimated cost to operate the Embarcadero shuttle is $245,000 per year. The City contracts the operation of the Crosstown shuttle to MV Transportation. The City’s current contract with MV Transportation extends through June 30, 2017. The Caltrain Commuter Shuttle Program operates the Embarcadero Shuttle. OTHER TRANSIT SERVICES IN PALO ALTO The Palo Alto Shuttle does not operate within a vacuum within the City, and the other transit agencies and the services they provide must be accounted for when considering expanded shuttle service. The City is also well served by regional transit agencies including Santa Clara Valley Transportation Authority (VTA), SamTrans, Caltrain, and Dumbarton Express (operated by AC Transit). Further, Stanford University operates a robust campus transit program and there are many private shuttles (typically from large tech companies) that also operate in the City, primarily serving Caltrain stations and residential areas. VTA provides bus, light rail, and paratransit services throughout Santa Clara County and participates as a funding partner in regional rail service including Caltrain, Capital Corridor, and the Altamont Corridor Express. Within Palo Alto, VTA provides Rapid Bus, local bus, community circulator, and commuter express services. See Chapter 4 for discussion of proposed VTA network changes in Palo Alto. SamTrans operates 76 bus routes throughout San Mateo County and into parts of San Francisco and Palo Alto. Within Palo Alto, SamTrans provides local bus, community PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 8 circulator, and first/last mile shuttle services. SamTrans also provides transit service to East Palo Alto in lieu of the recently-eliminated East Palo Alto shuttle route. Caltrain provides commuter rail service along the San Francisco Peninsula, through the South Bay to San Jose and Gilroy. Palo Alto is served by two stations: Palo Alto Station (downtown) and California Avenue Station. The Palo Alto Station is the second busiest in the Caltrain system. Dumbarton Express is a weekday-only transbay bus service operating between Palo Alto, Stanford and Caltrain and Union City BART. This service is operated by AC Transit and consists of two routes, DB and DB2. The Stanford Marguerite shuttle operates numerous routes offering first/last mile service to Caltrain, residential areas in the City, areas with high concentrations of ancillary Stanford employment, and local shopping destinations. The Stanford Marguerite shuttles are free to ride and open to anyone. Private employers located in Palo Alto and surrounding communities are increasingly providing private commuter buses to their employees. This includes employers such as Google, Facebook, Box, VM Ware, some of which operate on Foothill Expressway and Page Mill Road in Palo Alto. INTEGRATION WITH VTA NEXT NETWORK Over the past several years, the City of Palo Alto has looked closely at expansion of the Palo Alto Shuttle as one way to expand mobility and access for residents and workers of all ages. The ultimate vision is a citywide fare-free transit system that focuses on innovation, usefulness, and sustainability to maximize car-free mobility and provides convenient accessibility to key destinations and regional connections. During the shuttle route concept development process, the express intent was to minimize duplication and overlap with other transit agencies/routes. The first phase of concept development, which took place in spring 2016, was conducted with the best available information at the time. VTA, as part of their Transit Ridership Improvement Program, was still developing and had not yet published their Next Network concepts (Network 70, Network 80, and Network 90). In January 2017, VTA released a draft plan which focused on an 85/15 resource split, with the largest portion going toward higher ridership routes to increase frequency and the smaller portion funding routes serving coverage goals. As a result, some routes in Palo Alto are proposed for elimination and/or modification. Thus, the purpose of this study effort is to revisit and update the draft 5-year service plan to be responsive to and complement the adopted Next Network. In order to meet the City’s own coverage and frequency goals for transit access and mobility, new and/or modified routes have been explored and developed, and are outlined in the transit vision Chapter 5. Staff expect that a revised VTA Next Network Plan will be released in Spring 2017 which will include revisions reflecting an 83/17 split in allocated resources. A future iteration of this plan will react to any major changes in service provision in Palo Alto. REPORT ORGANIZATION The Palo Alto Transit Vision consists of six chapters, which are summarized below. Chapter 1 provides an executive summary of the report. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 9 Chapter 2 presents an introduction to the context, goals, and processes used in development of this plan. Chapter 3 reviews existing transit services within the City of Palo Alto in more depth and offers an analysis of peer systems. Chapter 4 summarizes the Draft VTA Next Network plan and the implications of the network changes in Palo Alto. Chapter 5 presents the shuttle system’s guiding goals and objectives and presents proposed performance standards. Chapter 6 describes the next steps, as well as consideration of an additional route and other service models the City could consider instead of providing fixed-route shuttle service Appendix A offers insight on the community profile of Palo Alto. Appendix B describes the process of developing and screening initial service improvement concepts during phase one of this effort in Spring 2016. Appendix C includes maps and specifications of additional route variants considered by staff for the Embarcadero and South Palo Alto routes. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 10 3 CURRENT TRANSIT CONDITIONS Public transit in Palo Alto is provided by a wide variety of operators and many service types, including fixed route, long distance commuter shuttle, first/last mile shuttle, community circulator, and school service. Palo Alto is also served by two Caltrain (commuter rail) stations. The Palo Alto Station (downtown) is an exceptionally important multimodal transit hub, generating the second highest commuter rail ridership in the Caltrain system while connecting with Palo Alto Shuttle, Stanford Marguerite, VTA, SamTrans, Dumbarton Express, and private employer shuttles. This chapter reviews existing services within the City. PALO ALTO SHUTTLE ROUTES The Crosstown Shuttle provides a north-south transit connection from Charleston Road to the Palo Alto (University Avenue) Caltrain station along Middlefield Road and several community neighborhoods. This route serves both JLS and Jordan middle schools during the morning and afternoon bell schedules. Crosstown Route currently operates on one-hour headway during most of the day, except for the morning and mid-afternoon school bell schedule period when there is additional service to support school activity. This route is funded 100% by the City’s General Fund and operates Monday through Friday, excluding some holidays, from 7:40AM- 5:30PM. Average daily ridership on the Crosstown route in February 2016 was 276 boardings per day. This represents a cost of $3.49 per boarding. The Crosstown route had an average 81% on-time performance in fall 2015. The stimated annual cost to operate the existing Crosstown shuttle route is about $282,000. The Embarcadero Shuttle connects the business parks on the east side of the City along Embarcadero Road to the Palo Alto (University Avenue) Caltrain Station. The City currently contracts with the Peninsula Corridor Joint Powers Board (JPB) for the Embarcadero Shuttle, which is a part of the Caltrain peak hour commuter shuttle program and subsidized 46.5% (up to $117,300) by the JPB. The remainder 53.5% is subsidized by Palo Alto (the General Fund). The shuttle operates on 15- minute headway Monday through Friday from 6:50AM-9:50AM and 3:10PM-6:50PM, excluding some holidays. The Embarcadero Shuttle includes a special run to Jordan Middle School to supplement the Crosstown Shuttle service to/from the school. Average daily ridership on the Embarcadero route in October 2015 was 268 boardings per day. The cost per boarding and on-time performance statistics are unknown as the City of Palo Alto does not hold the contract or pay the full price of the service. The estimated cost to operate the Embarcadero shuttle is $245,000 per year. Recently Discontinued The East Palo Alto Shuttle began operation on July 1, 2014 and linked the University Avenue Caltrain Station with Woodland Avenue community in East Palo Alto. This route was funded by the City of East Palo Alto but managed by the City of Palo Alto. It operated on 30-minute headways, seven days per week, excluding some holidays, from approximately 6:00AM to 10:00AM and 4:00PM-9:00PM. At the request of East Palo Alto, the route was discontinued in September 2016. SamTrans Route 280 was modified to address coverage gaps left by the elimination of the East Palo Alto shuttle route. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 11 Figure 4 Overview of Current Palo Alto Shuttles Route Name Route Operator Managed By Funded By Headways and Service Days Ridership Service Hours Estimated Annual Cost Points of Interest Crosstown Shuttle University Ave/Downtown - South Palo Alto @ Charleston Road, via Middlefield MV Transportation City of Palo Alto City of Palo Alto 60 min Weekdays, except holidays 276 boardings per day (February 2016) Weekdays: 7:40 AM – 5:20 PM Weekends: no service $282,000 Palo Alto Transit Center, Avenidas, Lytton Gardens, Channing House, Main Library, Palo Alto Art Center, Jordan Middle School, Midtown Shopping District, JLS Middle School, Mitchell Park Community Center + Library, Stevenson House Embarcadero Shuttle University Ave. Caltrain - Baylands Business Park, via Embarcadero Caltrain Commuter Shuttle Program Caltrain Commuter Shuttle Program BAAQMAD, Peninsula Joint Powers, City of Palo Alto 15-20 min Weekday peak, except holidays 268 boardings per day (October 2015) Weekdays: 6:51-9:34 AM & 3:10-6:28 PM Weekends: no service $245,000 E. Bayshore, Embarcadero Road, Palo Alto High School, Jordan Middle School, Palo Alto Medical Foundation PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 12 OTHER OPERATORS WITHIN PALO ALTO The City is also served by regional transit agencies including Santa Clara Valley Transportation Authority (VTA), SamTrans, Caltrain, and Dumbarton Express (operated by AC Transit). Further, Stanford University operates a robust campus transit program and there are many private shuttles (typically from large tech companies) that also operate in the City, primarily serving Caltrain stations and residential areas, including Google, Facebook, Box, VMware, and others. Figure 7 lists the universe of routes that serve Palo Alto operated by other agencies. The following section details ridership and productivity of routes serving Palo Alto, in order to gain additional understanding into the current usage and potential of the transit market to, from, and within the City. Based on availability, data ridership is summarized at the route level. Many routes provided by other operators travel on significant portions of roadway outside the City proper. VTA VTA reports ridership and productivity in their annual transit service plan, most recently for FY 2016 – FY 2017. Standards are based on the average productivity of each route service type – core, local, community, and express. Routes operating below the standard are typically an indicator or need for improvement, but is not a hard cut off. Instead, VTA operates with a minimum productivity standard of 15 boardings per revenue hour for all routes. Figure 5 VTA Ridership Route Serving Palo Alto Weekday Ridership Boardings per Revenue Hour 22 12,929 32.2 35 1,068 16.5 88/88L/88M 207 12.5 89 130 23.5 101 77 19.3 102 314 22.4 103 198 24.8 104 90 22.5 182 28 14.0 522 5,228 21.5 Source: Transit Service Plan FY 2016- FY 2017, VTA Service & Operations Planning, May 2015 VTA released a proposed re-imagination of its network in January 2017 called the VTA Next Network. The Next Network proposes elimination or modification of a number of existing VTA routes in Palo Alto. See chapter 4 for detailed discussion of the implications of the Next Network changes in Palo Alto. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 13 SamTrans SamTrans has seen some declines in ridership related to the local economy in San Mateo County and recovery from the Great Recession, but those declines have now leveled off. Overall the system averages 26.1 boardings per revenue hour. Figure 6 SamTrans Ridership Route Serving Palo Alto Weekday Ridership Boardings per Revenue Hour 280 226 10.6 281 790 12.4 297 58 11.5 397 210 42.1 ECR 12,460 37.3 Source: San Mateo County Transit District Short Range Transit Plan Fy2014 - Fy2023, SamTrans, December 2014 Dumbarton Express In February 2014, average weekday ridership on Dumbarton Express was roughly 1,300 boardings, split nearly evenly between the two routes DB and DB1.3 No other detailed productivity information was available at time of this study. Caltrain Caltrain ridership has been steadily increasing since the introduction of the Baby Bullet (2004), with only a slight blip during the Great Recession. The Palo Alto Station and California Avenue Station rank number 2 and 12 in the system, in terms of weekday ridership, respectively. Almost 7,200 boardings were recorded at the Palo Alto Station while the California Avenue Station saw over 1,500 on a daily basis. These riders are primarily last mile, meaning they arrive at each station and require a last mile shuttle (Embarcadero, Marguerite, etc.) to reach their destination. For riders leaving one of these stations as their first trip, station parking is provided, but first mile shuttle service is also highly valued by providing car free mobility to this regional high-capacity transit connection. Stanford Marguerite Stanford University operates an extensive transit network within Palo Alto and nearby communities called the “Marguerite”. These routes are free for use by University affiliates and the public alike. The full list of routes, as well as recent ridership data, is shown in Figure 7. Ridership on all Marguerite routes in 2016 included about 3.2 million boardings. Average ridership on all routes was 272,421 boardings per month in 2016. 3 Dumbarton Express Operations Update, AC Transit, March 2014. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 14 Figure 7 Other Existing Transit Serving Palo Alto Route Name Route Operator Managed By Funded By Headways Service Days Service Hours - Weekdays Service Hours - Weekends Ridership (Boardings Per Revenue Hour) Valley Transportation Authority (VTA)4 22 Palo Alto Transit Center to Eastridge Transit Center via El Camino VTA VTA VTA 10-15 min (daytime) Daily 24 hours 24 hours 32.2 35 Downtown Mountain View to Stanford Shopping Center VTA VTA VTA 30-60 min Daily 5:42 AM – 10:46 PM 8:23 AM – 8:59 PM 16.5 88 Palo Alto Veteran’s Hospital to Middlefield & Colorado VTA VTA VTA 60 min Weekdays 6:32 AM – 6:39 PM None 12.5 88L Palo Alto Veteran’s Hospital to Middlefield & Colorado (School Days Only) VTA VTA VTA None School Day Peaks 7:38-8:06 AM & 2:29-4:12 PM None 12.5 88M Palo Alto Veteran’s Hospital to Middlefield & Colorado (School Days Only) VTA VTA VTA None School Day Peaks 7:43-8:06 AM & 2:29-4:08 PM None 12.5 89 California Avenue Caltrain to Palo Alto Veterans Hospital (via Stanford Research Park) VTA VTA VTA 30 min Weekdays 6:36 AM – 6:38 PM None 23.5 101 Camden & Highway 85 to Palo Alto VTA VTA VTA 60 min Weekday Peaks 6:16-8:20 AM & 4:10-6:42 PM None 19.3 4 Note proposed VTA network changes released in January 2017. See Chapter 4 for explanation of implications on VTA routes serving Palo Alto. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 15 Route Name Route Operator Managed Funding Headways Service Days Service Hours - Weekdays Service Hours - Weekends Ridership (Boardings per Revenue Hour) 102 South San Jose to Palo Alto VTA VTA VTA 8-30 min Weekday Peaks 5:50-9:01 AM & 3:25-6:51 PM None 22.4 103 Eastridge Transit Center to Palo Alto VTA VTA VTA 30-60 min Weekday Peaks 5:08-8:23 AM & 2:41-6:29 PM None 24.8 104 Penitenicia Creek Transit Center to Palo Alto VTA VTA VTA 30-45 min Weekday Peaks 5:54-7:55 AM & 4:00-6:05 PM None 22.5 182 Palo Alto to IBM/Bailey Ave VTA VTA VTA None Weekday Peaks 7:29-8:33 AM & 5:05-6:14 PM None 14.0 Rapid 522 Palo Alto Transit Center to Eastridge Transit Center VTA VTA VTA 15-30 min Daily 4:37 AM – 11:16 PM 7:50 AM – 11:09 PM 21.5 Dumbarton Bridge Regional Operations Consortium DB Dumbarton Express AC Transit (MV Transportation) Dumbarton Bridge Regional Operations Consortium (DBROC): AC Transit, BART, SamTrans, Union City Transit, VTA Regional Measure 2 30-60 min Weekdays, except holidays 5:22 AM – 8:51 None 1,300 (average weekday ridership in February 2014 on both DB and DB1) PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 16 Route Name Route Operator Managed Funding Headways Service Days Service Hours - Weekdays Service Hours - Weekends Ridership (Boardings per Revenue Hour) DB1 Dumbarton Express AC Transit (MV Transportation) Dumbarton Bridge Regional Operations Consortium (DBROC): AC Transit, BART, SamTrans, Union City Transit, VTA Regional Measure 2 20-60 min Weekday peaks, except holidays 5:26-9:45 AM & 1:35-8:43 PM None 1,300 (average weekday ridership in February 2014 on both DB and DB1) SamTrans 280 Purdue / Fordham – Stanford Mall SamTrans San Mateo County Transit District San Mateo County Transit District 60 min Daily 5:20 AM – 10:24 PM 7:38 AM – 7:57 PM 10.6 281 Onetta Harris Center – Stanford Mall SamTrans San Mateo County Transit District San Mateo County Transit District 15-30 min Daily 6:00 AM – 10:32 PM 8:03 AM – 7:58 PM 12.4 297 Redwood City Transit Center –Palo Alto Transit Center SamTrans San Mateo County Transit District San Mateo County Transit District 60 min Nightly 10:43 PM – 5:21 AM 6:45 PM – 9:22 AM 11.5 397 San Francisco – Palo Alto Transit Center SamTrans San Mateo County Transit District San Mateo County Transit District 60 min Nightly 12:48 AM – 6:22 AM 12:48 AM – 6:22 AM 42.1 ECR Daly City BART – Palo Alto Transit Center SamTrans San Mateo County Transit District San Mateo County Transit District 10-30 min Daily 3:56 AM – 2:21 AM 4:47 AM – 2:21 AM 37.3 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 17 Route Name Route Operator Managed Funding Headways Service Days Service Hours - Weekdays Service Hours - Weekends Ridership (Yearly Total – 2016) Stanford Marguerite Routes 1050 A Medical School Office Building –Arastradero Road Stanford University Stanford University Stanford University and numerous contributors 20 min Weekdays, except holidays 7:05 AM – 6:45 PM None 87,412 BOH Menlo Park Caltain – Bohannon Stanford University Stanford University Stanford University and numerous contributors 30 min Weekdays, except holidays 7:01 AM – 6:33 PM None 66,061 C Vi! – Serra Mall – Escondido Village Stanford University Stanford University Stanford University and numerous contributors 30 min Weekdays, except holidays 5:40 AM – 9:17 PM None 131,988 HD Hoover Pavilion Shuttle Stanford University Stanford University Stanford University and numerous contributors 7 min Weekdays 4:06 AM – 1:38 AM None 410,028 MC (MCH) Palo Alto Transit Center –Stanford Hospital Fountain Stanford University Stanford University Stanford University and numerous contributors 15-20 min Weekdays 5:05 AM – 9:04 PM None 191,550 (MC) 8,384 (MCH) N Campus – Downtown Palo Alto (Counter-Clockwise) Stanford University Stanford University Stanford University and numerous contributors 40 min Nightly, except holidays and Summer 8:10 PM – 1:38 AM 8:10 PM – 1:38 AM 7,257 O Campus – Downtown Palo Alto (Clockwise) Stanford University Stanford University Stanford University and numerous contributors 40 min Nightly, except holidays and Summer 8:25 PM – 1:57 AM 8:25 PM – 1:57 AM 7,089 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 18 Route Name Route Operator Managed Funding Headways Service Days Service Hours - Weekdays Service Hours - Weekends Ridership (Yearly Total – 2016) OCA Tresidder Union – Oak Creek Apartments Stanford University Stanford University Stanford University and numerous contributors 20 min Nightly, except holidays and summer 9:00 PM – 2:10 AM 9:00 PM – 2:10 AM 3,198 P Palo Alto Transit Center – Stanford Oval Stanford University Stanford University Stanford University and numerous contributors 10-20 min Weekdays, except holidays 6:08 AM – 8:10 PM None 266,555 R California Avenue – Stanford Research Park Stanford University Stanford University Stanford University and numerous contributors 25 min Weekdays, except holidays 10:00 AM to 3:00 PM None 1,365 RP Palo Alto Transit Center – Research Park Stanford University Stanford University Stanford University and numerous contributors 10-40 min Weekday peaks 6:28-10:12 AM & 3:30-7:33 PM None 131,008 S Palo Alto Transit Center – Stanford West Apartments – Oak Creek Apartments – Rosewood Hotel Stanford University Stanford University Stanford University and numerous contributors 45 min Weekday peaks, except holidays 6:20-9:07 AM & 4:34-6:47 PM None 16,342 SE Palo Alto Shopping Center – Campus – San Antonio Shopping Center Stanford University Stanford University Stanford University and numerous contributors 35-60 min Daily, except holidays and Summer 3:00 PM – 10:25 PM 9:35 AM – 11:08 PM 90,297 SLAC SLAC – Hoover Tower Stanford University Stanford University Stanford University and numerous contributors 20-60 min Weekdays, except holidays 7:00 AM – 9:26 PM None 73,351 TECH Palo Alto Transit Center – Embarcadero Road – Palo Alto Technology Center Stanford University Stanford University Stanford University and numerous contributors 10-30 min Weekday peaks 6:30-10:20 AM & 2:40-7:25 PM None 41,408 PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 19 Route Name Route Operator Managed Funding Headways Service Days Service Hours - Weekdays Service Hours - Weekends Ridership (Yearly Total – 2016) VA Stanford Hospital – Campus – California Avenue Caltrain Station – Palo Alto VA Hospital Stanford University Stanford University Stanford University and numerous contributors 25-45 min Weekdays 6:30 AM – 9:37 PM None 27,981 X Palo Alto Transit Center –Stanford Shopping Center –Campus (Counter-Clockwise) Stanford University Stanford University Stanford University and numerous contributors 15-20 min Weekdays, except holidays 5:51 AM – 8:59 PM None 508,160 Y Palo Alto Transit Center –Stanford Shopping Center –Campus (Clockwise) Stanford University Stanford University Stanford University and numerous contributors 15-20 min Weekdays, except holidays 6:08 AM – 8:59 PM None 521,472 AE-F/U Fremont BART – Stanford Oval –Stanford Shopping Center Stanford University / AC Transit Stanford University / AC Transit Stanford University / AC Transit 30-60 min Weekday Peaks 6:00-9:26 AM & 2:45-7:03 PM None 139,443 Caltrain Deer Creek Shuttle Palo Alto Transit Center –California Ave Caltrain Station –Deer Creek Caltrain Caltrain Bay Area Air Quality Management District Transportation Fund for Clean Air, Peninsula Corridor Joint Powers Board, Hewlett-Packard 20-60 min Weekday Peaks 7:33-10:01 AM & 3:38-7:01 PM None About 7,200 daily boardings at Palo Alto station About 1,500 daily boardings at California Avenue station PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 20 TRANSIT ACCESS WITHIN PALO ALTO In addition to the Palo Alto Shuttle, five other transit operators provide service in Palo Alto — SamTrans, VTA, Dumbarton Express, and Stanford’s Marguerite Shuttle (which is also free to the community). Given the presence of many operators, an analysis of access to existing transit service found that 74% of Palo Alto residents are within a quarter-mile walk of a bus stop in Palo Alto (Figure 8) along routes that provide intracity (within Palo Alto) service. Gaps identified as part of this exercise, and shown in the below figure, informed the goals and the subsequent route development process of the Palo Alto Transit Vision. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 21 Figure 8 Access to Transit within a Quarter-Mile in Palo Alto PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 22 4 VTA N EXT NETWORK When developing new or modified route concepts for the Palo Alto Shuttle network, the initial intent was to minimize duplication and overlap with other transit agencies/routes and expand coverage into areas of the City currently without transit service. During an initial concept development process conducted in spring 2016, VTA was still developing internally their Next Network concepts as part of their Transit Ridership Improvement Program (TRIP). Fast forwarding to January 2017, VTA has now released its Draft Next Network Plan, which focuses on a reduction in coverage-based transit service in order to provide more robust and frequent service to higher ridership routes within the VTA service area.5 This is proposed through introduction of an 85/15 approach to funding allocation, with 85% of operating funds being used to improve higher ridership routes and 15% funding routes serving coverage goals. The implications of the proposed transit network modifications for Palo Alto include elimination of multiple local transit routes, as described in Figure 9.6 Transit provided by VTA in Palo Alto today, as well as the Next Network proposed changes, are shown in Figure 10. As shown below, the first iteration of the Next Network proposal identified VTA Route 89 for discontinuation. However, through subsequent conversations with VTA staff, Route 89 is expected to be retained in future proposals. Figure 9 VTA Transit Route in Palo Alto Route Number Description of Change Routing Change Frequency Change 21 New Route 21 would connect Downtown Palo Alto with San Antonio Shopping Center, Downtown Mountain View, Downtown Sunnyvale and Santa Clara Caltrain station. New Route 21 would replace current Routes 32 and 35. N/A N/A 22 Route will remain but frequency will be reduced. X 35 Current Route 35 will be discontinued and replaced with new Route 21. X 88 Current Route 88 will become new Route 288A/B and will provide school trips only (2 AM & 3 PM), with service to Gunn High School, Terman Middle School, Kehillah Jewish High School, Palo Verde Elementary School, Hoover X 5 The VTA Draft Next Network Plan can be accessed at: http://nextnetwork.vta.org/ 6 This figure represents proposed changes released by VTA in January 2017. A revised Next Network is expected to be released by VTA in Spring 2017 and may include changes to the proposal for VTA service in Palo Alto. Any changes will be reflected in a new iteration of this plan. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 23 Elementary School, Jane Lathrop Stanford Middle School. 89 Current Route 89 will be discontinued due to low ridership.7 X 102/103/104/1828 No changes proposed. Limited run commute-only route. Subject to change pending outcome of upcoming study. X 288 New Route 288 proposed to provide service to schools in lieu of proposed discontinuation of current Route 88. X 522 Route will remain with increased frequency proposed to begin in April 2017. X 7 VTA Route 89 was slated for discontinuation in the January 2017 proposal. However, through subsequent conversations with VTA staff, Route 89 is expected to be retained in future proposals. 8 Route 104 will serve Milpitas BART station upon opening. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 24 Figure 10 Current VTA Network Coverage (left) and Proposed VTA Network Coverage (right) in Palo Alto PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 25 Palo Alto will retain the following service from VTA: Three all-day routes, primarily along Middlefield Road (new Route 21) and El Camino Real (current Routes 22 and 522 Rapid) Two school tripper routes (288A and 288B) with service between portions of Palo Verde, Charleston Meadow, Greenmeadow, Fairmeadow, and Saint Claire Gardens neighborhoods and Gunn High School and others surrounding schools via Charleston and Arastradero Road Four express routes with limited trips during commute hours, primarily serving Page Mill Road business complexes, including current Routes 102, 103, 104, and 182 Figure 11 Proposed Route 88 Changes TRANSIT ACCESS WITH VTA NEXT NETWORK The existing access to transit analysis revealed that with the current VTA network and Palo Alto shuttle routes, 74% of Palo Alto residents are within a quarter-mile walk of bus service or a half- mile walk of rail (i.e. Caltrain). This walkshed map and associated discussion is presented in Chapter 3. However, when the walkshed analysis is re-run with the Draft VTA Next Network, transit access within the same walking radius described above drops to 61% of residents in Palo Alto. This amounts to a 17.5% decrease in transit accessibility citywide. As shown in Figure 12 below, residents and businesses in the following areas will have significantly reduced VTA service due to elimination of current Routes 88 and 89: Adjacent to Louis Road, Meadow Drive and Charleston Road in Palo Verde, Fairmeadow, Meadow Park and Charleston Gardens neighborhoods Evergreen Park and Green Acres neighborhoods and adjacent to Page Mill Road, Hoover Street, Arastradero Road and Foothill Expressway PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 26 Figure 12 Transit Accessibility Walkshed Incorporating VTA Network Changes PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 27 5 PALO ALTO TRANSIT VISION Goals The following goals were developed based on current operating characteristics, community priorities, and the markets for transit services. The objectives to support each goal are, in most cases, actions that can be taken by the City to help move toward realization of these goals. The service concepts and preferred service alternative presented in the succeeding chapters seek to meet these goals and objectives with service design. Convenient & Accessible – With all transit trips beginning or ending with a walk trip, all residents and businesses should be within a reasonable walking distance of a transit stop along a route providing frequent, all day service. o Locate routes within ¼ mile walk of major health, recreational, education, employment, cultural and social services facilities. o Once the first accessibility objective is met, increase citywide coverage by providing all residents accessibility to routes within a ¼ mile walk, starting first at higher density locations (e.g. multi-family housing) Frequent & Reliable – All transit routes and services within the City should provide frequent and reliable all day service in order to serve the wide variety of trip types that compose overall travel need. o Achieve headway benchmarks defined as 10-15 minute weekday peak, 30 minute midday, and 30-60 min weekday evening/weekends. o Operate reliably by meeting on-time performance standards as agreed upon with operator. Visibility and Ease of Use o Implement friendly, exciting and encouraging new branding. o Strive for convenience - superior coverage and frequent service should go where people want to go and offer real and practical alternatives to driving. o The system should be easy to understand and easy to ride for all users. Markets “Who should the shuttle serve?” was a fundamental question explored as part of this study process. While full build-out of a fare-free citywide transit system that serves all residents, employees, and visitors to the greatest extent possible is the ultimate vision, it cannot be fully achieved without complementary policy, behavioral, and built environment changes. For example, a Palo Alto resident with full access to a private vehicle will likely drive to downtown, Town & Country Village, California Avenue, etc. for a shopping or dining trip even with accessible PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 28 shuttle service because parking is free. For a choice rider, a very low marginal cost of driving begets driving. Thus, a fare-free citywide transit system will need to be implemented incrementally and should serve the populations and physical areas of the City with the highest transit propensity and need first. As part of the process in developing system goals and objectives, identification and prioritization of these service markets further determines how service planning decisions and incremental investments in service improvements can be made. First, priority is given to the mobility and accessibility needs of residents, employees, and visitors who are without access to a private vehicle, who choose not to drive, or cannot drive, including seniors, students, and persons with special needs or disabilities. The following service markets are identified in descending order of need, and form the basis of the service planning efforts: 1. Seniors – Ensure origins and destinations are served well with frequent service and a one seat ride, provide more amenities at stops that enhance customer experience, and ensure language needs are addressed. 2. Students – More trips during peak hour to relieve overcrowding; better serve high and middle schools; coordinate with schools to consider schedules for alternate days off. 3. Employees Last Mile – Serve all major employment generators with Caltrain-based shuttles and meet all peak period commuter trains at Palo Alto and California Avenue stations or provide service at high enough frequencies that meeting specific trains is less important. 4. Employees First Mile – Enhance first mile connectivity for Palo Alto residents with express service from dense residential areas to Caltrain. 5. Employees Intracity – Ensure that Palo Alto residents who also work in Palo Alto can access their place of employment car-free. 6. Residents – Focus on evening and weekend trip making to entertainment, dining and shopping (note: this is the hardest group to serve without complementary policy changes, such as introduction of parking charges to disincentivize auto use). Community Outreach / Feedback The goals, concepts, and recommendations included in this service plan were informed by an engagement process comprised of a community survey, a set of community meetings, other informal public engagement activities including social media interactions, and community engagement as part of the City of Palo Alto General Plan update. The methodology and findings for these community engagement efforts are outlined further in the below sections. Community Survey A comprehensive community survey was developed and distributed in the fall of 2015. Running for nearly four months from September through December 2015, the survey was housed on online survey platform SurveyMonkey. The survey was also distributed in paper form at senior centers around Palo Alto, including Avenidas and Sheridan House, to ensure the senior population had the opportunity to comment and contribute their views to the survey. The survey garnered 1,981 responses in the nearly four-month period, representing a strong interest in the shuttle program and in making improvements to ensure the shuttle is a viable PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 29 transportation option. Of all respondents, 67% live in Palo Alto, 47% work in Palo Alto and 12% go to school in Palo Alto, indicating a mix of affiliations with Palo Alto. For visitors to Palo Alto, the most common reasons reported on the survey were for medical purposes, followed by entertainment and visiting family and friends. Figure 13 Survey Response: What is your affiliation with Palo Alto? About half of respondents were members of a one or two-person household, while the other half lived with two or more people. More than half of respondents have more than one private vehicle available in their household (55%) while 11% have no car available. This alone demonstrates a challenge to encouraging widespread use of the shuttle within Palo Alto. Shuttle Usage Of all respondents, the vast majority (67%) said they had personally never used the shuttle (see Figure 14). However, more than 20% of respondents said that someone in their household had used the shuttle in the past three months. 67% 47% 12% 0%10%20%30%40%50%60%70%80% Live in Palo Alto Work in Palo Alto Go to school in Palo Alto PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 30 Figure 14 Survey Response: How often do you use the shuttle? Shuttle Improvements The most popular response regarding why respondents do not use the shuttle pertained to insufficient locations served by the shuttle (37%), followed by a lack of awareness of the shuttle in general or how to use it (30%) (see Figure 15). Figure 15 Survey Response: Why don’t you use the shuttle? When asked what would entice respondents to use the shuttle more often, the most common improvements included more frequent shuttle service (53%), service to additional destinations (51%), service close to home (47%), better information on the service (38%), and longer service hours (36%) (see Figure 16). 4%3%6% 9% 11% 67% Daily on weekdays Weekly A few times a month I used to ride but don't currently Less than once a month I've never used it 6% 8% 19% 30% 37% 0%5%10%15%20%25%30%35%40% "It doesn't run frequently enough" "It doesn't run when I need it" "I'd like to use it but I don't know how" "I didn't know about it" "It doesn't go where I need to go" PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 31 Figure 16 Survey Response: What would motivate you to use the shuttle more often? More than 1,000 pieces of destination data were collected as part of the survey. With this data, a map of “key destinations” was produced to include the work, school and other destinations, such as shopping and medical appointments, of the shuttle survey respondents. While not exhaustive or assumed to be reflective of the entire Palo Alto population, the most common destinations indicated on the community survey are shown in Figure 17 and Figure 18. Figure 17 Survey Responses: Key Destinations Destination Category Number of Responses SAP Employer 154 City of Palo Alto Employer 73 Jazz Pharmaceuticals Employer 66 Stanford University Employer 52 Palantir Technologies Employer 42 Palo Alto High School School/Employer 100 Gunn High School School/Employer 69 Fairmeadows/Hoover/JLS Schools 69 Ohlone Elementary School/Employer 18 Barron Park Other destination 28 California Avenue corridor Other destination 18 Town and Country Shopping Center Other destination 10 Stanford Shopping Center Other destination 8 Cubberley Community Center Other destination 6 35% 36% 38% 47% 51% 53% 0%10%20%30%40%50%60% Real time tracking on mobile Longer service hours Better schedule information Bus routes closer to home Bus routes closer to my destination Buses that come more often PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 32 Figure 18 Survey Responses: Key Destinations of Survey Respondents PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 33 Open-Ended Comment Analysis Additionally, more than 1,000 0pen-ended comments were received on the shuttle survey, as well as 19 comments on the City of Palo Alto Facebook page. Responses to the final survey question, which collected open-ended and general comments regarding the shuttle service, were coded and categorized into 1,307 pieces of response data. See Figure 19 for a breakdown of these comments and an overview of key themes discussed in that category of responses. Open-ended responses related to location of shuttle service, such as requests for new service areas, as well as communication-related comments, including requests for better shuttle informational materials both paper and online, topped the list of common themes. This analysis reinforced the findings in previous survey questions that service to additional locations, as well as improved communications and frequency, are the key concerns and requests by survey-takers. The fact that school service was also a common theme in open-ended responses highlighted the important role the Palo Alto Shuttle plays, and has the opportunity to play, in school transportation. Figure 19 Survey Comment Analysis Category Number of Responses Key Themes in the Category Location 366 New service areas, neighborhoods and destinations; general requests for additional service Communication (COMM) 233 Better service marketing and expanded awareness; improvements to the branding and bus wraps, improved website and schedule materials; introduction of real-time tracking and an app for the service Frequency (FREQ) 164 Requests for more frequent service (every 5-15 min) or more buses Service hours (HRS) 137 Requests for midday hours on all shuttle routes, service hours later into the evenings (to allow for dinner out or to match the evening commute) and weekend service School Service (SCHOOL) 105 Requests for service to additional PA schools, for shuttle schedules that link up to school schedules and related to capacity issues when school is in session and on routes serving schools Reliability 73 Comments that the bus is frequently operating far off its published schedule which deters use of the service; requests that the shuttle better aligns with other transit in the city (Marguerite, VTA) Caltrain 59 Better service linking to Caltrain stations and with Caltrain schedules Amenities (AMEN) 53 Benches and signage at stops, senior accessibility such as low step boarding, pull cords on-board the shuttles, bike facilities and stroller facilities on-board Door to Door 31 Suggestion for paratransit or door-to-door service in addition to or in lieu of the shuttle; partnerships with Uber, TNCs, etc. Travel Time 28 Requests to reduce shuttle travel time, suggestions for express service/routes with fewer stops PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 34 Key Findings and Conclusions Key findings from the community survey demonstrate opportunities to expand the shuttle’s reach into new ridership areas and markets. Opportunity areas for improvements should facilitate mobility for: Seniors — through ADA accessibility, helpful drivers, and service to senior centers and shopping centers Students — parents request reliable, timed links to schools with enough capacity Caltrain commuters — timed and reliable service to/from Caltrain stations, particularly Palo Alto station where bullet trains stop and during hours which allow for use in the evening commute Employees at Palo Alto businesses — opportunity to provide first mile/last mile service to employers along Page Mill Road and one-seat ride to people who work at Stanford and in downtown business corridors Travelers during more hours of the day — opportunities for travel during the midday, evenings and on weekends was requested Residents of more neighborhoods — such as the Southwest part of Palo Alto, including Ventura, Barron Park and Evergreen Park neighborhoods, among other areas Everyone — a robust communications and awareness campaigns, as well as efforts to improve the usability of the website and other informational materials, would benefit all current and potential future users of the shuttle. Community Meetings Two community meetings were held on March 10, 2016 to share an overview of the findings of the community survey and discuss five initial shuttle service concepts, which included three new routes and two modifications or extensions to existing shuttle routes. Attendees were notified that all potential new shuttle routes are currently unfunded. An afternoon meeting was held at the Palo Alto Main Library to ensure the senior population and others were able to come to the meeting via the existing Crosstown shuttle service. The evening meeting was held at the Lucie Stern Community Center to allow those who work normal business hours to attend. The afternoon meeting was attended by about 40 people and the evening meeting by about 20. The afternoon meeting was particularly well-attended by residents of the Moldaw Residences. Overall, attendees were happy with the proposal to expand the shuttle routes and about the locations served by the proposed new and modified routes. Depending on the specific home locations and destinations of attendees, participants expressed interest and approval of different routes. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 35 Comments received at the meetings included requests to: Ensure safe boarding and waiting areas at all stops for new routes, including benches, closest to senior centers and other destinations Extend hours on Crosstown route to evenings and weekends Improve frequency on all routes Serve Palo Alto Caltrain station on both sides of station Strive for easy transfer opportunities between Palo Alto shuttle routes and other transit services Consider extending Barron Park and/or Southwest routes to Mitchell Park and to intersect with the Crosstown route Serve additional key destinations including the JCC, Palo Alto Medical Foundation, Update current bus branding and decorations to represent all rider groups; install cords on the buses to indicate when riders want to exit the bus Consider the impacts of the shuttle expansion and downtown parking pricing on nearby residential neighborhoods Ensure shuttles are always ADA accessible for those in wheelchairs and scooters Consider whether a quarter-mile walkshed is realistic for seniors and people with disabilities Consider travel time on new and existing routes – does it take too long to be worth it? Advertise the Shuttle in the Weekly newspaper, include in transit planning apps Impact of reduced Stanford Marguerite service during the summer months Consider how a potential flex, on-demand service could work for seniors or low income residents without smart phones Each of these comments either reinforced the need for a certain goal or improvement already in discussion for future implementation or was regarded as an important consideration for future steps of this work. The latter type of comment includes those related to choosing specific stop locations, building in transfer opportunities, and development of a branding and communications campaign. Other Engagement Activities Targeted in-person engagement was conducted at senior residence and activity centers in Palo Alto in December 2015 in conjunction with the survey. In addition to bringing more responses to the survey, this effort offered the opportunity to engage with potential and current shuttle users in person. Additional comments were fielded through social media including on the City of Palo Alto Facebook page. These comments were incorporated into the survey analysis described earlier in this chapter. Relevant comments from the ongoing community involvement process for Our Palo Alto 2030, including a Summit in May 2015 with more than 350 participants, were reviewed and considered in development of shuttle plans. Notes from the summit include multiple calls for improvements to the existing shuttle services, including9: 9 http://www.paloaltocompplan.org/wp-content/uploads/2015/06/Palo_Alto-Summit_Q4_results.pdf PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 36 “Expand Palo Alto Shuttle geographically and in frequency (i.e. West of El Camino).” “Improved citywide shuttle service with collaboration with local employers.” “More geographically distributed bus/shuttle service – within a 10 min walk of each home.” Enact shuttle improvements to routes and schedules to meet the needs of both commuters and residents; expand into neighborhoods Improve communication of services via websites, apps, signage On-demand shuttles PROPOSED ROUTE MODIFICATIONS Based on current transit coverage in Palo Alto and gaps in coverage identified through the transit walkshed analysis, proposed changes to the VTA network, and community needs as expressed through the outreach process, a full set of route concepts were developed and screened as part of the visioning process. See Appendix B for full list of initial concepts and the screening process methodology. What is shown below is the outcome of the visioning and screening process: proposed route modifications to Crosstown and Embarcadero routes, as well as a new Palo Alto Shuttle route, “South Palo Alto.” Additional variants not shown in this chapter were considered by staff and can be found in Appendix C. These proposals seek to achieve enhanced coverage, frequency, and span within the Palo Alto Shuttle network while addressing the reduction in VTA service included as part of the Draft Next Network Plan. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 37 Crosstown Two variants for a revised Crosstown shuttle route are presented and are still under consideration by the City. Crosstown Variant A improves upon the original Crosstown route by adding new routing on both ends: North End - Extension from Palo Alto Caltrain Station to the Stanford Shopping Center and Stanford Medical Center South End – Extension from Middlefield Road to San Antonio Road and El Camino Real. This extension adds access to the Moldaw Residences, as well as San Antonio Caltrain and San Antonio Shopping Center. Crosstown Variant A Specifications Primary Route Type Community Circulator Round-Trip Route Length 20.2 miles Round-Trip Cycle Time 105 minutes Vehicle Requirements 7 vehicles for 15-minute service 4 vehicles for 30-minute service 3 vehicles for 40-minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Stanford Medical Center* Stanford Shopping Center* Palo Alto Caltrain* Downtown Palo Alto* Lytton Gardens Rinconada library Jordan Middle School Midtown JLS Middle School / Hoover Elementary / Fairmeadow Elementary* Mitchell Park and Library* Cubberley Community Center* Senior residences/centers* San Antonio Caltrain San Antonio Shopping Center* PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 38 Figure 20 Crosstown Route Variant A PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 39 Crosstown Variant B provides coverage redundancy for the new VTA Route 21 in an effort to offer increased frequency, up to 15-minute headway. As part of the concept service plan, Crosstown is targeted for significant increases in frequency and service span. Initially, peak weekday frequencies would be improved and span of service extended to provide additional utility in the early AM and evening periods. Over time, service frequencies would be improved to 15 minutes during peak periods and service would be introduced on weekends. Crosstown Variant B Specifications Primary Route Type Community Circulator Round-Trip Route Length 15.7 miles Round-Trip Cycle Time 90 minutes Vehicle Requirements 3 vehicles for 30-minute service 2 vehicles for 45-minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Stanford Medical Center* Stanford Shopping Center* Palo Alto Caltrain* Downtown Palo Alto* Lytton Gardens Rinconada library Jordan Middle School Midtown JLS Middle / Hoover Elementary / Fairmeadow Elementary* Mitchell Park and Library* Cubberley Community Center* Senior residences/centers* San Antonio Caltrain San Antonio Shopping Center* PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 40 Figure 21 Crosstown Route Modification – Variant B PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 41 Embarcadero As a first/last mile shuttle, the current route structure is designed to serve the Palo Tech Center employers east of US 101. A modification of the Embarcadero route is presented with the goal of addressing coverage gaps presented in the Greer Park/Midtown areas with the elimination of VTA routes and expanding Palo Alto Shuttle coverage to areas along both East and West Bayshore. With match funding ending and a duplicate service to the Palo Tech Center provided by the Stanford Marguerite Tech route, the modified Embarcadero presented here extends the current Embarcadero route to serve municipal service buildings and other businesses along West and East Bayshore Drives, as well as the portion of San Antonio Road nearest to U.S. 101. Embarcadero Modified Route Specifications Primary Route Type First/Last Mile and Community Circulator Round-Trip Route Length 10.8 miles Round-Trip Cycle Time 50 minutes Vehicle Requirements 4 vehicles for 15-minute service 2 vehicles for 30-minute service 2 vehicles for 60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Palo Alto Caltrain* Downtown Palo Alto* Town & Country Village* Paly High School* Lytton Gardens Rinconada library Palo Alto Municipal Service Center10 Palo Alto Animal Services Businesses near San Antonio Road/E Charleston Road Senior residences/centers* Greer Park Staff considered additional variants on the Embarcadero route, which can be viewed in Appendix C. 10 Expanding the Palo Alto Shuttle to the Municipal Service Center allows the City of Palo Alto to expand its employee Caltrain GoPass program to employees outside of the City Hall. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 42 Figure 22 Embarcadero Route Modification PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 43 South Palo Alto Most routes, whether Palo Alto Shuttle or operated by other agencies, serve downtown Palo Alto, including the Palo Alto Transit Center. South Palo Alto terminates at the VA hospital and the California Ave Caltrain Center, serving schools and other destinations along Arastradero, Charleston, Louis, and Colorado along the way. This South Palo Alto route concept provides connections to Caltrain by terminating near the California Avenue Caltrain station. Variant A also includes a Paly school tripper extension serving the residential areas south of Oregon Expressway. South Palo Alto Specifications Route Type Community Circulator Round-Trip Route Length 13.4 miles Round-Trip Cycle Time 75 minutes (60 minutes evening/weekend) Vehicles Requirement 5 vehicles for 15-minute service 3 vehicles for 30-minute service 1 vehicle for 40-60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) California Avenue* California Avenue Caltrain* Midtown Palo Verde neighborhood Mitchell Park and Library* Senior residences/centers* Terman Middle School* Gunn High School* VA Hospital Two additional variants on the South Palo Alto route were considered by staff and can be viewed in Appendix C. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 44 Figure 23 South Palo Alto PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 45 SERVICE PLAN AND IMPLEMENTATION Annual service hours and costs are presented for each route (including two variants for the Crosstown route) in Figure 24. For each route/variant, a description and estimated annual costs are provided for both an enhanced (initial) service level and a full (meets frequent and reliable goal) service level. The City of Palo Alto may select a phased introduction of new or modified shuttle routes, or may choose to introduce a full service level from the beginning, acknowledging the loss of VTA service. Figure 24 Service Implementation Summary Enhanced Service Level Full Service Level Route Name Description of Service Annual Service Hours Annual Cost11 Description of Service Annual Service Hours Annual Cost Crosstown – Variant A 7 AM to 7 PM weekday service; 30-minute frequency all day, 40 minute in evenings, no weekend service 11,985 $864,118 7 AM to 9 PM weekday service; 15-minute peak frequency, 30-minute midday and 40-minute evening; 8 AM to 8 PM weekend service with 40-minute frequency 21,705 $1,564,930 – Variant B12 6 AM to 10 PM weekday service with 30-minute frequency all day; 8 AM to 8 PM weekend service with 45-minute frequency 14,640 $1,055,544 6 AM to 10 PM weekday service with 30-minute frequency all day; 8 AM to 8 PM weekend service with 45-minute frequency13 14,640 $1,055,544 Embarcadero 6:50 AM to 7 PM weekday service with 20-minute frequency during peak, no midday service, 40-minute evening; no weekend service 5,228 $376,902 7 AM to 9 PM weekday service with 15-minute frequency in peak, 30-minute frequency in midday and evening; 8 AM to 8 PM service on weekends with 60-minute frequency 11,400 $821,940 11 Assumes service hour cost of $72.10. 12 Crosstown Variant B duplicates much of VTA Route 21’s route. 30-minute service on Crosstown Variant B would be scheduled as to offer 15-minute frequency to passengers when combined with VTA Route 21’s 30-minute service. 13 Based on proposed service specifications on VTA Route 21. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 46 South Palo Alto (To be coordinated with VTA Routes 288 and 89) 7 AM to 7 PM weekday service with 30-minute frequency all day and 60-minute evening frequency; no weekend service 8,670 $625,107 7 AM to 9 PM weekday service with 15-minute frequency in peak, 30-minute midday, 60-minute evening; 8 AM to 8 PM weekend service with 60-minute frequency 14,240 $1,026,704 Sample Route Package A sample route package incorporating Crosstown Route Variant A, the modified Embarcadero Route, and South Palo Alto Variant A has been produced in Figure 25. This comparison shows the operating cost differences between the annual operating costs of the existing shuttle network and both an initial and full service implementation of this sample package. Figure 25 Sample Route Package and Associated Operating Costs Route and Variant Current Annual Operating Costs Annual Costs – Enhanced Service Level Annual Costs – Full Service Level Crosstown A $281,911 $864,119 $1,564,931 Embarcadero $252,400 $376,903 $821,940 South Palo Alto -- $625,107 $1,026,704 TOTAL $534,311 $1,866,129 $3,413,575 Note: The Embarcadero shuttle is funded in partnership with the Joint Powers Board (JPB). The JPB currently pays 46.5% of the operating cost (up to $117,300 per year). The breakdown of current operating costs is $135,100 per year from the City of Palo Alto and $117,300 from the JPB per year. As the above table shows, the investment in an expanded shuttle system will require significantly more funding on an annual basis; however, with the elimination of multiple existing VTA routes, expansion of the Palo Alto Shuttle system is important to maintaining strong transit coverage and access for Palo Alto residents and visitors. As shown in Figure 26, this sample package results in transit access for 77% of Palo Alto residents within a quarter-mile walk of a bus stop or half-mile walk of a train station. This is an increase from the 61% identified when incorporating the loss of the VTA routes proposed in the draft Next Network (Figure 12). It also represents an improvement in transit access from the 74% of residents who are currently within a quarter mile of bus transit with the existing transit service (Figure 8). PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 47 Figure 26 Transit Access Walkshed Analysis – Sample Route Package PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 48 Capital Improvements Because Palo Alto contracts operation of its shuttle routes to a private transportation provider (currently MV Transportation), it does not own buses or maintenance facilities, and thus primary capital needs are bus stop improvements and ongoing design and printing of new informational materials and schedules. The following section outlines guidelines and costs for bus stops and amenities. Follow on service planning will determine stop locations for new or modified routes, as well as any upgrades needed to existing stop locations. Bus Stops Stop siting/placement will be part of detailed route planning for modified or new routes. All stops should be fully accessible with a concrete landing and access to a sidewalk or pathway. ADA accessibility standards require that each bus stop include a landing pad with a minimum width of 60 inches and minimum depth of 96 inches. Bus stops should also connect to adjacent sidewalks or pedestrian paths. Many systems go beyond ADA minimums and provide a landing pad for the rear door of the bus. The addition of landing pads, connecting sidewalks, and amenities such as seating and shelter enhance the customer experience and are especially important for seniors and other persons with disabilities. Signage and Amenities Well-designed bus stop signage has the opportunity to provide useful customer information while simultaneously marketing transit service. Route signage should be limited to one design to minimize inventory and materials costs. The unit cost of bus stop poles and signage is approximately $250 per stop. Bus stop amenities enhance the customer experience by increasing comfort and perceived safety and reducing perceived waiting times. Bus stop amenities also influence the community’s perception of transit service. The approximate cost of bus shelters with seating and trash receptacles is $10,000 per stop. Figure 27 Bus Stop Amenity Guidelines Amenity Description Pole and sign Installed at stops with fewer than 5 average daily boardings Pole, sign, and seating Installed at stops with 10-20 average daily boardings and at key senior destinations Pole, sign, seating, and shelter Installed at stops with 20 or more average daily boardings and at schools and senior centers The provision of amenities is typically based on ridership. Circumstances that might preclude installation of shelters or seating at particular stop meeting specific thresholds are: Amenities would compromise pedestrian or operational safety Adequate right-of-way is not available Regulations enforced by City, County, State, or Federal government Installation costs are excessive Plans are in place to relocate or close the stops PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 49 6 FOR FURTHER CONSIDERATION OTHER SERVICE DELIVERY MODELS With transportation network companies and technology applications adding new options for customers to more directly control when, where and how they travel, the City wants to explore the potential for and impacts of converting all or some of its services into real-time e-hailing flex services. There are several ways to accomplish this objective. At a high level, these include: Partnering with transportation network companies (TNCs) through a contract or MOU Developing/acquiring applications for e-hailing, dynamic trip-booking, vehicle assignment, and electronic payment functionality to apply to services operated in-house or via contract Converting all or some of existing fixed route to a blended flex service and apply a combination of advanced booking and real-time e-hailing, scheduling, and fare payment system functionality The analysis of existing services coupled with the community survey results suggests the predominant improvements that would encourage potential riders to use the shuttle were corrective actions to the perceived service deficiencies concerning the desire for more frequent service, better service coverage, more information, longer service span, etc. The perceived service gaps reinforce the City’s interest in exploring whether an alternative service delivery approach might yield higher ridership. Essentially, these data suggest that potential riders want a service that operates when they wish to travel and where they wish to travel. This service delivery philosophy correlates to flexible services with real-time responsiveness (similar to OmniLink Flex-Route – a point deviation service) as well as real-time dynamically routed services (similar to the FlexBus concept and the VTA Flex pilot). Flex Service Types Partnering with a TNC – one obvious service model for the City to consider is partnering with Transportation Network Companies like Uber and Lyft. TNC’s offer an easy bridge to extend existing services to currently unserved and underserved areas and markets via a memorandum of understanding, service parameters and standards, and a financial agreement. Figure 28 presents a snapshot of pros and cons of the TNC partnership model. Figure 28 TNC partnership Model Pros and Cons TNC Partnership Pros Cons Start-up process Easy to set up; Quickly expands mobility to a wide market MOU must address legal, financial, risk, performance considerations PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 50 Financial Low initial investment; Reasonable investment for modest expansion of mobility Subsidy on a per trip basis, unless there is a counteracting requirement for a high level of shared trips, will increase overall costs, especially at a cost/trip basis Access to Service Quickly expands to cover the general public TNC market Requires concerted effort to facilitate access to service and service accessibility to low income, and disabled population Managing Service The customer arranges transport directly with the TNC The City has limited control over service quality and the amount of service provided which can have fiscal impacts E-hailing Flex Services – The City may also consider converting the shuttles to point deviation and/or anchored flex services and deploying e-hailing and electronic fare payment applications. Figure 29 presents a snapshot of pros and cons of the point deviation and anchored flex service models. Point deviation Flex services include a generalized transit route created by a series of designated stop locations with the ability of the service to deviate between stops on request to make off-route pick-up and drop-offs. Anchored Flex services operate more like dial-a ride without specified routes and stops except for one, in some cases 2-3, where the vehicle is always scheduled to be at a particular location and time, generally each hour of half hour. At the anchor stop, the vehicle connects with a regional rail or transit service. Otherwise, the anchored flex service is free to pick up and drop off passengers based on requests. Figure 29 Point Deviation/Anchored Flex Service Model Pros and Cons Point Deviation / Anchored Flex Services Pros Cons Start-up process Modify existing services into point deviation and/or anchored Flex services can be done with a service change Requires customer awareness; Retrain drivers; Acquire and deploy technology systems Financial Point deviation productivity can be high; Improved service cost-effectiveness Requires initial investment in technology; Technology deployment takes time; Access to Service Improved customer awareness, service access, service information; Increase ridership Point deviation and anchored dial-a-ride services can be a challenge to some customers Managing Service Technology applications will enhance customer experience, operations management, data collection, reporting The City is responsible for operations, service quality PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 51 Dynamic Point-to-Point Flex Services – The next option for the City to consider is a real- time dynamically routed point-to-point Flex service. This is essentially a service without routes or schedules. This service model was initially designed for Central Florida as the FlexBus concept and is currently being implemented on the LYNX NeighborLink service in a slightly modified zonal service model. VTA Flex service in Milpitas is another example. Figure 30 presents a snapshot of pros and cons of the point deviation and anchored flex service models. Figure 30 Dynamically Routed Flex Service Model Pros and Cons Dynamically Routed Flex Services Pros Cons Start-up process Modify existing services; Rebrand existing services; Leverage ridership base Retrain customers and drivers; Acquire and deploy technology; More vehicles Financial Productivity can be high; High cost-effectiveness; Low subsidy per trip Requires initial investment in technology; Technology deployment takes time; Access to Service High customer awareness & service access, Real-time service; Real-time status Service concept needs to be explained; Non-tech savvy and certain populations may require support Managing Service Enhanced customer service, operations management, data and reporting The City is responsible for operations, service quality Next Steps Based on this brief analysis of a range of Flex service models currently operating and/or emerging in the industry, there seems to be evidence for the City to further investigate new and emerging service delivery models such as TNC-partnerships, dynamic Flex service models, and point deviation service models as a replacement for or in addition to local fixed-route circulator service. The intent of these service delivery types is to offer new ways to deliver mobility in lower-density and lower-productivity environments. Their primary advantage is in providing more cost-effective service that can minimize the tradeoff between frequent service and good coverage through partnerships or deviations. This initial assessment just scratches at the surface of what alternate service delivery could look like in Palo Alto. A detailed planning and implementation study should follow to further develop and refine these concepts into a feasible pilot program. At time of writing, several formal partnerships have formed and are currently being piloted here in the Bay Area, and best practices/lessons learned from these programs provide a logical, convenient, and accessible starting point for the City as it seeks to explore emerging mobility options for its residents, employees, and visitors. PALO ALTO TRANSIT VISION | DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 52 APPENDIX A COMMUNITY PROFILE The City of Palo Alto is located about 30 miles south of San Francisco and 20 miles north of San Jose in Santa Clara County, California. Palo Alto maintained a relatively stable population from 1970 to 2000 with 4.7% growth but has been growing significantly faster since 2000. The 2010 US Census found a population of about 64,000 residents. However, the city’s population is projected to increase 25.1% between 2000 and 2030, reaching more than 73,000 residents by the year 2030.14 Figure 31 shows the density of residential population throughout Palo Alto. The highest density areas include the University Avenue and California Avenue areas, as well as Barron Park and some census tracts east of Middlefield and south of Oregon Expressway. Other areas of relative high density are in East Palo Alto and near the San Antonio Caltrain station on the border with Mountain View. Figure 31 Population Density in Palo Alto 14 Our Palo Alto 2030, Draft Existing Conditions Report: Population, Housing and Employment (2014), 10-5, 10-6 PALO ALTO TRANSIT VISION |DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 53 Residents age 65 and older constitute 17.1% of Palo Alto’s population. This is a larger portion than the share for Santa Clara County as a whole, which is 11%. Palo Alto’s population is also aging; the median age in 2010 was 41.9 years old, compared to 31.6 in 1970. Between today and 2030, the number of residents older than 65, the average age, and the share of children are all expected to continue to increase. The ethnic make-up of Palo Alto’s population is shifting, with a decrease in persons identifying themselves as Caucasian and an increase in the proportion of people who self-identify as Asian. In 2000, 72.8% of the population identified themselves as white, compared to 60.6% in 2010. Conversely, 17.2% of Palo Alto residents identified as Asian in 2000; this increased to 27% in 2010. These trends are expected to continue both in Palo Alto and throughout the Bay Area. Income in Palo Alto is consistently higher than for surrounding communities in Santa Clara County. Palo Alto’s median household income increased to $122,482 in 2012, compared to $90,747 in Santa Clara County overall. Palo Alto boasts consistent job growth and low unemployment rates. More than 110,000 jobs are projected in Palo Alto by 2030, a 24% increase from the number of jobs in 2010. Employment density in Palo Alto (Figure 32) is concentrated in the University Avenue and California Avenue areas, the Page Mill Road corridor including the Stanford Research Park, and in the southeast part of the city near Fabian Way and San Antonio Road. Figure 32 Employment Density in Palo Alto PALO ALTO TRANSIT VISION |DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 54 Figure 33 Transportation Goals of the Current Comprehensive Plan15 Transportation Goals Goal T-1 Less reliance on Single-Occupant Vehicles Goal T-2 A convenient, efficient public transit system that provides a viable alternative to driving Goal T-3 Facilities, services, and programs that encourage and promote walking and biking Goal T-4 An efficient roadway network for all users Goal T-5 A transportation system with minimal impacts on residential neighborhoods Goal T-6 A high level of safety for motorists, pedestrians and bicyclists Goal T-7 Mobility for people with special needs Goal T-8 Attractive, convenient public and private parking facilities Goal T-9 An influential role in shaping and implementing regional transportation decisions Goal T-10 A local airport with minimal off-site impacts 15 Our Palo Alto 2030, Draft Existing Conditions Report: Transportation and Traffic (2014), 12-7 PALO ALTO TRANSIT VISION |DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 55 APPENDIX B CONCEPT LIST AND SCREENING PROCESS This concept development and screening process took place in Winter/Spring 2016 during the initial development of concepts, prior to the concept refinement in consideration of the draft VTA Next Network. Concept Development Using the established goals and objectives, the findings from the community survey, and analysis conducted regarding existing transit service, a set of more than 20 initial concept ideas were developed to improve the Palo Alto Shuttle system. These concepts were classified as either new routes, modified routes, or other service improvements. Other service improvements included concepts not directly related to expanded or modified coverage, such as increased frequency, increased service hours, improved reliability, and a campaign to expand awareness and improve the user experience of the shuttle. The full list of initial concepts is included as Figure 34. This initial concept list was developed with the following market factors and planning parameters in mind: Walkshed analysis and existing transit access gaps Population and employment densities Key activity generators and destinations as identified on the survey Ridership trends on existing shuttle services School catchment areas (see figures below) Residential locations of key user groups (e.g. seniors) PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 56 Figure 34 Palo Alto Shuttle Improvement Concepts – Initial List Concept Type Description Alignment with Goals Service Characteristics Key Destinations Served Southwest Shuttle New Route Community Circulator; FM/LM New route with service from Stanford Shopping Center/Apartments to PA Caltrain, Cal Ave Caltrain, Stanford Research Park (Page Mill), VA Hospital, Gunn HS Convenient and Accessible Either peak only (to only serve Gunn and commuters) or 7:30am-7:30pm route; consider later service Friday PM (to 10 pm) Frequency: 15 min Stanford Shopping Center, Palo Alto Caltrain, Cal Ave Caltrain and business district, Page Mill Rd employers, Stanford Research Park, VA Hospital, Gunn High School/Terman Middle Midtown-San Antonio Circulator + Paly School Tripper New Route Community Circulator; School Tripper New route with service between California Ave and San Antonio Shopping Center via Palo Verde and San Antonio transit hub Continues to El Camino and Embarcadero Road for school trips Convenient and Accessible Frequent and Reliable Frequency: 15 min peak Additional trip(s) to Paly in accordance with bell schedule Cal Ave shopping district, Cal Ave Caltrain, Mitchell Park, San Antonio Caltrain, San Antonio Shopping Center Central PA New Route Community Circulator New loop route with service from Stanford Shopping Center/Downtown PA to Fairmeadow via Alma/Bryant Convenient and Accessible Frequency: 15 min (perhaps 30 min headway if combined or offered as alternative route to Southwest) Stanford Shopping Center University Avenue PA and Cal Ave Caltrain stations Barron Park New Route Community Circulator New route with service from within Barron Park neighborhood to downtown PA, Convenient and Accessible Frequency: 15 min (perhaps 30 min headway if combined or offered as alternative route to Southwest) PA Caltrain, PAMF, Town and Country Shopping Center, Barron Park West Shuttle New Route Community Circulator; School Tripper Connects connect South Palo Alto, California Avenue, Paly High School, Town and County Village, the Palo Alto Medical Center, Palo Alto Transit Center, University Avenue, and Stanford Shopping Center via El Camino Real and East Meadow Drive Convenient and Accessible Sample schedule includes 20 weekday runs and approximately 24 vehicle revenue hours with two buses in operation. Palo Alto Caltrain University Avenue Connections to Marguerite Stanford Shopping Center Palo Alto Medical Foundation California Avenue Palo Alto Commons Stevenson House Moldaw Residences Winter Shopping Trolley New Route Community Circulator Connects the University Avenue Downtown Business District with the Stanford Shopping Center Convenient and Accessible Pilot project: December park-once shuttle for holiday shopping Stanford Shopping Center University Avenue PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 57 Concept Type Description Alignment with Goals Service Characteristics Key Destinations Served Summer Lunchtime Trolley New Route Community Circulator Connects the University Avenue Downtown Business District with the Stanford Shopping Center Convenient and Accessible Pilot project: Summer lunchtime trolley for access to dining destinations in Stanford Shopping Center and downtown Requires high frequency (<10 min to be successful) Stanford Shopping Center University Avenue Paly School Tripper (North Palo Alto) New Route School Tripper Serves Paly students living in downtown North and downtown neighborhoods. Convenient and Accessible Extra AM/PM run timed with school schedule Paly High School North and Old Palo Alto residential neighborhoods Gunn/Terman School Tripper New Route School Tripper Serves Gunn/Terman students living in Stanford housing and in neighborhoods near Stanford Convenient and Accessible Extra AM/PM run timed with school schedule Gunn/Terman schools Stanford University housing Paly School Tripper (SW Palo Alto) New Route School Tripper Serves Paly students living in College Terrace and Evergreen Park neighborhoods. Convenient and Accessible Extra AM/PM run timed with school schedule Paly High School College Terrace and Evergreen Park neighborhoods Flex Routes New Route Community Circulator Serves lower demand areas either spatially or temporally that are not served with fixed route transit Convenient and Accessible Frequent and Reliable Potential to serve lower demand residential areas with point to point or point to downtown service TBD based on extents of service area Crosstown: Stanford Shopping Center, PAMF Extension + Cubberley Extension Modified Route Community Circulator Extends Crosstown route west to Stanford Shopping Center, Town and Country Shopping Center and PAMF; east to loop serving Cubberley Community Center Convenient and Accessible Extension to encircle Stanford Shopping Center via Sand Hill, Arboretum, Galvez, El Camino; loop around Middlefield, San Antonio and E Charleston Existing plus Stanford Shopping Center, Town and Country Shopping Center, PAMF; Cubberley Community Center, Greenmeadow neighborhood, Moldaw Residences Embarcadero: Bayshore Service Modified Route - Route and Hours Community Circulator; FM/LM Diverts Embarcadero route along East/West Bayshore to Fabian Way/San Antonio Road Convenient and Accessible Frequent and Reliable Modified route to serve Bayshore, southeast PA All day service at 15 minute headway in peak, perhaps more in off-peak Greer Park, Fabian Way and W Bayshore businesses, existing Embarcadero shuttle destinations PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 58 Concept Type Description Alignment with Goals Service Characteristics Key Destinations Served East Palo Alto: Stanford Shopping Center, PAMF Extension Modified Route Community Circulator Extends EPA route west to Stanford Shopping Center, Town and Country Shopping Center and PAMF Convenient and Accessible Extension to encircle Stanford Shopping Center via Sand Hill, Arboretum, Galvez, El Camino Existing plus Stanford Shopping Center, Town and Country Shopping Center, PAMF East Palo Alto: 101 Extension Modified Route Extend EPA route across US 101 and further into East Palo Alto Convenient and Accessible Could either be a new additional route, or could be alternated with existing route for 1 hr headway vs 30 min headway East Palo Alto, Palo Alto Caltrain, downtown PA Crosstown: Hours Extension - Weekends Other Service Improvement - Weekend Service Implement weekend service for shopping, dining opportunities as well as access to Main Library, Mitchell Park, and other community centers Frequent and Reliable Options exist for all day service or just evening service Same as existing route Crosstown: Hours Extension - Evenings Other Service Improvement - Extend Weekday Operating Hours Extend Crosstown service into the evening to facilitate evening commute use and car free access to downtown dining and shopping Frequent and Reliable Extend Crosstown route hours to 7:30 pm M-Th; to 10 pm Fri Same as existing route Crosstown: Frequency Increase Other Service Improvement - Weekday Peak Period Frequency Increase all day frequency on Crosstown route to 15 min headways; currently 30 min headway in non peak, hourly in peak One additional Jordan Middle route run in AM and PM Frequent and Reliable 15 min headway or better; schedule designed to meet Caltrain arrivals/departures True first mile/last mile would require as many runs as Embarcadero Shuttle Same as existing route East Palo Alto: Hours Extension Other Service Improvement - Midday Service Extend EPA route hours in midday weekday and weekend Frequent and Reliable Closing gap on midday service from EPA to downtown Same as existing route Marketing and Communications Campaign Other Service Improvement Develop and implement marketing and communication improvements for existing shuttle services Visibility and Ease of Use Existing Shuttle Reliability Study Other Service Improvement Invest in study of reliability issues for existing shuttle routes Frequent and Reliable Schedule and Operations Review Other Service Improvement Invest in review of existing schedules, opportunities for coordination and transfer between Palo Alto shuttle and other operators Visibility and Ease of Use PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 59 The concepts were screened against known operational constraints including street design and roadway configurations (e.g. one-way streets and designated bike boulevards) in addition to the criteria listed below: Ridership Potential: does the route serve multiple activity generators or key destinations in Palo Alto? Ability to Serves Target User Groups: does the route serve multiple user groups, including seniors, students, employees and residents? Expand Transit Access: does the route expand the transit service area in Palo Alto and avoid overlap with existing services? Address Survey Requests: does the route address requests we heard in the survey? Level of Resources Required: does the route require significant resources or is it easily-implementable? Points were assigned in each criteria category corresponding to a low, medium or high score. Characteristics for each score category are outlined in Figure 35. Figure 35 Shuttle Improvement Concept Screening Criteria Criteria Low – 1 Point Medium – 2 points High – 3 points Ridership Potential < 5 activity generators on route 6-10 activity generators on route 11+ activity generators on route Low employment and population density Moderate population and employment density Significant high population and employment density Ability to Serve Target User Groups One user group reached Two user groups reached 3-5 user groups reached Expands Transit Access Significant overlap with existing service Some new corridors/streets served Mostly new corridors/streets served Nearby population already has transit within quarter mile Provides some new quarter-mile transit access Addresses many gaps in transit access Addresses Survey Requests Does not address key destinations/categories of survey responses Addresses one key destination/category of survey responses Addresses multiple key destinations/categories of survey responses Level of Resources Required Anticipated to be very resource intensive Moderate level of resources required Requires reasonable level of financial/staff resources to implement Following the screening and scoring exercise, the concepts were placed into Tiers 1 through 3, with Tier 1 concepts most closely aligning with the goals (as described in Chapter 5) and practical constraints of the shuttle program. Concepts were also separated into near-term concepts (primarily modified routes and other service improvements, such as frequency and hours of operation) and mid to long-term concepts (primarily new routes). PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 60 Figure 36 outlines the scoring process and shows the scores assigned to each initial concept, as well as the tiered outcomes. Tier 1 concepts, including new routes and modified routes, were further refined and shared at the community meetings in March 2016. PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 61 Figure 36 Shuttle Concept Screening Process and Assigned Scores Palo Alto Shuttle Initial Concepts Concept Screening High - 3 points, Medium - 2 points, Low - 1 point * Inverse weighting Tier Concept Ridership Potential Serves Target User Groups Expands Transit Access Addresses Survey Requests Level of Resources Required* Total Points Ranking Notes Tier 1 Southwest Shuttle 3 Low to Moderate population density; high employment density; about 12 activity generators 3 Seniors, students, employees FM/LM to research park, residents 2 2 1 11 Tier 1 because of potential new ridership, multiple user groups served and addressing survey requests Tier 1 Midtown-San Antonio Circulator + Paly School Tripper 2 Moderate to high population density; low to moderate employment density; about 7 activity generators 3 Seniors, students, PA employees, residents 2 2 1 10 Tier 1 because of gaps filled in transit access, number of target user groups served and addressing survey comments. Tier 1 Embarcadero: Bayshore Service 2 Moderate population density; moderate employment density; about 6 activity generators 2 Seniors, residents, PA employees 3 2 2 11 Tier 1 because of significant closure of transit access gaps, multiple target user groups served and moderate resources required Tier 1 Crosstown: Stanford Shopping Center, PAMF Extension + Cubberley Extension 2 Moderate population density; moderate employment density; about three activity generators 2 Seniors, residents, PA employees 2 3 3 12 Tier 1 because low anticipated resources required, addresses frequent survey requests and while there is some existing transit overlap, it serves senior population where one seat ride is important PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 62 Palo Alto Shuttle Initial Concepts Concept Screening High - 3 points, Medium - 2 points, Low - 1 point *Inverse weighting Tier Concept Ridership Potential Serves Target User Groups Expands Transit Access Addresses Survey Requests Level of Resources Required* Total Points Ranking Notes Tier 1 Crosstown: Hours Extension - Evenings 3 Same ridership potential as Crosstown, plus evening commuters 2 Seniors, PA employees, residents 1 3 2 11 Tier 1 because of additional ridership potential, addressing frequent survey comments and moderate level of resources required Tier 1 Crosstown: Frequency Increase 3 Same ridership potential as Crosstown, plus evening commuters 2 Seniors, PA employees, residents 1 3 2 11 Tier 1 because of potential to increase ridership, address survey requests and moderate level of resources required Tier 2 Central PA 2 Moderate population density; moderate employment density; about 6 activity generators 2 Seniors, PA employees, residents 3 1 1 9 Tier 2 due to infeasibility of route due to non-thru streets other than bike blvd Bryant, car thoroughfare Alma Tier 2 Barron Park 2 Low to moderate population density; moderate employment density; about 6 activity generators 2 Seniors, PA employees, residents 2 2 1 9 Tier 2 due to high survey response but low density neighborhood. PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 63 Palo Alto Shuttle Initial Concepts Concept Screening High - 3 points, Medium - 2 points, Low - 1 point *Inverse weighting Tier Concept Ridership Potential Serves Target User Groups Expands Transit Access Addresses Survey Requests Level of Resources Required* Total Points Ranking Notes Tier 2 West Shuttle 2 Moderate population density; moderate employment density; about 5 activity generators 2 Seniors, PA employees, residents 1 2 1 8 Tier 2 due to transit overlap but moderate population and employment density in the area. Tier 2 Winter Shopping Trolley 2 Moderate population density, high employment density; about 4 activity generators 2 Seniors, residents 1 1 2 8 Tier 2 due to transit overlap but moderate population and employment density in the area. Tier 2 Summer Lunchtime Trolley 2 Moderate population density, high employment density; about 4 activity generators 2 Seniors, residents, PA employees 1 1 2 8 Tier 2 due to transit overlap but moderate population and employment density in the area. Tier 2 East Palo Alto: Stanford Shopping Center, PAMF Extension 2 Moderate population density; moderate employment density; about three activity generators 2 Seniors, residents, PA and EPA employees 1 2 1 8 Tier 2 due to resources and coordination required but moderate population density and transit access expansion. PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 64 Palo Alto Shuttle Initial Concepts Concept Screening High - 3 points, Medium - 2 points, Low - 1 point *Inverse weighting Tier Concept Ridership Potential Serves Target User Groups Expands Transit Access Addresses Survey Requests Level of Resources Required* Total Points Ranking Notes Tier 2 Crosstown: Hours Extension - Weekends 2 Same ridership potential as Crosstown 2 Seniors, PA employees, residents 1 2 2 9 Tier 2 due to unclear market demand Tier 3 Paly School Tripper (North Palo Alto) 2 Includes catchment area but depends on student enrollment 1 Students 2 2 2 7 Tier 3 because of unknowns related to ridership potential Tier 3 Gunn/Terman School Tripper 2 Includes catchment area but depends on student enrollment 1 Students 2 2 2 7 Tier 3 because of unknowns related to ridership potential Tier 3 Paly School Tripper (SW Palo Alto) 2 Includes catchment area but depends on student enrollment 1 Students 1 2 2 6 Tier 3 because of unknowns related to ridership potential Tier 3 Flex Routes Dependent on geographic extents Dependent on geographic extents Dependent on geographic extents Dependent on geographic extents 1 Tier 3 because of unknowns related to ridership potential, cost and operating plans PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 65 Palo Alto Shuttle Initial Concepts Concept Screening High - 3 points, Medium - 2 points, Low - 1 point *Inverse weighting Tier Concept Ridership Potential Serves Target User Groups Expands Transit Access Addresses Survey Requests Level of Resources Required* Total Points Ranking Notes Tier 3 East Palo Alto: 101 Extension 2 Moderate to high population density; moderate employment density; about three activity generators 2 Seniors, residents, PA and EPA employees 1 1 1 7 Tier 3 because of transit overlap, low response rate on survey and coordination required. Tier 3 East Palo Alto: Hours Extension 2 Same geographic extents as current EPA 2 Seniors, PA and EPA employees, residents 1 1 1 7 Tier 3 because of coordination required and low response rate on survey. Tier 1 Marketing and Communications Campaign Recommended to address 200+ survey comments related to lack of awareness and potential increase ridership with relatively small investment. Tier 2 Schedule and Operations Review Could benefit legibility and cost-effectiveness of existing and future routes. Tier 3 Existing Shuttle Reliability Study Reliability becomes less important with significant frequency increases. Yellow highlighting indicates variables with significant unknown details. PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 66 APPENDIX C OTHER ROUTE VARIANTS CONSIDERED EMBARCADERO ROUTE VARIANTS Embarcadero Route Variant A retains the current Embarcadero route, extending it beyond Palo Alto Technology Center along East Bayshore before turning around at Charleston/Fabian to a return trip via Embarcadero Road to Palo Alto Caltrain. Embarcadero Modification Variant A Specifications Primary Route Type First/Last Mile and Community Circulator Round-Trip Route Length 13.4 miles Round-Trip Cycle Time 60 minutes Vehicle Requirements 4 vehicles for 15-minute service 2 vehicles for 30-minute service 1 vehicle for 60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Palo Alto Caltrain* Downtown Palo Alto* Town & Country Village* Paly High School* Lytton Gardens Rinconada library Palo Alto Technology Center Palo Alto Municipal Service Center Palo Alto Animal Services Businesses near San Antonio Road/E Charleston Road Senior residences/centers* PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 67 Figure 37 Embarcadero Route Variant A PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 68 Embarcadero Route Variant B removes service to Palo Alto Technology Center and areas east of Highway 101 in favor of providing service along West Bayshore Road with a loop at Fabian/Charleston. Embarcadero Variant B aims to fill existing service gaps in the Greer Park/Midtown neighborhood and serve senior residences and employment centers. Embarcadero Variant B Specifications Route Type Community Circulator Round-Trip Route Length 10.6 miles Round-Trip Cycle Time 50 minutes Vehicles Requirement 4 vehicles for 15-minute service 2 vehicles for 30-minute service 1 vehicle for 40-60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Palo Alto Caltrain* Downtown Palo Alto* Town & Country Village* Paly High School* Lytton Gardens Rinconada library Greer Park Businesses near San Antonio Road/E Charleston Road/Fabian Way Senior residences/centers* PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 69 Figure 38 Embarcadero Route Variant B PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 70 SOUTH PALO ALTO ROUTE VARIANTS South Palo Alto Variant B provides all-day duplication of proposed VTA routes 288A and 288B which would provide only school bell service (3 AM and 3 PM trips). This route loops through Midtown neighborhood via Louis Road, Colorado Avenue, and Middlefield Road. South Palo Alto Variant B Specifications Route Type Community Circulator Round-Trip Route Length 10.4 miles Round-Trip Cycle Time 60 minutes Vehicles Requirement 4 vehicles for 15-minute service 2 vehicles for 30-minute service 1 vehicle for 40-60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Midtown Palo Verde neighborhood Mitchell Park and Library* Senior residences/centers* Terman Middle School* Gunn High School* VA Hospital PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 71 Figure 39 South Palo Alto – Variant B PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 72 South Palo Alto Variant C terminates at Midtown Shopping Center and California Avenue Caltrain station. This nearly circular route travels along Louis, Fabian, E Charleston, Arastradero, Foothill Expressway, and Page Mill Road. The routes includes a school tripper extension from Midtown Shopping Center to Palo Alto High School (3 AM and 3 PM trips). South Palo Alto Variant C Specifications Route Type Community Circulator Round-Trip Route Length 16.5 miles Round-Trip Cycle Time 75 minutes Vehicles Requirement 7 vehicles for 15-minute service 4 vehicles for 30-minute service 2 vehicles for 40-60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Midtown Shopping Center Midtown neighborhood Palo Verde neighborhood Mitchell Park and Library* Senior residences/centers* Terman Middle School* Gunn High School* VA Hospital Stanford Technology Center* California Ave Caltrain* PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 73 Figure 40 South Palo Alto – Variant C PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 74 SOUTHWEST ROUTE Lastly, the Southwest route would provide service from downtown Palo Alto and the Stanford Medical Center/Shopping Center area to Old Palo Alto (currently unserved or underserved by transit), California Avenue, College Terrace, and along Page Mill Boulevard to serve Stanford Research Park and then south to the VA Hospital and Gunn High School/Terman Middle School. With the proposed elimination of VTA route 89, the Southwest Route may present as an important opportunity for future expansion of the system. This route would also provide a one- seat fare free ride between downtown Palo Alto and California Avenue shopping districts, as well as being able to serve portions of Old Palo Alto that today do not have transit within a quarter- mile walk. Initially the route would operate during weekday peak periods to serve employees and students. Over time, service would be added midday and extended further into the evening as well as on weekends. Southwest Route Specifications Route Type Community Circulator Round-Trip Route Length 18.1 miles Round-Trip Cycle Time 60 minutes Vehicle Requirements 4 vehicles for 15-minute service 2 vehicles for 30-minute service 1 vehicle for 60 minute service Destinations (* indicate key destinations identified in the community survey and shown in Figure 18) Stanford Medical Center* Stanford Shopping Center* Palo Alto Caltrain* Downtown Palo Alto* Old Palo Alto neighborhood California Avenue* California Avenue Caltrain* College Terrace Stanford Research Park* VA Palo Alto Gunn High School* Terman Middle School* PALO ALTO TRANSIT VISION| DRAFT City of Palo Alto Nelson\Nygaard Consulting Associates, Inc. | 75 Figure 41 Southwest Route Date: April 27, 2017 Current Meeting: May 4, 2017 Board Meeting: May 4, 2017 BOARD MEMORANDUM TO: Santa Clara Valley Transportation Authority Board of Directors THROUGH: General Manager, Nuria I. Fernandez FROM: Interim Director - Planning & Program Development, Carolyn M. Gonot SUBJECT: Next Network Final Plan Policy-Related Action: No Government Code Section 84308 Applies: No ACTION ITEM RECOMMENDATION: Adopt the Final VTA Transit Service Plan. BACKGROUND: VTA updates its transit service plan every two years, typically making small adjustments based on rider input and performance data. For the FY18-19 transit service plan, VTA is completely redesigning its transit network in order to connect to BART at Milpitas and Berryessa Stations, increase overall ridership and improve cost-effectiveness. Due to the enormity of the redesign, VTA initiated a community-based planning process, known as Next Network, in early 2016. Overview of Next Network Process The Next Network process framed the redesign to balance the competing goals of ridership and coverage that transit agencies are asked to achieve. A five-month long community engagement process in the summer of 2016 yielded over 5,000 points of input and a general desire by the public for VTA to place more emphasis on the ridership goal and less emphasis on the coverage goal for the FY18-19 transit service plan. In November 2016, the Board of Directors affirmed the community’s input and directed staff to develop a service plan that increased the portion of operating funds spent on ridership-purposed services from 70 to 85 percent and decreased coverage-purposed spending from 30 to 15 percent. At the January 2017 Board Meeting, the Board approved the release of an 85/15 Draft Transit Service Plan. VTA staff then undertook a new round of extensive community engagement in January and February of 2017 to receive input from the community and stakeholders. 7.3 Page 2 of 16 After reviewing over 3,000 public comments on the Draft Transit Service Plan, staff developed a Final Transit Service Plan that made 34 changes to the Draft Transit Service Plan, including retaining service to some areas where discontinuances had been proposed such as Almaden Valley, Palo Alto, Cupertino, Saratoga and Campbell, among others. The Final Transit Service Plan employs an 83/17 ridership/coverage balance. What follows is a more in-depth discussion of the process staff engaged in to arrive at the 83/17 recommendation. Next Network Foundation To assist with the Next Network process, VTA hired Jarrett Walker and Associates (JWA), an internationally-respected transit network design firm, to lead a community conversation about how to improve Santa Clara County’s transit system. In February of 2016, JWA produced an independent assessment of VTA’s transit service called the Transit Choices Report (which can be found at nextnetwork.vta.org). The Transit Choices Report recommended changes to VTA’s network design philosophy, service classes, branding and fare structure. The Transit Choices Report outlined a strategy for increasing ridership: operating frequent, all-day transit service in areas that follow patterns of density, walkability, linearity and proximity. The Transit Choices Report also noted that increasing transit ridership requires multi-agency collaboration as the two largest drivers of ridership-land use and the design of the street network-are within the authority of municipal governments. In June 2016, JWA produced a Transit Alternatives Report (which can be found at nextnetwork.vta.org) that framed the design of VTA’s transit network in terms of the two goals that transit agencies are asked to achieve: ridership and coverage. The ridership goal compels transit agencies to think like a business and invest service hours in places that have high transit demand and transit-supportive characteristics like density and walkability. Ridership-oriented networks tend to have fewer routes, but many that are frequent while coverage-oriented networks have many routes, but few that are frequent. The coverage goal compels transit agencies to think like a government service and locate transit routes in as many places as possible to maximize access to public transit. While increasing ridership and coverage are both important goals, they compete for the same funding. Doing more of one means doing less of the other and transit agencies must decide how much of their funding should be spent toward each. VTA currently spends 70 percent of its transit operating funding on ridership-purposed routes and 30 percent on coverage-purposed routes (as shown in Attachment A). Given the goal of increasing ridership, the Transit Alternatives Report asked if VTA should change its ridership/coverage balance and, if so, by how much? To assist with this community conversation, the Transit Alternatives Report featured three network concepts that employed different ridership/coverage balances, 70/30, 80/20 and 90/10. Each showed the tradeoff between increased frequency and decreased access. All three concepts were designed in a budget-neutral context, where each would cost the same for VTA to operate. Phase I Outreach and Board Direction In the summer of 2016, VTA undertook a community engagement effort consisting of 12 community meetings, four four-hour community leader workshops, surveys and online outreach. This effort asked the public to weigh in on the three network concepts and cast a vote for their preferred ridership/coverage balance along a spectrum that ranged from 70/30 to 90/10. Over 7.3 Page 3 of 16 2,000 votes were cast yielding an 80/20 average. At the community leader workshops, the average result of the ridership/coverage balance survey was 85/15. VTA also asked if the public would welcome a more-ridership oriented network if it meant walking farther to access faster or more frequent transit and if making transfers between more frequent buses and/or trains in order to arrive at one’s destination sooner would be preferred over making one-seat trips. Though some members of the public preferred shorter walks and one-seat trips, the majority favored walking farther and making transfers. The community leader workshop attendees included elected officials, neighborhood and civic leaders, and representatives of community groups whose constituents rely on transit to get around. Due to these leaders’ closeness to the topic of public transit, additional consideration was given to their input, resulting in a staff recommendation for an 85/15 ridership/coverage balance for the Draft Transit Service Plan. At their November 18, 2016 Board Workshop, VTA’s Board of Directors endorsed the staff recommendation. A Draft Transit Service Plan that employed an 85/15 ridership/coverage balance was released for public review at the January 5, 2017 Board of Directors Meeting. DISCUSSION: Draft Transit Service Plan The Draft Transit Service Plan proposed several fundamental changes to the design of VTA’s transit network, including the following: Reallocating transit service from low-ridership areas to high-ridership areas Increasing frequency Increasing Light Rail Service More Rapid Routes Increasing midday and weekend service levels and expanding hours of service Transitioning toward a grid network Stronger connections to regional transportation Expanding potential rider base, improving service for current riders The December 22, 2016 memorandum presented to the Board of Directors on January 5, 2017 includes a detailed discussion of these features and the Draft Transit Service Plan that was released for public review. A copy of this memorandum can be found at nextnetwork.vta.org. 7.3 Page 4 of 16 Phase II Outreach Campaign and Feedback Following the release of the Draft Transit Service Plan, VTA staff undertook a public engagement effort to collect input on how VTA could improve the Draft Transit Service Plan. This effort included: 86 staff presentations including community meetings, guest presentations, committee and Board agendized items, and city staff and council presentations An information campaign including brochures, take-one cards, advertisements and an aggressive social media campaign in multiple languages A print and broadcast media campaign that recorded 27 instances of local coverage An online video campaign that achieved 111 live viewers, over 4,300 total views and 26,000 minutes of watch-time including webinars, two live-streamed public meetings and eight videos focused on transit changes around colleges A multi-lingual project microsite (nextnetwork.vta.org) that recorded 355,000 unique visits and 1.4 million page views A multi-lingual street team that engaged with riders at 14 different transit centers totaling 3,287 interactions with transit riders A full documentation of community outreach can be found in Attachment B. The outreach effort for the Draft Transit Service Plan yielded over 3,000 comments about the components of the Draft Transit Service Plan. These comments were often specific and detailed and focused on several themes: Consensus that VTA’s ridership and farebox metrics were compelling reasons to make changes in the design of the transit network. Endorsement of the idea that increasing access of residents and jobs to frequent (15- minute or better, all-day) service would make transit a more viable travel option for more Santa Clara County travelers. Endorsement of more Rapid routes, particularly Rapid 523 in Sunnyvale and Cupertino. Support for the Core Connectivity Project, which seeks to identify new ways of providing mobility in areas that are a poor fit for a fixed-route transit service such as contributing funds to city-operated shuttle programs or subsidizing on-demand trips in areas without fixed-route service. Concern for those who lose access to any transit service, particularly in Almaden Valley, South San Jose, East San Jose Hills Saratoga, Cupertino, Los Gatos and Fremont. Routes 37, 45, 53, 65, 82, 88, 89, 120, and 181, which were proposed to be discontinued or have decreased levels of service were the subject of many comments. 7.3 Page 5 of 16 Concern about the impact to paratransit users whose homes or destinations would fall outside of the paratransit service area or into the premium fare zone if fixed-route services along the periphery of the transit network are discontinued. Interest in how VTA can better meet the needs of senior citizens. A compendium of all comments on the Draft Transit Service Plan can be downloaded at nextnetwork.vta.org. Final Transit Service Plan In developing the Final Transit Service Plan, VTA staff sought to balance the direction to pursue a more ridership-oriented network with community requests to retain coverage-purposed routes that had been proposed to be discontinued. Ultimately, staff developed a compromise plan that retained some coverage-purposed routes, resulting in an 83/17 ridership/coverage balance. The Final Transit Service Plan (as shown in Attachment C) maintains all of the frequency increases proposed in the Draft Transit Service Plan and retains transit service in some corridors where discontinuances had been proposed. Attachment D includes by-route and by-city listings of all Final Transit Service Plan changes compared to the current transit service plan and Draft Transit Service Plan. Changes from Draft Transit Service Plan to Final Transit Service Plan Every transit service decision bears an opportunity cost as service hours that could benefit some travelers are shifted to benefit others. In making these decisions, VTA staff attempts to achieve the greatest good, balancing Board direction, ridership data, and community input while giving special consideration to the transportation needs of vulnerable populations such as students, seniors, the disabled, and low-income. The development of the Final Transit Service Plan attempts to achieve the best balance of all these factors within VTA’s allotted budget for transit operations. In this process, staff benefitted greatly from the extensive and detailed input received from Santa Clara County travelers during Phase II Outreach. The following bullets briefly discuss elements of the Draft Transit Service Plan that received a high level of community input and the resulting staff recommendations for the Final Transit Service Plan. A detailed discussion of each service decision can be found in Attachment E. Cupertino/Saratoga - De Anza Boulevard/Saratoga-Sunnyvale Road (Current Route 53) Recommendation: Continue service in this corridor by extending Route 51 south of De Anza College. San Jose - Leigh Avenue (Route 65) Recommendation: Retain service on Route 65 and decrease frequency from 30-minute service level to 60-minute service level. Los Gatos/Campbell (Current Routes 48 and 49) Recommendation: Operate Route 27 on Main Street in Downtown Los Gatos as well as Hacienda Avenue and Knowles Drive to service Los Gatos El Camino Hospital and Los Gatos High School. 7.3 Page 6 of 16 San Jose - Downtown (Current DASH)/Rapid 500 Recommendation: Retain the Draft Transit Service Plan’s recommendation to upgrade the DASH to the Rapid 500 and add a Rapid 500 stop at Almaden Avenue. Fremont/Sunnyvale (Route 120) Recommendation: Given the extension of BART to Santa Clara County and compelling needs for transit service inside Santa Clara County, staff does not recommend retaining Route 120 in the Final Transit Service Plan. Fremont/San Jose (Route 181) Recommendation: Given the extension of BART to Santa Clara County, alternate ways of making the trip by transit, and compelling needs for transit service inside Santa Clara County, staff does not recommend retaining Route 181. Palo Alto - Gunn High School (Current Route 88) Recommendation: Provide a new Route 288 service during school bell times, with an additional after school trip to accommodate students involved in extracurricular activities. Discontinue Route 88. Palo Alto - Veterans Hospital (Route 89) Recommendation: Retain Route 89 as it exists today to provide hospital access for veterans. San Jose - East Hills (Current Route 45) Recommendation: Retain the Draft Service Plan’s recommendation to discontinue Route 45. VTA will offer to provide a van for use by the patrons of the Homeless Veterans Emergency Housing Facility. San Jose - Mineta San Jose Airport (Current Route 10) Recommendation: Due to the inability to enforce whether riders who board at non-airport stops are traveling to the airport, only provide free boardings at airport terminals. Non- airport terminal boardings require a standard fare. Campbell/San Jose - Hamilton/Pine (Current Route 82) Recommendation: Discontinue Route 82 and retain transit service along Hamilton Avenue/Pine Avenue corridor by rerouting Route 56. Gilroy (Current Routes 14, 17 and 19) Recommendation: Discontinue routes 14, 17 and 19 and replace them with a loop route, which will be named Route 85. Campbell/San Jose/Saratoga (Current Route 37) Recommendation: Retain Route 37 at a 60-minute frequency service level rather than a 30-minute service level. The portion of Route 37 that exhibits the greatest demand (from West Valley College to the Light Rail Line between Mountain View and Winchester) will be supplemented by Route 26, which offers 30-minute service. 7.3 Page 7 of 16 Cupertino/Los Altos - Foothill and De Anza Colleges Recommendation: Due to insufficient demand, the Final Plan does not propose adding service between these two colleges. San Jose - Forest Avenue (Current Route 23, new Route 59) Recommendation: Retain the Draft Transit Service Plan’s recommendation to keep Route 23 on Stevens Creek, and extend Route 59 from its terminus at the Santa Clara Caltrain Station to serve Forest Avenue via Lafayette. Sunnyvale - Civic Center (Current Route 54) Recommendations: Discontinue service on Route 54 along Olive Avenue. Sunnyvale - Fair Oaks Avenue (Route 55) Recommendation: Retain the Draft Transit Service Plan’s recommendation of removing the Route 55 deviation that serves the Fair Oaks/Remington area. The volume and proximity of other transit services in the area (routes 22, 55, 522 and 523) provide adequate connectivity in all travel directions. San Jose - Almaden Valley (Current Routes 13, 63, 64, 328 and 330) Recommendation: Extend Route 64, which currently terminates at Almaden Light Rail Station, to Camden Avenue and retain Route 13 (renamed to Route 83) with modifications to better serve the Almaden Community Center and shopping plazas at the intersection of Blossom Hill Road and Almaden Expressway. Additionally, VTA will explore an on-demand pilot service in Almaden Valley. Retaining Access for Current Riders and Paratransit Clients Of particular community concern were the proposals to discontinue routes in areas along the periphery of the transit network. Such changes would leave about one percent of current transit riders without any nearby transit service and would push some trips made by paratransit clients outside of the paratransit service area. The paratransit service area mirrors the shape of the fixed-route transit network. VTA is required by the Americans with Disabilities Act to operate paratransit service in areas within ¾ of a mile of a fixed route while that route is in operation. VTA’s own paratransit policy extends the service area by an additional mile, at a higher fare. By retaining routes that were proposed to be discontinued in the Draft Transit Service Plan, the impact to current riders and paratransit riders is lessened considerably. For example, while the Draft Transit Service Plan would result in about one percent of current weekday boardings being more than half a mile from a transit stop. The Final Transit Service Plan would reduce that to about half a percent. Similarly, the Draft Transit Service Plan would result in the homes of 47 current paratransit clients falling outside the paratransit service area. The Final Transit Service Plan reduces this number to two. A detailed analysis of paratransit impacts can be found in Attachment F. Title VI Analysis Title VI of the 1964 Civil Rights Act states that agencies that receive federal funding may not discriminate on the basis of race, color or national origin. 7.3 Page 8 of 16 Federal guidance encourages transit agencies to uphold Title VI in two ways: a metric-based analysis that evaluates the impact to minority and low income communities compared to the overall population of Santa Clara County, and by involving Title VI communities in the planning process so that their input may inform decisions as early as possible. The metric-based evaluation of Title VI impacts for the Final Transit Service Plan was undertaken by an independent contractor and can be found in Attachment G. This analysis evaluates the impacts in two ways: 1) Disproportionate Impact, which measures the impact to minority residents and 2) Disproportionate Burden, which measures the impact to low-income residents. VTA’s Board-adopted threshold for determining Title VI impacts is 10 percent, meaning that a service change that decreases the provision of transit for minority or low-income residents at a rate 10 percent greater than a decrease for overall residents is presumed to be non- compliant with the mandates of Title VI. The independent Title VI analysis found that compared to the overall population, access to transit for low-income and minority residents of Santa Clara County increased slightly. As such, the metric based analysis finds that no disparate impacts or disproportionate burdens would result from the proposed transit service changes. VTA sought to involve Title VI communities in the Next Network planning process by working with VTA’s Title VI Office and following the VTA’s Public Participation Plan. This included outreach to organizations that represent minority, low-income, and immigrant communities, hosting community meetings and workshops throughout the county, and partnering with Working Partnerships USA to gain input from transit riders and minority and low-income residents. Additionally, a multi-lingual advertising campaign spread awareness of the proposed service changes and a multi-lingual website encouraged residents to provide feedback in their preferred languages. A full list of outreach to Title VI groups can be found in Attachment B. Ridership Projections Ridership projections for the Final Transit Service Plan must be viewed in the context of current ridership trends. In Santa Clara County, ridership in FY2016 was two percent lower than FY2015. To date, FY2017 ridership (through January 2017) is down 11.6 percent compared to FY2016. These are significant decreases for an agency that has had relatively flat ridership for the previous ten years. These trends are not isolated to Santa Clara County. CityLab reports that transit ridership has been declining nationally with seven of the 30 largest metropolitan areas losing riders over the past calendar year. Only two metropolitan areas, Seattle, WA (4.1 percent) and Houston, TX (2.3 percent), showed increases in ridership over this time and both agencies have recently completed transit network redesigns that allocated a greater share of operations funding to ridership-purposed routes. Many potential reasons for the national ridership decline have been identified including low gas prices, rising automobile ownership, higher income levels, on-demand services, corporate shuttles, unprecedented weather events, continued suburbanization, the suburbanization of poverty and changing demographics. Nationwide research into these influences is emerging and VTA is following these reports and is evaluating its own data to assess impacts at the local level. Given the recent seismic shift in transit ridership, uncertainty about the cause, and inability to 7.3 Page 9 of 16 predict whether these trends will continue, it would be impractical to project ridership totals as a specific number. Rather, projections for the Final Transit Service Plan are presented in comparison to a scenario where VTA retains the current transit service plan. These projections are developed using VTA’s countywide transportation demand model and do not account for potential changes to demand that may result from changes to VTA’s fare policy, which may include free VTA-to-VTA transfers for Clipper Card users, changes in pricing to the base fare, youth fares, community bus fares and EcoPass. Our analysis projects that the Final Transit Service Plan could potentially result in an increase in transit boardings as follows: A 15 to 20 percent increase in light rail ridership. This is driven by the addition of the Orange Light Rail Line which connects Downtown Mountain View with the Milpitas BART Station and Alum Rock Transit Center at 15-minute all day service. An 8 to 10 percent increase in bus ridership. This is due to the increase in frequent, all-day services, the restructuring of VTA’s network to an interconnected grid and the new connection to BART service. Changes in ridership typically take up to two years to stabilize, though early trends can give an indication as to whether ridership increases are materializing on a system-wide and individual route basis, as shown in the table below. Depending on how ridership changes in the first 6 months, VTA will have a sense for what the eventual ridership changes may be and whether adjustments are necessary. Decreases in ridership immediately after big network changes are common as transit riders adapt to the new service. These decreases can be minimized by information and marketing campaigns. 6 Months 70% of ridership change realized 12 Months 80% of ridership change realized 18 Months 90% of ridership change realized 24 Months 100% of ridership change realized These projections are based on BART providing two lines of service into Santa Clara County. BART’s initial operating plan calls for one of the two lines that currently serve the Fremont BART Station to be extended to the Berryessa BART Station. The second line is expected to be extended in 2018 or 2019. As a result, the impact that new BART service will have on ridership growth may be reduced in the initial 12 to 24 months after BART service begins. Related Efforts and Issues Core Connectivity Fixed route transit service is not always the best mobility solution for every community. As discussed in the Transit Choices Report, some communities will have features that are not supportive of fixed route transit, such as lower land use densities, first/last-mile gaps, an 7.3 Page 10 of 16 environment not designed for pedestrians, or a street grid not conducive to transit access. Such areas of our county have always struggled with poor transit access and low productivity under the one-size-fits-all model of fixed route service. As the industry evolves to acknowledge that fixed route transit is not always the best solution, more flexible models of transit service are emerging as potential solutions to provide better mobility for the residents of these communities. VTA’s Core Connectivity will explore and develop solutions for these areas where fixed route transit may not be the best approach. The 2016 Measure B includes a funding category for “innovative first/last mile solutions.” While a program has yet to be determined by the VTA Board, this funding category could potentially include an on-demand transit service solution. For example, under Core Connectivity, VTA is exploring a pilot, on-demand transportation approach in Almaden Valley. Such a pilot could leverage VTA’s paratransit contractor’s ability to utilize on-demand software and excess capacity on Paratransit vehicles (and potentially a multi-provider service, where VTA software would interface with multiple transportation providers such as paratransit, taxis and on-demand service providers to meet trip demand with the most cost-effective option) to deliver service within this area. The pilot could further serve as a model for on-demand service that could be replicated for other areas in the county to replace unproductive fixed route service. VTA staff is also exploring additional options which may include a senior/municipal shuttle operating subsidy. The Core Connectivity process will engage the VTA Board and committees in exploring the development of a countywide program. The scale of this program would depend on the level of city partnership and how much funding VTA’s Board of Directors allocates for first/last-mile solutions. Fare Policy Review Staff is reviewing VTA’s fare policy within the context of the service redesign objectives of increasing transit ridership and improving farebox recovery. A specific focus is aligning VTA’s fare policy with the design of a transit network that encourages making transfers between routes. VTA’s present policy of charging cash-paying customers each time they board a vehicle discourages transfers. Additionally, staff is evaluating lowering the cost of youth fares, continuing the Transit Assistance Program (TAP) for low income riders, restructuring the Eco pass program, and adjusting the base fare-which VTA has not done since 2009. VTA sought input on the fare policy as part of the Draft Transit Service Plan outreach. Finance staff engaged with the public at all nine VTA-hosted community meetings and sought input on VTA’s fare policy through an online survey which was promoted on the nextnetwork.vta.org microsite, at community meetings, staff presentations and on social media. Staff will present a preliminary fare change proposal at the April 21, 2017 Board Workshop that includes a preliminary Title VI Fare Equity Analysis and summary of revenue impacts from proposed fare changes. Additional community outreach is planned in May and a recommended fare proposal is scheduled for Board adoption in June of 2017. 7.3 Page 11 of 16 Next Steps Implementation Upon adoption of the Final Transit Service Plan, VTA Operations staff will begin the large task of turning a high-level service plan into a finely-tuned schedule that coordinates connections with regional transit services. Drivers will undergo training on the Final Transit Service Plan to ensure familiarity with new or changed routes. Operations staff will also develop vehicle circulation plans for the new transit centers at Milpitas and Berryessa BART Stations. The timing of service changes will largely be dependent upon the start of service to the Milpitas and Berryessa BART Stations which itself is dependent upon construction and systems testing being completed on time. Changes to special school bell-timed service would be timed for summer or winter breaks to minimize disruption in student travel patterns. Information and Marketing Campaign In order to maximize awareness of the service changes, VTA will undertake a robust, multi- lingual information and marketing campaign to promote the new service plan. This campaign will begin in the second half of 2017 with intense promotion in the three months prior to service change implementation. This effort will target Santa Clara County travelers as well as East Bay BART travelers and will consist of print, radio, broadcast TV, cable TV, billboard, and social media advertising. Additionally, VTA will use its own resources to promote the service including: vehicle wraps, shelter posters, car cards, in-vehicle printed collateral, and promotion through the WiFi splash page. A multi-lingual microsite will allow riders to explore the new service plan and compare their trips in the current and future networks. VTA’s operators and customer service representatives will receive training and VTA staff will serve as in-person ambassadors at transit centers providing information in the opening days of service. New Transit System Map and Route Timeguides Following the adoption of the Final Transit Service Plan, VTA will redesign its transit system map and route timeguides to make them easier to use and more useful. The redesigned system map will focus on frequency rather than service classes, as the current map does. The redesigned timeguides will feature more useful maps that can serve as a resource during trip planning, travel and after disembarking the bus or train. These changes follow national design trends as well as a recommendation from JWA regarding how to reduce information barriers to transit ridership. Express Bus Study Following adoption of the Final Transit Service Plan, VTA staff will undertake a study of Express Bus routes, which are peak-period routes that are designed to take commuters long distances at high speeds. With the exception of Express Routes 120, 140, 180 and 181 which currently serve the Fremont BART Station, VTA has excluded changes to express routes from the Final Transit Service Plan. The Express Bus Study will evaluate whether changes should be made to those routes, or new ones added given the new transit network and changes in travel 7.3 Page 12 of 16 demand since the last Express Bus Plan was developed in 2011. FISCAL IMPACT: At the November 18, 2016 Board Workshop, VTA’s Board of Directors endorsed the staff recommendation to return with a Draft Transit Service Plan that employed an 85/15 ridership/coverage plan that was service hour neutral, meaning it would reflect the same number of hours of service being provided. Bus Service Although 1,595,000 bus service hours were budgeted in FY17, the actual service hours for FY17 are projected to be 1,499,000 due to a number of planned service changes that were put on hold pending the finalization of the Next Network process. The budgeted service hours for FY18 and FY19 include the 102,000 service hours that were deferred in FY17, resulting in an increase in cost of approximately $12 million per year. Light Rail Service For light rail service, a combination of the proposed Orange Line service (Alum Rock to Mountain View) and the increase in mid-day frequency on the Green Line (Winchester to Old Ironsides) is expected to increase service hours by 38,000 and operating expenses by approximately $11 million per year. Approaches to accommodating these increases in costs could include revenue from projected increases in ridership generated by the proposed service revisions, changes to fare structure, potential increased ridership as a result of Transit Oriented Development, and use of the 2016 Measure B Transit Operations program. The budgetary impacts of these proposed changes will be reflected in the Proposed FY18 and FY19 Transit Fund Operating Budget. ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION: The Technical Advisory Committee considered this item on April 12 and many committee members expressed appreciation to VTA staff for their robust outreach efforts and discussions with city staff. A majority of committee members expressed a strong desire to partner with VTA to use 2016 Measure B Transit Operations Innovative First/Last-Mile Service Models program funds to implement new mobility solutions in their communities; however nearly all expressed concern about the timeline and requested VTA accelerate the program's development so that the services could be in place in time for implementation of the new fixed route network when BART opens. Committee members had the following additional comments and questions: 1) clarification that school-oriented service will continue; 2) asked for clarification on proposed service near the Sunnyvale Civic Center; 3) asked for clarification on the request to provide new service between Foothill and De Anza colleges; 4) expressed concern for the cost of the paratransit premium-zone service; 5) expressed concern about the loss of Route 88 in Palo Alto; 6) asked if service information will be published to 511.org; 7) requested BART ridership information at stations; 8) announced that Gilroy and Morgan Hill are discussing a partnership and will make a formal request to partner with VTA to provide some kind of senior mobility service under the 2016 Measure B Transit Operations Innovative First/Last-Mile Service Models program. Staff answered 1) yes, school service will continue; 6) yes, schedule will be published 7.3 Page 13 of 16 to 511.org. The committee voted 14-to-1 to recommend approval of the final transit service plan and to recommend that VTA lead the development of a 2016 Measure B countywide program to identify gaps in the transit market and offer solutions which could be implemented prior to implementation of the new transit network. The Citizens Advisory Committee considered this item on April 12 and commended staff for excellent depth of analysis and explanatory materials. Committee members had the following questions or comments: 1) asked about construction-related impacts on the Rapid 500 on Santa Clara Street when BART Phase 2 work occurs; 2) expressed concern for SJSU riders having to walk a block to Rapid 500; 3) expressed appreciation that paratransit users were considered and impacts minimized; 4) asked for clarification on the 2016 Measure B Transit Operations Innovative First/Last-Mile Service Models program; 5) asked why VTA ridership has been declining; 6) expressed concern for loss of Express 120 service for Fremont residents; 7) liked the strategy to simplify the classes of transit service; 8) asked for clarification regarding proposed Morgan Hill service; 9) expressed appreciation for staff's detailed work and the Board packet attachments; 10) asked if Route 65 could be improved to 30-minute frequency; 11) liked the move to an all-day transit network; 12) relayed that a member of the community has a number of concerns about the plan, expressed in an email to the committee member; 13) asked about service for the airport and Levi's/Avaya stadium events; 14) expressed eager anticipation for the forthcoming Express Bus study; 15) understood the need to discontinue some Gilroy service because of low ridership, explained very well in the supporting materials; 16) expressed appreciation for staff's consideration of the paratransit impacts, which have been greatly minimized in the final plan; 17) asked staff to make sure routes coordinate with SJSU class schedules; 18) appreciate staff meeting with DASH stakeholders. Staff answered 1) BART Phase 2 construction will have impacts that will be dealt with at the appropriate time; 2) staff met with SJSU and the walk distance is not the primary concern for SJSU riders; 5) a new group of VTA senior staff has been convened to examine the research into why transit usage is falling across the country; 10) Route 65 was proposed for elimination in the draft plan and the final plan proposes a restoration at a lower service level to better match the demand for service; 13) the Orange light rail line will provide a BART connection to Levi's stadium for events, and Route 60 will provide more connections to Avaya stadium, though VTA will continue to provide special event service where necessary; 17) schedules will be coordinated to SJSU class times where appropriate and possible. The committee unanimously voted to recommend approval of the final transit service plan. The Bicycle and Pedestrian Advisory Committee considered this item on April 12 and expressed great appreciation to staff for their extensive outreach and the high quality and breadth of the memo and the supporting materials. Committee members had the following comments or questions: 1) like the increased service level on Route 57 and 60; 2) like the extension of the Route 60 from Winchester to the airport and then Milpitas BART; 3) look forward the discussion of adding additional service to the plan's transit network using forthcoming 2016 Measure B Transit Operations Core Bus Network funds. The committee unanimously voted to recommend approval of the final transit service plan. The Committee for Transportation Mobility and Accessibility considered this item on April 13 and thanked staff for "hitting the mark" on the plan, particularly the process of listening to concerns and revising the draft plan accordingly. Committee members had the following 7.3 Page 14 of 16 comments or questions: 1) appreciated the plan's webinars; 2) asked staff to clarify the 2-year ridership maturation projection; 3) expressed concern about the loss of service along Route 54; 4) expressed difficulty in keeping up with transit schedule changes every 3 months; 5) asked about the timing of renumbering Route 81 to 51; 6) asked for clarification of the final plan's proposal for Almaden Valley; 7) asked if VTA could use smaller buses in areas of lower ridership; 8) asked staff to clarify the proposal for Route 200 and 62; and 9) relayed recent student and rider concerns about safety on light rail. Staff will investigate safety concerns and follow up with the committee member. The committee unanimously voted to recommend approval of the final transit service plan. The Policy Advisory Committee considered this item on April 13 and expressed unanimous appreciation to staff for the "phenomenal" and broad outreach effort. Committee members had the following comments or questions: 1) when will we see results of the forthcoming Express Bus Study? 2) asked for clarification of the paratransit impacts in Alameda County; 3) asked if staff can accelerate the 2016 Measure B Transit Operations Innovative First/Last-Mile Service Models program; 4) expressed concern regarding the industry's recent ridership declines; 5) clarified that the proposed final plan does not yet include Measure B Transit Operations Core Network Improvements funds; 6) asked if VTA has ever partnered with, or would be willing to in the future, local municipalities to provide a cooperative shuttle/small bus transit service for areas left unserved by VTA's big buses; 7) expressed concern for the high paratransit fare for premium-zone trips, particularly in Morgan Hill; 8) look forward to exploring 2016 Measure B Transit Operations Innovative First/Last-Mile Service Models program to reduce school congestion, perhaps similar to Contra Costa County's Traffix model; 9) appreciate the multilingual outreach and outreach to communities of concern like East San Jose; 10) understood the need to discontinue some very unproductive routes, such as Route 17 in Gilroy, even though the decisions are difficult, and feel like staff did an excellent job listening to the concerns, considering ways to address them, looking at all the data, and writing a detailed explanation of decisions that covered every concern point-by-point. Staff replied 1) the Express Bus study will likely begin later this year and conclude in 2018; 6) VTA will explore potential partnerships for cooperative service under the 2016 Measure B Transit Operations Innovative First/Last-Mile Service Models program. The committee unanimously voted to recommend approval of the final transit service plan. The Congestion Management Program & Planning Committee considered this item on April 20 and expressed appreciation to staff for the extensive outreach efforts and for revising the plan to incorporate community feedback. Committee members had the following comments or questions: 1) agreed with a public comment that there should be more robust ongoing reporting of ridership once the plan is implemented, including a comparison back to multiple previous years instead of just the single previous year; 2) asked if there is a way to "grandfather in" the 2 impacted paratransit users; 3) asked VTA to expedite the Measure B Transit Operations discussions so that those resources can be used to serve new markets; 4) asked about the paratransit impacts in Alameda County; 5) asked if VTA will provide an online trip planning feature in advance of the new service and when; 6) asked that the new Route 60 continue to prominently advertise the route as service to the airport; 7) asked that Route 60 signage at the airport advertise that riders can board at the airport for free and that it goes to the BART station; 8) asked VTA to provide WiFi onboard Route 60. Staff responded to questions: 2) it may be possible to "grandfather in" the two impacted riders, though this is a departure from our existing 7.3 Page 15 of 16 paratransit policy that the Board would have to consider; 4) VTA currently provides paratransit service in Alameda County due to Express Routes 120, 140, 180, and 181, and in the proposed plan these paratransit users would be covered by East Bay Paratransit; 5) yes, VTA will provide an interactive trip planning feature on its website approximately 60 days prior to the launch of service. The committee unanimously voted to recommend approval of the final transit service plan. The Administration & Finance Committee considered this item on April 20 and had extended discussion of the need to be "disciplined" in our approach to allocating money for transit service, including an honest discussion of whether we need to reduce the total amount of service provided, given our budget reality, and also as the community and Board considers possible uses of Measure B Transit Operations funds, where the appetite for Measure B money will probably greatly exceed the amount of funds available. In addition to universal appreciation for staff's community engagement efforts and collaboration with city staff, committee members had the following comments or questions: 1) asked what the timeline will be for consideration of Measure B Transit Operations funds; 2) asked if staff know what a service plan with fewer total service hours (a reduction from 1.6 to 1.4 million annual hours, for example) would look like, given VTA's financial situation; 3) appreciate that the plan is forward-thinking and bold, even after extensive engagement with the community; 4) asked why Route 77 exists, since it seems to duplicate BART service between Milpitas and Berryessa stations; 5) expressed a desire to make sure cities are invested in the success of any on-demand pilots we implement; 6) asked staff to carefully consider the price (fare) of any on-demand services that we may provide; 7) asked if staff will do anything new and different to market the new service; 8) asked staff to show the full Board the map of areas where service will go away; 9) asked staff to show a linear chart of ridership history and the expected trend in the future, to set expectations for policy makers; 10) expressed that staff should not be compelled to make any service proposals that we don't think will work in order to avoid difficult decisions; 11) asked for clarification on timing of the final plan versus the budget; 12) asked staff to provide more robust and easier to understand ridership/performance reports on a regular basis. Staff responded to questions: 1) Measure B Transit Operations will be discussed at the April 21 Board Workshop and the June Board meeting; 2) no, staff has not considered or modeled a service plan that includes a reduction of total service hours; 4) Route 77 will provide an important connection between East San Jose residential areas and Milpitas job centers, not necessarily related to the BART service itself; 7) yes, VTA will provide an interactive trip planning feature on its website approximately 60 days prior to the launch of service; 11) the final plan will be considered in early May and the budget considered in June. The committee unanimously voted to recommend approval of the final transit service plan. The Safety, Security, and Transit Planning and Operations Committee considered this item on April 21 and had the following questions or comments: 1) asked if staff will coordinate schedules with BART and Caltrain; 2) asked how many existing riders would lose access to transit; 3) asked if staff has an alternative strategy to serve areas with routes that cost upwards of $15 per passenger; 4) asked if staff will do a transit marketing campaign for the Next Network; 5) advocated for an easier-to-use transit map and transit trip planning apps; 6) encourage more real-time information at stops; 7) encouraged by the very few paratransit riders impacted by the plan; 8) expressed that the Core Connectivity project timeline should be aligned with the Next Network plan; 9) asked for more information on the price elasticity of transit demand; 10) 7.3 Page 16 of 16 expressed a concern about the use of Measure B Transit Operations resources; 11) asked that capital expenditures focus on maintaining VTA's capital assets; 12) asked staff to investigate moving forward the fare increase by 6 months in order to isolate the impacts from the Next Network impacts. Staff responded to questions: 1) yes, staff coordinate schedules with Caltrain and BART where possible and will continue to do so; 2) less than 0.5% of today's riders would lose access to transit; 3) VTA's Core Connectivity program is exploring alternative mobility options for difficult-to-serve areas; 4) yes, VTA will conduct a major marketing effort for the rollout of the Next Network plan. The committee unanimously voted to recommend approval of the final transit service plan. Prepared by: Adam Burger Memo No. 5897 ATTACHMENTS: Attachment A - Current Transit Service Plan (PDF) Attachment B - Phase II Outreach Summary (PDF) Attachment C - Final Transit Service Plan Maps - Frequency Table - Light Rail System Map - Service Profile (PDF) Attachment D - Route by Route List of Changes (PDF) Attachment E - Changes from Draft Plan to Final Plan (PDF) Attachment F - Paratransit Service Impacts (PDF) Attachment G - Board VTA Service Equity Analysis Full Report (PDF) 7.3 m o n t e r e y se n t e r tully w h i t e curtner hillsdale sara t o g a sa r a t o g a - s u n n y v a l e gr a n t wo l f e homestead reed ho l l e n b e c k ma r y stevens creek m c l a u g h l i n mckee alum r o c k hostetter la f a y e t t e qu i t o sa n a n t o n i o arastrad er o al m a evelyn sp r i n g e r fremont ma t h i l d a sara t o g a wi n c h e s t e r blossom hill aborn calaveras abel milpitas mccarthy lande s s m eridi an me r i d i a n campbell hamilton williams prospect allendale stellin g parkmoor fruitdale will o w k e y e s ba s c o m alma d e n hillsdale capitol snell senter kiely co t t l e guad alu p e bascom el camino real university mid dlefi eld californ i a hano ver fo o t h ill h ilview el monte fabian rengst orff miramon te shoreline m offett central maude java duane arques ta sman great america n bowers monroe el camino real lawren ce a g n e w m o ntague 1 s t scott 1st lick mill d e la cr uzaldo l a f e yette mission san toma s bent o n california bernardo remington de a nz a sun n y vale-sar atoga tantau bollinger pollard hacienda santa cruz winchester main los gatos samaritan union leigh lo s g atos almaden c a m d e n camden crow n harry santa teresa via del oro silver leaf branham winfield roed e r y erb a buena c a pit o l quimby murillo delta san felipe the villages kin g storysanta clar ajulian ocala jacks o n kirk t o y o n pie d m o n t tem ple park vic t oria m orril l cro p ley o a kla n d l u n d y bro ka w berryessa m a bury naglee ta ylor h e d di ng coleman e sc u ela flickin g er monterey santa teresa fair o aks homer 101101 101101 101101 280 280 680 880 880 280 237 237 85 85 85 102 101 102 102 102 101 328 328 102 168 182 328 328 328 328 103 102 330 330 330 330 330 101 328 101 328 102 103 182 102 103 182 120 104 104 104 120 104 120 200 122 122 321 321 330140140 330 104 120 104 120 168 182 121 121 121 121 168 168 121 182 328 328 121 122 103 103 103 103 104 104 104 304 304 304 304 122 122 304 304122 304 304 122 328 122200 104 182 103182 103 182 182 104 102 102 103 182 102 103 104 200 200 304 328 102 104 168 48 49 48 53 37 37 13 13 39 51 51 53 53 51 5134 34 88 88 88 88 58 58 58 58 45 46 46 48 48 58 53 58 58 37 3749 49 13 71 71 71 71 25 26 26 82 64 64 64 6463 63 63 65 65 27 27 61 61 61 62 62 26 26 2626 27 26 26 26 26 81 81 57 57 57 57 57 57 60 60 60 32 32 32 252525 25 61 62 62 54 55 40 52 40 52 89 89 35 40 32 35 32 32 54 26 26 55 55 60 60 81 81 828282 31 31 27 27 42 62 61 180 180 81 54 55 27 65 42 42 42 42 82 63 65 61 62 61 71 180 61 62 47 47 180 180 47 180 180 55 55 25 37 37 37 89 27 63 77 77 66 66 66 66 77 77 66 73 66 68 68 68 66 68 73 68 68 73 73 77 70 70 70 72 22 70 22 72 70 70 70 72 72 70 22 22 22 22 22 2323 72 10 23 181 181 181 181 10 64 25 25 25 25 522 522 522 522 522 522 71 25 via 168 61 62 evelynevelyn mm 34 32 328 25 uuniver sa r a t o g a - s u n n y v a l e 88 102 n10 10 EASTRIDGE ALUM ROCK GREAT MALL / MAIN SANTA TERESA WINCHESTER VALLEY FAIR LOCKHEED MARTIN SUNNYVALE MOUNTAIN VIEW MISSION COLLEGE SCV MEDICALCENTER DIRIDON BERRYESSA PALO ALTO WEST VALLEY SAN ANTONIO FOOTHILL COLLEGE DE ANZACOLLEGE SAN JOSEAIRPORT SANTA CLARA EVERGREENCOLLEGE SNELL COTTLE SUPERIOR COURT SANTA CLARA PASEO DE SAN ANTONIOCONVENTION CENTER REAM W O O D MIDD L E F I E L D FAIR O AK S OLD IRO N S I D E S METRO/AIRPORT MON T A G U E FRUITDALE RACE ST TAMIEN CURTNER BORR E G A S CRO S S M A N CHA M P I O N TASMAN CRO P L E Y I-8 8 0 / M ILPI T A S CAPITOL ALMADEN OAKRIDGE OHLONE/CHYNOWETH HOST E T T E R BLOSSOM HILL BRANHAM BAYP O I N T E W HIS M A N GREA T AMER I C A LICK M ILL RIVER OAKS ORCHARD CIVIC CENTER VIEN N A VIRGINIA BONAVENTURA COMPONENT GISH MOF F E T T PARKBAYS H O R E CISC O W AY JAPANTOWN KARINA DOWNTOWN CAMPBELL HAMILTON BASCOM BERR Y E S S A MCKEE PEN I T E N C I A San Jose Milpitas Palo Alto Sunnyvale Cupertino MountainView Campbell Saratoga Los Gatos Santa Clara 0 1 2 3 4 mi outside Santa Clara County natural area Caltrain / ACE commuter rail Other Transit Services TC VTA Transit Center VTA light rail Peak only Every 60 minutes or worse Every 30-59 minutes Every 15 minutes or better Rapid: every 15 minutes and limited stops VTA Route Midday Frequencies VTAEXISTING NETWORK (70% RIDERSHIP GOAL, 30% COVERAGE GOAL) Every 20 minutes m ainhale dunn e m o n t ere y 1st 6th 8th montere y welburn princ e vall e sant a tere sa thomas m a nnt elli miur ray s a n y sidro arr oyo 10th co chrane p eebles elm mis s i o n vie w half burnett wren 3rd kern 101101 101101 168 121 168 121 168 121 18 18 16 16 19 19 68 68 68 MAIN & HALE mainhale dunn e m o n t ere y 1st 6th 8th montere y welbur n princ e vall e sant a tere sa thomas m a nn telli miur ray s a n y sidro arr oyo 1 0 th cochrane peebles elm mis s i o n vie w half burnett wren 3rd kern 101101 101101 168 121 168 121 168 121 18 18 16 16 19 19 68 68 68 MAIN & HALE Morgan Hill Service Gilroy Service 04/19/2016 Attachment A7.3.a Attachment B – Phase II Outreach Summary 1 Attachment B – Phase II Outreach Summary In January and February of 2017, VTA conducted a community engagement campaign that featured several community meetings, presentations, marketing, media coverage and outreach through businesses, community organizations and Title VI groups among others. The following lists summarize the Phase II outreach campaign. External Engagement 2,500+ incoming public comments collected via phone, e‐mail and specialized microsite https://nextnetwork.vta.org Nine public meetings held thus far resulted in: o Average attendance = 46; o Total attendance = 421 16 videos (2 live streamed meetings, 5 geographically‐focused webinars, 8 college‐focused videos) – key metrics include: o 4,300 views o 111 live viewers o 25,700 hours of watch time o 250 comments o 45 thumbs‐up and 75 shares Countywide Title 6 mailing to 150 organizations Targeted South County Title 6 mailing to 80 organizations Community presentations include: Saratoga Senior Center, SJ District 1 Leadership Council, SPUR, Transform, Gunn High School PTA, Cupertino Chamber of Commerce, Hope Services, Centennial Recreation Senior Center (Morgan Hill), Traffic Safe Communities Network among others Outreach to Community Based Organizations, offering presentations/literature for distribution Educational Institution Transit Fairs: San Jose State, De Anza, SCU, City College Street Team ambassadors deployed in the field at major transit hubs for 10 days; reach was over 3,300 individuals. Marketing Collateral Car cards translated in 5 languages on all vehicles Proposed discontinued route flyers distributed on affected bus lines Bus Stop signage at proposed deleted stations Light Rail Station and Bus Shelter Posters Passenger Information Message Signs on light rail platforms Bus Bench Ads Special Take Ones (passenger newsletter translated in 5 languages with proposed service map) on board buses and at major literature distribution points Two rounds of print newspaper ads in 24 publications targeting community and minority publications including: San Jose Mercury News, Silicon Valley Community Newspapers, Metro Newspapers, Gilroy Dispatch/Morgan Hill Times, El Observador, News for Chinese, Philippine 7.3.b Attachment B – Phase II Outreach Summary 2 News, Korea Daily, Thoi Bao/Vietnam Daily News, Palo Alto Daily Newspaper, Santa Clara Weekly, Evergreen/Almaden Times Aggressive social media (Twitter, Facebook, Gov Delivery, Next Door) campaign promoting meetings and webinars Digital/Others Wi Fi Splash Page directing riders to https://nextnetwork.vta.org Spanish language radio advertisements (KRZZ) Pandora Ads (targeted to Santa Clara County) Digital Display Ads (targeted to Santa Clara County) Eco Pass email blast Targeted email blast to North San Jose employers and to employers along the Express 185 route Media Coverage 27 stories about VTA's Next Network appeared as follows: o 1/5/17 Jeannie Bruin's OpEd in SJ Mercury News, Palo Alto Weekly, Mountain View Voice o 1/6/17 SJ Mercury News and Morgan Hill Times o 1/9/17 SJ Mercury News, Biz Journal and KPIX Ch. 5 CBS o 1/10/17 SF Bay.com o 1/13/17 Biz Journal, SJ Mercury News and KNTV Ch. 3 NBC o 1/14‐17/17 Milpitas Post and Saratoga Patch o 1/25/17 Palo Alto Weekly o 1/26/17 San Jose Mercury News and San Jose Blog o 2/6/17 San Jose Mercury News and Gun High School Oracle Newspaper o 2/7/17 Mountain View Voice o 2/8/17 Los Altos Town Crier o 2/13/17 South Comm Business Media o 2/15/17 San Jose Mercury News o 2/21/17 San Jose Mercury News (Roadshow) San Jose Mercury News (Herhold) o 2/21/17 Gilroy Dispatch o 2/27/17 San Jose Mercury News All main broadcast outlets were contacted resulting in stories or mentions as follows: o KNTV Ch.3, KTVU Ch.2, KPIX Ch. 5, KGO TV Ch. 7, KRON Ch. 4, Univision KDTV Ch. 14 and Telemundo KSTS Ch.48 (no story) KCBS (interview and story) Eight Headways featured blog articles about: Next Network Outreach effort, fare policy, status update, public input so far, video on how the draft plan would affect services to colleges, VTA’s Street Team, the last public meeting night and the later release of the final plan; distributed through email, monthly newsletter and on all social media channels. Potential Stories Pending: We held media interviews on 2/21/17 with San Jose State University Update Television News, on 3/8/17 with San Jose News Group, and on 3/9/17 with San Jose Spartan Daily Outreach thru Business Development Partnerships: Nate Donato‐Weinstein: City San Jose Economic Development o Newsletter/first of the month 7.3.b Attachment B – Phase II Outreach Summary 3 Rahul Chandhok, 49ers o Newsletter o Emails/follow up in person meetings Alex Sanchez: ROEM developments John Boslet: Irvine developments Sharon Fredlund: BOMA o Newsletter Derrick Seaver: Silicon Valley Chamber/Organization Chris O’Connor/Matt Quevedo: SVLeadershipGroup Moffett, Mountain View, Stanford TMAs Economic Development Directors: Milpitas, Santa Clara, Sunnyvale, Mountain View Larry Carr: Joint Venture SV Outreach to “Neighbors” in North 1st/Tasman/Montague/Brokaw: Glen Hendricks/PayPal Serena Poon/SV Bank Ali Ahmed: Cisco Dan Poritzky/Shawn Williams: LeEco Paula Kutansky‐Brown: Next EV/NIO NXP Mike Jones: Cadence Dave Hendrickson: Oracle Michael Strle: Great Mall Rawley Bushman/Karin Hughes: Samsung Nerissa Flanderz: Infinitysolutions Applied Materials Fujitsu Michael Alba/Danielle Glaser: LinkedIn Ryan Kauffman: Apple Terry Smith: Microsoft Downtown Residential/Downtown Association Westfield Valley Fair: Scot Vallee Outreach to Title VI Organizations Chi Am Circle Inc Dalai Lama Foundation Bread Of Life Evangelistic Walls of Faith Ministries Homeless Veterans Emergency Housing Facility Congregation Beth Am Reform Addison‐Penzak Jewish Community Center San Jose/Silicon Valley NAACP John Stott Ministries Sri Satya Narayana Swamy Devasthanam International New Wave Ministries 7.3.b Attachment B – Phase II Outreach Summary 4 Correctional Institutions Chaplaincy ROCK of Salvation Church Christian Worship Center San Jose Christian Assembly North Valley Christian Fellowship Crosspoint Chinese Church Of Silicon Valley Bridgeway Church Good Shepherd Community Church BuddhistTzu Chi Medical Foundation Brahma Kumaris Silicon Valley Pakistani American Culture Center Baha'i Faith of Palo Alto Saint Vincent De Paul Project Victory Grace Lutheran Church E L C A Russian Orthodox Church Hall Native TANF Program Afghan Islamic Association African American Community Services American Indian Education Center Arab American Congress Asian Americans for Community Involvement: AAIC Assyrian American Association of San Jose California Italian‐American Casa Do Benfica Castellano Family Foundation Center of Spiritual Enlightenment Chinese American Chamber of Commerce Hispanic Chamber of Commerce Mekong Community Center Mexican Heritage Corporation Mexican Heritage Plaza National Council of Negro Women National Latino Peace Officers Association Portuguese Athletic Club Portuguese Community Center Rahima Foundation San Jose Cambodian Buddhist Society San Jose Firefighters IAFF Local 230 Santa Clara County Black Firefighters Association Society of Hispanic Professional Engineers Silicon Valley Somos Mayfair South Bay Japanese Community Taiwanese American Center Unique Zan Foundation Ujima Adult & Family Services 7.3.b Attachment B – Phase II Outreach Summary 5 Viet‐American Cultural Foundation (vietacf) George Shirakawa Community Center Vietnamese American Community of Northern California Vietnamese American Council Vietnamese Cultural Association Inc of Santa Clara County Vietnamese Voluntary Foundation Washoe Tribe of Nevada & California California Israel Chamber of Commerce VIVE CHURCH Sanatana Dharma Kendra Unidos De Jesucristo SIREN (Services Immigrant Rights and Education Network) Council on American‐Islamic Relations CAIR California Youth Chinese Symphony Multi‐Cultural Center MCC (Santa Clara University) Silicon Valley Chao Chow Community Center of San Jose Glad Tidings Christian Chinese Rainbow Chamber Silicon Valley South Bay Church ‐ North San Jose Campus WestGate Church ‐ Saratoga Campus South Bay Church ‐ Sunnyvale Campus Full Gospel Korean Assembly Chung Tai Zen Center Of Sunnyvale Sunnyvale Presbyterian Church Sacred Logos Resource Center‐Sagos Christian Leadership Institute Korean Peresbyterian Church San Jose Triumphant Life Center Catholic Academy Resurrection Catholic Church Intersection Teen Ministry Oshman Family Jewish Community Center Balaji Temple Arab American Congress of Silicon Valley China Silicon Valley Association Chinese Community Center Chinese Seniors Club of Santa Clara Valley Chinese Software Professionals Association Eritrean Community In Santa Clara County Ethiopian Bay Area Muslims Assoc Ethiopian Community Services Fiesta Educativa Sur De La Bahia Filipino American Chamber of Commerce Filipino Youth Coalition German American Club Grupo De Carnaval Cultural Portugues De Sao Jose 7.3.b Attachment B – Phase II Outreach Summary 6 Hindu Temple & Community Center Hip Sen Association Hispanic Development Corporation Hispanic Foundation of Silicon Valley International Children Assistance Network (ICAN) Islamic Circle of North America (ICNA) Bay Area India Community Center International Hispanic Network Italian American Heritage Foundation Italian Mens Club Japantown Business Association Jewish Family Services Silicon Valley Jewish Family & Children's Services Jewish Federation of Silicon Valley Hillel of Silicon Valley Community Child Care Council Community Child Care Council Khmer Kampuchean Krom Buddhist Northside Community Center Korean American Community Services La Raza Roundtable de California Latinas Contra Cancer Little Italy San Jose Los Bomberos of Northern California Los Fundadores, the Founders and Friends of Santa Clara County Macla/Movimiento De Arte Y Cultura Latino Americana MACSA Youth Center Pars Equality Center Santa Clara Woman's Club Adobe Sociedade Filarmonica Uniao Popular Silicon Valley Black Chamber of Commerce Buddhist Compassion Relief Tzu Chi Foundation Evergreen Valley College San Jose City College 7.3.b Attachment B – Phase II Outreach Summary 7 Draft Transit Service Plan Presentations January 4 Tailgate at North Bus Yard Presentation: TransForm January 5 Tailgate at Chaboya Bus Yard VTA Board Meeting – Release of Draft Plan January 7 Joint Workforce Investment (VTA bus driver mentorship program) January 9 Tailgate at Cerone Bus Yard City of Morgan Hill Staff Briefing January 11 Presentation: VTA Technical Advisory Committee Presentation: VTA Citizens Advisory Committee Presentation: VTA Bicycle and Pedestrian Advisory Committee Community Meeting: Downtown San Jose January 12 Meeting: Palo Alto/Gunn High School Parent Teacher Students Association Presentation: VTA Committee for Transportation Mobility and Accessibility Meeting: Amalgamated Transit Union Leadership Presentation: VTA Policy Advisory Committee Community Meeting: Milpitas January 14 Presentation: San Jose District 1 Leadership Group January 17 Presentation: SPUR San Jose Lunch Forum Webinar: Focus on Morgan Hill and Gilroy January 18 City of San Jose Council Office Staff Briefing Community Meeting: Cupertino January 19 Palo Alto/Gunn High School Parent Teacher Students Association Silicon Valley BART Extension Coordination Meeting Community Meeting: Palo Alto City Hall January 23 Presentation: Grand Boulevard Initiative Working Committee City of Sunnyvale Staff Briefing Study Session: Palo Alto City Council Community Meeting: Campbell January 24 Webinar: Focus on South San Jose Presentation: Los Gatos Senior Citizens and Community Services Presentation: Cupertino City Council January 25 VTA Customer Service Briefing Presentation: VTA Administration and Finance Committee Presentation: Saratoga Senior Center Study Session: Morgan Hill City Council 7.3.b Attachment B – Phase II Outreach Summary 8 January 26 VTA Customer Service Briefing Webinar: Focus on West Valley January 30 City of Los Alto Staff Briefing Homeless Veterans Emergency Housing Facility January 31 City of Campbell Staff Briefing Study Session: Sunnyvale City Council February 1 Presentation: VTA Committee for Transit Mobility and Accessibility Presentation: CalWorks Presentation: India Community Center Presentation: Saratoga City Council February 2 Presentation: Mountain View Transit Center Redesign Committee Update: VTA Board of Directors Meeting (GM Report) February 3 Presentation: Cupertino Chamber of Commerce February 6 Community Meeting: Mountain View Presentation: Sunnyvale Library Trustees February 7 Meeting: Palo Alto/Gunn High School Parent Teacher Students Association Webinar: Focus on Palo Alto Presentation: San Jose BART Community Working Group Presentation: Santa Clara City Council February 8 Presentation: VTA Land Use and Transportation Integration Working Group City of Milpitas Staff Briefing Presentation: VTA Technical Advisory Committee Presentation: VTA Citizens Advisory Committee Presentation: VTA Bicycle and Pedestrian Advisory Committee February 9 Presentation: Hope Services Presentation: Traffic Safe Communities Network Presentation: VTA Employee Advisory Committee City of Gilroy Staff Briefing Presentation: VTA Policy Advisory Committee Presentation: Santa Clara BART Community Working Group Presentation: Town of Los Gatos Transportation and Parking Commission Presentation: Santa Clara County Cities Association February 10 San Jose State University Transit Solutions Meeting February 13 Presentation: City of San Jose Green Commute Community Meeting: East San Jose February 14 Presentation: Moffett Park Traffic Management Association 7.3.b Attachment B – Phase II Outreach Summary 9 February 15 Presentation: O’Connor Hospital Seniors Presentation: Morgan Hill Seniors Webinar: Focus on Milpitas and North San Jose Community Meeting: Gilroy February 16 Presentation: Senior Round Table Meeting: District 10 Council Office Presentation: VTA Congestion Management Program and Planning Committee Presentation: VTA Administration and Finance Committee Presentation: VTA Safety, Security and Transit Planning and Operations Committee Community Meeting: South San Jose February 21 Presentation: Silicon Valley Independent Living Center Meeting: Santa Clara University Transportation Administration March 9 Downtown San Jose Business Association, San Jose State University, City of San Jose March 21 Milpitas City Council Presentation March 30 South County Cities 7.3.b m o n t e r e y se n t e r tully w h i t e curtner hillsdale sara t o g a el a v y n n u s - a g o t a r a s tn a r g efl o w homestead reed kc e b n e l l o h ma r y stevens creek m c l a u g h l i n mcke e alum r o c k hostetter la f a y e t t e ot i u q oin o t n a n a s alm a evelyn sp r i n g e r fremont mat h i l d a sara t o g a re t s e h c n i w blossom hill aborn calaveras abel milpitas mccarthy lande s s me r idia n na i d i r e m campbell hamilton williams prospect allendale stellin g parkmoor fruitdale willo w k e y e s ba s c o m a lmad e n hillsdale capitol snell senter kiely co t t l e santa teresa monterey gu a d al u p e bascom el camino real university middlefi eld californ i a hano ver f o ot hill h i lview el monte fabian rengst orff miramon te shoreline moffett central maude java fair oaks duane arques t a sman great america n bowers monroe el camino real lawren ce a g n e w m o ntague 1 s t scott 1st lic k mill d e la cru zaldo la f e yette mission san toma s bent o n california bernardo remington de a nz a sun n y vale-sar atoga tantau bollinger pollard hacienda santa cruz winchester main los gatos samaritan union leigh los g atos almaden c a m d e n camden crow n harry santa teresa via del oro silver leaf branham winfield roed e r y erb a buena c a p ito l quimb y murillo delta san felipe the villages kin g storysanta clarajulian oc ala jackso n pi edm o n t temple pa rk vi c t o ria m o rri l l cr o pl ey o a kla n d lu n d y broka w m a b ury naglee ta ylor coleman e sc u ela berryessa h e d d ing flickin g er homer the ala m e da lin c ol n charlest o n a r a s tr a d e r o 101101 101101 101101 280 280 680 880 880 280 237 237 85 85 85 288 288 288L 288L 288 288M 288M 256 246 246 251 247247 247 255 255 255 266 266 AC217 AC217 39 39 39 37 37 37 37 42 42 42 42 65 65 65 83 83 83 51 51 51 51 51 51 51 89 56 56 21 59 59 59 59 70 70 20 20 20 20 56 59 59 21 21 21 68 66 66 56 21 70 47 47 47 55 55 63 63 63 64 64 27 27 27 27 27 55 55 61 56 56 56 70 2525 25 71 71 71 71 71 71 64 31 31 55 53 5353 53 53 26 26 26 26 52 52 61 61 21 27 55 21 64 40 40 40 40 22 22 61 60 61 61 23 60 60 66 66 73 73 72 72 72 77 23 23 2223 22 22 22 25 25 25 61 22 22 61 26 26 60 60 57 57 57 57 57 57 77 77 77 77 68 64 64 68 68 66 66 66 66 68 66 25 522 522 522 522 523 522 523 522 522 522 523 523 523 523 500 500 ba ba EASTRIDGE ALUM ROCK SANTA TERESA WINCHESTER VALLEY FAIR LOCKHEED MARTIN SUNNYVALE MOUNTAIN VIEW MISSION COLLEGE VALLEY MEDICALCENTER BERRYESSA BART PALO ALTO WEST VALLEY COLLEGE SAN ANTONIO FOOTHILL COLLEGE DE ANZACOLLEGE EVERGREENCOLLEGE SAN JOSEAIRPORT SANTA CLARA KAISER MEDICAL CENTER MILPITAS BART SNELL COTTLE SANTA CLARA REA M W O O D MIDD L E F I E L D FAIR O AKS OLD IRON S I D E S FRUITDALE RACE ST T CURTNER BORR E G A S CROS S M A N CROP L E Y ALDE R CAPITOL ALMADEN OHLONE/CHYNOWETH HOS T E T T E R ST JAMES BAYP O I N T E METRO/AIRPORT ORCHARD CIVIC CENTER DOWNTOWN CAMPBELL BLOSSOM HILL San Jose Milpitas Palo Alto Sunnyvale Cupertino Mountain ViewLos Altos Campbell Saratoga Los Gatos Santa Clara Alviso 0 1 2 3 4 mi AMIEN Other Transit Services Every 60 minutes peak only Every 60 minutes plus 30 minute peak VTA Weekday Route Frequencies FINAL PLAN (83% RIDERSHIP GOAL, 17% COVERAGE GOAL) School trippers Municipal shuttles Every 60 minutes Every 30 minutes peak only Every 30 minutes Every 30 minutes plus 15 minute peak Every 15 minutes or better Rapid: every 15 minutes or better and limited stops VTA light rail TC VTA Transit Center Caltrain / ACE commuter rail natural area outside Santa Clara County Future BART ba 77 m ainhale d unn e m o n te r e y 1st 6th 8th mont erey welb urn prin c e vall e sant a m a nnt elli s a n y sidro arr oyo cochranepeebles elm mis s i o n vie w half burnett wren 3rd kern 101101 101101 87 87 85 85 68 68 68 86 MAIN & HALE 77 ne 1st 6th 8th mont ere y welbur n prin c e vall e sant a tere sa thomas m a nntelli s a n y sidro arr oyo 1 0 th elmhalf wren 3rd kern 101101 85 85 68 86 86 GAVILANCOLLEGE Morgan Hill Service Gilroy Service ba 52352222 23 66 72 73 500 68 63 64 523 52222 23 63 500 66 64 7273 68 64 7365 65 santa c l a r a fir s t se c o n d el e v e n t h t e n t h julian san fer n a n d o san car l o s mo n t g o m e r y se v e n t h 280 87 SJSU m o n t e r e y SANTA CLARA si x t h ST. JAMES SAN ANTONIO CONVENTIONCENTER CHILDREN’SDISCOVERY SAN FERNANDO DIRIDON Downtown San Jose 287 Route 257 terminatesat Monterey Road and San Martin Avenue 287 256 Attachment C7.3.c m o n t e r e y s e n t e r tully w h i t e curtner hillsdale sara t o g a sa r a t o g a - s u n n y v a l e gr a n t wo l f e homestead reed ho l l e n b e c k ma r y stevens creek m c l a u g h l i n mcke e alum r o c k hostetter la f a y e t t e qu i t o sa n a n t o n i o alm a evely n sp r i n g e r fremont mat h i l d a sara t o g a win c h e s t e r blossom hill aborn calaveras abel milpitas mccarthy lande s s mer idi an me r i d i a n campbell hamilton williams prospect allendale stellin g parkmoor fruitdale will o w k e y e s ba s c o m alm ad en hillsdale capitol snell senter kiely co t t l e santa teresa monterey g u a d al u p e bascom el camino real university middlefi eld californ i a hano ver f o o t hill h ilview el monte fabian rengst orff miramon te shoreline m offett central maude java fair o aks duane arques t a sman great america n bowers monroe el camino real lawren ce a g n e w m o ntague 1 s t scott 1st lick mill d e la c r u zaldo la f e yette mission san toma s be n to n california bernardo remington de a nz a sun n y vale-sar atoga tantau bollinger poll ard hacienda santa cruz winchester main los gatos samaritan union leigh l o s g atos almaden c a m d e n camden crown harry santa teresa via del oro silver leaf branham winfield roed e r y er b a buena c a pit o l quimby murillo delta san felipe the villages kin g storysanta cl ar ajulian o cala jacks o n pie d m o n t temple pa rk vic t oria m o rri l l c ro pley o a kla n d lu n d y brokaw m ab ury na glee t a ylor coleman esc u ela berryessa h e d ding flickin ger homer the ala m e d a li n c ol n charlesto n a r a str a d e ro 101101 101101 101101 280 280 680 880 880 280 237 237 85 85 85 AC217 AC217 39 39 39 53 53 61 63 63 63 70 70 31 31 40 40 40 21 40 21 21 21 21 21 61 61 21 26 26 26 56 56 59 59 59 56 59 59 56 47 47 55 55 64 64 27 27 27 27 27 55 56 25 25 71 71 71 64 55 27 64 64 47 25 55 56 56 64 71 71 71 55 26 26 57 57 57 57 57 57 60 60 60 60 60 61 61 61 61 61 66 66 66 68 68 66 66 66 66 66 66 68 68 68 70 70 72 72 73 73 77 77 77 77 500 500 72 77 22 22 23 23 23 22 23 22 22 22 25 25 22 22 25 25 522 522 522 522 523 522 523 522 522 522 523 523 523 523 ba ba EASTRIDGE ALUM ROCK SANTA TERESA WINCHESTER VALLEY FAIR LOCKHEED MARTIN SUNNYVALE MOUNTAIN VIEW MISSION COLLEGE VALLEY MEDICALCENTER BERRYESSABART PALO ALTO WEST VALLEYCOLLEGE SAN ANTONIO FOOTHILL COLLEGE DE ANZACOLLEGE EVERGREENCOLLEGE SAN JOSEAIRPORT SANTA CLARA KAISER MEDICALCENTER MILPITASBART SNELL COTTLE SANTA CLARA REA M W O O D M IDD L E F I E L D FAIR O AK S OLD IRON S I D E S FRUITDALE RACE ST TAMIEN CURTNER BORR E G A S CROS S M A N CROP L E Y ALDE R CAPITOL ALMADEN OHLONE/CHYNOWETH HOS T E T T E R ST JAMES BAYP O I N T E METRO/AIRPORT ORCHARD CIVIC CENTER DOWNTOWN CAMPBELL BLOSSOM HILL San Jose Milpitas Palo Alto Sunnyvale Cupertino MountainViewLos Altos Campbell Saratoga Los Gatos Santa Clara Alviso 0 1 2 3 4 mi Other Transit Services VTA Saturday Route Frequencies Weekend Final Plan (83% ridership goal, 17% coverage goal) Every 30 minutes Every 15 minutes or better Rapid: every 15 minutes or better and limited stops VTA light rail TC VTA Transit Center Caltrain / ACE commuter rail natural area outside Santa Clara County Future BART ba Every 40 - 60 minutes Every 20 minutes 77 m ainh ale dunn e m o n terey 1st 6th 8th monte rey welburn princ e vall e s a n ta te res a thomas m a nnt elli san ysidr o arro y o 10th co chranepeebles elm mis s i on v ie w half burnett wren 3rd kern 101101 101101 85 85 68 68 68 MAIN & HALE GAVILANCOLLEGE 77 mainh ale dunne m o n terey 1st 6th 8th monte rey welbur n princ e v all e s a n ta t e res a thomas m a nn telli san ysidr o arro y o 1 0 th cochranepeebles elm mis s i on vie w half burnett wren 3rd kern 101101 101101 85 85 68 68 68 MAIN & HALE GAVILANCOLLEGE Morgan Hill Service Gilroy Service ba 523 52222 23 66 72 73 500 68 63 523 52222 23 63 500 500 66 64 72 73 68 7364 64 santa c l a r a fir s t s e c o n d el e v e n t h te n t h julian san fer n a n d o san car l o s mo n t g o m e r y 280 87 SJSU m o n t e r e y se v e n t h si x t h ST. JAMES SAN ANTONIO CONVENTIONCENTER CHILDREN’SDISCOVERY SAN FERNANDO DIRIDON SANTA CLARA Downtown San Jose Some routes have small routing and frequency changes on Sundays. Services not shown include: - VTA Express - ACE shuttles - Hwy 17, MST 55, DB Express 03/24/2017 Attachment C7.3.c 26L Curtner – Campbell 51L Saratoga – West Valley College 27 Blossom Hill – Los Gatos 31 Evergreen College 37 Hillsdale – Hacienda – Pollard 40 Foothill College – North Bayshore 42 Monterey – Capitol – Evergreen 47 Calaveras 51 Grant – Moffett 52 Foothill College – Downtown Mtn View 53 Homestead – Sunnyvale 55 Sunnyvale – Saratoga 56 Wolfe – Hamilton 57 Bowers – Saratoga 59 Monroe – Great America – Alviso 60 Winchester – Airport – Brokaw 61 Taylor – Bascom 61L Berryessa 63 Meridian 64 McKee – Julian 64L Lincoln – Almaden 66 Oakland – Monterey – Snell 65 Leigh 66L Main – Abel 68 Monterey 68L Monterey South County 70 Jackson 70L Flickinger – Morril 71 Piedmont – White 72 McLaughlin 73 Senter 83 Almaden 77 King – Lundy 89 California Ave – VA Hospital 39 Quimby – San Felipe 85 Gilroy 86 Gavilan College 87 Morgan Hill 522 El Camino – Alum Rock Rapid 523 Sunnyvale – Stevens Creek – BART Rapid 500 Diridon – BART Rapid Orange Line Green Line Blue Line Purple Line 22 El Camino – Alum Rock 23 Stevens Creek – Alum Rock 25 Story – Willow 25L Williams 26 Tully 20 Sunnyvale – Milpitas G B O P 21 Middlefield BART (Milpitas and Berryessa stations) 87 20 51 42 37 51L 52 65 83 86 87 20 51 42 37 51L 52 53 65 83 89 89 86 87 BART 500 522 523 20 21 22 23 25 25L 26 26L 27 31 31 31 40 47 51 51L 52 53 55 56 57 59 60 61 61L 63 64 64L 65 66 66L 68 68L 70 70L 71 72 73 83 39 42 37 85 86 BART 500 522 523 21 22 23 25 25L 26 26L 27 40 47 53 55 56 57 59 60 61 61L 63 64 64L 66 66L 68 68L 70 70L 71 72 73 39 85 BART 500 522 523 O G B P O G B P O G B P 21 22 23 25 25L 26 26L 27 40 47 55 56 57 59 60 61 61L 63 64 64L 66 66L 68 68L 70 70L 71 72 73 77 77 77 89 39 85 1 212 123 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11pmam am 1 212 123 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11pmam am1 212am ampm123 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 WEEKDAY SATURDAY SUNDAY AM Peak PM Peak AM Peak PM Peak 1 212 123 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11pmam am 1 212 123 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11pmam am1 212am ampm123 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 SERVICE FREQUENCY TABLE FY18-19 Transit Service Plan school and express services not shown FREQUENCY OF SERVICE <15 minute 15minute 20minute 30minute 40-45minute 60minute Attachment C 7.3.c E X P R E S S S E R V I C E Convention Center Ohlone/Chynoweth BlossomHill Snell Oakridge Cottle ALUMROCK SANTATERESAALMADEN MOUNTAINVIEW WINCHESTER San Fernando Children’sDiscoveryMuseum St. James Japantown/Ayer Civic Center River Oaks Tasman Cropley Hostetter Berryessa Penitencia Creek McKee Orchard Bonaventura Component Karina Metro/Airport Gish Milpitas Santa Clara Paseo de San Antonio Virginia Tamien Curtner Race Fruitdale Bascom Hamilton DowntownCampbell Capitol Branham San JoseDiridon OldIronsides Baypointe CiscoWay Alder GreatMall Orange Line Blue Line Green Line Purple Line Yellow Line Light Rail Stations Park and Ride Lot Milpitas BART Station Commuter Rail VTA Light Rail System Ch a m p i o n Lic k M i l l Gre a t A m e r i c a Re a m w o o d Vie n n a Fai r O a k s Cro s s m a n Bo r r e g a s Loc k h e e d M a r t i n Ba y s h o r e / N A S A Wh i s m a n Y P G B O Attachment C 7.3.c ANNUAL SERVICE HOURS FY16-17 APPROVED FINAL PLAN (FY18-19) Local Bus Bus Express Bus Peak Vehicles Special Event Bus School Bus Light Rail 169,367 1,454,338 1,515,789 1,601,277 1,601,277 8,676 7,000 17,883 16,000 120,380 62,488 57 light rail cars 381 buses 67 light rail cars 358 buses Regular Rail Special Event Rail 160,691 8,676 207,124 205,221 1,903 SERVICE BY DAY BUS SERVICE HOURS BY DAY OF WEEK SATURDAYWEEKDAY 5,157hours 2,844hours (55% ofweekday)(46% ofweekday) 2,387hours SUNDAY SATURDAYWEEKDAY 4,845hours 3,273hours (68% ofweekday)(55% ofweekday) 2,674hours SUNDAY FY16-17 APPROVED FINAL PLAN (FY18-19) R I D E RSHIP R I D E RSHIP C O V E R A G E COVERA G E RIDERSHIP–COVERAGE ALLOCATION FY16-17 APPROVED 30% 70%83% 17% LOCAL BUS SERVICE RESOURCES, BY PURPOSE FINAL PLAN (FY18-19) CONNECTING SERVICE AT BART STATIONS FREQUENT ROUTES routes with weekday frequency of every 15 minutes or better all day 70 Jackson 72 McLaughlin 73 Senter 66 Oakland – Monterey – Snell 68 Monterey Highway 61 Taylor – Bascom 60 Winchester – Airport – Brokaw 57 Bowers – Saratoga 77 King – Lundy 64 McKee – Julian 23 Stevens Creek – Santa Clara – Alum Rock 22 El Camino – Santa Clara – Alum Rock 26 Tully 25 Story 500 Diridon – BART Rapid 522 El Camino – Santa Clara – Alum Rock Rapid 523 Sunnyvale – Stevens Creek – BART Rapid LIGHT RAIL ORANGELINE LIGHT RAIL BLUELINE LIGHT RAIL PURPLELINE LIGHT RAIL GREENLINE entire light rail system is frequent all day on weekdays VEHICLES IN SERVICE BY HOUR WEEKDAY BUSES IN SERVICE BY HOUR, ESTIMATED 12AM 50 100 150 200 Bu s e s i n S e r v i c e 250 300 350 400 1AM 2AM 3AM 4AM 5AM 6AM 7AM 8AM 9AM 10AM 11AM 12PM 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM 10PM 11PM FY16-17 (TODAY) FINAL PLAN (FY18-19) CLASSES OF SERVICE 4ROUTES+EXPRESS 3ROUTES 23ROUTES 9ROUTES 14ROUTES SERVICE PROFILE FY18-19 Transit Service Plan Attachment C7.3.c Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span Frequency 10 Metro/Airport LRT Station - Santa Clara Transit Center Combine with new Route 60, which would connect Mineta San Jose Airport to Milpitas BART Station, Santa Clara Caltrain Station, Valley Fair, Santana Row and Downtown Campbell; improve weekend frequency. 12 Eastridge Transit Center - San Jose Civic Center Discontinue; current riders may use revised Route 61 or Route 77. 13 Ohlone/Chynoweth LRT Station - Almaden/McKean Replace with new Route 83. 14 Gilroy Transit Center - St. Louise Hospital Replace with new Route 85, which would serve Route 14 destinations and other areas of Gilroy; reduce weekday frequency. 16 Morgan Hill Civic Center - Burnett Avenue Renumber to Route 87; service retained on an interim basis until a more effective flexible transit service can be implemented. 17 Gilroy Transit Center - St. Louise Hospital Discontinue due to low ridership; some riders may use Route 85. 18 Gavilan College - Gilory Transit Center Renumber to Route 86; increase frequency on weekdays. 19 Gilroy Transit Center - Wren and Mantelli Replace with new Route 85, which would serve Route 19 destinations and other areas of Gilroy; decrease weekday frequency. 20 Sunnyvale - North San Jose - Milpitas Create new Route 20 that would connect Milpitas BART Station, Mission College, Santa Clara Square and Downtown Sunnyvale; new Route 20 would provide service to areas currently served during commute periods by parts of Routes 58, 321 and 304. Local 5:30a - 10:00p 15 min 30 min ————The draft plan proposed the route end at Mountain View, but in the final plan the route would end in Sunnyvale. 21 Middlefield Create new Route 21 that would connect Palo Alto, San Antonio Transit Center, Mountain View, Sunnyvale and Santa Clara Transit Ctr (Sunday service would only operate between Stanford Shopping Center and Mountain View); new Route 21 would replace current Routes 32 and 35. Local 5:30a - 10:00p 30 min 30 min 8:00a - 8:00p 45 min 9:00a - 8:00p 60 min Minor alignment changes to serve San Antonio Circle in Mountain View and Lytton/Hamilton in Palo Alto (pending street improvements). 22 El Camino - Santa Clara - Alum Rock Decrease weekday frequency; increase frequency on Rapid 522 (to be implemented in April 2017).P Frequent 24 hours 15 min 15 min 24 hours 15 min 24 hours 15 min 23 Stevens Creek - Alum Rock Decrease weekday frequency; modify alignment to serve Stevens Creek Blvd instead of Forest Ave.P P Frequent 5:00a - 1:00a 15 min 15 min 6:00a - 1:00a 15 min 6:00a - 1:00a 15 min Final plan would maintain Route 23's current alignment in east San Jose; Sunday frequency would increase to every 15 minutes. 25 Story - Willow - Williams Decrease weekday frequency and increase Sunday frequency; modify alignment near De Anza College.P P Frequent 5:30a - 12:00a 12-24 min 12-24 min 6:00a - 12:00a 15-30 min 6:00a - 12:00a 15-60 min Final plan would maintain service to White Road in east San Jose; minor alignment changes through Valley Medical Center. 26 Tully - Curtner - Campbell Split into two separate routes. Revised Route 26 would connect West Valley College and Eastridge Transit Center; frequency would increase on weekdays and weekends; new Route 56 would connect Lockheed Martin and Tamien Station. P P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 12:00a 20-40 min 7:30a - 11:00p 20-40 min 27 Blossom Hill - Los Gatos Extend to Winchester Transit Center via Los Gatos Boulevard, downtown Los Gatos and Winchester Boulevard; increase frequency on weekday midday and Saturdays; add extended evening hours on weekdays and Saturdays. P P P Local 5:30a - 10:00p 30 min 30 min 7:00a - 9:00p 30 min 8:00a - 8:00p 60 min Final plan would maintain service to Knowles/Hacienda area and downtown Los Gatos; Saturday service would end at 9:00p. 31 Evergreen Valley College Modify alignment for more direct service between Evergreen Valley College and Eastridge Transit Center.P Local 6:30a - 10:00p 30 min 30 min 7:30a - 6:30p 60 min 9:00a - 6:00p 60 min Route was proposed for elimination in draft plan (parts were covered by Route 76). 32 San Antonio Shopping Center - Santa Clara Transit Center Replace with new Route 21. 34 San Antonio Shopping Center - Downtown Mountain View Discontinue due to low ridership; some current riders can use Routes 21 or 40. 35 Stanford Shopping Center - Downtown Mountain View Replace with new Route 21. 37 West Valley College - Capitol Light Rail Station Reduce weekday frequency.P Local 6:30a - 6:30p 60 min 60 min ————Route was proposed for elimination in draft plan. 39 Quimby - San Felipe Decrease peak period frequency. P Local 6:30a - 6:30p 60 min 60 min 9:00a - 6:00p 60 min 9:00a - 6:00p 60 min Route was proposed to be renumbered to Route 93, but final plan maintiains current number. 40 Foothill College - North Bayshore Extend Route 40 along Shoreline Boulevard and Villa Street to connect with Mountain View Transit Center; increase Saturday and Sunday frequency.P P Local 6:30a - 10:00p 30 min 30 min 7:00a - 7:00p 45 min 9:00a - 6:00p 45 min 42 Kaiser San Jose - Evergreen Valley College Discontinue low ridership segments, reduce weekday frequency; discontinue Saturday service. P P P Local 6:30a - 6:30p 60 min 60 min ————Route was proposed for elimination in draft plan. 45 Alum Rock Transit Center - Penitencia Creek Transit Center Discontinue due to low ridership. Proposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan See Route 85 See Route 87 See Route 86 See Route 96 See Route 21 See Route 21 New New Weekday Saturday Sunday See Route 60 See Route 83 1 Attachment D - Route-by-Route List of Changes 7.3.d Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span FrequencyProposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan Weekday Saturday Sunday 46 Great Mall Transit Center - Milpitas High School Scale back to school-oriented service (to be called Route 246) between Milpitas High School and Landess/Yellowstone. 47 Calaveras Route would become a two-way loop; increase Sunday frequency; modify alignment to serve McCandless Drive; add extended evening hours 7 days a week.P P P Local 5:30a - 10:00p 30 min 30 min 7:00a - 9:00p 30 min 8:00a - 8:00p 30 min Modify alignment to serve McCandless Drive. 48 Downtown Los Gatos - Winchester LRT Station Replace with revised Route 27; increase frequency on Route 27. 49 Downtown Los Gatos - Winchester LRT Station Replace some segments with revised Route 27; increase frequency on Route 27. 51 Grant - Moffett - Saratoga New number for Moffett Field to De Anza College portion of current Route 81; decrease midday frequency; extend route to West Valley College; discontinue Saturday service.P P P Local 6:30a - 6:30p 30 min 60 min ————Extend 60-min segment of route to West Valley College, via Saratoga-Sunnyvale and Saratoga town center. 52 Foothill College - Downtown Mountain View No changes proposed.Local 7:00a - 10:00p 30 min 30 min ———— 53 Homestead - Sunnyvale Change alignment to serve Vallco Mall and Santa Clara Transit Ctr instead of West Valley College, which would replace part of current Route 81 (Saturday service to operate between Vallco and Santa Clara Transit Ctr); increase frequency on weekdays. P P Local 5:30a - 8:00p 30 min 30 min 9:00a - 6:00p 60 min ——Modify alignment to serve Scott and Benton in Santa Clara. 54 Lockheed Martin Transit Center - De Anza College Discontinue due to low ridership; add new Rapid 523 service on Mathilda Avenue/De Anza Boulevard corridor. 55 Sunnyvale - De Anza College Change alignment between Downtown Sunnyvale and Remington Avenue; minor alignment changes in Lakewood Village; decrease weekday peak period frequency and increase Sunday frequency.P P Local 5:30a - 10:00p 30 min 30 min 7:30a - 9:00p 30 min 8:00a - 8:00p 30 min 56 Wolfe - Hamilton Create new Route 56, which would connect Lockheed Martin Transit Center to Downtown Sunnyvale, Vallco Mall, Westgate, and Tamien Station; replaces parts of Routes 26 and 82.Local 5:30a - 10:00p 30 min 30 min 6:30a - 10:00p 30 min 7:30a - 9:00p 30 min Extend route to Tamien station via Hamilton. 57 Great America - Bowers - Saratoga Increase weekday and Saturday frequency; add extended evening hours 7 days a week.P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 11:00p 20 min 7:30a - 10:00p 30 min Extend weekday service to midnight. 58 West Valley College - Alviso Discontinue; some current riders may use Routes 57, 59, 20 and 26. 59 Monroe - Great America - Alviso Create new Route 59, which would connect Valley Fair, O'Connor Hospital, Santa Clara Caltrain Station, Mission College, Alviso and Baypointe Light Rail Station; would cover some segments of Route 58 and Route 60. Local 5:30a - 10:00p 30 min 30 min 7:00a - 10:00p 30 min 7:30a - 6:30p 60 min Extend weekday service to Valley Fair and O'Connor Hospital. 60 Winchester - Airport - BART Consolidate with Route 10 to create new Route 60, which would connect Mineta San Jose Airport to Milpitas BART Station, Metro light rail station, Santa Clara Caltrain Station, Valley Fair, Santana Row, and Downtown Campbell; increase weekday and weekend frequency. P P P Frequent 5:00a - 11:00p 15 min 15min 5:00a - 11:00p 20 min 5:00a - 11:30p 20 min 61 Taylor - Bascom - Berryessa Change alignment from Mabury Road to Berryessa Road between Berryessa BART Station and Capitol Avenue; increase frequency on weekends; add extended evening hours 7 days/week.P P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 11:00p 20-40 min 7:30a - 10:00p 20-40 min 62 Good Samaritan Hospital - Sierra/Piedmont Replace with Route 61. 63 Meridian Change southern end from Almaden Expressway/Camden Avenue to Meridian Avenue/Blossom Hill Road; increase weekday midday frequency.P P Local 6:00a - 10:00p 30 min 30 min 8:00a - 7:00p 60 min 9:00a - 6:00p 60 min 64 McKee - Lincoln - Almaden Change downtown routing (Julian to 6th/7th and San Fernando); extend route to Camden in Almaden Valley.P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 12:00a 30 min 7:00a - 11:00p 30 min Extend route to Camden in Almaden Valley. 65 Kooser/Blossom Hill - Downtown San Jose Discontinue segment north of downtown San Jose; reduce frequency.P P Local 6:00a - 6:30p 60 min 60 min ————The draft plan proposed to discontinue Route 65. 66 Milpitas - Oakland - Monterey - Snell Change alignment to serve Milpitas BART Station; weekday frequency changes by segment; move to 10th/11th Streets from 1st Street.P P Frequent 5:00a - 12:00a 15 min 15-30 min 6:00a - 12:00a 20 min 6:00a - 12:00a 20 min 68 Monterey - South County Decrease midday frequency south of Santa Teresa Light Rail Station; increase midday frequency north of Santa Teresa light rail station.P Frequent 4:30a - 12:00a 15 min 15-30 min 5:00a - 12:00a 20 min 5:00a - 12:00a 20 min 70 Jackson - Flickinger - Morrill Modify alignment to connect to Berryessa BART Station; decrease frequency north of Berryessa BART station; discontinue service between Eastridge Transit Center and Capitol station, some riders in that segment may use Routes 71 or 42. P P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 12:00a 20-40 min 6:30a - 10:00p 20-40 min 71 Piedmont - White Change northern end from Great Mall to Milpitas BART Station; decrease weekday peak period service and increase Sunday service; extended to Capitol light rail station.P P Local 5:30a - 10:00p 30 min 30 min 6:30a - 10:00p 30 min 7:30a - 9:00p 30 min The final plan moves its southern end from Eastridge to Capitol light rail station. 72 McLaughlin Increase frequency on weekday midday and weekends; add extended evening hours 7 days/week.P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 12:00a 20 min 7:30a - 11:00p 30 min Reduce Sunday daytime frequency from every 20 minutes to every 30 minutes; change southern end from Capitol light rail station to Monterey & Branham. See Route 246 See Route 27 See Route 27 New New See Route 61 2 Attachment D - Route-by-Route List of Changes 7.3.d Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span FrequencyProposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan Weekday Saturday Sunday 73 Senter Change southern end from Capitol Expressway/Snell to Monterey Road/Branham Road; increase weekday midday and weekend frequency; add extended evening hours 7 days/week.P P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 12:00a 20 min 7:30a - 11:00p 30 min Reduce Sunday daytime frequency from every 20 minutes to every 30 minutes. 77 King - Lundy Change northern end from Great Mall to Milpitas BART Station; change southern end of route to Eastridge Transit Center via Tully Road rather than Rigoletto Drive; serve Berryessa BART station; increase weekday midday and weekend frequencies; add extended evening hours 7 days/week. P P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 12:00a 20 min 6:30a - 11:00p 30 min Reduce Sunday daytime frequency from every 20 minutes to every 30 minutes. 81 Moffett Field - Downtown San Jose Replace Moffett Field to De Anza College segment with new Route 51; replace De Anza College to Santa Clara Caltrain Station segment with revised Route 53. 82 Westgate - Downtown San Jose Discontinue; some segments of route replaced with Routes 56, 66, and 68. 83 Almaden New route based on current Route 13, provided on an interim basis prior to implementation of on- demand service for Almaden Valley; revised alignment would serve Blossom Hill (Oakridge Mall), McAbee, and Camden. P Local 6:30a - 6:30p 60 min 60 min ————The draft plan proposed to discontinue Route 13. 85 Gilroy New two-way loop route in Gilroy; replaces Routes 14, 17, and 19.Local 6:30a - 6:30p 60 min 60 min 9:00a - 6:00p 60 min 9:00a - 6:00p 60 min Was called Route 96 in draft plan; also minor alignment changes to facilitate connections with Route 68. 86 Gavilan College Replaces Route 18; increase frequency.P Local 7:00a - 10:00p 30 min 30 min ————Was called Route 97 in draft plan. 87 Morgan Hill Renumber Route 16 to Route 87, provided on an interim basis until a more effective flexible transit solution can be implemented; no other changes proposed.Local peak only 60 min ————— Draft plan proposed a reduction in service to school- oriented trips only. Final plan would maintain current service until flexible solution can be implemented. 88 Palo Alto VA Hospital - Middlefield/Colorado Scale back to school trips (to be called Route 288) for Gunn High School. 89 California Avenue Caltrain - Palo Alto VA Hospital No changes proposed.Local 6:30a - 6:30p 30 min 60 min ————The draft plan proposed to discontinue Route 89. 101 Camden/Highway 85 - Palo Alto No changes proposed. Express ———— 102 South San Jose - Palo Alto No changes proposed.Express ———— 103 Eastridge Transit Center - Palo Alto No changes proposed.Express ———— 104 Penitencia Creek Transit Center - Palo Alto Change alignment to serve Milpitas BART Station rather than Great Mall Transit Center.P Express ———— 120 Fremont BART - Lockheed Martin Transit Center/Shoreline Discontinue due to extension of BART to Santa Clara County; explore options for inter-county partnership service with AC Transit. 121 Gilroy Transit Center - Lockheed Martin Transit Center No changes proposed.Express ———— 122 South San Jose - Lockheed Martin Transit Center No changes proposed.Express ———— 140 Fremont BART Station - Mission College/Montague Discontinue due to extension of BART to Santa Clara County. 168 Gilroy Transit Center - San Jose Diridon Station No changes proposed.Express ———— 180 Fremont BART Station - Great Mall - Eastridge Discontinue due to extension of BART to Santa Clara County. 181 Fremont BART - San Jose Diridon Station Discontinue due to extension of BART to Santa Clara County. 182 Palo Alto - Bailey Road/IBM No changes proposed.Express ———— 185 Gilroy Caltrain Station - Shoreline - San Antonio No changes proposed.Express ———— 201 DASH Shuttle: Diridon Station - Downtown San Jose - San Jose State University Replace with Rapid 500; change alignment to Santa Clara Street.See Route 500 1 trip each peak period 3 trips each peak period 7 trips each peak period 9 trips each peak period 1 trip each peak period New See Routes 51 and 53 7 trips each peak period 4 trips each peak period 2 trips each peak period See Route 56 See Route 288 2 trips each peak period 3 Attachment D - Route-by-Route List of Changes 7.3.d Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span FrequencyProposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan Weekday Saturday Sunday 246 Milpitas High School - Yellowstone/Landess School-oriented service (formerly Route 46), based on school bell schedules.Special ———— 247 Milpitas High School - Park Victoria School-oriented service (formerly Route 46/47), based on school bell schedules.Special ———— 251 St. Francis High School - Downtown Mountain View School-oriented service, based on school bell schedules; afternoon service only.Special ———— 255 Fremont High School - Lakewood Village School-oriented service (formerly Route 55X), based on school bell schedules.Special ———— 256 Willow Glen High School - Tamien Station - Monterey/Alma School-oriented service (formerly Route 82), based on school bell schedules.Special ————Was called Route 282 in draft plan. 266 Santa Teresa High School - Bernal Road School-oriented service, based on school bell schedules; afternoon service only.Special ———— 287 Live Oak High School - Monterey & San Martin School-oriented service, based on school bell schedules; afternoon service only.Special ———— 288 Gunn High School - North Palo Alto School-oriented service (formerly Route 88), based on school bell schedules, plus one afterschool extracurricular trip; to follow former 88, 88L, 88M alignments.Special ———— Add one additional trip an hour or two after the afternoon bell time to accommodate afterschool activities; modify alignment to follow existing route. 304 South San Jose - Sunnyvale Transit Center Discontinue due to low ridership; some current riders may use Routes 66, 68 or 20. 321 Great Mall Transit Center - Lockheed Martin Transit Center Discontinue due to low ridership; some current riders may use Routes 20, 59, or Orange line. 323 De Anza College - Downtown San Jose Upgrade to Rapid 523 and extend western end to Lockheed Martin Transit Center and eastern end to Berryessa BART Station; increase Sunday frequency. 328 Almaden/Via Valiente - Lockheed Martin Transit Center Discontinue due to low ridership. 330 Almaden/Via Valiente - Tasman Drive Discontinue due to low ridership. 500 Diridon - Berryessa BART Rapid Replaces DASH shuttle; 7-day a week service; connects Diridon Station to downtown San Jose, San Jose State University, and Berryessa BART Station. Rapid 4:00a - 1:30a 10 min 15 min 6:00a - 1:30a 20 min 8:00a - 1:30a 20 min Add additional stop at Almaden Boulevard. 522 Palo Alto Transit Center - Eastridge Transit Center Increase weekday frequency (to be implemented in April 2017); add extended evening hours 7 days/week; start earlier AM service on weekends.P P Rapid 5:00a - 11:00p 12 min 12 min 6:00a - 11:00p 15 min 6:00a - 10:00p 15 min Reduce frequency of some weekend early morning and evening service from every 15 minutes to every 20 minutes; extend Sunday service to 10 pm. 523 Lockheed Martin Transit Center - Berryessa BART Station Create new Route 523 which would connect Lockheed Martin Transit Center, Downtown Sunnyvale, De Anza College, Vallco, Valley Fair, Santana Row, Downtown San Jose, Mexican Heritage Plaza and Berryessa BART Station. Rapid 5:00a - 10:30p 15 min 15 min 6:00a - 10:30p 15 min 7:00a - 10:00p 15 min Extend Sunday service to 10 pm. Green Old Ironsides Station - Winchester Station Change name to Green Line. Change northern end to Old Ironsides Light Rail Station; increase weekday frequency to 15 minutes all day. P P Light Rail 5:00a - 12:00a 15 min 15 min 6:30a - 12:00a 30 min 6:30a - 12:00a 30 min Blue Alum Rock Transit Center - Santa Teresa Station Change name to Blue Line.Light Rail 4:30a - 1:00a 15 min 15 min 5:00a - 1:00a 15 min 5:00a - 12:00a 15 min Purple Almaden Station - Ohlone/Chynoweth Station Change name to Purple Line.Light Rail 5:30a - 10:30p 15 min 15 min 8:00a - 10:00p 15 min 8:00a - 10:00p 15 min Orange Mountain View Transit Center - Alum Rock Transit Center Create new Orange Line to connect Downtown Mountain View with Alum Rock Transit Center; operate at 15-minute frequency all day on weekdays.Light Rail 5:00a - 11:30p 15 min 15 min 6:30a - 11:30p 30 min 7:00a - 11:30p 30 min Yellow Downtown San Jose - Santa Teresa Station Express Service Change name to Yellow Line. Change northern end from Baypointe Light Rail Station to St. James Light Rail Station; increase peak period span of service. P P Light Rail ———— 3 trips before and 4 trips after school 1 trip after school 5 trips each peak period 1 trip before and 1 trip after school # of trips varies by school schedule 1 trip before and 1 trip after school 1 trip after school 1 trip after school # of trips varies by school schedule See Route 523 New New New 4 Attachment D - Route-by-Route List of Changes 7.3.d Routes Currently Serving City Routes to Serve City in Proposed Plan Campbell 26, 27, 37, 48, 49, 60, 61, 62, 65, 82, 101, 328, 330, Green 26, 27, 37, 56, 60, 61, 65, 101, Green Cupertino 23, 25, 26, 53, 54, 55, 81, 101, 182, 323 23, 25, 26, 51, 53, 55, 56, 101, 182, 523 Gilroy 14, 17, 18, 19, 68, 121, 168, 185 68, 85, 86, 121, 168, 185 Los Altos 22, 40, 52, 81, 522 22, 40, 51, 52, 522 Los Altos Hills 40, 52 40, 52 Los Gatos 27, 48, 49 27 Milpitas 46, 47, 66, 70, 71, 77, 104, 140, 180, 181, 321, 330, Blue 20, 47, 60, 66, 70, 71, 77, 104, 246, 247, Blue, Orange Monte Sereno 48 27 Morgan Hill 16, 68, 121, 168, 185 68, 87, 121, 168, 185 Mountain View 22, 32, 34, 35, 40, 52, 81, 120, 185, 522, Green 20, 21, 22, 40, 51, 52, 185, 251, 522, Orange Palo Alto 22, 35, 88, 89, 102, 103, 104, 182, 522 21, 22, 89, 102, 103, 104, 182, 288, 522 San Jose 10, 12, 13, 22, 23, 25, 26, 27, 31, 37, 39, 42, 45, 49, 57, 58, 60, 61, 62, 63, 64, 65, 66, 68, 70, 71, 72, 73, 77, 81, 82, 101, 102, 103, 104, 122, 140, 168, 180, 181, 182, 185, 201 DASH, 304, 321, 323, 328, 330, 522, Blue, Green, Purple, Yellow 20, 22, 23, 25, 26, 27, 31, 37, 39, 42, 56, 57, 59, 60, 61, 63, 64, 65, 66, 68, 70, 71, 72, 73, 77, 83, 101, 102, 103, 104, 122, 168, 182, 185, 201 DASH, 266, 282, 500, 522, 523, Blue, Green, Orange, Purple, Yellow Santa Clara 10, 22, 23, 32, 55, 57, 58, 60, 81, 121, 140, 304, 321, 323, 328, 330, 522, Green 20, 21, 22, 23, 53, 55, 57, 59, 60, 121, 522, 523, Green, Orange Saratoga 26, 37, 53, 57, 58 26, 37, 51, 53, 56, 57 Sunnyvale 22, 26, 32, 53, 54, 55, 120, 121, 122, 304, 321, 328, 522, Green 20, 21, 22, 26, 53, 55, 56, 255, 522, 523, Green, Orange 5 Attachment D - Route-by-Route List of Changes 7.3.d Attachment E – Changes from Draft Plan to Final Plan 1 DISCUSSION OF MAJOR THEMES FROM DRAFT PLAN FEEDBACK This attachment describes the major changes in the transit service plan between the draft and final versions. Following the release of the draft transit service plan VTA staff collected over 5,000 points of feedback during January and February 2017. Feedback came from community members, city/town staff, elected officials, city/town councils, community organizations, business associations, and other institutions. Without exception, every change proposed by the draft plan generated some feedback. However, the quantity of feedback overwhelmingly concerned a small subset of topics, and this attachment discusses each of these major topics. As such, this section discusses the major themes of feedback in no particular order, and is not meant to represent the entirety of feedback received, which is more fully discussed in the public outreach attachment. DOWNTOWN SARATOGA (ROUTE 53) The draft plan proposed to discontinue service along Saratoga-Sunnyvale, to Saratoga’s downtown, and to West Valley College as Route 53’s coverage resources were reallocated to more productive service. Staff received comments from staff at the City of Saratoga, a letter from the Saratoga mayor and council, and several community members expressing concern over the loss of service, including for senior to access social services near De Anza. The City requested service at a 30-minute frequency along the Sunnyvale-Saratoga corridor. STAFF ANALYSIS Staff gathered ridership data for the segment of Route 53 between De Anza and West Valley College. This segment has approximately 195 weekday boardings as shown in the map at right. While the street grid and land use densities along this segment are not ideal for transit, the area does exhibit some demand for service that justifies some fixed route service. Staff studied two options to continue service in the final plan: by extending one of either Route 51 or Route 55 (both proposed to end at De Anza College under the draft plan) south to West Valley College via downtown. The length of this segment could be served at a 60-minute frequency with one bus; allocating more resources along this area would not be justified based on ridership demand. Due to the its proposed turnaround at the large block of Stelling, Stevens Creek, De Anza, and McClellan, it would not be operationally feasible to extend Route 55. Route 51, however, could be extended without operational issues. Based on the demand for service and the desire to provide service to downtown Saratoga and West Valley College, the final plan includes an extension of Route 51 to West Valley College via downtown Saratoga, at a 60-minute frequency on weekdays. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 2 SAN JOSE LEIGH AVENUE (ROUTE 65) Staff received many comments from community members and San Jose State University, concerned about the loss of Route 65 service, primarily the core segment along Leigh Avenue, Camden Avenue, and Parkmoor/Moorpark Avenues in San Jose (see map below). San Jose State University expressed concern about the loss of service between this area and their campus. Route 65 was proposed for elimination in the draft plan as its coverage-oriented resources were reallocated to more ridership-oriented service. A smaller number of community members also expressed a concern over the loss of service to a community center at Empire and 6th/7th streets in San Jose and also access to San Jose City College. STAFF ANALYSIS Staff categorized all the feedback on Route 65; the area of most concern is between Lincoln/Parkmoor in the north and Camden/Blossom Hill in the south (see map at right). VTA currently provides service along three parallel north-south corridors in the area as listed below. These corridors are ½-mile apart for much of their length, then increasing to over a mile apart at their southern end. The draft plan proposed consolidating routes and discontinuing the least productive of them, Route 65. Route 61 (Bascom): 19 boardings per service hour Route 62 (Bascom): 18 boardings per service hour Route 63 (Meridian): 18 boardings per service hour Route 65 (Leigh): 16 boardings per service hour. Staff gathered ridership data on Route 65, which indicates that 78% of the route’s ridership activity occurs on the segment between downtown and the southern end at Blossom Hill Road. This is the segment that provides connections to SJSU and San Jose City College, expressed as a concern from the community. Staff analyzed various options to restore service for this market. The final plan includes the addition of Route 65 service at a 60-minute frequency (less service than today’s 45-minute frequency), which would operate between South San Jose and downtown San Jose. The community center on Empire at 6th/7th Streets would no longer have front-door service. However, Frequent Route 66 would provide new service on 10th/11th Streets, (½ to ⅓-mile to the east of the community center), and Frequent Route 64 would provide service on Julian Street at 6th & 7th streets (⅓-mile south of the community center). Staff analyzed options to modify the alignment of other routes in the area to provide service closer to the community center, but could not develop an option that would meet VTA’s board-adopted productivity standards. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 3 LOS GATOS TOWN CENTER AND HACIENDA/KNOWLES AREA (ROUTES 48, 49, 27) Staff received comments and letters from community members, the Town of Los Gatos, the City of Campbell, and El Camino Hospital Los Gatos, all concerned about the alignment of the proposed Route 27; specifically, the lack of service to downtown Los Gatos (including Los Gatos High) and the lack of service to the neighborhood near Knowles Drive, Hacienda Avenue, and Burrows Road in Los Gatos and Campbell (including El Camino Hospital Los Gatos, see map below). STAFF ANALYSIS Staff gathered ridership data on Route 48, which currently provides service to the Hacienda/Knowles area, and on Route 49, which currently provides service to downtown Los Gatos. In addition, staff conducted on-site field visits to assess the area’s suitability for transit service. The segment of Winchester Boulevard between Knowles Drive and Hacienda Avenue is adjacent to a rail corridor and it would not be possible to place bus stops on the east side of the street. As such, this segment is not ideal for transit service as proposed by the draft plan’s Route 27. The Knowles/Hacienda/Burrows deviation on today’s Route 48 has 43 weekday boardings (about 10 of which are at the hospital itself). Los Gatos downtown has 36 weekday boardings on Route 49 and 50 weekday boardings on Route 48. Of these boardings, 25 are in front of Los Gatos High School, which suggests some demand for school service. Based on the ridership demand in both areas, the alignment of the Route 27 has been modified in the final plan to serve both downtown Los Gatos and the Hacienda/Knowles neighborhood (including El Camino Hospital Los Gatos), as shown in the map at right. RAPID 500 BETWEEN DIRIDON, DOWNTOWN SAN JOSE, BERRYESSA BART Staff received many comments from community members and organizations concerned about the proposal to eliminate the DASH shuttle and introduce a new Rapid 500 route. DASH offers free-fare service timed to meet trains at Diridon Station on weekdays, operating in a one-way loop through downtown San Jose. The route carries about 1,000 boardings per day, and VTA received an operating subsidy from both SJSU ($55,000) and from MTC’s Transportation Fund for Clean Air (TFCA, $400,000 to $800,000). Interested groups included riders of today’s DASH, the City of San Jose, the Downtown Association, and SJSU, who expressed concerns regarding: The proposed alignment and stops of the Rapid 500. The proposed Rapid 500 would travel along Santa Clara in both directions between Diridon Station and 10th/11th Streets, and would no longer travel along San Fernando or San Carlos (see map below). Commenters requested Rapid 500 travel along San Fernando to provide front-door service to SJSU and employers such as Adobe. The loss of a free-fare downtown route. The Rapid 500 would incur a standard fare, therefore downtown San Jose would lose its free-fare route. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 4 STAFF ANALYSIS The DASH’s primary market is connections between Diridon and SJSU/City Hall. As shown in the map above, 78% of the route’s boardings occur at Diridon Station or at the stops on 4th Street adjacent to SJSU. Alignment. The Rapid 500 would provide an improved first/last-mile connection for Diridon Station and Berryessa BART Station, integrating downtown San Jose into the regional transit network with frequent and rapid service (buses scheduled to meet trains at both stations). An industry best practice in downtown transit service is for routes to converge onto a single downtown street to provide a consolidated corridor where riders can walk to for all transit services. In San Jose, Santa Clara Street would be the transit corridor for east-west routes (1st/2nd streets for north- south routes), providing a single place to catch three Rapid routes and six Frequent routes going east-west. A downtown rider could walk to Santa Clara to catch one of the many routes heading to Diridon or Berryessa BART and benefit from a bus coming at least every two minutes. If the Rapid 500 were on another street, downtown users would have to consult a schedule to decide where to walk and the benefit of combined frequency would be lost, which would make transit more difficult to use, particularly for visitors and those unfamiliar with our transit system. In addition, there will be an abundance of frequent services to provide circulation throughout downtown, including light rail service between Diridon and downtown stations every 15 minutes and bus routes on San Fernando in front of SJSU (Route 63 every 30 minutes and Route 65 every 60 minutes). Finally, the alignment is the recommended alignment from two planning consultants who independently conducted a study of downtown transit service and made recommendations for the future of DASH (Nelson\Nygaard Consulting Associates and Jarrett Walker + Associates). Other significant improvements of the Rapid 500 over the current DASH service include: Additional regional connections at Berryessa BART station (DASH serves Diridon only) Expanded service span (4:00 am – 1:30 am, compared to 6:30 am – 9:30 pm on DASH) Addition of weekend service on both Saturday and Sunday (no weekend service on DASH) For these reasons, no changes are proposed to the alignment of the Rapid 500 in the final transit service plan. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 5 Stop distance. The Rapid 500 proposal includes stops on Santa Clara Street at 1st/2nd Street and 6th Street. The community’s concerns are also related to the increased distance of service to major destinations/employers such as Adobe and SJSU, which currently have closer service because the DASH operates in a one-way loop along San Fernando and San Carlos. The Rapid 500 stop closest to the University would be at Santa Clara/6th, one block from campus. Staff met with student representatives and staff at SJSU and learned that safety of the walk (mostly at night) was the primary concern, not the extra block of walking distance. Many students currently make this walk now to get to buses on Santa Clara Street (Route 22, 522, etc.); others walk 2-3 blocks to 1st/2nd Streets to access light rail. Staff investigated the potential to add stops to better serve important destinations and employers, such as Adobe. The final plan includes the addition of a Rapid 500 stop at Santa Clara/Almaden Boulevard to provide direct service to downtown destinations and important employers such as Adobe. Free fare. The conversion of the DASH to the Rapid 500 represents a loss of downtown’s free-fare route, as the Rapid 500 as proposed would be integrated into the overall transit network and riders would pay a standard fare. However, most Rapid 500 riders would still not incur a fare at boarding: SJSU students and staff ride VTA free as EcoPass participants Adobe and many other downtown employees ride VTA free as EcoPass participants Caltrain riders with a 2-zone or higher pass ride VTA free ACE riders with a monthly pass ride VTA free Staff are also studying the potential to offer free VTA-to-VTA transfers as part of the comprehensive fare study. As such, no changes are proposed to the Rapid 500’s standard fare. Ridership projection and impact on operating subsidies. VTA’s travel demand model confirms the importance of Rapid 500’s key connections to Diridon, downtown, and BART, projecting that the route will attract well over 5,000 additional daily riders. Staff will continue to seek a TFCA operating subsidy from MTC, and believe the additional regional rail connections at Berryessa BART station will improve the route’s eligibility for the grant resources. FREMONT EXPRESS ROUTES 120 AND 181 VTA operates four Express routes between locations in Santa Clara County and the end-of-line BART station in Fremont to provide connections to the regional transit network. By bringing regional BART service to our county with the BART extension project, it would no longer be necessary to operate Express service into Alameda County to provide regional connections, as these regional connections would be made here at the new BART stations. As such, the draft plan follows the established assumptions from the BART extension project that VTA’s transit network would no longer include Express service into Alameda County. However, staff received a large volume of comments from the community (including a letter from employers in the Lockheed Martin area) and Alameda County residents (a petition from Express 120 riders) concerned about the impacts of losing two of these routes, VTA Express 181 and 120. VTA Express 181 currently provides all-day frequent service in both directions between Fremont BART and downtown San Jose, largely used by San Jose State University students and by some downtown employees. VTA Express 120 provides six AM and six PM one-way trips between Fremont BART and Lockheed Martin for area employees. STAFF ANALYSIS The BART extension and VTA planning studies (including the Berryessa Connector Study, the BART Silicon Valley Berryessa Extension FTA New Starts submittal, the BRT Strategic Plan, and the BART Transit Integration Plan) all assumed that once BART service opens at Milpitas and Berryessa, the four Alameda County Express routes would be discontinued and the resources used for regional connections at the two new BART stations. The draft plan accordingly used these resources to provide bus service to the two new BART stations. While there has been a 7.3.e Attachment E – Changes from Draft Plan to Final Plan 6 longstanding service precedent set by these routes (Express 120 and 181 have been operating since 1981), they exist solely for providing connections to the regional transit network. Many of these riders will have better service with BART coming all the way into Milpitas and San Jose; these riders would remain on BART into the county and then make their last-mile connections via timed and frequent light rail and bus connections to job centers. Express 181 riders going to downtown San Jose would benefit from a BART ride into the county and a fast and direct connection into downtown (including a stop one block away from SJSU) that would reduce their travel time by 25% (see travel time comparison below). These riders would pay a higher BART fare. Travel Time Comparison from Fremont to Downtown San Jose (2nd & Santa Clara) Today Final Plan 19 min on BART 48 min on VTA Express 181 4 min average transfer time 13 min on Rapid 500 48 min total trip time 36 min total trip time Express 120 riders will have the option of a BART ride to Milpitas station and a direct connection to Lockheed Martin on the new Orange light rail line. However, many of today’s Express 120 riders are Alameda County residents who aren’t using BART at all, and either live near (or drive to) an Express 120 stop in Fremont; these riders would have to use BART for service to Milpitas where they can make the Orange line connection. Some riders may not find the new BART + Orange line trip attractive, as the new trip would not be as fast as today’s Express 120. While VTA’s mission (and funding structure) does not include the objective of providing service for Alameda County residents, there may be a potential to introduce a new inter-county partnership service between Alameda County and Lockheed Martin. VTA has begun discussions with AC Transit to explore options to partner (such as a limited-stop extension of AC Transit Route 217 from Milpitas BART to Lockheed Martin, or an inter- county premium service like the Highway 17 Express) that may serve such a market while respecting each agency’s mission and service area. AC Transit is beginning a comprehensive study of their transit network in Fremont, which presents an excellent opportunity to study the Fremont-Lockheed Martin demand and explore options to maintain this service. VTA staff will coordinate with AC Transit staff during the study and present partnership service strategies that are developed to the VTA Board for consideration. No changes are proposed to the plan to discontinue VTA Express routes into Alameda County, though VTA is exploring the potential for an inter-county partnership service. PALO ALTO ROUTE 88 Staff received many comments from the community, Palo Alto city staff, the Gunn High School PTSA, the school district, and the Palo Alto City Council, expressing concern regarding Route 88 service. Route 88 currently provides service between the Veteran’s Hospital and midtown Palo Alto, via Gunn High School, Arastradero, Charleston, Fabian, and Louis (see map at right). The route was designed in collaboration with the Gunn High School PTSA during VTA’s service redesign project in 2008. The route was primarily designed to serve Gunn High School students, and has three service patterns to serve the various neighborhoods where students live (alternate alignments 88, 88L, and 88M). The draft plan proposed scaling back the route to focus exclusively on school service renamed as Routes 288, 288L, and 288M. To better understand community concerns, staff met with the Gunn High School PTSA, discussed the proposal at the 7.3.e Attachment E – Changes from Draft Plan to Final Plan 7 Palo Alto City Council, conducted several meetings with city staff, hosted a public meeting in Palo Alto, and conferred with community leaders on several occasions. The community’s primary concerns regarding the draft plan’s proposal for Route 288 are: The loss of service during the weekday midday period for student trips. The loss of service during the several hours following Gunn’s afternoon bell times for student trips, to accommodate students’ extracurricular activities in the afternoon. The loss of all-day service (outside of school bell times) for non-student (community) trips. A general desire to increase transit service along the Arastradero/Charleston corridor for all types of trips, particularly given the forthcoming complete streets improvements along the corridor. STAFF ANALYSIS Midday student trips. Staff gathered ridership data for Route 88 trips throughout the day to assess the demand for midday trips at Gunn High School. The chart below shows each trip’s average number of boardings on a typical weekday at the two stops used by Gunn High School students, illustrating the demand from Gunn High School throughout the day. As shown, the midday trips (highlighted in the red box) have very little activity, averaging less than one boarding per trip. Despite the desire for students to have a transit option for midday trips to and from the school, ridership data demonstrates that demand for such trips is very low. The insufficient demand for midday school trips does not justify adding midday service to the proposed Route 288. 0.1 0.2 0.0 1.0 0.4 0.1 1.8 1.0 30.1 27.8 29.0 1.9 5.4 4.6 2.2 0 10 20 30 40 50 7:14AM 8:10AM 8:55AM 9:55AM 11:00AM 12:00PM 1:05PM 2:05PM 3:03PM 3:05PM 3:07PM 3:10PM 4:10PM 5:15PM 6:15PM Route 88 Northbound Average Daily Boardings at Gunn High School Stops midday trips school bell trips 88M 88L 88 7.3.e Attachment E – Changes from Draft Plan to Final Plan 8 Afternoon school trips for extracurricular activities. Staff consulted ridership data to assess the demand for afternoon school trips. On a typical school day, VTA provides three northbound school trips timed to the afternoon bell schedule, departing just a few minutes apart from each other (trips in the green box in the chart above). Each of the trips follows a unique alignment to take students to different areas of Palo Alto. These trips are productive and carry about 30 students each. However, there is very low demand for each of the subsequent afternoon trips (at hourly intervals after the bell time), with each trip carrying an average of four riders. Despite the desire for multiple afterschool trips to serve students’ extracurricular activity needs, ridership data demonstrates that demand for these trips is very low and would not justify more than one extra trip. In order to support afterschool activities, the final plan includes the addition of one afternoon school trip (subject to productivity minimums) scheduled to meet extracurricular activity needs of some students. Schedule and alignment to be determined in coordination with the community. This added trip will be in addition to the 3 AM and 3 PM school trips timed to the bell schedule. All-day service for (non-school) community trips. Although designed primarily to serve school trips, Route 88 does provide transit service for the general community, including Stevenson House, Abilities United, and the Mitchell Park Library. Staff consulted ridership data to determine the level of demand for non-school trips. As shown by the graph below, activity on non-school trips is quite low, averaging less than six riders per trip. The low demand for service is due to route’s design to focus on school trips, as the route doesn’t offer many connections to places people want to go. Route 35, for example, is considerably more popular for residents of Stevenson House because it offers a connection to downtown Palo Alto, San Antonio Center, and Midtown Shopping Center, in addition to many transit connections. The low demand for non-school community trips does not justify adding all- day service to the proposed Route 288. Community desire to increase transit service in this market. While the low demand for transit service exhibited by the Route 88 market doesn’t meet VTA’s regional minimum standard for VTA fixed route service at this time, there is a community need and desire to provide additional transit service to the areas currently served by the route. In fact, the Charleston/Arastradero corridor is slated to receive complete streets improvements soon to improve bicycle/pedestrian safety, give a corridor a sense of place, and provide sustainable transportation options. These improvements to the corridor’s pedestrian environment, coupled with increases in land use densities, could increase the demand for transit service in the future to a level that would warrant VTA fixed route service. In the meantime, staff have been in discussions with City of Palo Alto staff to discuss alternative mobility solutions for this market, including the potential for community service provided by the city’s municipal shuttle program. VTA staff will continue to support the coordination of community-focused municipal shuttle programs throughout the county with VTA’s regionally-focused fixed route service. By coordinating services, residents can enjoy the benefits of VTA’s regional service along productive transit corridors as well as greater mobility coverage that only local services can provide. While the low demand for service exhibited by Route 88’s market doesn’t justify VTA fixed route service 4 2 4 4 5 8 9 8 32 31 36 11 11 11 74 30 40 24 7 10 4 3 6 4 3 2 2 4 0 10 20 30 40 50 6: 3 2 A M 7: 1 4 A M 7: 3 6 A M 7: 4 4 A M 7: 4 9 A M 8: 1 0 A M 8: 2 0 A M 8: 5 5 A M 9: 3 3 A M 9: 5 5 A M 10 : 1 7 A M 11 : 0 0 A M 11 : 2 3 A M 12 : 0 0 P M 12 : 2 3 P M 1: 0 5 P M 1: 2 8 P M 2: 0 5 P M 2: 2 8 P M 3: 0 3 P M 3: 0 5 P M 3: 0 7 P M 3: 1 0 P M 3: 3 5 P M 4: 1 0 P M 4: 3 5 P M 5: 1 5 P M 5: 4 0 P M 6: 1 5 P M Route 88 Average Daily Boardings, All Stops Northbound Trips Southbound Trips school bell trips school bell trips 7.3.e Attachment E – Changes from Draft Plan to Final Plan 9 at this time, VTA staff are in discussions with the local community and city staff to explore the potential for city shuttles to serve this market. PALO ALTO ROUTE 89 Staff received many comments from the community (including a letter from Stanford Research Park) concerning the draft plan proposal to discontinue Route 89 service in Palo Alto. Route 89 currently provides service between the California Avenue Caltrain station and the Palo Alto Veteran’s Hospital, via the Stanford Research Park employment center. Route 89 was proposed for elimination in the draft plan as its coverage-oriented resources were reallocated to more ridership-oriented services. The feedback received expressed concern over the loss of transit service to the jobs at Stanford Research Park and the services at the Veteran’s Hospital, two regionally-important destinations that warrant VTA service. STAFF ANALYSIS The Stanford Research Park and the Veteran’s Hospital are important regional destinations. In addition, Caltrain is planning to increase the level of Caltrain service to California Avenue Caltrain station in April 2017, which would increase the number of transit connections at the station. Staff gathered service performance data to assess the area’s demand for service and the route’s comparative performance amongst the routes in the area. Both Route 88 and Route 89 serve the VA hospital, though Route 89 has much higher productivity, particularly during the peak period. Route 89 would be the better candidate to add service to this market in the final plan, given its better productivity and service to the Stanford Research Park. Given the regional importance of the Veteran’s Hospital and Stanford Research Park, along with comparatively high productivity of existing service, service for this market is justified and Route 89 has been added back into the final plan. Route Performance Measures (Weekday FY16) Route 89 Route 88 Route 35 Route 22 Route 522 Boardings per Revenue Hour 19.9 15.0 15.8 32.1 24.8 Rank Among VTA Local Routes 28th of 56 48th of 56 43rd of 56 2nd of 56 13th of 56 SAN JOSE EAST HILLS ROUTE 45 Staff received many comments from the community concerning the draft plan proposal to discontinue Route 45 service in San Jose’s East Hills. Route 45 currently provides hourly weekday-only service between the Penitencia light rail station and the Alum Rock transit center as shown in the map below. Route 45 was proposed for elimination in the draft plan as its coverage-oriented resources were reallocated to more ridership-oriented services. The feedback received primarily expressed concern over the loss of transit service to the Homeless Veterans Emergency Housing Facility on Kirk Avenue at Alum Rock Avenue, served exclusively by Route 45. A smaller number of comments concerned the loss of service for the greater areas east of White Road. STAFF ANALYSIS After discussing service in the area with community members at the VTA-hosted draft plan feedback meeting in East San Jose in February, staff gathered ridership data to assess the demand for transit service along Route 45. Ridership activity is very low at stops along Route 45, particularly the segment east of White Road (the segment that would lose service with the elimination of Route 45), as shown on the map at right. On an average weekday, only 69 7.3.e Attachment E – Changes from Draft Plan to Final Plan 10 boardings occur in this area (about 2 boardings per service hour), which explains why Route 45 is not productive. Based on the low demand for service in the area, no changes are proposed to the draft plan’s proposal to discontinue Route 45. Staff also met with leadership at the veterans housing facility to discuss the patrons’ transportation needs. While Route 45 service meets some of their transportation needs, the facility may be better served with a more flexible mobility solution. Due to low ridership demand, no changes are proposed to the draft plan proposal to discontinue Route 45. However, staff is proposing, and is in discussion with the facility’s director to discuss, providing a van or other vehicle to the facility so they may provide their own transportation. SAN JOSE ROUTE 10 AIRPORT FLYER Staff received many comments and letters expressing concern regarding the changes proposed to Route 10 Airport Flyer. VTA and the San Jose International Airport partner to offer the Route 10 Airport Flyer, between Santa Clara Caltrain, the airport, and light rail on North First Street (Metro/Airport station). The draft plan proposed to maintain the route’s current alignment as it is today, with the following additions (see map below): Extend west end to serve Winchester corridor, end at Winchester light rail station Extend east end to serve Brokaw and Lundy corridors, end at Milpitas BART Renumber to Frequent Route 60 Convert to a regular fare, except boardings at the airport terminals would be fare-free While the community expressed overwhelming support for the concept to extend the route for new connections, they expressed concern regarding the transition to a regular-fare route. STAFF ANALYSIS VTA operates Route 10 through an agreement with the City of San Jose, with free service to riders. San Jose pays VTA approximately $700,000 annually as part of this agreement. The amount used to be as much as $1.2 million but was reduced due to city financial difficulties in 2012. The agreement between VTA and San Jose has been in place since 1998, when as part of mitigation for airport expansion, an option for free transit was required. VTA will continue to provide free service to passengers boarding the new Route 60 at the airport as part of service plan and no changes to the financial terms of the cooperative agreement between San Jose and VTA are proposed. The agreement will need to be revised to address the new Route 60 service. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 11 VTA will also continue to equip buses serving the airport with interior luggage racks. We will work with the airport on marketing the new Route 60 to passengers as an airport connector with improved connections and the bus headsign will inform passengers that Line 60 provides airport service. VTA staff met with airport staff to discuss the proposed service change. We believe the new connections provided by the route, including a direct connection to BART, will lead to increased ridership at the airport. We received comments requesting that free fares also be maintained for passengers boarding at the LRT Metro Station stop and the Santa Clara Caltrain Station. The current fare policy proposal also under review would allow free transfers for Clipper card holders. Also, airport employees would ride free with their EcoPass. Thus, the only group of Route 10 riders that would be required to pay an additional fare under the new Route 60 are cash riders transferring to Route 60 from light rail or Caltrain. These are mostly one-time riders. No changes are proposed to the draft plan’s proposal to upgrade Route 10 to Frequent Route 60 with fare-free boardings at the airport terminals. VTA will continue to equip airport buses with luggage racks, will work with airport staff on branding and marketing the new route, and the headsign on Route 60 vehicles will advertise service to the airport. CAMPBELL/SAN JOSE HAMILTON CORRIDOR (ROUTES 82 AND 56) The draft plan proposed to discontinue service along the Hamilton corridor east of Winchester due to low ridership, proposing instead to turn the route (Route 56 in the draft plan) south at Winchester to provide a new connection to the Winchester light rail station. Staff received many comments from community members expressing concern over the loss of service along the eastern end of the Hamilton corridor and suggesting the new connection to Winchester station would not be valuable. STAFF ANALYSIS Staff gathered ridership data to assess the demand for service along the Hamilton corridor east of Winchester and found there is fair ridership demand, with 154 boardings per weekday among the stops. Given the demonstrated demand for service, staff explored several alternatives to retain service along the entire Hamilton corridor. The alternative with the highest potential ridership among the feasible options is similar to today’s Route 82 service along Hamilton, Pine, Newport, and Minnesota to Tamien station. The final plan includes an extension of Route 56 to provide service along the Hamilton corridor and a connection at Tamien station. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 12 GILROY Staff received many comments and letters from community members, Gilroy city staff, the county executive, county staff, and other organizations expressing concern over the draft plan’s proposed service in Gilroy. The primary concerns were: Loss of service to a low income community in the San Ysidro Park area, currently served by Route 17. Loss of service to the county’s Social Services office at Tomkins Court, also currently served by Route 17. Increased reliance on transfers and the fare (transfer penalty) impact throughout the county. Reduction of Route 68 midday service. Poor pedestrian environment, particularly for connections to/from and along Route 68. The draft plan proposed consolidating three of Gilroy’s four community routes into one two-way loop route that would serve the highest ridership parts of Gilroy (see map at right). As such, the proposed two-way route would maintain service for nearly all riders on the existing routes, plus offer new direct east-west connections across Gilroy. The areas that would lose service under the draft plan’s proposed route are the San Ysidro Park area () and the Tomkins Court deviation (), both served by Route 17 today. STAFF ANALYSIS San Ysidro Park. Staff gathered ridership data to assess the demand for service in the area. As shown along the San Ysidro Park area of Route 17 (in red on the map), ridership is very low. The total number of boardings across the stops in the area is 8 per weekday (4 daily riders making a roundtrip). While the area may be a community of concern, almost none of the residents are riding Route 17 today. Route 17 has the lowest productivity among all VTA’s routes, with just 8.1 boardings per weekday, 3.3 per Saturday, and 2.9 per Sunday. Contrast the low demand with Route 68 on Monterey Road (orange dots), where the stops in the area have 195 daily boardings (98 daily riders making a round trip). The high ridership on Monterey suggests that perhaps many of the residents of the San Ysidro Park area are walking to Monterey Road (¼ to ½-mile walk) because Route 68 is more useful for their needs (better frequency and it goes more places). Recognizing the desire to provide some coverage service to the area, staff attempted to come up with a modified alignment for Gilroy service that would serve San Ysidro Park. However, none of the options were feasible because they would either add resources beyond justifiable levels, compromise the rest of the route’s design, and/or eliminate service to more productive areas of Gilroy. Due to very low ridership, no changes are proposed to the draft plan’s proposal to discontinue service to the San Ysidro Park area. Social Services at Tomkins Court. Route 17 currently provides service to the Santa Clara County Social Services offices on Tomkins Court; the draft plan proposed to discontinue service to this location, as the office’s isolated location makes it nearly impossible to serve well and ridership is very low. Staff assessed ridership data confirmed ridership at this location is very low; the stop has just 10 weekday boardings (5 riders making a roundtrip). The stop has always had very low ridership, and VTA staff have collaborated with Social Services staff since the facility opened at the location to try and boost ridership. Strategies included redesigning the alignment of the route to go different places and offer a direct connection with Route 68, direct marketing and promotions, and even offering free transit rides for a month. None of the strategies resulted in any increased transit usage at the stop. Unfortunately, this important office is in an area that is not transit-supportive and is not possible to serve well with fixed route transit. Also, as was the case for the residents of the San Ysidro Park area, there is evidence that many patrons of the Social Services office are walking to/from Monterey Road to ride Route 68 (better frequency and it goes more places). Due to its location in an area that is not transit-supportive and therefore demonstrates very low demand for service, no changes are proposed to the draft plan’s proposal to discontinue service to the area. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 13 Increased transfers and fare impacts. Although the proposed network for Gilroy would not impact transfers, the proposed network design elsewhere relies on transfers in order to expand transit access and mobility. As such, staff is studying VTA’s fare structure and will develop a revised fare structure to complement the new transit network. Being studied is a revision to VTA’s transfer policy that allows riders free transfers for 90-minutes with a Clipper card. Staff is studying the potential to revise VTA’s fare structure to offer free transfers with a Clipper card. Reduction in Route 68 midday service. The draft plan included a reduction in midday service frequency on Route 68, from every 20 minutes to every 30 minutes. Due to operational constraints of operating the inner segment of Route 68 (between downtown San Jose and Santa Teresa station) at a 15-minute midday frequency, the only feasible options for the outer portion of the route (between Santa Teresa Station to Gilroy) would be the same frequency (every 15 minutes) or half the frequency (every 30 minutes). While it is not possible to propose service every 15 minutes on the outer segment due to limited resources in the service hours-neutral final plan, the corridor does demonstrate potential to support 15-minute midday service if new resources become available. No changes are proposed to the proposal to reduce midday service on Route 68 to every 30 minutes; however, an option to improve frequency to every 15 minutes is a potential improvement for future consideration. Poor pedestrian environment to/from and along Monterey Road. Recognizing that walkability critical for transit success, several community members and organizations expressed concern regarding the poor pedestrian environment getting to and walking along parts of Monterey Road, which is Gilroy’s primary transit corridor. For example, the Social Services office is only ¼-mile from Monterey Road and Route 68 stops, though the lack of connectivity of the street grid in this area means the actual walking distance between the facility and the transit stops is over ½-mile. The need to consider the pedestrian environment for transit areas is discussed in VTA’s draft Pedestrian Access to Transit Plan, including specific discussion about the pedestrian environment in Gilroy. VTA will continue to work with cities to improve the pedestrian environment in transit areas. SAN JOSE/CAMPBELL/SARATOGA ROUTE 37 Staff received many comments and letters expressing concern regarding the proposal to discontinue Route 37 in South San Jose, Campbell, and Saratoga. The community and the administration of West Valley College expressed concern over the loss of the route. The route has two primary markets: Service to the communities along the Hillsdale, Camden, Hacienda, Pollard, Allendale corridors, and Connections between West Valley College and the Winchester and Capitol light rail stations. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 14 Route 37 offers weekday-only service every 30 minutes, though the segment between Winchester station and Capitol station is every 60 minutes midday. Route 37 has relatively low productivity (it has 14.0 boardings per service hour, placing it 50th out of VTA’s 56 local routes) and the route was proposed for elimination in the draft plan as its coverage-oriented resources were reallocated to more ridership-oriented service. STAFF ANALYSIS Staff gathered ridership data to assess the demand for service to the communities along the route (see map above). Ridership not at the light rail stations is fairly substantial with 866 boardings on an average weekday (433 people making a roundtrip). Given the fair ridership along the route, Route 37’s low productivity is likely due to a mismatch in service level and service demand (too much service), suggesting that service every 60 minutes all day may be a more appropriate level of service for the area. Ridership data suggests that many West Valley College students use Route 37 to make a connection between the college and light rail, at both Winchester and Capitol stations. The connection is important for both the Winchester (Green) light rail line and the Guadalupe (Blue) light rail line. The draft plan’s Route 26 would maintain the connection to the Winchester line (every 30 minutes) at the Downtown Campbell station and the Guadalupe line (also every 30 minutes) at the Curtner station. Due to significant ridership demand along Route 37 and the desire to provide multiple connections between West Valley College and light rail, the final plan includes Route 37 service along its current alignment, but at a reduced 60-minute frequency. NEW DIRECT ROUTE BETWEEN FOOTHILL COLLEGE — DE ANZA COLLEGE At the project’s community meetings, staff received many comments from students at De Anza and Foothill colleges expressing a request for a new direct route between campuses. Both campuses are in the same college district, and the demand for student travel between campuses continues to grow as the campuses specialize and students often have to take classes at both campuses during an academic period. Students developed and submitted a petition to staff requesting a new direct route between campuses with frequent service all day. STAFF ANALYSIS Staff assessed the request to determine if there is a ridership justification for the new route. There are surely some students that would benefit from service between campuses, however there is no evidence that suggests demand would be sufficient to justify a dedicated VTA fixed route: 7.3.e Attachment E – Changes from Draft Plan to Final Plan 15 There is insufficient demand for service between campuses. VTA previously (until 2009) offered such a connection between campuses on Route 23, which continued west past De Anza to Foothill College via Grant, Foothill, and El Monte every 30 minutes all day (see map above). While 55 students boarded at Foothill per day (about 20 of which were going to De Anza), overall ridership activity was very low and the segment west of De Anza was discontinued in the 2009 Comprehensive Operational Analysis due to low productivity. Demand for travel between campuses has certainly grown since the service was discontinued, as the college district has significantly expanded the number of classes offered at only one of the campuses. However, there is no evidence to suggest that demand is now high enough to justify the level of service that would be useful for students, probably every 30 minutes all day. (A 10x increase in inter-campus travel demand from 2009 levels would still equal just 8 boardings per trip.) There is also insufficient demand to justify additional service for the areas along the route. The areas in between campuses have very low ridership demand, and Route 51 would already serve the segment east of Grant Road to De Anza. The unserved segment west of Grant Road to Foothill is a residential area with limited access to bus stops and demonstrated very low demand when service was provided prior to 2009. The low demand for such a route is another example of the difficulty in providing useful transit service to locations that are not supportive of transit. Foothill College’s location on the periphery of the county’s urban area makes it nearly impossible to integrate the campus into the overall transit network and provide connections such as the petitioners have requested. While there is not sufficient demand to justify providing such a new route under VTA’s regional mission, the college district may wish to explore options to provide a dedicated shuttle. SAN JOSE ROUTE 23 SERVICE TO O’CONNOR HOSPITAL Route 23 currently deviates from Stevens Creek to Forest Avenue (behind Valley Fair) between Bellerose and Winchester in order to provide front-door service to O’Connor Hospital and make connections at the transit center behind Valley Fair. The draft plan proposed to discontinue the deviation so that Route 23 would stay on Stevens Creek. Staff received several comments from community members expressing concern about the loss of front-door service to O’Connor Hospital. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 16 STAFF ANALYSIS Staff gathered ridership data for stops in front of O’Connor Hospital, which have 86 boardings per day. While these riders could walk to Stevens Creek to ride Route 23, the distance may be a challenge for some. The hospital is on Forest Avenue, which is ¼-mile north of Stevens Creek (see hospital symbol on map), however due to the street network in the area, actual walking distance to the closest bus stops (Stevens Creek at Bradley) is ½-mile. Staff will explore the potential for new bus stops on Stevens Creek that would be closer to the hospital. Given the relatively significant ridership demand to an important community destination, staff also explored options to maintain its front-door service. The option with the highest ridership potential would be an extension of Route 59, proposed to end at Santa Clara station. The extension (shown by the purple dotted line) would provide service along Benton, Lafayette, Washington, Bascom, and Forest to turn around at the Valley Fair transit center. This extension would provide front- door service to the hospital on weekdays and integrate the hospital into the transit network (including connections to Caltrain, ACE, BART, and light rail). The final plan includes an extended Route 59 to provide front-door service to O’Connor Hospital on weekdays. SUNNYVALE CIVIC CENTER/LIBRARY AND FAIR OAKS (ROUTES 54 AND 55) Staff received several comments from the community regarding Sunnyvale details of the draft plan, specifically: The loss of service along Olive Avenue in front of the library and civic center. Route 54 currently provides service along Olive Avenue, but draft plan proposed to consolidate Route 54 with Route 55 and Rapid 523 to provide better north-south service in Sunnyvale. The loss of service along Fair Oaks/Remington between Old San Francisco and Sunnyvale-Saratoga. Route 55 currently deviates to Fair Oaks/Remington, though the draft plan proposed to eliminate the deviation and keep Route 55 on Sunnyvale-Saratoga to make the route faster and more direct. STAFF ANALYSIS The library and civic center (marked by an X on the map) are served by Route 54 at three stops on Olive Avenue, with 59 daily boardings. While no route would directly serve these stops, they are within walking distance to two transit routes: 800 ft. (3-minute walk) to Route 22 on El Camino at Hollenbeck/Pastoria. Route 22 will provide 15- minute service all day, seven days a week. ½-mi. (9-minute walk) to Route 55 on Sunnyvale Avenue at Olive. Route 55 will provide 30-minute service all day, seven days a week. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 17 Patrons of the library and civic center would benefit from significantly better service on Routes 22 and 55, compared to Route 54 today. While the library and civic center would be well-served by both routes, staff explored options to maintain service directly along Olive Avenue, though none were feasible because none of the routes in the area could be diverted without significant impact to its design. (Route 22 and Rapid 522 could not be diverted from El Camino because as core routes they should remain on their primary corridor without deviation; Route 55 and Rapid 523 could not be diverted from Sunnyvale Avenue because they are also core routes; Route 53 is too far north and a deviation to Olive would leave areas of Washington Street without transit service.) Given the high level of service offered by nearby routes, no changes are proposed to the plan to discontinue Route 54 and its service directly on Olive Avenue. The area of Fair Oaks/Remington between Sunnyvale-Saratoga and Old San Francisco is currently served by a deviation of Route 55 from the Sunnyvale-Saratoga corridor (see dotted purple line on map). Ridership along Fair Oaks/Remington is significant, with 409 total daily boardings among these stops. While ridership in the area is relatively high, the deviation adds significant travel time and impacts the majority of riders who are traveling through the area. The community along the deviation will be well-served by several routes within walking distance: Route 22 on El Camino at Fair Oaks/Remington. Route 22 will provide 15-minute service all day, seven days a week. Route 55 on Sunnyvale-Saratoga at Remington. Route 55 will provide 30-minute service all day, seven days a week. Route 56 at Fair Oaks and Old San Francisco. Route 56 will provide 30-minute service all day, seven days a week. There are no other routes in the area that could be diverted to this Fair Oaks/Remington corridor. Given the high level of service offered by nearby routes, no changes are proposed to the plan to eliminate the deviation of Route 55 to Fair Oaks/Remington. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 18 ALMADEN VALLEY Staff received many comments, letters, and petitions from the community and elected officials regarding the loss of service in Almaden Valley as proposed. The draft proposal included a reduction of all service into Almaden Valley as its coverage-oriented resources were reallocated to more ridership-oriented service. VTA currently provides four routes into Almaden Valley (areas south of Blossom Hill, excluding Route 64 which ends at the edge of Almaden): Almaden Valley Routes Limited Route 328 Limited Route 330 Route 63 Route 13 Limited-stop service between Almaden and Moffett Park via Lawrence Expressway. 2 northbound AM peak trips and 2 southbound PM peak trips. Limited-stop service between Almaden and Tasman Drive (North San Jose/Milpitas). 4 northbound AM peak trips and 4 southbound PM peak trips. Local service between Almaden and downtown San Jose. 7 days/week. 30-min peak, 45-min midday, 60-min weekend. Local service between Almaden and Ohlone-Chynoweth station. Weekdays only. 60-min peak, 60-min midday. Daily ridership in Almaden (entire route): 9 (73) boardings Route cost per passenger: $8.94 (VTA average: $4.50) (52nd of 56 routes) Daily ridership in Almaden (entire route): 14 (168) boardings Route cost per passenger: $8.27 (VTA average: $4.50) (49th of 56 routes) Daily ridership in Almaden (entire route): 96 (833) boardings Route cost per passenger: $6.37 (VTA average: $4.50) (34th of 56 routes) Daily ridership (entire route): 185 boardings Route cost per passenger: $7.89 (VTA average: $4.50) (45th of 56 routes) Draft plan proposal. Limited Routes 328 and 330 were proposed to be discontinued, as these routes have very low ridership and productivity and serve a very limited market. Route 63 was proposed to be shortened to discontinue its unproductive segment in Almaden (the route would turn around at Blossom Hill). Route 13 was proposed for elimination, given its low ridership and productivity. STAFF ANALYSIS Following feedback from the community, staff developed three alternatives to restore some service to Almaden Valley. Staff then conducted a focused community meeting to discuss the options, attended by over 100 community members and Councilmember Khamis. While the community generally rejected all three options as not enough service, the community generated some good ideas for consideration. Staff used the additional feedback to develop the proposal as seen in the final plan (map below). Limited 328 and 330. The four Limited class routes in VTA’s current system, including 328 and 330, are all unproductive. Limited routes serve longer-distance markets with limited stops and travel along expressways (which are not transit-supportive in design and pedestrian environment), which limits the ridership potential of these routes. The final plan maintains the elimination of all Limited routes. Route 63. The segment of Route 63 south of Blossom Hill has just 96 daily boardings, which is the lowest productivity segment of the route. Of the 96 boardings, 64 are east of McAbee, which would be served by the proposed Route 83 (discussion below). Therefore, the area left unserved by shortening Route 63 at Blossom Hill currently has only 32 daily boardings, which is too low to justify fixed route service. No changes are proposed to the plan to shorten Route 63 to turn around at Blossom Hill. Route 64. Route 64 could be extended to provide 7-day service for the core of Almaden Valley, turning around at Camden (its current endpoint is Almaden light rail station). Route 64 would provide Almaden Valley with service every 30 minutes all day, every day of the week, a significant increase in service for the core of Almaden Valley. This concept was presented to the community during the public meeting and was very well-received. 7.3.e Attachment E – Changes from Draft Plan to Final Plan 19 Route 13. Fixed route transit service is not the ideal mobility solution for Almaden Valley, evidenced by Route 13’s very low ridership and numerous iterations of fixed route services in Almaden Valley that have all failed to meet minimum productivity standards. Given its low land use densities and lack of a transit-supportive street grid and pedestrian environment, a more useful and attractive mobility solution for area residents (and more effective use of VTA’s regional operating resources) may be a flexible model of transit service that provides service throughout an established zone, instead of along a fixed route. VTA does not currently offer such a model of service, though a number of other transit agencies across the country have implemented these transit solutions of various designs, offering VTA several models to consider. There would be many issues to consider and resolve in order to implement such a service, including driver training, fares, service animals, software, and operator policies. Staff will explore the potential for a pilot service, though implementation will take time, and the solution may not be ready to begin along with the rest of the service plan. While fixed route service would not “make the cut” on its own merits for inclusion, the final plan includes a revised Route 13, provided on an interim basis until a more effective flexible transit solution can be designed and implemented for Almaden Valley. In the interim, Route 83 would provide transit coverage throughout Almaden Valley that would incorporate two community suggestions on routing details. First, the route would turn to serve Blossom Hill Road between Winfield Boulevard and Almaden Expressway, in order to serve the businesses and destinations in the area. Second, the route would deviate from Almaden Expressway (where the extension of Route 64 would already serve) to serve McAbee Road and Camden Avenue. This deviation would cover areas currently served by Route 63 and provide front-door service to the Almaden Community Center, Almaden Library, and the senior center, in addition to preserving service to Castillero Middle School. The route would continue to serve Bret Harte Middle and Leland High schools as today. Route 83 would provide service every 60 minutes all day, weekdays only. The final plan includes interim Route 83 (a revised Route 13) to provide some transit coverage in Almaden Valley while the potential for a more appropriate flexible transit solution can be explored and developed for Almaden Valley. VTA has begun preparations to explore a pilot flexible transit solution for Almaden Valley, with details to be determined in the coming months. If a feasible pilot service can be developed, staff will return to the VTA Board with a proposal. 7.3.e Attachment F – Paratransit Service Impacts 1 Attachment F ‐ Paratransit Service Impacts Background The Americans with Disabilities Act requires transit agencies to provide paratransit service to areas within ¾ of a mile of a fixed‐route service while that service is in operation. VTA’s Paratransit Policy expands on the federal requirement, extending the paratransit service area an additional mile. Travelers heading to or from this extended service area pay a premium fare, $16 per ride, while those in the standard, ¾‐mile service area pay $4 per ride. Since paratransit service operates only when fixed‐ route service operates, the shape of the paratransit service area changes throughout the day which effects when some clients are able to make trips. There are three potential ways that paratransit clients could be impacted by changes to the transit network: Their home or destination falls outside paratransit service area Their home or destination changes from the standard service area to the extended service area, resulting in an increased fare The hours of service in which paratransit operates in their area changes Alameda County Impacts VTA’s paratransit service area includes portions of Fremont as VTA Routes 120, 140, 180 and 181 currently serve the Fremont BART Station. When BART service to Santa Clara County begins, VTA will no longer operate fixed‐route bus service in Alameda County. The Warm Springs‐to‐Santa Clara County portion of the BART alignment will be considered a VTA fixed‐route service and will affect the shape of the paratransit service area. As a result, VTA will still provide some paratransit service in Alameda County, but to a lesser extent than it does today. Travelers in Fremont are currently double‐covered by paratransit service as BART and AC Transit currently fund an East Bay Paratransit service that overlaps with VTA paratransit service. Trips that cross the county line that were previously served entirely by VTA paratransit will now require a coordinated transfer to/from East Bay Paratransit at the Milpitas BART Station or Warm Springs BART Station. Travelers making this trip would pay two fares—one for each leg of the trip. Impacts to Current Paratransit Trips VTA analyzed 142,471 paratransit trips taken between November 4 of 2016 and February 28 of 2017 as a representative sample to assess the impact of the transit network change on active paratransit clients. This analysis included the location of origins, destinations and the time of day of travel. Top line findings include: The homes of two active paratransit clients would move from being within the paratransit service area to outside the paratransit service area. This is due to the proposed discontinuance of Route 45 in the East San Jose Hills. These two clients accounted for two trips in the four‐ month sample period. 7.3.f Attachment F – Paratransit Service Impacts 2 The homes of 20 active paratransit clients would move from the standard service area to the extended service area. This is due to the proposed discontinuance of Route 45 and reduced hours of service on Route 88/288. These clients accounted for 586 trips during the four‐month sample period which is 0.4 percent of all paratransit trips taken in this period. 499 of 124,750 weekday trips would change from being entirely within the standard service area to having an origin or destination within the extended service area. This represents 0.4 percent of all weekday paratransit trips. 87 of 17,721 weekend trips would change from being entirely within the standard service area to having an origin or destination within the extended service area. This represents 0.1 percent of all weekend paratransit trips. Change in client home access to paratransit service area Home in Standard Service Area Home in Extended Service Area Home Outside of Service Area Total Current Service Area 6,673 134 0 6,807 Final Plan Service Area 6,651 154 2 6,807 Change to client home access to paratransit service area as percent Home in Standard Service Area Home in Extended Service Area Home Outside of Extended Service Area Total Current Service Area 98.0% 2.0% 0% 100% Final Plan Service Area 97.7% 2.2% 0.02% 100% The two clients whose homes would fall outside the service area accounted for two trips during the four‐month sample period. A client whose home is outside of the paratransit service area may still use paratransit service, provided that they travel into the service area. Change in weekday trip pattern Applied to 124,705 weekday trips taken between November 4, 2016 and February 28, 2017 Service Area to Service Area Impact to Client Number of Trips Percentage of Trips Standard to Standard No change 122,870 98.5% Extended to Extended No change 897 0.6% Standard to Extended Increased fare 499 0.4% Extended to Outside of Area Home outside of service area 2 0.0% Fremont to Santa Clara County EB Paratransit transfer 482 0.3% 7.3.f Attachment F – Paratransit Service Impacts 3 99.1 percent of weekday trips would not be affected by the transit network redesign. About half of the affected trips are due to the discontinuance of Route 45 in the East San Jose hills. The other half is due to the reduced hours of service on Route 42 (service ends at 6:30PM rather than 7:00PM) and Route 88 (midday service discontinued) that would push some trips from the standard area to the extended area for certain hours of the day. It is probable that many of these trips could be rescheduled for other times of the day or could serve a different but comparable destination (i.e. different shopping center) that is within the standard service area in order to avoid incurring the extended area fare. Change in weekday trip pattern by time of day Applied to 124,705 weekday trips taken between November 4, 2016 and February 28, 2017 Service Area to Service Area Impact to Client Number of Midday Trips Number of Non‐ Midday Trips Standard to Extended Increased fare 223 276 Extended to Outside of Area Home outside of service area 0 2 Fremont to Santa Clara County EB Paratransit transfer 212 282 Change in weekend trip pattern Applied to 17,766 weekend trips taken between November 4, 2016 and February 28, 2017 Service Area to Service Area Impact to Client Number of Trips Percentage of Trips Standard to Standard No change 17,198 96.8% Extended to Extended No change 327 1.8% Standard to Extended Increased fare 87 0.5% Extended to Standard Decreased fare 2 0.0% Fremont to Santa Clara County EB Paratransit transfer 152 0.8% 98.6 percent of weekend trips would not be affected by the transit network redesign. It is probable that the 0.5 percent of trips that would incur a higher fare could be rescheduled to other times of the day or could serve a different but comparable destination in order to avoid paying the extended area fare. Change in weekend trip pattern by day Applied to 17,766 weekend trips taken between November 4, 2016 and February 28, 2017 Service Area to Service Area Impact to Client Number of Saturday Trips Number of Sunday Trips Standard to Extended Increased fare 78 9 7.3.f Attachment F – Paratransit Service Impacts 4 Extended to Standard Decreased fare 1 1 Fremont to Santa Clara County EB Paratransit transfer 85 67 Increase in Paratransit Service Hours The extension of service hours on many fixed routes as well as the increase in weekend service levels will increase the hours of the day and days of the week in which paratransit clients will be able to use the service. As a result, VTA is projecting an increase of 21,110 annual paratransit trips which is about four percent more than are currently served. These additional trips are projected to increase VTA’s Operations budget by about $865,000 annually. 7.3.f Attachment F – Paratransit Service Impacts 5 7.3.f Attachment F – Paratransit Service Impacts 6 7.3.f Transit Service Equity Analysis For VTA’s Next Network Transit Service Plan Prepared for Santa Clara Valley Transportation Authority By April 2017 Revised Attachment G: Service Equity Analysis Page 1 7.3.g Table of Contents Overview ......................................................................................................................... 3 Title VI Requirements ................................................................................................. 3 VTA Title VI Policies .................................................................................................... 4 Service Equity Analysis Methodology Overview ................................................ 5 Data Used .................................................................................................................................................. 6 Service Area Demographics Overview .................................................................. 7 Ethnicity and Income ................................................................................................................................ 7 Next Network Overview ............................................................................................. 7 Next Network Characteristics ................................................................................................................... 8 Potential Benefits ...................................................................................................................................... 8 Potential Adverse Effects .......................................................................................................................... 9 Specific Route Considerations .................................................................................................................. 9 Next Network Public Outreach Phase 1 .............................................................. 10 Next Network Public Outreach Phase 2 .................................................................................................. 11 External Engagement .......................................................................................................................... 11 Marketing Collateral ........................................................................................................................... 11 Incorporation of Feedback into Final Transit Service Plan ......................... 12 Service Equity Analysis Findings .......................................................................... 14 Summary Findings ................................................................................................................................... 15 Analysis Results ....................................................................................................................................... 15 Appendix A: VTA Title VI and Environmental Justice Policies ................... 18 Appendix B: Matrix of Changes by Route .......................................................... 40 Appendix C: Matrix of Impacts by Route ........................................................... 45 Appendix D: Maps of Title VI Community Impacts ........................................ 48 Attachment G: Service Equity Analysis Page 2 7.3.g Overview In 2016, Santa Clara Valley Transportation (VTA) undertook ways to redesign their transit network to make public transit faster, more frequent and more useful for Santa Clara County travelers. Called the “Next Network,” this transit service redesign is aimed at accomplishing three main goals: 1. Increase overall system ridership 2. Improve VTA’s farebox recovery rate 3. Better connect VTA’s transit network with future BART stations at Milpitas and Berryessa Throughout the summer of 2016, VTA sought community input on three network design concepts, along with transit network design priorities. After analyzing community input on the three plans, a draft network was released in January 2017 for public review which is based on the service plan recommended by the Board of Directors at their November 18, 2016 meeting. During an extensive six-week public outreach period, VTA held nine public meetings, five webinars and made public presentations to over 50 community based organizations and government agencies. Additionally, a website was developed specifically to aid riders in understanding the planning process and potential outcomes. Over 3,000 comments on the draft plan were also gathered by e-mail, social media and phone calls. Using this input, a final plan will be presented to VTA’s Board of Directors in May 2017. The changes are scheduled to take place when the two Santa Clara County BART stations open in late 2017. Key to the adoption and implementation of the Next Network is a Title VI Service Equity Analysis that is aimed at assessing whether the service restructuring plan will result in negative impacts to minority and/or low-income communities. Using VTA Title VI policies, the Service Equity Analysis is the subject of this memo. As set forth in this report, the proposed adoption of the Next Network service plan will not disproportionately burden low-income communities nor have a disparate impact on minority communities. Rather, the analysis shows that both populations will bear less than their proportional share of the service losses associated with the Next Network proposed final plan. Title VI Requirements Title VI of the Civil Rights Act of 1964, Section 601 states: “No persons in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” Attachment G: Service Equity Analysis Page 3 7.3.g It is VTA’s objective to avoid, minimize or mitigate disproportionately high and adverse impacts on minority and low-income populations. As a recipient of financial assistance from the Federal Transit Administration (FTA), VTA is required to comply with Title VI of the Civil Rights Act of 1964 by evaluating service and fare changes at the planning and programming stages to determine whether those changes have discriminatory impacts, including Disparate Impacts on minority populations and/or Disproportionate Burdens on low-income populations. According to the Federal Department of Transportation, equity in the provision of transit service is described as "providing equal levels of service to minority and non-minority residents of the urbanized area. Levels of service, in turn, are defined in terms of capital allocation and accessibility."1 The metrics of discrimination that could be monitored for disparate treatment include service design that could consistently cause minority-group riders to experience less service than the overall riding public. Despite being an FTA requirement, a Title VI Equity Analysis should not replace good program planning, which should be an on-going process that considers equity among other factors when designing fare changes, service changes, or discretionary policies and programs. VTA Title VI Policies In 2012, FTA issued guidance under FTA Circular 4702.1B (Title VI Requirements and Guidelines for Federal Transit Administration Recipients), and Circular 4703.1 (Environmental Justice Policy Guidance for Federal Transit Administration Recipients) that requires large transit agencies to develop policies for when they are contemplating either service or fare changes. In order to comply with the guidance, on November 7, 2013, the VTA Board adopted the VTA Major Service Change, Disparate Impact, and Disproportionate Burden policies for the evaluation of service and fare changes. The Policies established a definition of what would constitute a “major” service change to require an equity analysis, in addition to establishing a statistical threshold to determine whether minority and low-income riders are disproportionately impacted by the service changes. Prior to adoption, these Policies were the subject of extensive public outreach and engagement. The VTA policies are included as Appendix A, including a description of the public outreach efforts related to the establishment of the policies. These policies define what constitutes a “major” service change and therefore requires a service equity analysis: establishing of new routes, elimination of routes, a change that impacts 25% or more of a route’s miles or hours, a series of changes over time that would cumulatively become major changes, controversial changes, or a systemwide change that impacts 5% or more of the total system hours. The 1 Transit Cooperative Research Program, Legal Research Digest: “The Impact of Civil Rights Litigation Under Title VI and Related Laws on Transit Decision Making”, TCRP Project J-5, Washington, D.C. June 1997 Attachment G: Service Equity Analysis Page 4 7.3.g policy states that for service and fare equity analyses, a disparate impact (and disproportionate burden) threshold of 10 percent shall be used to determine if minority and/or low income riders are more negatively affected by the proposed change, when compared to VTA riders as a whole. The 10 percent threshold applies to the difference in the aggregate impacts of the proposed change on minority and low income riders compared to the aggregate impacts on the overall VTA ridership. While the policies state that the analyses shall be based on VTA passenger data, the analyses can also be based on census data if survey data is inadequate or unavailable for the analysis. Prior to adopting a service change, VTA must conduct a service equity analysis and analyze specific elements of the proposed plan to determine whether the changes would result in impacts that exceed the threshold established by the policies. The analysis contained within this report uses the VTA adopted thresholds for determining Disproportionate Burden and Disparate Impacts. Should the service equity analysis show that the proposed service change results in a disparate impact or disproportionate burden, alternatives should be considered to avoid, minimize, and mitigate the discriminatory results of the service change. However, if the mitigations do not minimize adverse effects, the equity analysis must demonstrate a substantial legitimate justification and it must be demonstrated that there were no comparably effective alternatives that would result in fewer adverse impacts. Service Equity Analysis Methodology Overview Using the guidance provided in VTA’s Title VI Policies to quantitatively assess the impacts associated with the proposed service restructuring on minority and low-income populations, it is necessary to use data that would capture the systemwide change that the Next Network presents. This allows an analysis that can better isolate minority and low income rider populations that may be affected by the transition and compare them to the overall affected population. The methodology to perform this service equity analysis was designed per the checklist provided as Appendix K of the FTA’s October 2012 4702.1B Circular (Title VI Requirements and Guidelines for Federal Transit Administration Recipients). Typically, VTA uses passenger survey data to assess the impacts of service changes. However, because the network redesign envisions a large number of service changes (route alignments, frequency changes, route additions and deletions), using passenger data for the analysis would not accurately quantify the impacts. As a result, this Service Equity Analysis is based on Census block group demographic data from a service planning tool called Remix to help assess impacts associated with proposed changes on a systemwide basis. Remix is a proprietary geospatial data analysis tool that uses Geographic Information System (GIS) mapping software that is customized specifically for VTA. Attachment G: Service Equity Analysis Page 5 7.3.g Both the existing network and the proposed network were imported into Remix (including service frequencies, spans of service, and days of the week) along with census block group demographic data depicting minority and low income populations as a way of calculating the population’s access to transit under the existing network and the proposed network. This spatial data analysis tool produces “people trips” (total population served by a route X annual scheduled trips on that route) that present a surrogate for how individuals can benefit from a route. “People trips” are a measurement of the number of residents that are served by transit and the amount of service that is available to them. For each route, People Trips are calculated by multiplying the number of residents who live within ¼-mile of a stop by the total number of annual vehicle trips provided on that route based on its frequency and span of service. A route that runs frequently through densely populated areas would show a high number of People Trips. A route that runs infrequently through low density areas would reflect a much lower number of People Trips. Minority and low income People Trips may also be calculated by using minority or low income population figures in place of total population. Using the Remix outputs, the Service Equity Analysis compares the change in Total People Trips to the change in Minority People Trips and to Low Income People Trips. This way, the aggregate impacts on the total population can be compared to the impacts experienced by both minority and low income populations to determine if a Disparate Impact or Disproportionate Burden exists. If the percentage change between All People Trips and Minority People Trips is greater than 10%, that would suggest that the service change would result in Disparate Impacts on minority populations. Further, if the percentage change between All People Trips and Low Income People Trips is greater than 10%, that would suggest that the service change would result in a Disproportionate Burden to low income populations. A change of less than 0% (any negative percentage) would indicate that the service change would have a greater benefit low income and/or minority populations as compared to overall ridership. Data Used Remix is based on Census data provided by the US American Community Survey, 2009-2013. The Service Area consists of a set of Census block groups (and its underlying data) determined by the route design provided by VTA staff. The following data definitions were used: Minority status of the block groups is determined by subtracting the white, non-Hispanic population from the total population. Attachment G: Service Equity Analysis Page 6 7.3.g Low income status is set at 200% the US poverty level, based on VTA’s definition of “low income” as referenced in the adopted VTA Title VI program. Service Area Demographics Overview The following provides an overview of the VTA Service Area population based on the 2009-2013 American Community Survey 5-Year Sample, which corresponds to the data set used for the Remix analysis. These demographic statistics were considered early and often in the development of the service recommendations in order to minimize or avoid the potential for changes to result in a Disproportionate Burden on low-income populations or Disparate Impacts on minority populations. Minority and Income Status Minority and Income Status are the primary considerations within the Service Equity Analysis. To determine the Service Area population’s minority and income profile, data from the American Community Survey was used for the block groups used in the Remix equity Analysis. The following Figures 1 and 2 provide a service area overview on minority and income status. Figure 1: Service Area Income Status Figure 3: Service Area Minority Status Source: 2009-2013 American Community Survey 5-year Sample Next Network Overview The Transit Ridership Improvement Program is a two-year study of Santa Clara Valley Transportation Authority (VTA) services designed to identify ways to improve ridership. A key output of this study, the 2017 Next Network Plan, has reviewed the structure of the VTA transit network and proposed improvements for implementation in 2017. The planned changes will occur in time for the opening of Bay Area Rapid Transit (BART) to Berryessa, including those changes required to integrate BART into the VTA network. The need for this study arose from two converging factors—falling ridership and population growth—that pose important new questions for transportation in Santa Clara County. Non Low Income 76% Low Income 24% Minority 65% Non- Minority 35% Attachment G: Service Equity Analysis Page 7 7.3.g Identifying the appropriate service allocation between services geared toward increasing ridership and those geared toward ensuring geographic coverage was the essential first step in the design of the new transit network. Currently, 70 percent of VTA’s operating budget is spent on ridership-purposed routes; that is, those that travel through dense, walkable, transit-supportive places. 30 percent is spent on coverage-purposed routes that provide transit access to parts of the county with little regard for ridership demand. Three scenarios were studied during the last year: 70/30—70% of the service would be allocated to areas that would generate ridership, while 30% would be allocated for the purpose of geographic coverage. 80/20—80% of the service allocated to ridership-purposed service and 20% allocated to coverage purposed service 90/10—90% of the service allocated to ridership-purposed service and 10% allocated to coverage purposed service. Throughout the last year, VTA staff and consultants have sought input on concepts and plans studied under the Next Network in order to develop a service plan that addresses the concerns of the Authority and meets the needs of the riders. On November 18th, 2016 the VTA Board directed staff to design a draft transit network employing an 85/15 balance between ridership purposed and coverage-purposed services. Following a second outreach phase collecting input on this “85/15” draft service plan, staff made changes to produce a final plan. This final plan is the subject of this Service Equity Analysis. Next Network Characteristics The Next Network has proposed both service eliminations as well as service and frequency increases on the VTA proposed network. Due to the comprehensive nature of the changes that are included the proposed 85/15 Next Network, a large number of existing VTA riders may be impacted in both positive and negative ways. Some of the systemwide benefits and adverse effects that may result are included below. Potential Benefits Shorter Travel Times—Riders with access to the high frequency network may see reductions in their travel times due to increased service frequency, shorter wait times, and more direct routes. Increased Service Reliability—As a result of the frequency improvements on VTA’s more productive transit corridors, buses will be more frequent, which means that recovery time will be easier to schedule. If a passenger misses a bus, they know that another one will be arriving shortly. Attachment G: Service Equity Analysis Page 8 7.3.g Better Connections—As a result of the frequency improvements on VTA’s more productive transit corridors, buses will be coming more often, which means that transfers will be much easier to complete and riders will have more freedom to move throughout the network. Increased Off-Peak Service—In order to increase overall ridership, the network recognizes the importance of improving service during mid-day, evening and weekend periods. By adding off- peak service, riders will have more options for trips during these periods than what is available with the existing network. Better Regional Mobility—The extension of BART to Milpitas and Berryessa will greatly strengthen the regional transportation network and provide additional mobility alternatives for individuals travelling between Santa Clara County and the rest of the San Francisco Bay Area. The overall increase in mobility will allow passengers to access employment, education, and commercial opportunities that were not previously available. Potential Adverse Effects Reduced Access to Transit Service in Low-Density Areas—Some of the outlying, low-density areas that are currently served by low frequency routes would no longer have access to transit service. As additional resources are invested in the more productive core routes that make up the high frequency network, many of the less productive routes would be reduced or eliminated and the individuals in those areas would no longer have access to transit service. Longer Walk Times—As a result of eliminating some routes, some existing riders may need to travel further distances to get to the nearest bus route. In some cases, the bus route that is further away will be running with more frequent service so the overall travel time may be comparable. Per VTA’s Major Service Change policy, a service equity analysis is required for both the draft (85/15) and final Next Network service plans, as both plans involve a complete redesign of the transit network and would impact more than 5 percent of the system’s service hours (the threshold established by the policy). Appendix B shows a comprehensive list of the final service plan’s proposed changes by route. Conducting a Service Equity Analysis is a necessary and useful component of this implementation, as it identifies equity concerns early in the planning process so that potential negative impacts can be mitigated. Specific Route Considerations While the Next Network proposes significant service increases on some routes, there are also service eliminations and consolidations that have been included in the network for areas with low population density and/or absent a tendency to use public transit. In some cases, productive portions of routes have been assigned to other routes to render useful service. Attachment G: Service Equity Analysis Page 9 7.3.g VTA’s twelve Express routes were not studied as part of this project, except for the routes that currently service Fremont BART. As the only VTA routes that provide service outside of Santa Clara County, the four Express routes that currently serve Fremont BART will be discontinued with the BART Phase 1 (Milpitas and Berryessa) extension. Next Network Public Outreach Phase 1 Due to the potential scale of changes to the transit network that could be considered as part of the Next Network Plan, VTA started the process of reimagining the transit network by seeking public input on how transit could be improved. A five month long community engagement process was conducted from May 2016 through September 2016 designed to collect feedback on how VTA could make its transit service better. VTA held 12 Community Meetings (VTA staff-led) and four intensive Community Leader Workshops (led by Jarrett Walker and Associates) for during the first phase of outreach. Additionally, VTA staff made 15 presentations to community and neighborhood groups. For online outreach, 104,000 unique visits were recorded to the project website. VTA collected 2,236 votes in online surveys, 1,139 social media interactions and 860 email list subscribers. Staff posted 12 blog posts that each generated dozens of public comments and staff responses. 150 Next Network-related comments were received through VTA’s customer service line. In all, over 5,000 points of public input were received during the first outreach phase-more than halfway to staff’s goal of receiving 10,000 points of input throughout the entire project. Extensive communication to Limited English Proficient populations was also undertaken, which corresponded to VTA’s Language Assistance Plan. The comments received followed many common themes: Concerns over personal impacts of service changes on mobility—How will those who might see their transit service decreased or discontinued get around? Desires for more frequent and reliable transit service—With many routes operating at 30- minutes frequencies or less, transit is not a viable option for many who live within the core service area. Desires to lower the average rider subsidy by decreasing or discontinuing transit service to low- ridership areas. Desires to see public transit as a traffic congestion solution Desires to improve connections with regional services like Caltrain and future BART service A sense that transit did not go where riders wanted to go or that making one’s trip would be indirect or require lengthy transfers Recognition of the challenge of operating transit in low-density, suburban areas Concerns for the mobility of an aging population Attachment G: Service Equity Analysis Page 10 7.3.g Next Network Public Outreach Phase 2 Public outreach has continued following the Board’s recommendation to study the Next Network 85/15 plan. The following is a summary of the second outreach phase on the Next Network, conducted during January and February 2017. External Engagement 2,500+ incoming public comments collected via phone, e-mail and specialized microsite https://nextnetwork.vta.org, with information on the site mirrored in English, Spanish, Chinese and Vietnamese. Nine public meetings held thus far resulted in: o Average attendance = 46; o Total attendance = 421 16 videos (2 live streamed meetings, 5 geographically-focused webinars, 8 college-focused videos) – key metrics include: 4,300 views 111 live viewers 25,700 hours of watch time 250 comments 45 thumbs-up and 75 shares Countywide Title VI mailing to 150 organizations Targeted South County Title VI mailing to 80 organizations Community presentations include: Saratoga Senior Center, SJ District 1 Leadership Council, SPUR, Transform, Gunn High School PTA, Cupertino Chamber of Commerce, Hope Services, Centennial Recreation Senior Center (Morgan Hill), Traffic Safe Communities Network among others Outreach to Community Based Organizations, offering presentations/literature for distribution Educational Institution Transit Fairs: San Jose State, De Anza, SCU, City College Multilingual Street Team ambassadors deployed in the field at major transit hubs for 10 days; reach was over 3,300 individuals. Marketing Collateral Car cards translated in 5 languages on all vehicles Proposed discontinued route flyers distributed on affected bus lines Bus Stop signage at proposed deleted stations Light Rail Station and Bus Shelter Posters Passenger Information Message Signs on light rail platforms Bus Bench Ads Special Take Ones (passenger newsletter translated in 5 languages with a proposed service map) on board buses and at major literature distribution points Attachment G: Service Equity Analysis Page 11 7.3.g Two rounds of print newspaper ads in 24 publications targeting community and minority publications including: San Jose Mercury News, Silicon Valley Community Newspapers, Metro Newspapers, Gilroy Dispatch/Morgan Hill Times, El Observador, Sing Tao, Philippine News, Korea Daily, Thoi Bao/Vietnam Daily News, Palo Alto Daily Newspaper, Santa Clara Weekly, Evergreen/Almaden Times Aggressive social media (Twitter, Facebook, Gov Delivery, Next Door) campaign promoting meetings and webinars The outreach effort for the Draft Transit Service Plan yielded over 3,000 comments about the components of the Draft Transit Service Plan. These comments were often specific and detailed and focused on several themes: Consensus that VTA’s ridership and farebox metrics were compelling reasons to make changes in the design of the transit network. Endorsement of the idea that increasing access of residents and jobs to frequent (15-minute or better, all-day) service would make transit a more viable travel option for more Santa Clara County travelers. Endorsement of more Rapid routes, particularly Rapid 523 in Sunnyvale and Cupertino. Support for the Core Connectivity Project, which seeks to identify new ways of providing mobility in areas that are a poor fit for a fixed-route transit service such as contributing funds to city-operated shuttle programs or subsidizing on-demand trips in areas without fixed-route service. Concern for those who lose access to any transit service, particularly in Almaden Valley, South San Jose, East San Jose Hills Saratoga, Cupertino, Los Gatos and Fremont. Routes 37, 45, 53, 65, 82, 88, 89, 120, and 181, which were proposed to be discontinued or have decreased levels of service were the subject of many comments. Concern about the impact to paratransit users whose homes or destinations would fall outside of the paratransit service area or into the premium fare zone if fixed-route services along the periphery of the transit network are discontinued. Interest in how VTA can better meet the needs of senior citizens. A compendium of all comments on the Draft Transit Service Plan can be downloaded at nextnetwork.vta.org. Incorporation of Feedback into Final Transit Service Plan After reviewing all of the input received during the outreach phases, staff developed a Final Transit Service Plan that made 34 changes to the Draft Transit Service Plan, including retaining service to some areas where discontinuances had been proposed such as Almaden Valley, Palo Alto, Cupertino, Saratoga and Campbell, among others. In response to public feedback, the Final Transit Service Plan employs an 83/17 ridership/coverage balance, compared to the draft plan’s 85/15 balance. The following bullets briefly discuss elements of the Draft Transit Service Plan that received a high level of community input and the resulting staff recommendations for the Final Transit Service Plan. Attachment G: Service Equity Analysis Page 12 7.3.g Cupertino/Saratoga - De Anza Boulevard/Saratoga-Sunnyvale Road (Current Route 53) Recommendation: Continue service in this corridor by extending Route 51 south of De Anza College. San Jose - Leigh Avenue (Route 65) Recommendation: Retain service on Route 65 and decrease frequency from 30-minute service level to 60-minute service level. Los Gatos/Campbell (Current Routes 48 and 49) Recommendation: Operate Route 27 on Main Street in Downtown Los Gatos as well as Hacienda Avenue and Knowles Drive to service Los Gatos El Camino Hospital and Lost Gatos High School. San Jose - Downtown (Current DASH)/Rapid 500 Recommendation: Retain the Draft Transit Service Plan’s recommendation to upgrade the DASH to the Rapid 500 and add a Rapid 500 stop at Almaden Avenue. Fremont/Sunnyvale (Route 120) Recommendation: Given the extension of BART to Santa Clara County and compelling needs for transit service inside Santa Clara County, staff does not recommend retaining Route 120 in the Final Transit Service Plan. Fremont/San Jose (Route 181) Recommendation: Given the extension of BART to Santa Clara County, alternate ways of making the trip by transit, and compelling needs for transit service inside Santa Clara County, staff does not recommend retaining Route 181. Palo Alto - Gunn High School (Current Route 88) Recommendation: Provide a new Route 288 service during school bell times, with an additional after school trip to accommodate students involved in extracurricular activities. Discontinue Route 88. Palo Alto - Veterans Hospital (Route 89) Recommendation: Retain Route 89 as it exists today to provide hospital access for veterans. San Jose - East Hills (Current Route 45) Recommendation: Retain the Draft Service Plan’s recommendation to discontinue Route 45. VTA will offer to provide a van for use by the patrons of the Homeless Veterans Emergency Housing Facility. San Jose - Mineta San Jose Airport (Current Route 10) Recommendation: Due to the inability to enforce whether riders who board at non-airport stops are traveling to the airport, only provide free boardings at airport terminals. Non-airport terminal boardings require a standard fare. Campbell/San Jose - Hamilton/Pine (Current Route 82) Recommendation: Discontinue Route 82 and retain transit service along Hamilton Avenue/Pine Avenue corridor by rerouting Route 56. Attachment G: Service Equity Analysis Page 13 7.3.g Gilroy (Current Routes 14, 17 and 19) Recommendation: Discontinue routes 14, 17 and 19 and replace them with a loop route, which will be named Route 85. Campbell/San Jose/Saratoga (Current Route 37) Recommendation: Retain Route 37 at a 60-minute frequency service level rather than a 30-minute service level. The portion of Route 37 that exhibits the greatest demand (from West Valley College to the Light Rail Line between Mountain View and Winchester) will be supplemented by Route 26, which offers 30-minute service. Cupertino/Los Altos - Foothill and De Anza Colleges Recommendation: Due to insufficient demand, discontinue this service. San Jose - Forest Avenue (Current Route 23, new Route 59) Recommendation: Retain the Draft Transit Service Plan’s recommendation to keep Route 23 on Stevens Creek, and extend Route 59 from its terminus at the Santa Clara Caltrain Station to serve Forest Avenue via Lafayette. Sunnyvale - Civic Center (Current Route 54) Recommendations: Discontinue service on Route 54 along Olive Avenue. Sunnyvale - Fair Oaks Avenue (Route 55) Recommendation: Retain the Draft Transit Service Plan’s recommendation of removing the Route 55 deviation that serves the Fair Oaks/Remington area. The volume and proximity of other transit services in the area (routes 22, 55, 522 and 523) provide adequate connectivity in all travel directions. San Jose - Almaden Valley (Current Routes 13, 63, 64, 328 and 330) Recommendation: Extend Route 64, which currently terminates at Almaden Light Rail Station, to Camden Avenue and retain Route 13 (renamed to Route 83) with modifications to better serve the Almaden Community Center and shopping plazas at the intersection of Blossom Hill Road and Almaden Expressway. Additionally, VTA will explore an on-demand pilot service in Almaden Valley. In summary, the extensive feedback received helped staff to create a better final transit service plan that minimizes adverse impacts and maximizes benefits. (Appendix B shows revisions made to the draft plan.) Service Equity Analysis Findings The planning process to develop the draft and final plans thoughtfully considered Title VI and Environmental Justice impacts on protected communities. Understanding the impact that plans, programs or projects have on minority and low-income communities has been part of the early planning and development process for the Next Network. Equity “check-in” analyses also occurred at various stages in the process. While a Service Equity Analysis may uncover impacts to protected populations, if the needs of the agency have been matched with the needs of the low income and minority Attachment G: Service Equity Analysis Page 14 7.3.g communities, an Equity Analysis can also demonstrate that the agency has listened to the community and addressed their major concerns. Summary Findings Using the impact thresholds established under the VTA Title VI and Environmental Justice policies and based on a Service Equity Analysis performed on the proposed final Next Network service plan, the network changes would not impose a disparate impact on minority populations or a disproportionate burden on low income populations. Analysis Results Based on the Remix data, the final Next Network service plan will result in a reduction of approximately 519 million People Trips annually. This represents a little less than a 2% reduction (-1.70%). It should be noted that this magnitude of change falls well below the margin of error. Additionally, though the BART extension will increase access to jobs and residents, the analysis methodology shows a decrease in people trips because of two factors: 1) the increase in service to the areas surrounding the two BART stations means few new people trips because the station areas were sparsely-populated per the 2009-2013 Census data, and 2) the service provided by the BART extension itself, including connections throughout the entire BART system, are not reflected because the extension will not be operated directly by VTA. Minority populations will fare slightly better under the service plan than the overall population, and experience only 1.44% reduction in People Trips. The Difference between Minority Impacts to All Impacts is negligible at 0.26%. This does not represent a Disparate Impact using the 10% threshold established in the VTA policies. Table 1 presents the impacts experienced by the total population and the minority population expressed in People Trips. Table 1: Disparate Impact Analysis Additionally, low income populations will also experience fewer impacts when compared to the overall population under the final Next Network service plan, with a net reduction to Low Income People Trips of 0.67%. This also does not represent a Disproportionate Burden using the 10% threshold established by the VTA policies. Table 2, below, presents the impacts experienced by the total population and the low income population expressed in People Trips. People Trips Net change to Existing % Change People Trips Net change to Existing % Change Existing Network 31,126,194,325 22,335,385,235 Proposed Network 30,606,506,800 -519,687,525 -1.70%22,019,054,671 -316,330,564 -1.44%0.26%NO People Trips (Total) People Trips (Minority)Difference of Minority Impacts to Total Impacts Exceed 10% DI Threshold Attachment G: Service Equity Analysis Page 15 7.3.g Table 2: Disproportionate Burden Analysis Appendix C presents a matrix showing route-by-route and overall impacts of the proposed Next Network service plan: The green columns reflect current service levels, including the total population living within ¼- mile of each route, the percent of that population reported as low income in the applicable block groups, the percent of that population reported as minority in the applicable block groups, and the amount of service provided by the route measured as annual bus trips. The blue columns set forth the same demographic and service level details under the proposed final Next Network service plan. The light grey columns show the gain or loss of service by calculating the population within ¼- mile of each route times the number of trips deleted from or added to the service schedule. The first dark grey or red columns show what percent of the added or lost trips is borne by low- income populations. The cell is dark grey when the percentage is equal to or less than 23.5%, the system-wide low-income population; the cell is red when the percentage is higher than 23.5%. The second dark grey or red columns show what percent of the lost or added trips is borne by minority populations. The cell is dark grey when the percentage is equal to or less than 65.3%, the system-wide minority population; the cell is red when the percentage is higher than 65.3%. The last line of the appendix shows systemwide information, reflecting the cumulative impacts across all routes. The table at the bottom of the matrix shows that the low-income population is expected to bear 12.3% of the total service loss, which is 11.2% less than the percentage of low-income people in the service area, meaning that the service losses will be borne less than proportionally by the low-income population. The minority population is expected to bear 60.9% of the total service loss, which is 4.5% less than the percentage of minority people in the service area, meaning that the service losses will be borne less than proportionally by the minority population. Taken together, these results indicate that low income and minority populations would actually receive a greater than proportional share of the benefits of the proposed final Next Network service plan. Maps showing the changes by low income and minority populations are Appendix D. As an additional support to this analysis, we also viewed the difference between the impacts borne by minority and low income populations compared to the overall percentage of minority and low income People Trips Net change to Existing % Change People Trips Net change to Existing % Change Existing Network 31,126,194,325 9,597,124,302 Proposed Network 30,606,506,800 -519,687,525 -1.70%9,533,081,271 -64,043,031 -0.67%1.03%NO People Trips (Total) People Trip (Low Income)Difference of Low Income Impacts to Total Impacts Exceed 10% DB Threshold Attachment G: Service Equity Analysis Page 16 7.3.g populations within the service area. While this does not take into consideration the difference between the aggregate change between the total population impacts and the minority or low income population impacts that is required for the Service Equity Analysis, it does provide a touchstone to determine how well the impacts borne by the two populations compare to the overall minority and low income populations in the Service Area. As a result of this analysis, it appears that both low income and minority populations that experience the impacts are less than the overall population within the service area. For the low income populations, the impacts are a little more than half of the low income population in the area. Table 3 provides this analysis. Table 3: Impacts “Borne” by Low Income and Minority Populations Low Income Minority Impact Borne By: 12.3% 60.9% Service Area Average: 23.5% 65.3% Difference: -11.2% -4.5% As previously stated, Title VI and Environmental Justice impacts on protected communities were considered as part of the planning process to develop the draft and final plans. Because the impacts to minority and low-income communities were considered early in the planning and development process for the Next Network, VTA was able to bridge the needs of the agency with the needs of the low income and minority populations, and develop a service plan that has minimal system-wide impacts to both populations. Attachment G: Service Equity Analysis Page 17 7.3.g Appendix A: VTA Title VI and Environmental Justice Policies Public Outreach for Title VI and Environmental Justice Policies In the development of the Major Service Change, Disparate Impact, and Disproportionate Burden policies, VTA solicited input from the community, including low-income, minority, and limited English proficient populations which are traditionally underrepresented in the transit decision-making process. A community outreach plan was implemented to provide the public with multiple opportunities to learn about the proposed policies and provide feedback. The proposed policies below were emailed to more than 30 community-based organizations, transit advocates, and other grassroots organizations to obtain feedback. Additionally, VTA presented the policies at the Refugee and Immigrant Forum and held a meeting at its River Oaks administrative office. Comments could be made by calling or sending emails to VTA Customer Service. VTA also informed the public of free language assistance available to persons who are limited English proficient. Attachment G: Service Equity Analysis Page 18 7.3.g Resolution for Board Adoption of Major Service Change, Disparate Impact, and Disporportionate Burden Policies VTA Title VI Program 1RYHPEHU Attachment G: Service Equity Analysis Page 19 7.3.g From:Baltao, Elaine To:Board.Secretary; Subject:November 7, 2013 Board of Directors Meeting Date:Friday, November 08, 2013 1:06:27 PM The VTA Board of Directors met last night and took the following actions: Removed from agenda: Item #3.4 – TAEA labor contract Approved all remaining items on the Consent and Regular Agenda. The Board of Directors adjourned the meeting in memory of VTA Employee, Anita Jacobson. Office of the Board Secretary Santa Clara Valley Transportation Authority 3331 N. First Street San Jose, CA 95134 408.321.5680 board.secretary@vta.org Attachment G: Service Equity Analysis Page 20 7.3.g BOARD OF DIRECTORS MEETING Thursday, November 7, 2013 5:30 PM Board of Supervisors’ Chambers County Government Center 70 West Hedding Street San Jose, CA 95110 **REVISED AGENDA** 3331 North First Street ∙ San Jose, CA 95134-1927 ∙ Administration 408.321.5555 ∙ Customer Service 408.321.2300 To help you better understand, follow, and participate in the meeting, the following information is provided: Persons wishing to address the Board of Directors on any item on the agenda or not on the agenda should complete a blue card located at the public information table and hand it to the Board Secretary staff prior to the meeting or before the item is heard. Speakers will be called to address the Board when their agenda item(s) arise during the meeting and are asked to limit their comments to 2 minutes. The amount of time allocated to speakers may vary at the Chairperson's discretion depending on the number of speakers and length of the agenda. If presenting handout materials, please provide 25 copies to the Board Secretary for distribution to the Board of Directors. The Consent Agenda items may be voted on in one motion at the beginning of the meeting under Orders of the Day. If you wish to discuss any of these items, please request the item be removed from the Consent Agenda by completing a blue card at the public information table and handing it to the Board Secretary staff prior to Orders of the Day, Agenda Item #1.2. **Changes from previous version: - Agenda Item #7.7- 2014 STIP Program Adoption requires 2/3 vote - Agenda language updated for Agenda Item #8.2 –Santa Clara Alum Rock Bus Rapid Transit Project- Civil and Station Improvements Contract, to reflect the recommended contractor and contract amount. Attachment G: Service Equity Analysis Page 21 7.3.g AGENDA VTA Board of Directors Thursday, November 7, 2013 Page 2 of 6 Disclosure of Campaign Contributions to Board Members (Government Code Section 84308) In accordance with Government Code Section 84308, no VTA Board Member shall accept, solicit, or direct a contribution of more than $250 from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the agency. Any Board Member who has received a contribution within the preceding 12 months in an amount of more than $250 from a party or from any agent or participant shall disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use his or her official position to influence the decision. A party to a proceeding before VTA shall disclose on the record of the proceeding any contribution in an amount of more than $250 made within the preceding 12 months by the party, or his or her agent, to any Board Member. No party, or his or her agent, shall make a contribution of more than $250 to any Board Member during the proceeding and for three months following the date a final decision is rendered by the agency in the proceeding. The foregoing statements are limited in their entirety by the provisions of Section 84308 and parties are urged to consult with their own legal counsel regarding the requirements of the law. All reports for items on the open meeting agenda are available for review in the Board Secretary’s Office, 3331 North First Street, San Jose, California, (408) 321-5680, the Monday, Tuesday, and Wednesday prior to the meeting. This information is available on our website, www.vta.org, and also at the meeting. Any document distributed less than 72-hours prior to the meeting will also be made available to the public at the time of distribution. Copies of items provided by members of the public at the meeting will be made available following the meeting upon request. In accordance with the Americans with Disabilities Act (ADA) and Title VI of the Civil Rights Act of 1964, VTA will make reasonable arrangements to ensure meaningful access to its meetings for persons who have disabilities and for persons with limited English proficiency who need translation and interpretation services. Individuals requiring ADA accommodations should notify the Board Secretary’s Office at least 48-hours prior to the meeting. Individuals requiring language assistance should notify the Board Secretary’s Office at least 72-hours prior to the meeting. The Board Secretary may be contacted at (408) 321-5680 or : board.secretary@vta.org or (408) 321-2330 (TTY only). VTA’s home page is on the web at: www.vta.org or visit us on Facebook at: www.facebook.com/scvta. (408) 321-2300: 中文 / Español / 日本語 / 한국어 / tiếng Việt / Tagalog. NOTE: THE BOARD OF DIRECTORS MAY ACCEPT, REJECT OR MODIFY ANY ACTION RECOMMENDED ON THIS AGENDA. 70 West Hedding St., San Jose, California is served by bus lines *61, 62, 66, 181, and Light Rail. (*61 Southbound last trip is at 8:55 pm for this location.) For trip planning information, contact our Customer Service Department at (408) 321-2300 between the hours of 6:00 a.m. to 7:00 p.m. Monday through Friday and 7:30 a.m. to 4:00 p.m. on Saturday. Schedule information is also available on our website, www.vta.org. Attachment G: Service Equity Analysis Page 22 7.3.g AGENDA VTA Board of Directors Thursday, November 7, 2013 Page 3 of 6 1. CALL TO ORDER AND ROLL CALL 1.1. ROLL CALL 1.2. Orders of the Day - approve Consent Agenda (Item #7) 2. AWARDS AND COMMENDATION 2.1. INFORMATION ITEM -Recognize Maria Luisa Sanchez-Ku, Human Resources Analyst, River Oaks Administration; Ronald Langston, Coach Operator, Chaboya Division; and Jose Hernandez, Senior Track Worker, Guadalupe Division, as Employees of the Month for November 2013. 3. CLOSED SESSION 3.1. Recess to Closed Session A. Existing Litigation - Conference with Legal Counsel [Government Code Section 54956.9(a)] Name of Case: Santa Clara Valley Transportation Authority v. Eastridge Shopping Center (Eminent Domain) (Santa Clara Superior Court Case No.: 1-11-CV-209524) B. Existing Litigation - Conference with Legal Counsel [Government Code Section 54956.9(a)] Name of Case: Truck Rail Handling, Inc., et al. v. Santa Clara Valley Transportation Authority, et al. (Alameda County Superior Court Case No.: RG12628077) C. Anticipated Litigation - Conference with Legal Counsel Initiation of litigation pursuant to Government Code Section 54956.9(c). Number of potential cases: 1 Name of potential opposing party: Union Pacific D. Anticipated Litigation - Conference with Legal Counsel Significant exposure to litigation pursuant to Government Code Section 54956.9(b). Number of potential cases: 1 E. Conference with Labor Negotiators [Government Code Section 54957.6] VTA Designated Representatives Bill Lopez, Chief Administrative Officer Robert L. Escobar, Deputy Director, Administrative Services Joseph Smith, Chief Financial Officer Attachment G: Service Equity Analysis Page 23 7.3.g AGENDA VTA Board of Directors Thursday, November 7, 2013 Page 4 of 6 Employee Organizations Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local 21 3.2. Reconvene to Open Session 3.3. Closed Session Report 3.4. ACTION ITEM - Approve and authorize the General Manager to execute the amended successor labor agreement negotiated between the Santa Clara Valley Transportation Authority (VTA) and Transportation Authority Engineers and Architects Association (TAEA), IFPTE, Local 21. 4. PUBLIC COMMENT This portion of the meeting is reserved for persons desiring to address the Board of Directors on any item within the Board's jurisdiction. Speakers are limited to 2 minutes. The law does not permit Board action or extended discussion of any item not on the agenda except under special circumstances. If Board action is requested, the matter can be placed on a subsequent agenda. All statements that require a response will be referred to staff for reply in writing. 5. PUBLIC HEARINGS There are no public hearings. 6. REPORTS 6.1. Citizens Advisory Committee (CAC) Chairperson's Report. (Verbal Report) (Brownley) 6.2. Policy Advisory Committee (PAC) Chairperson's Report. (Verbal Report) (Price) 6.3. General Manager Report. (Verbal Report) 6.3.A. INFORMATION ITEM -Receive Silicon Valley Rapid Transit (SVRT) Program Update. 6.3.B. Receive updates regarding Metropolitan Transportation Commission (MTC) and California Transportation Commission (CTC) activities. 6.4. Chairperson's Report. (Verbal Report) 7. CONSENT AGENDA 7.1. Approve the Board of Directors Workshop Meeting Minutes of September 27, 2013. Attachment G: Service Equity Analysis Page 24 7.3.g AGENDA VTA Board of Directors Thursday, November 7, 2013 Page 5 of 6 7.2. Approve the Board of Directors Regular Meeting Minutes of October 3, 2013. 7.3. ACTION ITEM -Review and accept the Fiscal Year 2013 Quarterly Statement of Revenues and Expenses for the period ending June 30, 2013. 7.4. ACTION ITEM -Revise the VTA Permit Policy to authorize the General Manager to waive fees for parties making transit improvements for VTA and adopt a resolution amending the VTA Permit Fee Schedule, adjusting fees to be collected for Construction Access Permits and Restricted Access Permits to be consistent with the revision of VTA allocated rates. 7.5. ACTION ITEM -Adopt the 2013 VTA Congestion Management Program (CMP). 7.6. ACTION ITEM -Approve the allocation of $5,460,000 of Local Program Reserve (LPR) to: SR 680 Corridor Study $250,000 I-280 Corridor Study $250,000 I-280/Winchester Blvd Off-Ramp $250,000 US 101 Auxiliary Lanes Project $260,000 and SR 237, SR 85 and US 101 Express Lanes $4,450,000 7.7. ACTION ITEM -Adopt a resolution to program 2014 State Transportation Improvement Program (STIP) capacity to projects; approve a funding exchange of $14.5 million in STIP funds for $14.5 million in Measure A funds; increase the 2000 Measure A Transit Improvement Program Fund Capital Budget by $14.5 million; and authorize the General Manager to execute appropriate funding agreements to receive STIP funds. Note: Motion must be approved by at least 2/3 of the Board (8 members). 7.8. ACTION ITEM -Authorize the General Manager to execute a contract with GECMS Inc. dba Gyeron Construction, the second lowest responsible bidder, in the amount of $337,400 for the construction of Pedestrian Swing Gates Replacement, and relieve the low bidder of its obligation to perform the contract. 7.9. ACTION ITEM -Review and receive the Auditor General's internal audit report on Investment Program Controls. 7.10. ACTION ITEM -Approve the following Internal Audit Work Plans developed and recommended by the VTA Auditor General: 1. Fiscal Year (FY) 2014 for a maximum amount of $358,800. This item replaces the Interim FY 2014 Internal Audit Work Plan approved by the Board on June 6, 2013 for a maximum amount of $290,500. 2. FY 2015 for a maximum amount of $364,500. 7.11. ACTION ITEM -Review and receive the Auditor General's report on the Silicon Valley Rapid Transit Program Project Delivery Method and Project Execution Assessment. Attachment G: Service Equity Analysis Page 25 7.3.g AGENDA VTA Board of Directors Thursday, November 7, 2013 Page 6 of 6 7.12. ACTION ITEM -Review and receive the Auditor General's report on the Sheriff's Office Contract Compliance Internal Audit. 7.13. INFORMATION ITEM -Review the Monthly Legislative History Matrix. 7.14. INFORMATION ITEM -Review VTA's adopted Sound Barrier Program. 7.15. INFORMATION ITEM -Receive a status update on implementation of the VTA Integrity Helpline. 8. REGULAR AGENDA 8.1. ACTION ITEM -Adopt the proposed Major Service Change, Disparate Impact and Disproportionate Burden Policies and the System-wide Service Standards & Policies as mandated by Federal Transit Administration (FTA) Title VI guidelines. 8.2. ACTION ITEM -Authorize the General Manager to execute a contract with Goodfellow Top Grade, the lowest responsible bidder, in the amount of $54,163,685 for the construction of the Santa Clara Alum Rock Bus Rapid Transit Project - Civil and Station Improvements. 9. OTHER ITEMS 9.1. ITEMS OF CONCERN AND REFERRAL TO ADMINISTRATION 9.2. Reports from VTA Committees, Joint Powers Boards (JPB), and Regional Commissions 9.2.A. VTA Standing Committees 9.2.B. VTA Advisory Committees 9.2.C. VTA Policy Advisory Boards (PAB) 9.2.D. Joint Powers Boards and Regional Commissions 9.3. Announcements 10. ADJOURN in memory of Anita Jacobson, former VTA Employee. Attachment G: Service Equity Analysis Page 26 7.3.g Attachment G: Service Equity Analysis Page 27 7. 3 . g Attachment G: Service Equity Analysis Page 28 7. 3 . g Attachment G: Service Equity Analysis Page 29 7. 3 . g Attachment G: Service Equity Analysis Page 30 7. 3 . g Attachment G: Service Equity Analysis Page 31 7. 3 . g Attachment G: Service Equity Analysis Page 32 7. 3 . g Attachment G: Service Equity Analysis Page 33 7. 3 . g Attachment G: Service Equity Analysis Page 34 7. 3 . g Attachment G: Service Equity Analysis Page 35 7. 3 . g Attachment G: Service Equity Analysis Page 36 7. 3 . g Attachment G: Service Equity Analysis Page 37 7. 3 . g Attachment G: Service Equity Analysis Page 38 7. 3 . g Attachment G: Service Equity Analysis Page 39 7. 3 . g Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span Frequency 10 Metro/Airport LRT Station - Santa Clara Transit Center Combine with new Route 60, which would connect Mineta San Jose Airport to Milpitas BART Station, Santa Clara Caltrain Station, Valley Fair, Santana Row and Downtown Campbell; improve weekend frequency. 12 Eastridge Transit Center - San Jose Civic Center Discontinue; current riders may use revised Route 61 or Route 77. 13 Ohlone/Chynoweth LRT Station - Almaden/McKean Replace with new Route 83. 14 Gilroy Transit Center - St. Louise Hospital Replace with new Route 85, which would serve Route 14 destinations and other areas of Gilroy; reduce weekday frequency. 16 Morgan Hill Civic Center - Burnett Avenue Renumber to Route 87; service retained on an interim basis until a more effective flexible transit service can be implemented. 17 Gilroy Transit Center - St. Louise Hospital Discontinue due to low ridership; some riders may use Route 85. 18 Gavilan College - Gilory Transit Center Renumber to Route 86; increase frequency on weekdays. 19 Gilroy Transit Center - Wren and Mantelli Replace with new Route 85, which would serve Route 19 destinations and other areas of Gilroy; decrease weekday frequency. 20 Sunnyvale - North San Jose - Milpitas Create new Route 20 that would connect Milpitas BART Station, Mission College, Santa Clara Square and Downtown Sunnyvale; new Route 20 would provide service to areas currently served during commute periods by parts of Routes 58, 321 and 304. Local 5:30a - 10:00p 15 min 30 min ————The draft plan proposed the route end at Mountain View, but in the final plan the route would end in Sunnyvale. 21 Middlefield Create new Route 21 that would connect Palo Alto, San Antonio Transit Center, Mountain View, Sunnyvale and Santa Clara Transit Ctr (Sunday service would only operate between Stanford Shopping Center and Mountain View); new Route 21 would replace current Routes 32 and 35. Local 5:30a - 10:00p 30 min 30 min 8:00a - 8:00p 45 min 9:00a - 8:00p 60 min Minor alignment changes to serve San Antonio Circle in Mountain View and Lytton/Hamilton in Palo Alto (pending street improvements). 22 El Camino - Santa Clara - Alum Rock Decrease weekday frequency; increase frequency on Rapid 522 (to be implemented in April 2017).P Frequent 24 hours 15 min 15 min 24 hours 15 min 24 hours 15 min 23 Stevens Creek - Alum Rock Decrease weekday frequency; modify alignment to serve Stevens Creek Blvd instead of Forest Ave.P P Frequent 5:00a - 1:00a 15 min 15 min 6:00a - 1:00a 15 min 6:00a - 1:00a 15 min Final plan would maintain Route 23's current alignment in east San Jose; Sunday frequency would increase to every 15 minutes. 25 Story - Willow - Williams Decrease weekday frequency and increase Sunday frequency; modify alignment near De Anza College.P P Frequent 5:30a - 12:00a 12-24 min 12-24 min 6:00a - 12:00a 15-30 min 6:00a - 12:00a 15-60 min Final plan would maintain service to White Road in east San Jose; minor alignment changes through Valley Medical Center. 26 Tully - Curtner - Campbell Split into two separate routes. Revised Route 26 would connect West Valley College and Eastridge Transit Center; frequency would increase on weekdays and weekends; new Route 56 would connect Lockheed Martin and Tamien Station. P P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 12:00a 20-40 min 7:30a - 11:00p 20-40 min 27 Blossom Hill - Los Gatos Extend to Winchester Transit Center via Los Gatos Boulevard, downtown Los Gatos and Winchester Boulevard; increase frequency on weekday midday and Saturdays; add extended evening hours on weekdays and Saturdays. P P P Local 5:30a - 10:00p 30 min 30 min 7:00a - 9:00p 30 min 8:00a - 8:00p 60 min Final plan would maintain service to Knowles/Hacienda area and downtown Los Gatos; Saturday service would end at 9:00p. 31 Evergreen Valley College Modify alignment for more direct service between Evergreen Valley College and Eastridge Transit Center.P Local 6:30a - 10:00p 30 min 30 min 7:30a - 6:30p 60 min 9:00a - 6:00p 60 min Route was proposed for elimination in draft plan (parts were covered by Route 76). 32 San Antonio Shopping Center - Santa Clara Transit Center Replace with new Route 21. 34 San Antonio Shopping Center - Downtown Mountain View Discontinue due to low ridership; some current riders can use Routes 21 or 40. 35 Stanford Shopping Center - Downtown Mountain View Replace with new Route 21. 37 West Valley College - Capitol Light Rail Station Reduce weekday frequency.P Local 6:30a - 6:30p 60 min 60 min ————Route was proposed for elimination in draft plan. 39 Quimby - San Felipe Decrease peak period frequency. P Local 6:30a - 6:30p 60 min 60 min 9:00a - 6:00p 60 min 9:00a - 6:00p 60 min Route was proposed to be renumbered to Route 93, but final plan maintiains current number. 40 Foothill College - North Bayshore Extend Route 40 along Shoreline Boulevard and Villa Street to connect with Mountain View Transit Center; increase Saturday and Sunday frequency.P P Local 6:30a - 10:00p 30 min 30 min 7:00a - 7:00p 45 min 9:00a - 6:00p 45 min 42 Kaiser San Jose - Evergreen Valley College Discontinue low ridership segments, reduce weekday frequency; discontinue Saturday service. P P P Local 6:30a - 6:30p 60 min 60 min ————Route was proposed for elimination in draft plan. 45 Alum Rock Transit Center - Penitencia Creek Transit Center Discontinue due to low ridership. Proposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan See Route 85 See Route 87 See Route 86 See Route 96 See Route 21 See Route 21 New New Weekday Saturday Sunday See Route 60 See Route 83 Attachment G: Service Equity Analysis Page 40 7.3.g Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span FrequencyProposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan Weekday Saturday Sunday 46 Great Mall Transit Center - Milpitas High School Scale back to school-oriented service (to be called Route 246) between Milpitas High School and Landess/Yellowstone. 47 Calaveras Route would become a two-way loop; increase Sunday frequency; modify alignment to serve McCandless Drive; add extended evening hours 7 days a week.P P P Local 5:30a - 10:00p 30 min 30 min 7:00a - 9:00p 30 min 8:00a - 8:00p 30 min Modify alignment to serve McCandless Drive. 48 Downtown Los Gatos - Winchester LRT Station Replace with revised Route 27; increase frequency on Route 27. 49 Downtown Los Gatos - Winchester LRT Station Replace some segments with revised Route 27; increase frequency on Route 27. 51 Grant - Moffett - Saratoga New number for Moffett Field to De Anza College portion of current Route 81; decrease midday frequency; extend route to West Valley College; discontinue Saturday service.P P P Local 6:30a - 6:30p 30 min 60 min ————Extend 60-min segment of route to West Valley College, via Saratoga-Sunnyvale and Saratoga town center. 52 Foothill College - Downtown Mountain View No changes proposed.Local 7:00a - 10:00p 30 min 30 min ———— 53 Homestead - Sunnyvale Change alignment to serve Vallco Mall and Santa Clara Transit Ctr instead of West Valley College, which would replace part of current Route 81 (Saturday service to operate between Vallco and Santa Clara Transit Ctr); increase frequency on weekdays. P P Local 5:30a - 8:00p 30 min 30 min 9:00a - 6:00p 60 min ——Modify alignment to serve Scott and Benton in Santa Clara. 54 Lockheed Martin Transit Center - De Anza College Discontinue due to low ridership; add new Rapid 523 service on Mathilda Avenue/De Anza Boulevard corridor. 55 Sunnyvale - De Anza College Change alignment between Downtown Sunnyvale and Remington Avenue; minor alignment changes in Lakewood Village; decrease weekday peak period frequency and increase Sunday frequency.P P Local 5:30a - 10:00p 30 min 30 min 7:30a - 9:00p 30 min 8:00a - 8:00p 30 min 56 Wolfe - Hamilton Create new Route 56, which would connect Lockheed Martin Transit Center to Downtown Sunnyvale, Vallco Mall, Westgate, and Tamien Station; replaces parts of Routes 26 and 82.Local 5:30a - 10:00p 30 min 30 min 6:30a - 10:00p 30 min 7:30a - 9:00p 30 min Extend route to Tamien station via Hamilton. 57 Great America - Bowers - Saratoga Increase weekday and Saturday frequency; add extended evening hours 7 days a week.P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 11:00p 20 min 7:30a - 10:00p 30 min Extend weekday service to midnight. 58 West Valley College - Alviso Discontinue; some current riders may use Routes 57, 59, 20 and 26. 59 Monroe - Great America - Alviso Create new Route 59, which would connect Valley Fair, O'Connor Hospital, Santa Clara Caltrain Station, Mission College, Alviso and Baypointe Light Rail Station; would cover some segments of Route 58 and Route 60. Local 5:30a - 10:00p 30 min 30 min 7:00a - 10:00p 30 min 7:30a - 6:30p 60 min Extend weekday service to Valley Fair and O'Connor Hospital. 60 Winchester - Airport - BART Consolidate with Route 10 to create new Route 60, which would connect Mineta San Jose Airport to Milpitas BART Station, Metro light rail station, Santa Clara Caltrain Station, Valley Fair, Santana Row, and Downtown Campbell; increase weekday and weekend frequency. P P P Frequent 5:00a - 11:00p 15 min 15min 5:00a - 11:00p 20 min 5:00a - 11:30p 20 min 61 Taylor - Bascom - Berryessa Change alignment from Mabury Road to Berryessa Road between Berryessa BART Station and Capitol Avenue; increase frequency on weekends; add extended evening hours 7 days/week.P P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 11:00p 20-40 min 7:30a - 10:00p 20-40 min 62 Good Samaritan Hospital - Sierra/Piedmont Replace with Route 61. 63 Meridian Change southern end from Almaden Expressway/Camden Avenue to Meridian Avenue/Blossom Hill Road; increase weekday midday frequency.P P Local 6:00a - 10:00p 30 min 30 min 8:00a - 7:00p 60 min 9:00a - 6:00p 60 min 64 McKee - Lincoln - Almaden Change downtown routing (Julian to 6th/7th and San Fernando); extend route to Camden in Almaden Valley.P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 12:00a 30 min 7:00a - 11:00p 30 min Extend route to Camden in Almaden Valley. 65 Kooser/Blossom Hill - Downtown San Jose Discontinue segment north of downtown San Jose; reduce frequency.P P Local 6:00a - 6:30p 60 min 60 min ————The draft plan proposed to discontinue Route 65. 66 Milpitas - Oakland - Monterey - Snell Change alignment to serve Milpitas BART Station; weekday frequency changes by segment; move to 10th/11th Streets from 1st Street.P P Frequent 5:00a - 12:00a 15 min 15-30 min 6:00a - 12:00a 20 min 6:00a - 12:00a 20 min 68 Monterey - South County Decrease midday frequency south of Santa Teresa Light Rail Station; increase midday frequency north of Santa Teresa light rail station.P Frequent 4:30a - 12:00a 15 min 15-30 min 5:00a - 12:00a 20 min 5:00a - 12:00a 20 min 70 Jackson - Flickinger - Morrill Modify alignment to connect to Berryessa BART Station; decrease frequency north of Berryessa BART station; discontinue service between Eastridge Transit Center and Capitol station, some riders in that segment may use Routes 71 or 42. P P P Frequent 5:30a - 12:00a 15-30 min 15-30 min 6:30a - 12:00a 20-40 min 6:30a - 10:00p 20-40 min 71 Piedmont - White Change northern end from Great Mall to Milpitas BART Station; decrease weekday peak period service and increase Sunday service; extended to Capitol light rail station.P P Local 5:30a - 10:00p 30 min 30 min 6:30a - 10:00p 30 min 7:30a - 9:00p 30 min The final plan moves its southern end from Eastridge to Capitol light rail station. 72 McLaughlin Increase frequency on weekday midday and weekends; add extended evening hours 7 days/week.P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 12:00a 20 min 7:30a - 11:00p 30 min Reduce Sunday daytime frequency from every 20 minutes to every 30 minutes; change southern end from Capitol light rail station to Monterey & Branham. See Route 246 See Route 27 See Route 27 New New See Route 61 Attachment G: Service Equity Analysis Page 41 7.3.g Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span FrequencyProposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan Weekday Saturday Sunday 73 Senter Change southern end from Capitol Expressway/Snell to Monterey Road/Branham Road; increase weekday midday and weekend frequency; add extended evening hours 7 days/week.P P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 12:00a 20 min 7:30a - 11:00p 30 min Reduce Sunday daytime frequency from every 20 minutes to every 30 minutes. 77 King - Lundy Change northern end from Great Mall to Milpitas BART Station; change southern end of route to Eastridge Transit Center via Tully Road rather than Rigoletto Drive; serve Berryessa BART station; increase weekday midday and weekend frequencies; add extended evening hours 7 days/week. P P P Frequent 5:30a - 12:00a 15 min 15 min 6:30a - 12:00a 20 min 6:30a - 11:00p 30 min Reduce Sunday daytime frequency from every 20 minutes to every 30 minutes. 81 Moffett Field - Downtown San Jose Replace Moffett Field to De Anza College segment with new Route 51; replace De Anza College to Santa Clara Caltrain Station segment with revised Route 53. 82 Westgate - Downtown San Jose Discontinue; some segments of route replaced with Routes 56, 66, and 68. 83 Almaden New route based on current Route 13, provided on an interim basis prior to implementation of on- demand service for Almaden Valley; revised alignment would serve Blossom Hill (Oakridge Mall), McAbee, and Camden. P Local 6:30a - 6:30p 60 min 60 min ————The draft plan proposed to discontinue Route 13. 85 Gilroy New two-way loop route in Gilroy; replaces Routes 14, 17, and 19.Local 6:30a - 6:30p 60 min 60 min 9:00a - 6:00p 60 min 9:00a - 6:00p 60 min Was called Route 96 in draft plan; also minor alignment changes to facilitate connections with Route 68. 86 Gavilan College Replaces Route 18; increase frequency.P Local 7:00a - 10:00p 30 min 30 min ————Was called Route 97 in draft plan. 87 Morgan Hill Renumber Route 16 to Route 87, provided on an interim basis until a more effective flexible transit solution can be implemented; no other changes proposed.Local peak only 60 min ————— Draft plan proposed a reduction in service to school- oriented trips only. Final plan would maintain current service until flexible solution can be implemented. 88 Palo Alto VA Hospital - Middlefield/Colorado Scale back to school trips (to be called Route 288) for Gunn High School. 89 California Avenue Caltrain - Palo Alto VA Hospital No changes proposed.Local 6:30a - 6:30p 30 min 60 min ————The draft plan proposed to discontinue Route 89. 101 Camden/Highway 85 - Palo Alto No changes proposed. Express ———— 102 South San Jose - Palo Alto No changes proposed.Express ———— 103 Eastridge Transit Center - Palo Alto No changes proposed.Express ———— 104 Penitencia Creek Transit Center - Palo Alto Change alignment to serve Milpitas BART Station rather than Great Mall Transit Center.P Express ———— 120 Fremont BART - Lockheed Martin Transit Center/Shoreline Discontinue due to extension of BART to Santa Clara County; explore options for inter-county partnership service with AC Transit. 121 Gilroy Transit Center - Lockheed Martin Transit Center No changes proposed.Express ———— 122 South San Jose - Lockheed Martin Transit Center No changes proposed.Express ———— 140 Fremont BART Station - Mission College/Montague Discontinue due to extension of BART to Santa Clara County. 168 Gilroy Transit Center - San Jose Diridon Station No changes proposed.Express ———— 180 Fremont BART Station - Great Mall - Eastridge Discontinue due to extension of BART to Santa Clara County. 181 Fremont BART - San Jose Diridon Station Discontinue due to extension of BART to Santa Clara County. 182 Palo Alto - Bailey Road/IBM No changes proposed.Express ———— 185 Gilroy Caltrain Station - Shoreline - San Antonio No changes proposed.Express ———— 201 DASH Shuttle: Diridon Station - Downtown San Jose - San Jose State University Replace with Rapid 500; change alignment to Santa Clara Street.See Route 500 1 trip each peak period 3 trips each peak period 7 trips each peak period 9 trips each peak period 1 trip each peak period New See Routes 51 and 53 7 trips each peak period 4 trips each peak period 2 trips each peak period See Route 56 See Route 288 2 trips each peak period Attachment G: Service Equity Analysis Page 42 7.3.g Alignment Change Frequency Change Span Change Class Span Peak Frequency Midday Frequency Span Frequency Span FrequencyProposed Change (current service vs. final plan)Route Change from Draft Plan to Final Plan Weekday Saturday Sunday 246 Milpitas High School - Yellowstone/Landess School-oriented service (formerly Route 46), based on school bell schedules.Special ———— 247 Milpitas High School - Park Victoria School-oriented service (formerly Route 46/47), based on school bell schedules.Special ———— 251 St. Francis High School - Downtown Mountain View School-oriented service, based on school bell schedules; afternoon service only.Special ———— 255 Fremont High School - Lakewood Village School-oriented service (formerly Route 55X), based on school bell schedules.Special ———— 256 Willow Glen High School - Tamien Station - Monterey/Alma School-oriented service (formerly Route 82), based on school bell schedules.Special ————Was called Route 282 in draft plan. 266 Santa Teresa High School - Bernal Road School-oriented service, based on school bell schedules; afternoon service only.Special ———— 287 Live Oak High School - Monterey & San Martin School-oriented service, based on school bell schedules; afternoon service only.Special ———— 288 Gunn High School - North Palo Alto School-oriented service (formerly Route 88), based on school bell schedules, plus one afterschool extracurricular trip; to follow former 88, 88L, 88M alignments.Special ———— Add one additional trip an hour or two after the afternoon bell time to accommodate afterschool activities; modify alignment to follow existing route. 304 South San Jose - Sunnyvale Transit Center Discontinue due to low ridership; some current riders may use Routes 66, 68 or 20. 321 Great Mall Transit Center - Lockheed Martin Transit Center Discontinue due to low ridership; some current riders may use Routes 20, 59, or Orange line. 323 De Anza College - Downtown San Jose Upgrade to Rapid 523 and extend western end to Lockheed Martin Transit Center and eastern end to Berryessa BART Station; increase Sunday frequency. 328 Almaden/Via Valiente - Lockheed Martin Transit Center Discontinue due to low ridership. 330 Almaden/Via Valiente - Tasman Drive Discontinue due to low ridership. 500 Diridon - Berryessa BART Rapid Replaces DASH shuttle; 7-day a week service; connects Diridon Station to downtown San Jose, San Jose State University, and Berryessa BART Station. Rapid 4:00a - 1:30a 10 min 15 min 6:00a - 1:30a 20 min 8:00a - 1:30a 20 min Add additional stop at Almaden Boulevard. 522 Palo Alto Transit Center - Eastridge Transit Center Increase weekday frequency (to be implemented in April 2017); add extended evening hours 7 days/week; start earlier AM service on weekends.P P Rapid 5:00a - 11:00p 12 min 12 min 6:00a - 11:00p 15 min 6:00a - 10:00p 15 min Reduce frequency of some weekend early morning and evening service from every 15 minutes to every 20 minutes; extend Sunday service to 10 pm. 523 Lockheed Martin Transit Center - Berryessa BART Station Create new Route 523 which would connect Lockheed Martin Transit Center, Downtown Sunnyvale, De Anza College, Vallco, Valley Fair, Santana Row, Downtown San Jose, Mexican Heritage Plaza and Berryessa BART Station. Rapid 5:00a - 10:30p 15 min 15 min 6:00a - 10:30p 15 min 7:00a - 10:00p 15 min Extend Sunday service to 10 pm. Green Old Ironsides Station - Winchester Station Change name to Green Line. Change northern end to Old Ironsides Light Rail Station; increase weekday frequency to 15 minutes all day. P P Light Rail 5:00a - 12:00a 15 min 15 min 6:30a - 12:00a 30 min 6:30a - 12:00a 30 min Blue Alum Rock Transit Center - Santa Teresa Station Change name to Blue Line.Light Rail 4:30a - 1:00a 15 min 15 min 5:00a - 1:00a 15 min 5:00a - 12:00a 15 min Purple Almaden Station - Ohlone/Chynoweth Station Change name to Purple Line.Light Rail 5:30a - 10:30p 15 min 15 min 8:00a - 10:00p 15 min 8:00a - 10:00p 15 min Orange Mountain View Transit Center - Alum Rock Transit Center Create new Orange Line to connect Downtown Mountain View with Alum Rock Transit Center; operate at 15-minute frequency all day on weekdays.Light Rail 5:00a - 11:30p 15 min 15 min 6:30a - 11:30p 30 min 7:00a - 11:30p 30 min Yellow Downtown San Jose - Santa Teresa Station Express Service Change name to Yellow Line. Change northern end from Baypointe Light Rail Station to St. James Light Rail Station; increase peak period span of service. P P Light Rail ———— 3 trips before and 4 trips after school 1 trip after school 5 trips each peak period 1 trip before and 1 trip after school # of trips varies by school schedule 1 trip before and 1 trip after school 1 trip after school 1 trip after school # of trips varies by school schedule See Route 523 New New New Attachment G: Service Equity Analysis Page 43 7.3.g Routes Currently Serving City Routes to Serve City in Proposed Plan Campbell 26, 27, 37, 48, 49, 60, 61, 62, 65, 82, 101, 328, 330, Green 26, 27, 37, 56, 60, 61, 65, 101, Green Cupertino 23, 25, 26, 53, 54, 55, 81, 101, 182, 323 23, 25, 26, 51, 53, 55, 56, 101, 182, 523 Gilroy 14, 17, 18, 19, 68, 121, 168, 185 68, 85, 86, 121, 168, 185 Los Altos 22, 40, 52, 81, 522 22, 40, 51, 52, 522 Los Altos Hills 40, 52 40, 52 Los Gatos 27, 48, 49 27 Milpitas 46, 47, 66, 70, 71, 77, 104, 140, 180, 181, 321, 330, Blue 20, 47, 60, 66, 70, 71, 77, 104, 246, 247, Blue, Orange Monte Sereno 48 27 Morgan Hill 16, 68, 121, 168, 185 68, 87, 121, 168, 185 Mountain View 22, 32, 34, 35, 40, 52, 81, 120, 185, 522, Green 20, 21, 22, 40, 51, 52, 185, 251, 522, Orange Palo Alto 22, 35, 88, 89, 102, 103, 104, 182, 522 21, 22, 89, 102, 103, 104, 182, 288, 522 San Jose 10, 12, 13, 22, 23, 25, 26, 27, 31, 37, 39, 42, 45, 49, 57, 58, 60, 61, 62, 63, 64, 65, 66, 68, 70, 71, 72, 73, 77, 81, 82, 101, 102, 103, 104, 122, 140, 168, 180, 181, 182, 185, 201 DASH, 304, 321, 323, 328, 330, 522, Blue, Green, Purple, Yellow 20, 22, 23, 25, 26, 27, 31, 37, 39, 42, 56, 57, 59, 60, 61, 63, 64, 65, 66, 68, 70, 71, 72, 73, 77, 83, 101, 102, 103, 104, 122, 168, 182, 185, 201 DASH, 266, 282, 500, 522, 523, Blue, Green, Orange, Purple, Yellow Santa Clara 10, 22, 23, 32, 55, 57, 58, 60, 81, 121, 140, 304, 321, 323, 328, 330, 522, Green 20, 21, 22, 23, 53, 55, 57, 59, 60, 121, 522, 523, Green, Orange Saratoga 26, 37, 53, 57, 58 26, 37, 51, 53, 56, 57 Sunnyvale 22, 26, 32, 53, 54, 55, 120, 121, 122, 304, 321, 328, 522, Green 20, 21, 22, 26, 53, 55, 56, 255, 522, 523, Green, Orange Attachment G: Service Equity Analysis Page 44 7.3.g amount of service amount of service Route Population % Low Income % Minority Bus Trips (Annual)Population % Low Income % Minority Bus Trips (Annual)All People-Trips Low Inc People-Trips Minority People-Trips Low Income Minorities 10 Santa Clara Transit- Metro Airport 3,808 35.2%63.0%20,280 -77,226,240 -27,165,231 -48,631,440 35.2%63.0% 12 San Jose Civic Center - Eastridge 42,899 42.4%90.4%2,090 -89,658,910 -38,008,044 -81,048,110 42.4%90.4% 13 Almaden & Mckean- Ohlone / Chynwth 17,515 13.9%49.3%3,060 -53,595,900 -7,455,702 -26,413,920 13.9%49.3% 14 Gilroy Trans Ctr - St. Louise Hosp 4,231 64.2%86.0%4,560 -19,293,360 -12,389,317 -16,593,840 64.2%86.0% 16 M. H. Civic Ctr - Burnett Ave 7,536 25.1%55.9%1,785 -13,451,760 -3,370,145 -7,521,990 25.1%55.9% 17 Gilroy Trns Ctr - Mntry & Ls Animas 6,096 65.1%86.4%4,450 -27,127,200 -17,655,099 -23,433,700 65.1%86.4% 18 Gilroy Trans Ctr - Gavilan College 5,011 50.6%79.4%4,590 -23,000,490 -11,627,179 -18,263,610 50.6%79.4% 19 Gilroy Trans Ctr - Wren & Mantelli 12,767 33.1%68.1%5,890 -75,197,630 -24,921,899 -51,231,220 33.1%68.1% 20 Sunnyvale - Milpitas 19,301 22.3%76.6%10,710 206,713,710 46,104,338 158,347,350 22.3%76.6% 21 Middlefield 81,365 21.9%58.0%9,120 742,048,800 162,484,871 430,628,160 21.9%58.0% 22 Palo Alto - Eastridge 118,549 29.7%68.0%31,820 118,463 29.7%68.0%26,413 -643,265,961 -190,347,897 -438,411,574 29.6%68.2% 23 De Anza Col - Alum Rock Trans Ctr 65,510 35.2%75.0%27,785 76,784 37.2%78.1%22,445 -96,778,470 396,127 -19,581,570 -0.4%20.2% 25 De Anza Col - Alum Rock Trans Ctr 85,910 37.9%76.8%27,485 48,990 45.2%79.0%24,885 -1,142,120,200 -344,642,704 -850,490,285 30.2%74.5% 25L Williams 30,778 21.3%67.4%11,344 349,145,632 74,504,260 235,456,064 21.3%67.4% 26 Sunnyvale / Lockheed - Eastridge 83,909 22.6%64.7%11,950 16,167 42.3%90.7%20,748 -667,279,634 -84,465,046 -344,359,642 12.7%51.6% 26L Curtner - Campbell 32,135 15.8%42.4%11,049 355,059,615 56,101,796 150,421,086 15.8%42.4% 26L Curtner - Campbell Weekend 28,276 16.9%41.1%11,049 312,421,524 52,863,127 128,533,017 16.9%41.1% 27 Good Sam Hosp - Kaiser San Jose 41,488 19.3%52.2%7,530 61,923 17.5%44.4%9,542 278,464,626 42,865,735 99,144,420 15.4%35.6% 31 Evergreen Valley Col - Eastridge 19,248 30.3%90.1%9,060 14,897 24.5%87.5%8,234 -51,724,982 -22,865,105 -49,853,402 44.2%96.4% 32 Sn Antonio Shop Ctr - Sta Clara Tc 56,096 21.7%63.0%7,945 -445,682,720 -96,784,480 -280,800,135 21.7%63.0% 34 Sn Antonio Shop Ctr - Downtown Mv 26,881 28.3%59.8%1,530 -41,127,930 -11,644,544 -24,594,750 28.3%59.8% 35 Dntn Mtn View - Stanford Shop Ctr 37,998 20.6%49.4%9,500 -360,981,000 -74,358,485 -178,315,000 20.6%49.4% 37 West Valley College - Capitol Lrt 31,856 19.0%46.7%7,140 31,856 19.0%46.7%3,060 -129,972,480 -24,667,718 -60,653,280 19.0%46.7% 39 The Villages - Eastridge 18,656 18.0%85.7%6,455 19,232 18.5%85.8%4,050 -42,534,880 -7,332,200 -36,399,435 17.2%85.6% 40 Foothill Col - La Avenida & Shor 20,748 24.1%52.9%9,480 26,714 22.8%53.0%7,972 16,272,968 1,057,366 8,823,500 6.5%54.2% 40 Foothill Col - La Avenida & Shor Weekend 25,534 23.7%54.6%696 17,771,664 4,218,846 9,711,288 23.7%54.6% 42 Kaiser Sj - Evergreen Valley Col 43,585 31.9%82.9%5,140 40,753 32.2%83.4%3,060 -99,322,720 -31,374,483 -81,801,720 31.6%82.4% 45 Alum Rock Tc - Penitencia Ck Tc 25,196 34.0%83.3%3,315 -83,524,740 -28,381,386 -69,578,535 34.0%83.3% 46 Great Mall - Milpitas High School 25,879 20.3%83.8%5,850 -151,392,150 -30,806,097 -126,886,500 20.3%83.8% 47 Great Mall - Mccarthy Ranch 15,508 21.0%87.1%9,795 20,735 21.1%85.1%10,168 58,932,620 12,551,949 46,963,013 21.3%79.7% 48 Los Gatos - Winchester LRT 15,556 15.7%32.1%5,235 -81,435,660 -12,785,983 -26,143,590 15.7%32.1% 49 Los Gatos - Winchester LRT 16,122 16.3%30.7%5,125 -82,625,250 -13,437,125 -25,363,625 16.3%30.7% 51 Grant - Moffett 27,751 9.5%49.2%5,100 141,530,100 13,415,516 69,615,000 9.5%49.2% 51L Saratoga - West Valley College 21,034 14.7%71.9%3,060 64,364,040 9,493,068 46,258,020 14.7%71.9% 52 Foothill College - Dwntown Mtn View 13,001 13.2%44.1%6,375 13,143 13.2%44.0%6,630 4,256,715 510,835 1,813,305 12.0%42.6% 53 Wv College- Sunnyvale Trans Ctr 43,300 13.5%66.6%3,060 55,437 16.9%61.4%6,630 235,049,310 44,340,521 137,366,970 18.9%58.4% 53 Stevens Crk - Santa Clara Caltrain 21,573 19.1%57.1%468 10,096,164 1,929,938 5,762,952 19.1%57.1% 54 De Anza College - Lockheed 24,409 20.4%67.1%8,990 -219,436,910 -44,743,677 -147,229,230 20.4%67.1% 55 De Anza College - Great America 50,024 19.9%69.9%12,600 48,412 20.1%68.9%10,220 -135,531,760 -25,681,291 -99,536,080 18.9%73.4% 56 Wolfe - Hamilton 72,719 20.9%61.3%10,556 767,621,764 160,312,902 470,575,924 20.9%61.3% 57 West Valley Coll - Great America 34,485 19.6%62.6%10,580 35,278 19.7%62.7%19,775 332,771,150 65,588,680 209,415,190 19.7%62.9% 58 West Valley College - Alviso 45,289 19.9%66.4%5,865 -265,619,985 -52,907,009 -176,460,255 19.9%66.4% 59 Monroe - Grt America - Alviso 27,466 31.0%64.7%9,692 266,200,472 82,397,606 172,323,760 31.0%64.7% 60 Winchester Tc - Gt America 37,049 32.2%59.0%14,955 38,137 28.0%62.0%21,780 276,556,065 54,474,996 188,086,755 19.7%68.0% 61 Good Sam Hosp - Sierra & Piedmont 56,501 29.5%67.6%9,500 34,867 32.5%63.8%19,815 154,130,105 66,290,951 77,949,825 43.0%50.6% 61L Berryessa 14,732 22.1%86.2%9,931 146,303,492 32,367,764 126,103,838 22.1%86.2% 61T Bascom/Union Turnaround 14,637 17.1%37.0%9,542 139,666,254 23,896,900 51,708,098 17.1%37.0% 62 Good Sam Hosp - Sierra & Piedmont 52,180 26.5%64.2%10,250 -534,845,000 -141,614,105 -343,118,750 26.5%64.2% Current Service (FY16-17)Proposed Final Plan (FY18-19)Change from Current Service to Proposed Final Plan demographics of population served (within 1/4-mile)demographics of population served (within 1/4-mile)people-trips (population x trips) change borne by Title VI communities (highlighted cells greater than area avg) Attachment G: Service Equity Analysis Page 45 7.3.g amount of service amount of service Route Population % Low Income % Minority Bus Trips (Annual)Population % Low Income % Minority Bus Trips (Annual)All People-Trips Low Inc People-Trips Minority People-Trips Low Income Minorities Current Service (FY16-17)Proposed Final Plan (FY18-19)Change from Current Service to Proposed Final Plan demographics of population served (within 1/4-mile)demographics of population served (within 1/4-mile)people-trips (population x trips) change borne by Title VI communities (highlighted cells greater than area avg) 63 Almaden Expy - San Jose State 43,043 23.4%50.7%7,530 35,787 26.4%52.6%8,489 -20,317,947 4,312,880 -4,764,785 -21.2%23.5% 64 Almaden Lrt - Mckee & White 54,316 35.7%68.5%16,705 33,757 47.0%83.9%18,901 -269,307,723 -24,622,334 -86,738,747 9.1%32.2% 64L Lincoln - Almaden 31,143 17.4%48.7%11,964 372,594,852 64,831,408 181,577,628 17.4%48.7% 65 Kooser & Blossom Hill- Dntn S. J.57,982 31.3%61.2%4,845 38,211 32.9%61.3%3,060 -163,997,130 -49,377,843 -100,292,520 30.1%61.2% 66 Kaiser San Jose - Milpitas / Dixon 80,193 30.6%76.5%18,935 69,401 34.2%76.4%21,658 -15,367,597 50,207,269 -14,280,686 -326.7%92.9% 66L Main - Abel 16,927 21.5%84.6%18,598 314,808,346 67,761,261 266,174,576 21.5%84.6% 68 Monterey Hwy - San Jose Diridon 67,516 37.1%74.9%20,995 46,059 37.4%77.4%21,768 -414,886,108 -151,095,053 -285,218,330 36.4%68.7% 68L South County 22,978 35.7%69.2%18,708 429,872,424 153,324,507 297,457,200 35.7%69.2% 70 Jackson 88,364 32.8%90.2%20,010 29,568 43.1%94.4%20,835 -1,152,114,360 -313,632,224 -1,013,434,695 27.2%88.0% 70L Flickinger - Morrill 24,196 21.0%85.8%10,209 247,016,964 51,766,208 212,061,348 21.0%85.8% 71 Eastridge- Great Mall / Main 48,934 30.9%87.7%13,840 86,827 32.2%87.8%10,649 247,374,163 88,273,055 217,561,404 35.7%87.9% 72 Senter / Monterey - Downtown San Jose 65,507 41.5%84.7%16,665 66,002 41.4%84.6%19,936 224,141,717 91,297,930 189,463,804 40.7%84.5% 73 Snell & Capitol - Downtwn San Jose 50,681 43.2%79.8%14,805 47,271 45.2%79.9%19,936 192,062,451 102,224,268 154,498,666 53.2%80.4% 77 Eastridge - Great Mall / Main 41,928 40.0%92.5%15,245 40,866 39.3%92.4%19,844 171,752,544 62,831,674 158,007,672 36.6%92.0% 81 Moffett / Ames Ctr - San Jose State 79,673 19.7%57.5%7,890 -628,619,970 -123,642,680 -361,606,590 19.7%57.5% 82 Westgate - Downtown San Jose 46,444 33.2%58.8%8,935 -414,977,140 -137,816,017 -243,818,280 33.2%58.8% 83 Almaden & Mckean- Ohlone / Chynwth 17,716 13.9%49.2%3,315 58,728,540 8,143,744 28,916,745 13.9%49.2% 85 Gilroy 19,561 41.8%73.9%4,050 79,222,050 33,115,763 58,538,700 41.8%73.9% 86 Gavilan College 5,778 50.3%78.6%6,630 38,308,140 19,287,548 30,113,460 50.3%78.6% 87 Morgan Hill 7,536 25.1%55.9%1,785 13,451,760 3,370,145 7,521,990 25.1%55.9% 88 Vets Hosp - Middlefield & Colorado 16,317 8.1%46.9%5,100 -83,216,700 -6,722,468 -39,066,000 8.1%46.9% 89 California Ave Ctrn-Vets Hospital 4,587 12.5%37.7%5,865 -26,902,755 -3,358,425 -10,140,585 12.5%37.7% 89 Cal Ave - VA Hospital 3,988 12.8%37.3%1,530 6,101,640 780,174 2,276,640 12.8%37.3% 89 Cal Ave - VA Hospital Peak 4,465 12.5%37.3%3,060 13,662,900 1,709,400 5,101,020 12.5%37.3% 101 Camden & Hwy 85 - Palo Alto 19,822 20.3%53.1%1,530 19,822 20.3%53.1%1,530 0 0 0 0.0%0.0% 102 South San Jose - Palo Alto 10,287 15.9%55.0%4,335 10,287 15.9%55.0%4,335 0 0 0 0.0%0.0% 103 Eastridge - Palo Alto 10,026 42.9%77.5%2,295 10,026 42.9%77.5%2,295 0 0 0 0.0%0.0% 104 Penitencia Trans Ctr - Palo Alto 21,034 17.2%74.8%1,020 21,034 17.2%74.8%1,020 0 0 0 0.0%0.0% 120 Fremont Bart - Lockheed Martin 754 21.8%59.2%3,315 -2,499,510 -544,382 -1,478,490 21.8%59.2% 121 Gilroy Trans Ctr - Lockheed Martin 7,348 33.8%64.2%5,355 7,348 33.8%64.2%5,355 0 0 0 0.0%0.0% 122 South San Jose - Lockheed Martin 23,962 24.3%71.6%1,020 23,962 24.3%71.6%1,020 0 0 0 0.0%0.0% 140 Fremont Bart - M. College & Montague 9,585 21.8%77.0%1,785 -17,109,225 -3,729,948 -13,167,945 21.8%77.0% 168 Gilroy Trans Ctr - San Jose Diridon 9,511 38.3%65.0%4,080 9,511 38.3%65.0%4,080 0 0 0 0.0%0.0% 180 Great Mall / Main - Fremont Bart 10,932 36.3%92.1%8,160 -89,205,120 -32,351,284 -82,187,520 36.3%92.1% 181 San Jose Diridon - Fremont Bart 6,866 34.0%66.2%22,000 -151,052,000 -51,307,726 -100,034,000 34.0%66.2% 182 Palo Alto - Ibm / Bailey Ave 5,852 10.7%67.5%765 5,852 10.7%67.5%765 0 0 0 0.0%0.0% 185 South County North Bayshore 26,651 29.1%61.1%2,295 26,651 29.1%61.1%2,295 0 0 0 0.0%0.0% 200 Baypointe Lrt - Mountain View Lrt 11,745 19.4%63.2%730 17,092 20.8%67.8%730 3,903,310 938,898 3,040,450 24.1%77.9% 201 Downtown Area Shuttle (Dash)6,886 40.0%63.9%17,850 -122,915,100 -49,188,081 -78,522,150 40.0%63.9% 246 Milpitas school trips 19,186 21.7%83.2%1,440 27,627,840 6,002,602 22,988,160 21.7%83.2% 282 Willow Glen school trips 16,256 33.2%61.2%720 11,704,320 3,886,068 7,158,240 33.2%61.2% 288 Palo Alto school trips 16,320 8.1%46.9%540 8,812,800 711,747 4,137,480 8.1%46.9% 288L Palo Alto school trips L pattern 14,168 10.1%49.8%360 5,100,480 515,811 2,539,080 10.1%49.8% 288M Palo Alto school trips M pattern 12,243 13.1%49.9%360 4,407,480 578,131 2,201,040 13.1%49.9% 304 S. San Jose - Sunnyvale Trans Ctr 43,062 33.2%74.1%2,805 -120,788,910 -40,132,608 -89,496,330 33.2%74.1% 321 Great Mall / Main - Lockheed Martin 11,199 23.4%72.9%765 -8,567,235 -2,000,736 -6,243,930 23.4%72.9% 323 De Anza Col - Downtown San Jose 26,292 29.0%68.2%19,280 -506,909,760 -146,869,486 -345,478,320 29.0%68.2% 328 Almaden Valley - Lockheed Martin 40,766 17.3%51.8%1,275 -51,976,650 -8,979,649 -26,919,075 17.3%51.8% Attachment G: Service Equity Analysis Page 46 7.3.g amount of service amount of service Route Population % Low Income % Minority Bus Trips (Annual)Population % Low Income % Minority Bus Trips (Annual)All People-Trips Low Inc People-Trips Minority People-Trips Low Income Minorities Current Service (FY16-17)Proposed Final Plan (FY18-19)Change from Current Service to Proposed Final Plan demographics of population served (within 1/4-mile)demographics of population served (within 1/4-mile)people-trips (population x trips) change borne by Title VI communities (highlighted cells greater than area avg) 330 Almaden Valley - Tasman Drive 46,264 19.1%56.0%2,805 -129,770,520 -24,781,547 -72,674,745 19.1%56.0% 500 Rapid 500 9,777 39.4%72.9%31,897 311,856,969 123,009,357 227,489,404 39.4%72.9% 522 Rapid Palo Alto - Eastridge 66,510 33.6%73.7%22,365 56,996 31.3%72.8%26,982 50,369,922 -17,144,647 23,227,209 -34.0%46.1% 523 Rapid Sunnyvale - St Crk - BART 55,724 31.9%73.2%23,070 1,285,552,680 409,819,483 940,425,480 31.9%73.2% 900 Ohlone / Chynoweth - Almaden 3,954 26.9%50.1%22,990 3,954 26.9%50.1%22,990 0 0 0 0.0%0.0% 901 Alum Rock-Santa Teresa Via Baypoint 51,801 29.3%75.1%26,040 51,801 29.3%75.1%26,040 0 0 0 0.0%0.0% 902 Mountain View - Winchester 41,609 28.0%62.0%19,880 -827,186,920 -231,671,849 -512,943,760 28.0%62.0% 902 Old Ironsides - Winchester 31,931 29.8%65.4%22,175 708,069,925 210,709,121 463,080,525 29.8%65.4% 903 Alum Rock Mtn View 32,910 26.0%76.1%19,747 649,873,770 168,781,366 494,326,651 26.0%76.1% 904 Santa Teresa Peak 11,704 28.9%61.9%3,060 11,704 28.9%61.9%3,060 0 0 0 0.0%0.0% All Changes 1,171,506 26.1%68.0%696,185 1,115,260 26.0%68.3%775,475 -519,687,525 -64,043,031 -316,330,564 12.3%60.9% Low Income Minority Change Borne By 12.3%60.9% Area Average 23.5%65.3% Delta -11.2%-4.5% Attachment G: Service Equity Analysis Page 47 7.3.g ru o w et aud ua ta i n a 102 101 102 102 102 101 328 328 102 168 182 328 328 328 328 103 102 330 330 330 330 330 101 328 101 328 102 103 182 102 103 182 120 104 104 104 120 104 120 200 122 122 321 321 330140140 330 120 104 120 168 182 121 121 121 121 168 168 121 182 328 328 121 122 103 103 103 103 104 104 104 304 304 304 304 122 122 304 304122 304 304 122 328 122200 104 182 103182 103 182 182 104 102 102 103 182 102 103 104 200 200 304 328 102 104 168 48 49 48 53 37 37 13 13 39 51 51 53 53 51 5134 34 88 88 88 88 58 58 58 58 45 46 46 48 48 58 53 58 58 37 3749 49 13 71 71 71 71 25 26 26 82 64 64 64 6463 63 63 65 65 27 27 61 61 61 62 62 26 26 2626 27 26 26 26 26 81 81 57 57 57 57 57 57 60 60 60 32 32 32 252525 25 61 62 62 54 55 40 52 40 52 89 89 35 40 32 35 32 32 54 26 26 55 55 60 60 81 81 828282 31 31 27 27 42 62 61 180 180 81 54 55 27 65 42 42 42 42 82 63 65 61 62 61 71 180 61 62 47 47 180 180 47 180 180 55 55 25 37 37 37 89 27 63 77 77 66 66 66 66 77 77 66 73 66 68 68 68 66 68 73 68 68 73 73 77 70 70 70 72 22 70 22 72 70 70 70 72 72 70 22 22 22 22 22 2323 72 10 23 181 181 181 181 10 64 25 25 25 25 522 522 522 522 522 522 A ba ba SJ City College Kaiser Medical Center El Camino Hospital O’Connor Hospital Regional MedicalCenter Valley MedicalCenter Kaiser Medical Center GoodSamaritan Hospital Stanford Hospital Veterans AffairsHospital Stanford University SCU SJSU Evergreen Valley College West ValleyCollege Mineta San Jose Airport Mission College m o n t e r e y s e n ter tully w h ite curtner hill sdale sara t o g a ela v y n n u s - a g o t a r a s tn a r g ef l o w homestead reed kc e b n e l l o h ma r y stevens creek m c la u g h l i n mcke e alum r o c k hoste tter la f a y e t t e ot i u q oin o t n a n a s al m a evelyn spr i ng e r fremont ma th i l d a sara t o g a re t s e h c n i w blossom hill aborn calaveras abel milpitas mccarthy lan dess m eridian na i d i r e m campbell hamilton williams prospect allendale stelling parkmoor will o w k e y e s ba s c o m a lmad e n hillsdale capitol snell senter kiely co t t l e santa teresa monterey bascom el camino real university mid dlefield fo o t hill el m onte fab ian rengstorff miramon te shoreline moffett central maude java fair o aks duane arques tasman great america bower s monroe el camino real lawren ce a g n ew montague 1 s t scott 1st d e la cr u z mission california bernardo remington de a nz a sun ny vale-sar atoga tantau bollinger poll ard santa c ruz winchester main los gatos union leigh c a m d e n camden santa teresa branham winfield y erb a buena c a pit o l quimby murillo delta san felipe the villages ki n g sto rysanta clar ajulian oc ala ja c k s o n p ie d m o n t park vic t o ria m o rril l oa k la n d l u n d y broka w m a b ury na glee t a y l or coleman e sc u ela b erryessa h e d ding flic kin g er hom er the ala m e da linc ol n charlesto n a ra s tra d e ro la f a y e t t e sa n t o m a s Morgan Hill m ainh a le d u nn e m o n tere y c o ch ra n e burnett tennant Gilroy 1st 6th 8th mo nte re y welburn thomas m a nntelli san ysid ro a r r o y o 1 0t h wren 3rd kern 19 19 18 18 68 121 168 14 14 14 17 17 Gilroy 168 121 168 121 16 16 68 68 Morgan Hill Other Transit Services Title VI Communities VTA Weekday Route Frequencies Current Plan Peak Only Every 60 minutes Every 30-59 minutes Every 20 minutes Every 15 minutes or better Rapid: every 15 minutes and limited stops VTA light rail TC VTA Transit Center Caltrain / ACE commuter rail Future BART Low Income Low Income and Minority Minority ba Transit Service and Title VI Communities Attachment G: Service Equity Analysis Page 48 7. 3 . g AC217 AC217 523 523 523 523 523 523 522 522 522 522 522 522 500 500 288 288L 288 288M 282 282 266 266 255 255 251 247247 246 246 89 83 83 83 77 77 77 77 73 73 72 72 72 71 71 71 71 71 71 70 70 70 70 68 68 68 68 68 66 66 66 66 66 66 66 66 65 65 65 64 64 64 64 64 63 63 61 61 61 61 61 61 61 61 60 60 6059 59 59 57 57 57 57 56 56 56 56 56 56 55 55 55 53 5353 53 52 52 51 51 51 51 51 51 47 47 47 42 42 42 42 40 40 40 39 39 39 37 37 37 31 31 27 27 27 27 27 26 26 26 26 26 26 2525 25 25 25 25 25 23 23 23 23 22 22 22 22 22 22 22 21 21 21 21 20 20 20 ba ba SJ City College Kaiser Medical Center El Camino Hospital O’Connor Hospital Regional MedicalCenter Valley MedicalCenter Kaiser Medical Center GoodSamaritan Hospital Stanford Hospital Veterans AffairsHospital Stanford University SCU SJSU Evergreen Valley College West ValleyCollege Mineta San Jose Airport Mission College m o n t e r e y s e n ter tully w h ite curtner hill sdale sara t o g a ela v y n n u s - a g o t a r a s tn a r g ef l o w homestead reed kc e b n e l l o h ma r y stevens creek m c la u g h l i n mcke e alum r o c k hoste tter la f a y e t t e ot i u q oin o t n a n a s al m a evelyn spr i ng e r fremont ma th i l d a sara t o g a re t s e h c n i w blossom hill aborn calaveras abel milpitas mccarthy lan dess m eridian na i d i r e m campbell hamilton williams prospect allendale stelling parkmoor will o w k e y e s ba s c o m a lmad e n hillsdale capitol snell senter kiely co t t l e santa teresa monterey bascom el camino real university mid dlefield fo o t hill el m onte fab ian rengstorff miramon te shoreline moffett central maude java fair o aks duane arques tasman great america bower s monroe el camino real lawren ce a g n ew montague 1 s t scott 1st d e la cr u z mission california bernardo remington de a nz a sun ny vale-sar atoga tantau bollinger poll ard santa c ruz winchester main los gatos union leigh c a m d e n camden santa teresa branham winfield y erb a buena c a pit o l quimby murillo delta san felipe the villages ki n g sto rysanta clar ajulian oc ala ja c k s o n p ie d m o n t park vic t o ria m o rril l oa k la n d l u n d y broka w m a b ury na glee t a y l or coleman e sc u ela b erryessa h e d ding flic kin g er hom er the ala m e da linc ol n charlesto n a ra s tra d e ro la f a y e t t e sa n t o m a s 87 87 68 68 Morgan Hill m ainh a le d u nn e m o n tere y c o ch ra n e burnett tennant 86 86 85 85 68 86 86 68 85 85 Gilroy 1st 6th 8th mo nte re y welburn thomas m a nntelli san ysid ro a r r o y o 1 0t h wren 3rd kern Other Transit Services Title VI Communities Every 60 minutes peak only Every 60 minutes plus 30 minute peak VTA Weekday Route Frequencies FINAL PLAN School trippers Municipal shuttles Every 60 minutes Every 30 minutes peak only Every 30 minutes Every 30 minutes plus 15 minute peak Every 15 minutes or better Rapid: every 15 minutes or better and limited stops VTA light rail TC VTA Transit Center Caltrain / ACE commuter rail Future BART Low Income Low Income and Minority Minority ba Transit Service and Title VI Communities Attachment G: Service Equity Analysis Page 49 7. 3 . g Proposed Final Transit Service Plan VTA Board of Directors Item 7.3 2 Phase II Outreach 9 Public Meetings 5 Webinars 85 Presentations 3,300 riders reached by multi-lingual street team Over 3,000 comments received 3 34 Changes from Draft Plan to Final Plan Modify Route Alignment Minor Adjustments to Service Restore Service or Add Stops 20 21 232325 27 27 31 37 42 51 53 56 57 59 64 64 6571 72 72 73 77 83 89 96 87 288 522 522 523 500 Increase Service Level 4 The Final Transit Service Plan… •Expands the frequent network •Increases frequent transit access for 160,000 people, 150,000 jobs •Enhances light rail system •Links transit network with Milpitas and Berryessa BART Stations •Increases weekend service levels •Shifts ridership/coverage balance from 70/30 to 83/17 5 The Final Transit Service Plan… •Projected to increase bus ridership by 8-10 percent •Projected to increase light rail ridership by 10-15 percent •Projected to increases paratransit trips by over 21,000 annually •2 active paratransit clients’ homes outside of service area •20 paratransit service clients’ homes now in extended service area •Causes no Title VI disparate impact to minority communities •Causes no Title VI disproportionate burden on low-income communities •Increases transit access for minority and low-income communities 6 Next Steps •Implementation •Marketing and Information Campaign •New System Map and Timeguides •Express Bus Study •Transit Sustainability Policy Update and Service Performance Monitoring Questions nextnetwork.vta.org 7 8 Advisory Committee Comments •Appreciate Outreach •Interest in Measure B uses for innovative, first/last mile services •Want greater definition of Core Connectivity Program •Want clarity on timing of Measure B transit funding availability •Cities are already thinking about Measure B uses •West Valley Senior Mobility •South County Mobility Service •Palo Alto City Shuttle •Almaden Valley On-Demand Service 9 Project Goals 1)Increase Ridership 2)Improve Cost-effectiveness 3)Connect to BART 10 Project Timeline Feb 2016 Transit Choices Report Jun 2016 Transit Alternatives Report (Network Concepts) Summer 2016 Outreach Phase I Nov 2016 Board Direction for 85/15 Draft Plan Jan 2017 85/15 Draft Plan Released Jan-Feb 2017 Phase II Outreach April 2017 Proposed Final Plan Released May 2017 Board Adoption of Final Plan Late 2017 Service Changes Coincide with the Start of BART Service 11 Reallocation of Service Hours 12 Boardings Per Revenue Hour (Weekdays) Non-Express Bus Routes 13 Subsidy Per Ride (Weekdays) Non-Express Bus Routes 14 Expand Frequent Network 22 6423 70 25 B P Current Frequent 522 Current Rapid 72 26 57 60 61 66 68 73 77 O G New Frequent 523500 New Rapid 15-minute, all-day frequency on weekdays 15 Enhance Light Rail System 16 +15% +12% -6% More Weekend Service 17 Connections to BART Stations 18 4 routes + express 3 routes 14 routes 23 routes 9 routes Service Hierarchy 19 Expanding Potential Transit Market Near the Frequent Network 20 Ridership Projections Compared to current service plan… 15 to 20 percent increase in light rail ridership 8 to 10 percent increase in bus ridership 6 Months 70% 12 Months 80% 18 Months 90% 24 Months 100% Ridership takes about two years to materialize. 21 Paratransit Impacts 21,000 more annual trips 2 active clients homes outside of service area 20 active clients homes move to extended area 22 Title VI Equity Analysis on final plan conducted independently by NWC Partners no disparate impact on minority populations no disproportionate burden on low-income populations Title VI Equity Analysis 23 Final Plan Map Text 24 Final Plan Map Text 25 Final Plan Map Text 26 Core Connectivity Program •Grant program to develop innovative mobility solutions •Two-year grant cycle •Call for projects •Local match requirement •Guidance for project proposals •Policy Considerations •Types of eligible projects –new, innovative, first/last mile, etc. •Level of subsidy per ride 27 Expand Frequent Network Eastridge Berryessa BART Lockheed Martin Great America Milpitas BART Santa Teresa Win c h e s t e r Ba s c o m Bo w e r sExisting Frequent Service 28 Diridon Station Eastridge Transit Center Palo Alto Transit Center Increase Rapid Services Existing Rapid Service Service Better Matched to Demand 29HOUR OF DAY BUSES IN SERVICE Amount of Service in Final Plan 30 FY16-17 APPROVED (EXISTING) 169,367 1,601,277 207,124 1,601,277 FY18-19 PROPOSED (FINAL PLAN) ANNUAL SERVICE HOURS LIGHT RAIL BUS 31 32 Lockheed Martin Diridon Station Berryessa BART Station Eastridge Transit Center Palo Alto Transit Center De Anza College Valley Fair/ Santana Row Sunnyvale Caltrain Vallco Increase Rapid Services CAMPBELL CUPERTINO LOS ALTOSLOSALTOS HILLS LOS GATOS MILPITAS MONTE SERENO MOUNTAIN VIEW PALO ALTO SAN JOSE SANTA CLARA SARATOGA SUNNYVALE GILROY MORGAN HILL Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap contributors, and the GIS user community 0 1 2 3 4 50.5 Miles Service Maintained or Adjusted Up/Down New Service Discontinued Service FY18-19 Transit Service PlanNew Service and Discontinued Service Areas with new service and areas that would lose service, compared to current service May 1, 2017 Board of Directors Santa Clara Valley Transportation Authority 3331 North First Street San Jose, CA 95134-1927 RE: South Santa Clara County: Next Network Plan Santa Clara Valley Transportation Board Members: On behalf of the City Councils and communities of Morgan Hill and Gilroy, we want to thank the VTA Board and staff for your continued outreach on the Next Network Plan (Plan) to discuss the reasons for revising the ridership/coverage percentages and as importantly, the impacts to South Santa Clara County (South County). We appreciate how you listened to our feedback on the Plan and accordingly made some adjustments to minimize the impacts to South County’s service levels. Furthermore, we are excited about continued collaboration with VTA on the Plan and for the new opportunities we now have with the passage of Measure B in November 2016, including streets and road repair and expanding our CalTrain service. We concur with the Plan’s goals of increasing transit ridership and improving efficiency as these are necessary for the long-term sustainability of VTA service. The cities of Morgan Hill and Gilroy also strongly believe there is a timely opportunity to advance VTA’s “Solutions that move you” slogan in South County with the Board’s consideration of the Plan. As such, we are formally requesting that as part of the Board’s adoption of the Plan, VTA commits to immediately begin working with Morgan Hill and Gilroy to discuss innovative ideas that further transform VTA and simultaneously enhance service in South County. This formal action would be a signal to South County residents that VTA recognizes service level enhancements are needed, though the current model is not conducive to achieving that collective goal. Through Measure B funding, we ask that South County becomes a high priority for funding of innovative mobility models and expanding mobility options and fares for the most vulnerable population. South County has begun to discuss different approaches to maximizing public investment by utilizing non-traditional transportation models (eg. Uber, Lyft, volunteer programs, senior housing developments, etc.). We recognize that having VTA committed to working with our communities will be critical to successfully serving South County. VTA brings much needed expertise and experience that will undoubtedly assist in creating a service plan and funding strategies that we can all be proud of and model in other areas with similar transit service challenges as South County. Thank you for the opportunity to collaborate and we look forward to working with VTA as partners into the future. We would be happy to further discuss our request at your convenience. Sincerely, Steve Tate Roland Velasco Morgan Hill Mayor Gilroy Mayor Steve.Tate@morganhill.ca.gov Roland.Velasco@ci.gilroy.ca.us Transit Service Plan Comments Page 1 of 17 From: Anna Ma Sent: Friday, April 28, 2017 6:26 PM To: Board Secretary <Board.Secretary@vta.org> Subject: VTA88, 88L and 88M bus services Hello! I am writing to you to consider the current VTA88, 88L and 88M bus schedule services. We are very disappointed to know that you are going to discontinue the current VTA88, 88L and 88M service. The proposed 288 limited service is inadequate to serve Gunn students' needs. My kids are taking afternoon buses on every school day. Sometimes she will take a later bus because of the school sports schedule. Could you please provide the city with bridge funding when service cuts are introduced in order to minimize erosion of student bus ridership? Can VTA request Measure B funds to support the bus service when it becomes available? The traffic in the city has already been bad. We would like VTA to provide more bus schedules so we don't need to drive kids around so the less traffic will made. Please reconsider your decision and not reduce the schedules. Thanks! -anna From: Vish Saxena Sent: Friday, April 28, 2017 7:10 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Bus route 88 & 88L is a lifeline Dear Board as a parent of two school aged kids, I have no way to drop both my kids at the same time. .Luckily the VTA bus route exists and my daughter takes it virtually every day to get to school. Making cuts to this route means 10s of exasperated parents on our streets causing more mayhem and lack of safety for kids. I strongly request you to not make cuts to the bus route which is a lifeline. Thanks Vishal Transit Service Plan Comments Page 2 of 17 From: James Lee Sent: Saturday, April 29, 2017 3:03 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Please do not cut bus on all 88 line To Whom It May Concern, Please do not cut any bus on 88 lines, weekday daily during school time my family needs the 88 badly and can not leave it without it. cheers, and Pray The Lord. James Lee From: Olga Enciso-Smith Sent: Saturday, April 29, 2017 9:28 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Public Hearing Dear Board , I take VTA from time to time . I trust that the service of the 48 and 49 line to LG will continue. Some users are people who work as caregivers , cleaning houses, servers, busboys, and some are Seniors like me , others are handicapped. I was hit by a car while walking at the parking lot of Trader Joes in LG when a car speeding hit me and fractured my back. I had to rely on public transportation. On Sat. i had a meeting at the SJ Presbytery on N. First St near Hedding, from the Winchester Sta. I took the LR. These services are much needed for people who cant drive and don't have a car. I trust that a major campaign to educate the public about the value of Public Transportation is done asap so more people get out of the freeways. They are driving dangerously as you may know the statistic probing the increase in deaths and accidents. Thank you, Olga Enciso Smith Social Entrpreneur Los Gatos, CA 95032 Local and Global Commerce From: M Carmen Rodwell Sent: Monday, May 01, 2017 12:16 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Cuts to VTA line 88 in Palo Alto. Dear VTA Board Members, My son will be a Junior at Gunn next school year and we were very disappointed to learn that the bus line that was going to take him there is going to be taken away. Transit Service Plan Comments Page 3 of 17 Many members of our community are counting in this vital public service to make sure our children gate safely to Gunn at times of the day when traffic is very busy and rushing with car that are in a hurry to get to their destination without paying much attention to bikers or pedestrians. Please consider maintaining this very vital service to our community and guarantee we have a safe way for our children to go to High School. The proposed 288 limited service is inadequate for the need of our Gunn students. I think VTA should provide the city of Palo Alto with bridge funding when service cuts are introduced in order to minimize erosion of student bus ridership. (As we understand it, there will be a gap in time between when cuts are made and Measure B funds become available, we need VTA help to bridge this gap.) The city of palo alto should also receive Measure B funds (when they become available) to support a lower cost City of Palo Alto Shuttle route expansion to fill service gaps that the VTA cuts will create. Gunn PTSA has spent years promoting alternative commutes, including the VTA bus, cultivating high bus ridership among students. I hope VTA will reward those efforts by continuing to work in partnership with us to create a local transit network that works well for PAUSD students, work commuters and residents. Sincerely, Carmen Rodwell MD Greenmeadow Palo Alto, CA From: ChickenWaterer Sent: Monday, May 01, 2017 12:26 PM To: Board Secretary <Board.Secretary@vta.org> Subject: VTA Route 88 Cut Sirs: I'm writing to let you know that I'm very disappointed that the VTA is cutting the 88, 88L and 88M service in Palo Alto. My son currently rides this route to Gunn High School and his sister would be taking the same bus next year when she enters as a freshman. This line is very helpful to parents like me because it gets the kids to school during the winter months when rain and cold weather make biking to school impossible. As a working parent, I don't have an alternative to the bus. If you would, please provide our town with measure B funds to support a shuttle bus that can act as a replacement for the 88 and also provide Palo Alto with bridge funds to help the city maintain Transit Service Plan Comments Page 4 of 17 bus service during the time period between the end of the 88 service and the start of bridge funding. Thanks in advance for your consideration Mark Delman Parent From: douglas ward Sent: Monday, May 01, 2017 12:36 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Gunn HS cross town bus NEEDED Hello VTA, The bus from Gunn HS to midtown Palo Alto is a VERY important part of our day. Please don't stop this route. If we don't have it, we have no way to get to school other than a 40 minute walk. Douglas Ward From: douglas ward Sent: Monday, May 01, 2017 12:39 PM To: Board Secretary <Board.Secretary@vta.org> Subject: VTA88, 88L and 88M bus Gunn HS Dear VTA secretary, Bus routes to and from Gunn HS are desperately needed for my TWO children. Buses # VTA88, 88L and 88M are the only way they can get to school on most days or walk 40 minutes. Please provide FUNDING for this essential service in Palo Alto. Sincerely, Douglas Ward From: Anne Marie Hallada Sent: Monday, May 01, 2017 1:47 PM To: Board Secretary <Board.Secretary@vta.org> Subject: GUNN HighSchool Bus Routes Dear Board Secretary: I am writing to let you know about my concern and disappointment over discontinuing the VTA88, 88L and 88M service. I have spoken with other parents in the area who are concerned that the proposed 288 limited service is inadequate to serve the needs of the students. Transit Service Plan Comments Page 5 of 17 Our son will be starting Gunn HS next year and we have been planning on having him take the bus since his hearing impairment makes biking an unsafe option for him. With 3 additional children in the district at two other schools, my own work as an Instructional Aide at a PAUSD school, and my husbands commute in the opposite direction it will make driving very difficult. My understanding is that the VTA may be able to to provide the city with bridge funding when service cuts are introduced before Measure B funding becomes available. Palo Alto students are our future VTA riders and with our next generation being so environmentally conscious, I think it makes sense to work with the school to support these young and future riders. Did you know that fewer kids are in a rush to get their driving licenses these days? They are more accustomed to sharing rides, taking public transportation, or using other driving services like Uber. Thank you for your consideration and for continuing to look into this issue. -- Anne Marie Bredehoft-Hallada, MPH Health Education Consultant From: Winston, Ethan Sent: Monday, May 01, 2017 4:02 PM To: 'Jerry Li' Subject: Complaint Against Removal of VTA Bus 181 Mr. Li, Thank you for your most recent comment regarding Route 181, which in addition to serving Santa Clara County residents, also currently serves Alameda County residents as it makes it way to the Fremont BART station. Route 181 was established to build a base of riders for the BART extension to Santa Clara County being built by VTA. A peripheral benefit was for the time it would be running it would also be available to serve Fremont residents. Unfortunately, sales tax revenue generated by Fremont residents goes to AC Transit, rather than VTA, so VTA is not able to provide that service indefinitely. (VTA is the public transportation provider for Santa Clara County, while AC Transit is the public transportation provider in Fremont). Specifically, Route 181 is being discontinued so the resources it requires can be reallocated to better serve Santa Clara County residents, who, through sales tax revenue, pay the portion of transit operations costs not covered by fares. In a previous e-mail you noted “tens of thousands” commuters depend on Route 181 and will be adversely impacted. That number, unfortunately, is inflated and inaccurate. In addition, the new Transit Service Plan Comments Page 6 of 17 BART service, combined with multiple express bus lines whisking riders downtown, will be an upgrade in service for most patrons. The number of individuals being impacted is much smaller and primarily consists of the Fremont residents who live outside the VTA service area along the Route 181 corridor. In that previous e-mail you also estimate an additional annual cost of $3,000 in your personal transit expenses. While I am unsure of the methodology used to reach that number, I did want to suggest you visit the 511.org website for other commuter alternatives available to you. Financial subsidies exist for van pools and car pools, for example. In addition, employers with more than 50 employees are required by the regional air resources board to help subsidize employee commute expenses, as is San Jose State University. Adobe, for example, is a major downtown San Jose employer who assists its employees with transit costs, including employees currently utilizing Route 181. Finally, EcoPass is a financial product unique to VTA and each agency sets its own fare discount policies. I suspect south bay commuters, employers and educational institutions will approach BART seeking discounted fares. VTA, however, does not have the ability or legal authority to require BART to offer such fares, either to Santa Clara County residents, or to individuals who live outside our service area. VTA appreciates your current patronage of our services and regrets a complex set of factors does not allow us to continue operating Route 181 in Alameda County. Sincerely, Ethan Winston VTA Community Outreach From: Jerry Li Sent: Wednesday, April 26, 2017 5:08 PM To: Winston, Ethan Ethan, The general public is negatively affected by the proposed changes. Many of which are complaining and against your committee's decisions. We the people, have valid concerns that are not addressed by you, much less the document you linked in the previous email. I am requesting you to do your due diligence, as required by your position, to respond to the concerns expressed by the people. You are in your position to appropriately address issues, not ignore them at your convenience. Regards, Jerry Li Transit Service Plan Comments Page 7 of 17 On Mon, Apr 24, 2017 at 12:46 PM, Jerry Li wrote: Ethan, I appreciate your response to the concerns voiced by all riders who will be displaced by the removal of the VTA Bus Line 181. But, you have not addressed the glaring fact that most Eco Pass cards do NOT cover BART fares. Thus, most displaced riders will be forced to pay an additional $3,000 plus per year to commute to and from their destinations. Also, have you read the news regarding strong of BART robberies at Oakland stations? There is nothing preventing something similar from happening to riders forced to use the BART to the Berryessa Station, everyday. Link to news article: www.sfgate.com/crime/article/BART-takeover-robbery-50-to-60-teens- swarm-11094745.php What does your administration have to respond to the fact that your changes will negatively affect all riders? Regards, Jerry Li On Apr 24, 2017 9:45 AM, "Winston, Ethan" wrote: Mr. Li, Thank you for sharing your concerns regarding the changing public transportation options for travel between Alameda County and San Jose State University and other destinations. From the San Jose/Berryessa BART Station, SJSU students and staff will be able to travel on Rapid 500, which will have an estimated travel time of 12 minutes between the station and downtown. Rapid 500 will depart the Berryessa Station every 10 to 15 minutes during the service day. A longer discussion of the issue can be found in Attachment 5 of the memo going to the VTA Board of Directors in May. Here is a link to that document: http://bit.ly/2pyI2FS. The discussion regarding The Rapid 500 line begins on page three, while the Fremont express bus discussion begins on page five. Ethan Winston VTA Community Outreach From: Jerry Li Sent: Friday, April 21, 2017 4:59 PM To: Board Secretary Subject: Complaint Against Removal of VTA Bus 181 Hi Elaine, I am following up on our phone call earlier today regarding the removal of the VTA Bus Line 181 that travels between Fremont and San Jose. Transit Service Plan Comments Page 8 of 17 At San Jose State University, there are over 1,300 students and employees who use line 181 to commute to and from campus on a daily basis. That means over 1,300 students and employees will be forced to find other methods of commuting to the campus in downtown San Jose. The Berryessa Bart station is planned to open at the end of 2017. But, it is a significant distance from the Berryessa Bart station to downtown San Jose. Commuters are forced to find a bus that goes from the station to their destinations. They are just one subset of tens of thousands of commuters who rely on the VTA Bus Line 181 to travel to and from work. Furthermore, commuters are forced to pay extra on transportation fees to be able to work or pursue an education. On average, the extra fees required to travel to and from work equate to over $3,000 dollars a year. $3,000 is a significant amount of money for students and workers who have to use the public transportation system. Since most university provided Eco Pass Clipper cards do not cover Bart tickets, professors and students with limited budgets are forced to lower their quality of life to afford transportation to and from school. Thank you for your time and consideration. Please let me know if you have any questions. Regards, Jerry Li From: Ruth-Anne Siegel Sent: Monday, May 01, 2017 4:15 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Do not cut the VTA88, 88L or 88M service! VTA board members, My children have used the 88L bus for all the years they went to Gunn. Now, my youngest is on her way to high school and will use this bus to get to/from school when she goes to Gunn. Based on the years my older children used the bus, I can’t imagine how my daughter would go to/from school before she gets a license. Her father and I both work and it’s a horrible drive on Arastradero with so many cars both ways. Please reconsider what reducing the amount of buses would do to the traffic, the environment, and the quality of life in our city. Thank you. Ruth-Anne Siegel Transit Service Plan Comments Page 9 of 17 From: Hsia Lin Sent: Monday, May 01, 2017 4:38 PM To: Board Secretary <Board.Secretary@vta.org> Subject: VTA Route 88 To Whom It May Concern, I teach first grade at Palo Verde Elementary School. I requested that my 8th grade daughter attend Gunn High School next year specifically because the 88 currently runs along Louis Road where my school is located. My daughter has had two scary bike accidents during her three years attending JLS Middle School. Once, she was knocked to the ground and hit her head when a driver in a parked car opened his door. Just this past November, another biker swerved into my daughter and knocked her over. My daughter fell face-first into the road and two of her front teeth were knocked loose. The thought of my daughter biking across Alma and the train tracks to get to Paly from my elementary school made me nervous enough to apply to Gunn, so she could take the bus instead. Since I found out about the possibility of the changes to the route of the 88, I have been very anxious about the impact this change would have on my morning commute if I have to drive my daughter to Gunn and get to my school on time. I live in Redwood City and the commute from 101 is always unpredictable, let alone the traffic within the city limits once we get here. I am desperately hoping that service is not cut because the 88 is provides an important service to so many Gunn students and their families. Thank you for your consideration. Kind Regards, Lynn Lin From: Laam Wong Sent: Monday, May 01, 2017 6:44 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Please keep VTA88, 88L & 88M Dear VTA Board, Our children are graduating from JLS and going to Gunn this coming Fall 2017. We live across town from Gunn at East Meadow and Louis Road, we are counting on the VTA bus for our children to go to Gunn, especially during adverse weather days. We are very disappointed that the VTA is discontinuing VTA88, 88L and 88M service. The proposed 288 limited service is really inadequate to serve our needs. We hope VTA Board can provide bridge funding when service cuts are introduced in order to minimize erosion of student bus ridership. Transit Service Plan Comments Page 10 of 17 We also hope VTA Board can provide Measure B funds when it become available to support a lower cost City of Palo Alto Shuttle route expansion to fill service gaps that the VTA cuts will create. Gunn PTSA has spent years promoting alternative commutes, including the VTA bus, cultivating high bus ridership among students. please reward these efforts by continuing to work in partnership with Gunn PTA to create a local transit network that works well for PAUSD students, work commuters and residents. Sincerely Laam From: Sofus Macskássy Sent: Monday, May 01, 2017 7:41 PM To: Board Secretary <Board.Secretary@vta.org> Subject: this is what I am sending to VTA, please do so tonight if you can Dear VTA Board, Our children are graduating from JLS and going to Gunn this coming Fall 2017. We live across town from Gunn at East Meadow and Louis Road, we are counting on the VTA bus for our children to go to Gunn, especially during adverse weather days. We are very disappointed that the VTA is discontinuing VTA88, 88L and 88M service. The proposed 288 limited service is really inadequate to serve our needs. We hope VTA Board can provide bridge funding when service cuts are introduced in order to minimize erosion of student bus ridership. We also hope VTA Board can provide Measure B funds when it become available to support a lower cost City of Palo Alto Shuttle route expansion to fill service gaps that the VTA cuts will create. Gunn PTSA has spent years promoting alternative commutes, including the VTA bus, cultivating high bus ridership among students. please reward these efforts by continuing to work in partnership with Gunn PTA to create a local transit network that works well for PAUSD students, work commuters and residents. Sincerely, Sofus Macskassy Transit Service Plan Comments Page 11 of 17 From: 宽辰 Gmail Sent: Tuesday, May 02, 2017 11:24 AM To: Board Secretary <Board.Secretary@vta.org> Subject: Please do not reduce 88bus frequency To whom it may concern, I am a Gunn student, taking bus everyday between home ,close to Onlone and school, bus 88 has accompanied my school years since JLS middle school years. I need the transportation and schedule flexibility as school activities, sometimes, kept me late for going back home, so the cut on bus may result inconvenient, which one of my parent needs to leave work early to pick me up as biking distant is far from my home. I sincerely asking your support for maintaining the service, thank you. Kenton Kenton LeeFrom iPad From: Jarrett Mullen Sent: Tuesday, May 02, 2017 9:10 PM To: Board Secretary <Board.Secretary@vta.org> Subject: I Support the Next Network Dear Chair Bruins and the VTA Board of Directors: As a San Jose State Alumni and someone who works, visits family, visits friends, and rides transit, in Santa Clara County, I support the proposed VTA next network and urge you to approve the plan. The plan will greatly expand transit access to places where it is used the most, making it more possible than ever to use fewer or no personal cars without sacrificing as much freedom. However, please remember the service constraints were dictated by a fixed bus service operations budget. More than $1 billion from measure B is earmarked for wasteful and ineffective expressway widening, a portion of which could be redirected to expand bus service and implement spot improvements to speed up our new bus service Thank you for your time and service. Regards, Jarrett Mullen Transit Service Plan Comments Page 12 of 17 From: Ed Dunn Sent: Tuesday, May 02, 2017 10:35 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Please do not reduce VTA88, 88L and 88M routes Hi, Please do not reduce VTA88, 88L and 88M routes. My son is planning to make great use of both morning and afternoon routes. He plays sports and will want variable times in the afternoon. Also, he'll want to hang out with friends and then have more than 1 option in terms of when to take bus home. Like many families, both my wife and I work so having a bus option would really help. Also, please use bridge funding to help fill the needs. Thank you for your consideration, Ed From: Mary Ann Michel Sent: Tuesday, May 02, 2017 11:25 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Route88 Routes from 101 to foothill Expressway and 280 are limited in Palo Alto Arastradero Road is one of them. I'm sure you understand the amount of traffic involved around the high school. we need the bus help. North county is poorly served by VTA. We voted for the extra money I don't think it's too much to expect two buses north of San Antonio 35 and 88 please keep the school bus running and 35 as planned. As always I think 15 minute intervals between buses would improve ridership. MAMichel From: VTA Rider < > Sent: Tuesday, May 2, 2017 4:48:22 PM > To: Jeannie Bruins > Cc: VTA Rider > Subject: VTA's Final Plan for Fall 2017 > > Dear VTA Chairperson and Councilmember Jeannie Bruins: > > VTA's final plan for fall 2017 is very flawed. > > I ask that the VTA Board delay voting on a final plan. > > I also ask that the express light rail line not be named the yellow line. The color yellow has been associated with East Asian and East Asian Americans; it has not always been associated in a positive way. > Transit Service Plan Comments Page 13 of 17 > Alternatives to the yellow line name include the gold line (both the light rail systems of Los Angeles and Sacramento have gold lines; neither has a yellow line), the platinum line, the aqua line, and the teal line. > > Attached is my presentation regarding the final plan. Also attached is a spreadsheet which classifies most VTA routes by their boardings per revenue hour for weekdays, Saturdays, and Sundays for the first half of the current fiscal year. > > I hope to send two plans for VTA routes prior to Thursday's VTA Board meeting. > > If you have any questions, feel free to phone me. > > Thank you. > > Sincerely, > > James Nakamura From: Savas Komban Sent: Wednesday, May 03, 2017 9:45 AM To: Board Secretary <Board.Secretary@vta.org> Subject: Regarding the discontinuation of VTA88, 88L and 88M Hi, I am a new resident in Palo Alto, I moved with my family last year. After visiting several cities in the Bay Area, we chose to live in Palo Alto especially due to its excellent environment for our kids. Transportation to school is an important matter for us and I recently learned that VTA is considering to discontinue VTA88, 88L and 88M which directly affects our Gunn freshman. The alternative service offered with 288 does not seem to serve for our transportation needs. As I understand, there will also be a time gap after the introduction of these proposed service cuts, I kindly ask you to re-evaluate the topic to figure out alternative methods to keep our children unaffected. Sincerely, Savas Komban (650) 924 5504 From: Maria Abilock Sent: Wednesday, May 03, 2017 10:43 AM To: Board Secretary <Board.Secretary@vta.org> Subject: VTA 88, 88L & 88M lines cut-backs Dear VTA Board, Transit Service Plan Comments Page 14 of 17 I've been following the service change proposals for the VTA 88 lines over the past year and I am disappointed to see the service cuts proposed with the new 288 lines. The service is inadequate for students who have after school activities or prep periods and can arrive to school later. If you continue with these cuts, please provide Palo Alto with bridge funding and allocate Measure B funds to make-up the service loss. The Palo Alto Safe Routes to School Partnership has been actively promoting alternative transportation to Gunn HS, including the VTA bus service. In fact, just last week, the JLS Middle School PTA and Safe Routes to School Partnership promoted the VTA bus lines to graduating 8th graders as a viable alternative commute to Gunn. My own son learned about the VTA bus lines at the same event last year and as a result has taken VTA 88 M to school. Because of the bus and bike options, I have never driven him to Gunn HS. Thank you, Maria, Palo Alto resident Parent of Gunn 9th grader From: Guy Livneh Sent: Wednesday, May 03, 2017 1:09 PM To: Board Secretary <Board.Secretary@vta.org> Subject: palo alto - bus line 88/288 Dear VTA board members, I’m really sad to learn about the severely reduced service for line 88 . The 288 line is really not enough as it does such a small number of trips. Our kids stay in school for longer hours. I am a cancer survivor, recovering from a stem cell transplant, and it’s hard with my schedule to drive my kids (i also have a compromised immune system hence i can’t come to the VTA related meetings), so I have to write this by email to get my voice heard. I have my 2nd daughter going to Gunn high school, soon to have a 3rd daughter join. We rely on public transportation for their commute, since we live in Midtown Palo Alto which is very far from school. My daughters have many classes and activities after school that make them stay, they really need more available times for the bus line, sometimes they need to come back at 4,5 or even 6 from school. Even today an hour between the buses is a lot to wait, since many times my daughter is stranded for 55 minutes just because she was late - but at least we got something, soon we will either have to find a way to drive her or get her a cheap car. I understand it might be hard to keep 3 separate lines, but at least keep one solid line with a service throughout the day. More buses might encourage more kids to use the bus. Also I do not believe public transportation should be a business, we should strive to let people without means be able to function in society without private cars. Transit Service Plan Comments Page 15 of 17 We try to educate our kids to be good citizens, use public transportation, and be active in our community. Telling them now we need to find a cheap car for them as soon as possible because the public bus system fail them is really sending our young generation the wrong message. I know budgets are tough to get by, but really, not providing kids with public transportation to school is sending such a strong message about how our society looks like. Yes, many richer Palo Alto parents will shrug it off, get their kid a car and forget about it. But I am sad to think this is our society now. I hope you will consider this request. Thanks a lot, Guy Livneh From: nodiamonds Sent: Wednesday, May 03, 2017 1:22 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Please DO NOT cut 88 line bus service It is essential to our children's commutes to school. Philippe Alexis From: sarit schube Sent: Wednesday, May 03, 2017 2:27 PM To: Board Secretary <Board.Secretary@vta.org> Subject: VTA 88 Bus Service Board Members-- I am writing to youas a Palo Alto resident whose son will be attending Gunn high school next year. I am counting on his being able to take the bus to school. I am extremely disappointed with the VTA proposal to cut the 88, 88L, and 88M bus lines that serve Gunn, since the new 288 school tripper route will not cover 88L. Limiting bus service hours to 7:00 AM-8:00 AM and 2:00-4:00 PM instead of all day long will affect my son's ability (and other students' abilities) to get home following after school sporting events and classes. My son, for example, will be playing water polo and will have both morning practices and afternoon games beyond school hours. At a minimum, I ask that VTA provide the city with bridge funding when service cuts are introduced in order to minimize erosion of student bus ridership. Also, I ask that when Measure B funds become available, please use them to support a lower cost City of Palo Alto Shuttle route expansion to fill service gaps that the VTA cuts will create. Transit Service Plan Comments Page 16 of 17 Gunn PTSA has spent years promoting alternative commutes, including the VTA bus, cultivating high bus ridership among students. I sincerely hope that VTA will reward those efforts by continuing to work in partnership with Gunn to create a local transit network that works well for PAUSD students, work commuters and residents. Sincerely, Sarit Schube From: Karim Dabbagh Sent: Wednesday, May 03, 2017 3:30 PM To: Board Secretary <Board.Secretary@vta.org> Subject: Palo Alto VTA bus line changes To the VTA board, It is with regret that I learned about the cuts to an important service you were providing to my two kids who go and come from school (Gunn HS) by bus many times a week, specially when I am not able to pick or drop off. The 88 bus lines were an expected community service we relied on. I am hoping you will be doing your utmost to support continued funding to alternatives to those changes, including bridge funding for the local Palo Alto city bus service that is a poor remedy to the vital service you are removing. This is to urge you to continue to support our local community and the ability to allow community members to move around town as they need. Best wishes, Karim Dabbagh ____________________________________________________________________________________ From: Kirk Nangreaves Sent: Wednesday, May 03, 2017 4:49 PM To: Board Secretary Subject: Re: Contacting board members Dear VTA Board, I'm a huge supporter of the Next Network plan (and Jarred Walker's work in general) but the Light Rail component of this plan has been handled in a fashion that is neither transparent nor honest. I think this needs to be discussed before moving forward. The draft proposal clearly shows 15‐min light rail frequencies, 7‐days a week (see picture below). I attended 3 of the community feedback sessions, and each time they made a point of highlighting this, it was very popular as you can imagine. It's also fundamental to the concept of a frequent core network. Transit Service Plan Comments Page 17 of 17 However, in the final plan for the Green and Orange LRT lines, service has been reduced to 30‐min frequencies. This change was quietly made after the last public feedback meeting. The Final Plan memo to the Board even says (Page 5): That is patently untrue. The final plan shows a dramatic service reduction (cutting 50% of weekend service on the affected lines, as compared to the plan that was presented to the public). This reduction was made with zero public feedback because it was done quietly after the feedback period had closed. And the memo to the Board lies about it. I am always hesitant to use the word "lie" but facts are facts. This seems neither honest nor transparent, and so I wanted raise it before the Board meeting this week. I believe it needs to be openly discussed and I would like to see service on these lines restored to the draft plan (or, at least, reopen the comment period for Light Rail so that this can be discussed openly with the community). Please feel free to contact me if you have questions or wish to discuss further, my email is and my cell is . Thank you! Kirk Nangreaves From: meg minto Sent: Wednesday, May 03, 2017 8:41 PM To: Board Secretary Subject: VTA 88 Wednesday, May 3, 2017 Hello, Once again I am begging you not to cut the 88, 88L, and 88M lines as severely as you seem to want to cut them, and to operate the lines that you do continue bi-directionally. I am a senior living in Midtown Palo Alto very near 101. I work at two different part-time jobs, one in Menlo Park, and one at Stanford often in the evenings and on weekends I also do volunteer work at Stanford. I use the 88 daily to get to the VA in time to take the 7 a.m. Stanford VA shuttle over to the Stanford Medical Center, and I often take an 88 back at 9:01 a.m. from Arastradero and El Camino. I very frequently take the 88 from East Meadow to Charleston to go to the library and from East Meadow to Colorado to get medications at CVS and to shop over there. I have not been able to get reconciled to the idea of having much less service on this line. I do admit that people are not using the line as much as we would like them to, but I keep thinking that things will change, and ridership will pick up. Our population is increasing, the parking situation is a nightmare that gets into the news very frequently, and we are rapidly aging and would like to be able to maintain our independence with VTA's help. I know Palo Alto has asked you to provide money for them to operate small municipal shuttles - and Palo Alto is thinking that these shuttles would solve some of the problem. That's true--they would be a partial solution, and at this point we are desperate to have more of our options preserved than we would have if you take away as much of the 88 as you are thinking of taking. Still, more of your buses would be preferable, especially because of the economical access your fixed routes provide for those needing paratransit (again, an expanding population in the coming years). Please preserve as much as possible of the 88 and let it be bi-directional. I am afraid that if the cuts are too deep people will give up altogether, and that in fact this may be the direction that we run a serious risk of going in at this point. Thank you, Margaret Minto From: goldhabergordon Sent: Wednesday, May 03, 2017 9:15 PM To: Board Secretary Subject: Cuts in VTA88 service (which has served Gunn High School) Dear Board Members, VTA's 88 line (88, 88L and 88M service) has provided an important resource for Gunn High School students who depend on it to avoid car commutes which would add congestion, pollution, and waste of energy. The proposed 288 limited service would not enable students to get to school earlier than the standard start time, or stay to various times after the standard end time, as participants in musical and theater groups and sports often do. I urge you not to cut this service. If you do cut the service, I understand that there may be an effort to have Palo Alto extend shuttle service. This could be partly supported by Measure B funds, but those will not be available immediately. I ask that you provide Palo Alto funding to bridge the time between any cut of service you make and when Measure B funds are available. Otherwise, student bus ridership, which has been cultivated over years of effort, will be lost and will not return. I also ask that you support making Measure B funds available to enable a reasonably-priced City of Palo Alto Shuttle route expansion to fill service gaps that any VTA cuts will create. An expensive shuttle will not retain robust student ridership, based on a recent survey. Sincerely, David Goldhaber-Gordon Father of a Gunn freshman ----------------------------------------------------------------- David Goldhaber-Gordon Professor of Physics and Director, (permanent forwarding) Center for Probing the Nanoscale Stanford University Address for letters or packages: Administrative Associate: David Goldhaber-Gordon Clora Yeung Geballe Laboratory for Advanced Materials McCullough, Rm. 331 From: Catherine Sent: Wednesday, May 03, 2017 9:21 PM To: Board Secretary Subject: Cuts to Gunn High school service lines = VTA88, 88L and 88M All, Hi. I write to request that you do not approve service cuts tomorrow. I am disappointed that despite all the mtgs. community outreach/surveys, you plan to discontinue VTA88, 88L and 88M service. The proposed 288 limited service is inadequate to serve Gunn students' needs. Should you opt to go ahead anyways, please provide the Palo Alto with bridge funding when service cuts are introduced in order to minimize erosion of student bus ridership. (As we understand it, there will be a gap in time between when cuts are made and Measure B funds become available; we need VTA help to bridge this gap.) I also write to request that you make Measure B funds (when they become available) to support a lower cost City of Palo Alto Shuttle route expansion to fill service gaps that the VTA cuts will create. (67% of surveyed Gunn students said they would be less likely to ride the bus if VTA's proposed changes were implemented.) Gunn PTSA has spent years promoting alternative commutes, including the VTA bus, cultivating high bus ridership among students. We hope VTA will reward those efforts by continuing to work in partnership with us to create a local transit network that works well for PAUSD students, work commuters and residents. Cheers, ccb From: Andy Dugacki Sent: Wednesday, May 03, 2017 10:50 PM To: Board Secretary Subject: VTA88, 88L and 88M buses Dear VTA Board Member, I'm sending you this email as a plea to keep VTA88, 88L and 88M buses that serve our Palo Alto community. These lines are of an extreme importance to us. For some of us this is the only way to get our kids to and from Gunn High School. Honestly, I'm not sure how will my kids get to school if these lines are eliminated. I understand that you need to look at your bottom line, but you must also know that 67% of surveyed Gunn students said they would be less likely to ride the bus if VTA’s proposed changes were implemented. I'm sure you agree that is quite a large number. Bottom line is we need to have these buses, and if the needs of community are not met then we would expect VTA to work responsibly, as a good corporate citizen, with the City of Palo Alto to find alternative solutions including Measure B funds and bridge funding to get our kids to and from Gunn High School. Thank you in advance for your consideration! Andreja Dugacki Gunn High School Parent From: Srdjan Kovacevic Sent: Thursday, May 04, 2017 12:20 AM To: Board Secretary Subject: keep 88, 88L and 88M service Dear VTA Board Members, I'm writing to express my serious concern about our children safety if you discontinue VTA88, 88L and 88M bus service. Those buses represent a safe option to get to/from Gunn school for many students. If these lines are discontinued, that would mean hundreds more cars on the road as well as more bikers, making it more dangerous for bikers who need to share the road with other traffic. The proposed 288 limited service is simply not adequate to serve Gunn students' needs. For students who attend tutorials, or any other after school activity (e.g., sports, drama and similar), that will not be a viable option. That would mean that many students, whose parents cannot drive them, will not be able to participate in those programs. For instance, my children, who often stay after school, would be impacted. If you do proceed with service cuts, I ask that you support alternative options that would alleviate the loss and serve the need of Palo Alto community. I expect VTA to work responsibly, as a good corporate citizen, with the City of Palo Alto to implement alternative solutions. At minimum, this would include providing bridge funding to the city when service cuts are introduced in order to minimize erosion of student bus ridership. Measure B funds, when they become available. I sincerely hope you will reconsider your decision and consider how it will impact our community! Best, Srdjan Kovacevic Gunn High School Parent From: Yannick Lau Sent: Thursday, May 04, 2017 7:52 AM To: Board Secretary Subject: VTA bus 88 cut impacts Gunn srudents Dear Board Secretary, I am very disappointed in the planned service cut for bus 88. It serves a critical need for Gunn students during school year and summer for getting to Gunn from Palo Verde neighborhood. The bus route offered an option to driving and biking. I do hope you reconsider the cut. If funds are needed from measure to bridge the gap, I am all for it. Thank you. Kim Lau (Parent of a Gunn student) From: Chwick, Karen L Sent: Thursday, May 04, 2017 8:18 AM To: Board Secretary Subject: SAVE OUR VETERAN'S VTA BUS SERVICE Many of our veterans depend on public transportation that will take them to the Palo Alto VA with direct and consistent service. Please do not eliminate the 88; this would greatly affect our veteran’s ability to receive health care (if they are unable to use public transportation to the Palo Alto VA Medical Center). Thanks. Karen Chwick Karen L. Chwick, LCSW, OSW-C Senior Social Worker Oncology/Hematology United States Department of Veterans Affairs From: Kristen Flaten Sent: Thursday, May 04, 2017 10:11 AM To: Board Secretary Subject: [spam] Bus Line 181 Concerns To Whom It May Concern, My name is Kristen Flaten and I am a third year accounting student at San Jose State University. I am deeply concerned after hearing the recent news of the possible removal of the 181 bus route. The removal of the 181 bus route would be harmful to not only me, but also thousands of individuals. According to data from VTA’s Open Data Portal, in 2016, there were over 318,000 riders who rode VTA bus route 181. Over 96,000 riders entered the bus at the stop located at the Fremont Bart Station. And, over 65,000 of the riders exited the bus at the 2nd & Santa Clara stop in San Jose. Removing the VTA bus route 181 will displace over 100,000 individuals who rely on the line to commute to San Jose. Personally, I utilize the services of the 181 line to get to school and work every week. My daily commute begins with a BART ride from Pleasanton to Fremont, then I take the 181 route from Fremont to San Jose. I share this route with many students and faculty members. Without this route, thousands of commuters would be left without affordable, convenient transportation to their jobs and education. The Berryessa Bart station in San Jose is planned to be in service at the end of this year. The new station will allow commuters to take the BART from Fremont to San Jose. However, the Berryessa Station is a considerable distance from downtown San Jose. Indeed, the VTA has announced a plan to replace the current Dash 500 shuttle service with Rapid 500 that will connect the Berryessa Bart Station to Downtown San Jose. However, commuters are still required to pay for BART fees which are not covered by Eco Passes given by employers and universities. The additional BART fees could add a potential $2,500 or more per year for commuters who use BART to travel to and from San Jose. For students and employers, $2,500 can be a significant financial burden. This increase could be especially detrimental for students with limited budgets, like myself. In addition to the financial stress, the period of time between the proposed removal of line 181 and the opening of the Berryessa BART station leaves thousands without a transportation solution. Questions are beginning to arise regarding compensation and availability of alternate routes during that time period. Commuters are scrambling to find answers to to ensure they can continue to work and attend school. After presenting my arguments and concerns, I ask that the VTA Board of Directors does not follow through with removal the 181 bus line. Referring back to the data from VTA’s Open Data Portal, what will you do to alleviate the burden on the 100,000 plus commuters if the 181 line is removed? It is important that the thousands of students and employees maintain access to affordable, convenient, and safe transportation to their destination. I graciously ask that you consider my concerns. Thank you for your time, Kristen Flaten From: Jenny Niklaus Sent: Thursday, May 04, 2017 10:58 AM To: Board Secretary; jbruins; Cindy.Chavez; Ken.Yeager; sam.liccardo; Raul.Peralezjohnny.khamis; lan.diep; Charles Chappie Jones; dev.davis; larry.carrteresa.oneillSC; ghendricks; svaidhyanathan Subject: Advocating for DASH Dear VTA Board of Directors: I hope this email finds you well. I live and work in downtown San Jose and I am an Urbanist. I strongly support VTA’s move towards a higher-frequency, higher-ridership network. I encourage the Board to vote for a service plan that maintains the proposed 83/17 split, or as close as possible to this balance. I encourage the Board to commit to restoring DASH as a free service during the construction of BART in downtown and at Diridon. I understand the need to offer a high-frequency bus service between Berryessa BART station and Diridon Station. However, it is important to try to maintain and grow transit ridership (to and from Diridon) and minimize impacts to downtown businesses during the construction. I appreciate staff incorporated many of our comments about Routes 10, 60 and school- oriented service into the proposed plan. I appreciate the addition of better east-west connections in the county to create more of a grid-network. I encourage VTA to move forward with a fare policy that simplifies fares by reducing the number of ticket types significantly and by making it possible to transfer between modes and operators without having to pay twice. I understand that this involves many choices and tradeoffs, but these choices cannot be avoided if we are to build but a modern transit system that is more useful for more people for trips of all kinds. With declining ridership and revenues, it is important to do what we can to make transit the preferred way of getting around. Sincerely, Jenny Niklaus -- Take care, From: Liana Crabtree Sent: Thursday, May 04, 2017 1:31 PM To: Board Secretary Cc: svaidhyanathan; kami_tomberlain; geoff_wright; ChelseaB; jshearin; mbiyani; ebradley Subject: Request for VTA Route 23 adjustment to improve service for CHS students Dear VTA Board of Directors, As you consider bus route changes as part of the BTA Next Network redesign for Fall 2017, please consider routing EASTBOUND Route 23 from De Anza College to the Alum Rock Transit Center through Stelling/McClellan/De Anza to Stevens Creek. Include Route 23 stops at existing Route 55 locations, including stop #s: 60697, 60698, 60699, 60700, 62312, 62313, 62314 (#62314 is existing; no change). Expiring Route 323 already follows the route I am requesting, though it does not stop at all on McClellan or De Anza and has only one stop on Stelling. Route 23 is the main bus route connecting Cupertino students to Cupertino High School (CHS). Adding Route 23 stops at De Anza/Pacifica (#62312) and De Anza /Rodrigues (#62313) provides more transit options for students living near the southwestern and western edges of the CHS attendance area. While Route 25 runs along Bollinger and can also be used to connect Cupertino students to CHS, Route 25 does not run often enough to be a compelling commute option for most students. Students who are stretched thin on time and are not looking to arrive early to their classes, but then can't afford to arrive 30-40 minutes late either. Thank you for your consideration of my request for an adjustment to the EASTBOUND Route 23 to include stops along Stelling/McClellan/De Anza. Sincerely, Liana Crabtree Cupertino resident P.S. I am disappointed to see Route 23 weekday service reduced from every 12 minutes minutes to every 15 minutes. Reducing bus service in a community that is already deeply underserved by public transit is an unfortunate step backward in our shared interest in getting people out of cars and into other modes of transport. Sent from my iPhone From: Kelly Snider Sent: Thursday, May 04, 2017 2:15 PM To: Cindy.Chavez; lan.diepjbruinsdev.davis; sam.liccardo Cc: Board Secretary Subject: Please support Next Network tonight - keep DASH - and reduce FARES for Kids and Adults! Dear Cindy, Lan, Jeannie, Sam, and Dev: I hope this email finds you well. I live in San Jose D6, and my 12-year-old son rides VTA Light Rail and the #22 Bus from school to our home several days a week (it's expensive!). I am also a member of SPUR’s policy board in San Jose, and I strongly support VTA’s move towards a higher-frequency, higher-ridership network. I encourage the Board to vote for a service plan that maintains the proposed 83/17 split, or as close as possible to this balance. PLEASE RESTORE DASH as a free service during the construction of BART in downtown and at Diridon. I understand the need to offer a high-frequency bus service between Berryessa BART station and Diridon Station. However, it is important to try to maintain and grow transit ridership (to and from Diridon) and minimize impacts to downtown businesses during the construction. PLEASE DEVISE a fare policy that simplifies fares by reducing the number of ticket types significantly and makes it possible to transfer between modes and operators without having to pay twice. And make it FREE for 12-18 years old during school days - more of our students would take bus/tram to school if it didn't cost so much! THANK YOU and your staff for their hard work in preparing the Next Network Plan, their extensive outreach and their thoughtful consideration of SPUR’s comments over the last several months. Sincerely, Kelly Snider Pershing Avenue City of Palo Alto (ID # 8146) City Council Staff Report Report Type: Action Items Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Buena Vista Tentative Map Title: PUBLIC HEARING/QUASI JUDICIAL 3972, 3980 and 3990 El Camino Real [17PLN-00197]: Request by the Housing Authority of Santa Clara County for a Tentative Map for a 6.19-Acre Site That Includes the Buena Vista Mobile Home Park Site (3980 El Camino Real) and two Adjacent Commercial Properties (3972 and 3990 El Camino Real), for lot Reconfiguration and lot Line Removals to Reduce Five Parcels to Three Parcels, and Provide Access and Utilities Easements. The Three new Parcels Will Be: (1) Parcel 1, at 4.5 Acres, Zoned RM-15 for Multiple Family Residential Use (Buena Vista Mobil Home Park), (2) Parcel 2 at 1.0 Acre, Zoned CN for Neighborhood Commercial Use (Existing Retail Building), (3) Parcel 3 at 0.7 Acres, Zoned CN (Existing Gas Station Site) and RM-15 (0.41-Acre Rear Portion Supporting More Than Eight Buena Vista Park Studios/Modular Units). The 0.41-Acre Residential Portion Would Be Leased to the Housing Authority for up to Three Years, Allowing Tenants to Remain Until They can be Accommodated on Parcel 1. On July 12, 2017, the Planning & Transportation Commission Recommended Approval of the Tentative Map From: City Manager Lead Department: Planning and Community Environment Recommendation The Planning and Transportation Commission and staff recommend that Council approve the proposed Tentative Map based on findings and with conditions of approval as reflected in the attached Record of Land Use Action (Attachment B). Executive Summary With support from the City and Santa Clara County, the Housing Authority of the County of Santa Clara (HACSC, Applicant) is in the process of purchasing and preserving the Buena Vista City of Palo Alto Page 2 Mobile Home Park and has applied for a tentative map to reconfigure and remove lot lines on the 6.19-acre site, reducing the number of parcels from five to three, providing access and utilities easements, and enabling their purchase of one of the parcels. The proposed map is consistent with the Palo Alto Comprehensive Plan and meets tentative map approval findings. The HACSC anticipates closing escrow on September 1, 2017, and will purchase 4.5 acres (proposed Parcel 1) from the current owner. The deal includes a three-year ‘lease-back’ of the residentially-zoned 0.41-acre portion of proposed Parcel 3 to give the HACSC sufficient time to relocate residents in that area to the 4.5 acre parcel. Easements across the proposed CN-zoned Parcel 2 (the retail building parcel) will allow vehicular access and utility service to the Park. Background Closure of the existing Buena Vista Park (Park) was imminent in 2015, following the owner’s 2012 application for a park closure. To avoid the loss of affordable housing units, Council committed to providing $14.5 million in affordable housing funds via approval of a Memorandum of Understanding (MOU) in June 2016. All MOU parties - the City of Palo Alto, HACSC, and Santa Clara County - committed to preserving affordable housing at the Park by contributing the same amount of funding to purchase and make improvements to the housing units in the Park. The PTC report provides relevant background information and graphics (Attachment C). Located on the corner of El Camino Real and Los Robles Avenue, the site includes the Buena Vista Mobile Home Park (3980 El Camino Real), which provides 117 housing unit structures and is zoned RM-15 (multiple-family residential, 15-units per acre). The gas station and retail building on the site (3972 and 3990 El Camino Real) are zoned CN. The gas station site is noted as a Housing Inventory Site in the City’s Housing Element, as feasible for five housing units. There are protected oaks on the property, and sidewalks along the El Camino Real frontage. Council committed to providing funding in June 2016 to preserve the affordable housing at the Park subject to an MOU (see http://www.cityofpaloalto.org/civicax/filebank/documents/53001; item 18 on the agenda; video available here: http://midpenmedia.org/city-council-92). The PTC excerpt minutes from July 12, 2017 are attached to this report (Attachment G). Discussion and Key Issues Zoning Lines v Parcel Lines The new parcel line between Parcel 1 and Parcel 3 will not be coterminous with the existing zoning district boundary between CN and RM-15 zones, but that is not a code or land use issue. Adjustment of Housing Unit Locations The HACSC will take ownership of Parcel 1 to preserve the property’s use as an affordable modular home park community and will contract with an entity that will make repairs and updates to the site to ensure compliance with building codes. The full scope of the required City of Palo Alto Page 3 repairs and other improvements will be determined after the HACSC takes ownership and has an opportunity to meet with residents. There are some vacancies currently, including empty coaches and lots on the Park site and the applicant is in the process of making some adjustments to the locations of two existing housing units to ensure they are not bisected by the line separating proposed Parcels 1 and 3. A 0.41-acre area of Parcel 3 would be leased back to HACSC to allow tenants in eight units to remain until they can be accommodated on Parcel 1. Zoning Compliance1 The existing mobile homes and residential structures on proposed Parcels 1 and 3 are non- conforming as to setbacks, existing and proposed, and the extent of nonconformance will not materially change with approval of the tentative map. With no proposed development plans at this time, existing non-conforming setbacks will not be adjusted. A 10-foot setback for the retail building on Parcel 2 from the common property line with Parcel 1 (Park) will allow the proposed access and utility easement and meet the minimum CN setback requirement. The proposed lot line separating Parcels 1 and 3 bisect two existing mobile homes. One is vacant and will be removed and the other will be adjusted through a building permit and/or HCD process. No Changes in Zoning, Density or Land Use The proposed Tentative Map is not associated with any rezoning, change in land use, development, or building modifications (other than adjustments of a few housing unit footprints to address new lot lines). The same land uses would remain following recordation of the final map. There are no changes to the existing retail building and gas station and retail building parking spaces tenants and customers will be unaffected by the proposed map. Easements The current owner (Mr. Jisser) will continue to own Parcel 2 (1 acre) and will allow continued access and utilities serving the Park across Parcel 2 by way of two easements, as follows: A 10-foot wide access easement across Parcel 2 from Los Robles Avenue, west of the retail building, will double as an electrical utilities easement for service of electricity to the housing units on Parcels 1 and 3, including a private easement for existing equipment not owned by Palo Alto Utilities. A 20-foot wide vehicular access easement from El Camino Real to the Park, north of the retail building, will also serve as a public utilities easement and private utilities easement. A 4.8’ wide easement for public access will also be provided along the El Camino Real frontage, as indicated on map sheets 3 and 5. These sheets were provided to the PTC in an at places memo (Attachment D). 1 The Palo Alto Zoning Code is available online: http://www.amlegal.com/codes/client/palo-alto_ca City of Palo Alto Page 4 Finally, the existing 30-foot wide access easement on Parcel 2 for Standard Oil to serve the gas station at 3972 El Camino Real will not be abandoned; the abandonment of that easement had appeared on the tentative map presented to the PTC on July 12, 2017. Awareness/Outreach The recent PTC hearing was well-attended by Park residents in support of the proposed map. One member of the public spoke, and provided a letter (Attachment E). Notice of the PTC public hearing was provided in accordance with the Municipal Code. Notice for the Council hearing was published in the Palo Alto Weekly on July 28, 2017, which is 18 days in advance of the Council meeting. Postcard mailing to property owners within 300 feet of the site occurred on July 28, 2017, which is 18 days in advance of the meeting. The applicant had also notified the tenants of the Park as to the map application and PTC hearing. Additional information has been provided to residents since the PTC meeting and the HACSC will continue to work with residents as they develop an operating budget for infrastructure investment. Approval Findings and Agreements Map applications are evaluated based on specific findings. As map findings are set up in Title 21, all findings must be made in the negative to approve the project. Due to the subject property’s acreage, a Preliminary Parcel Map process is not available, and the Tentative Map process is required. No subdivision improvement agreement is required at this time, since no development nor right of way improvements are proposed. Any future development of the site would include right of way improvements. The MOU Council approved in June 2016 provides expectations and notes, “the parties recognize that the ongoing operation of the Park (or an equivalent housing resource for the Park community) for a period of up to 50 years and the continuing use of the property for affordable housing will benefit the residents of the County and the City because it will create a long term affordable housing resource.” Policy Implications Housing Element Program H3.1.8 recognizes the Buena Vista Mobile Home Park as providing low- and moderate income housing opportunities and precedes an objective about preserving the mobile home units as a low and moderate income housing resource. The requested action would advance this program by facilitating the Housing Authority’s purchase of the mobile home park. No redevelopment plans are proposed as part of the map and commercial portions of the site would remain in their current form at least for the short term. The gas station site (Parcel 3) is listed in the City’s Housing Element as a Housing Opportunity Site and zoned for mixed use. The corner property (Parcel 2) is also zoned for mixed use and was not noted as a Housing Opportunity Site. City of Palo Alto Page 5 The attached draft Record of Land Use Action contains findings for approval of the Subdivision, in accordance with Title 21 of the Palo Alto Municipal Code. Resource Impact: The City committed to providing $14.5 million in funding. MOU Section 5 notes, “In the event HACSC acquires the Park, HACSC will own, operate and maintain the Park, subject to reasonable County and City recorded restrictions on use of the land (Affordability Restrictions), including, but not limited to, a restriction to operate the Park for up to 50 years and to use the property continuously for affordable housing. The Parties agree that they have a common interest in establishing the potential financial viability of the Park as a housing resource. Prior to the final Acquisition, Determination the Parties will confer in accordance with their common interest and define the Affordability Restrictions to be recorded immediately after HACSC takes title to the Park. To the maximum extent allowed by law, HACSC will give housing priority to the tenants of the Park as of the date of the approval of this MOU, subject to compliance with reasonable and necessary rental rules, and income eligibility under applicable affordable housing financing.” Based upon the City’s commitment, $6.8 million was set aside in the Residential Housing Fund and $7.7 million was set aside in the Commercial Housing Fund for this purpose. Timeline City Council is scheduled to receive, with the August 21st Council packet (or soon thereafter), a staff report and a final map for approval (on consent calendar). Recordation would quickly follow final map approval as the Housing Authority hopes to close escrow on their purchase of the 4.5 acre parcel September 1, 2017. 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. Specifically, the project has been found exempt from CEQA section 15301 (Existing Facilities), and section 15326, Acquisition of Housing for Housing Assistance Programs. Attachments: Attachment A: LOCATION MAP (DOCX) Attachment B: JULY 12 ROLUA Tentative map BV (DOCX) Attachment C: July 12, 2017 PTC Report (PDF) Attachment D: At Places PTC Memo (DOC) Attachment E: Herb Borock Letter (PDF) City of Palo Alto Page 6 Attachment F: Tentative Map on Building Eye (DOCX) Attachment G: Excerpt PTC Minutes T Map July 12 2017 (DOC) LOCATION MAP: 6.19-acre Site, 3972, 3980 and 3990 El Camino Real File: 17PLN-00197, Tentative Map APPROVAL NO. 2017-xx RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3972, 3980, 3990 EL CAMINO REAL: TENTATIVE MAP APPLICATION [FILE NO.17PLN- 00197] On August 14, 2017, the City Council approved the Tentative Map application for reconfiguration of lot lines on a 6.19-acre site to three parcels, 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 June 2, 2017, the Housing Authority of Santa Clara County applied for a Tentative Map application for the reconfiguration of five lots to three lots on a 6.19-acre site that includes the Buena Vista Modular Home Park (zoned RM-15) and commercial land uses (zoned CN); B. The RM-15 zoning district has a minimum lot size requirement of 8,500 square feet. The Parcel Map would result in a 4.5-acre parcel (Parcel 1) for the Buena Vista Mobile Home Park under RM-15 zoning, and a 0.41-acre (17,859.6 square foot) portion of Parcel 3 that would remain in RM-15 zoning. Multiple family housing use would continue on these RM- 15 zoned sites and compliance with RM-15 standards related to new lot lines would be assured with implementation of approval conditions; C. The CN zoning district will remain on (1) proposed Parcel 2, where no site or building changes are proposed, and where the proposed easements will not adversely impact site improvements and required parking spaces, and (2) the portion of Parcel 3 supporting the 0.29- acre gas station site, where no site or building changes are proposed. Access and utility easements across Parcel 2 to serve housing units on Parcels 1 and 3 are proposed and have been reviewed and approved by relevant City staff; and D. Following staff review, the Planning and Transportation Commission (Commission) reviewed and recommended approval of the Tentative Map on July 12, 2017, supporting a condition of approval requiring up to a three-year lease back of the 0.41-acre housing site on Parcel 3 to the Housing Authority of Santa Clara County. SECTION 2. ENVIRONMENTAL REVIEW. In conformance with the California Environmental Quality Act (CEQA) the project is categorically exempt per CEQA Guidelines Sections CEQA section 15301 (Existing Facilities), and section 15326, Acquisition of Housing for Housing Assistance Programs. SECTION 3. TENTATIVE MAP FINDINGS A legislative body of a city shall deny approval of a Preliminary Parcel Map, if it makes any of the following findings (California Government Code Section 66474): 1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: This finding cannot be made in the affirmative. The proposed Tentative Map, as conditioned, is consistent with applicable Comprehensive Plan policies and programs, including the Housing Element 2015-2023, the design requirements of the Subdivision Ordinance (Palo Alto Municipal Code (PAMC) Section 21.20), and the RM-15 zone district (PAMC Chapter 18.13) development standards. 2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: This finding cannot be made in the affirmative. The site is physically suitable for the existing uses, and the revised lot configuration is compatible with the pattern and scale of existing and neighboring development, with implementation of approval conditions. There is no specific plan designated for the area; 3. That the site is not physically suitable for the type of development: This finding cannot be made in the affirmative. The site’s lot reconfiguration will allow for continuation of existing land uses. No development is proposed at this time; repair and unit footprint(s) adjustment are necessary prior to Final Map recordation. The site is adjacent to commercial, single-family residential and multi-family residential uses, and is zoned to allow the continuation of uses and densities. 4. That the site is not physically suitable for the proposed density of development: This finding cannot be made in the affirmative. As conditioned, the subdivision would be consistent with the site’s development regulations of the RM-15 zone district. The existing densities are not proposed to be changed; in particular, the overall number of housing units will not be increased with this map. 5. That the design of the subdivision or the proposed improvements is likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: This finding cannot be made in the affirmative. The subdivision would not cause environmental damage or injure fish, wildlife, or their habitat. The project site is located in an established urban area with no riparian or tree habitat for the candidate, sensitive, or special status species in the area. The final map will comply with conditions of approval for protected tree preservation. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: This finding cannot be made in the affirmative. The subdivision of the existing parcel will not cause serious health problems. The map is designed to provide easements allowing access for emergency services, and utility services, such as electricity, gas, sanitation and water, and is designed per City and State standards to ensure public safety. 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. This finding cannot be made in the affirmative. The reconfiguration of existing parcels will not conflict with existing public easements, and new public and private easements are proposed for utilities and vehicular access. Because none of the statutory findings authorizing denial can be met, the City Council hereby approves the subject “Tentative Map”. SECTION 4. Conditions of Approval. 1. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6. 2. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. Planning 1. The proposed lot line between Parcels 1 and 3 are shown bisecting an existing mobile home and another structure. These structures will need to be demolished or otherwise adjusted via a City of Palo Alto building permit and/or HCD mobile home alteration process, prior to recordation of the Final Map. 2. The proposed lot line between Parcels 2 and 3 will be very near three existing mobile homes but will not be touching them; these homes may be need to be adjusted via City of Palo Alto building permit and/or HCD mobile home alteration process. 3. The final map shall reflect all necessary public utility easements to be granted to the City for the location and maintenance of required utilities. 4. The sub-divider shall preserve all existing protected trees on the site. 5. The Final Map shall be filed with the Planning Division within two years of the approval of the tentative subdivision map. 6. In accordance with an agreement with the Housing Authority, the property owner of Proposed Parcel 3 shall lease back for a term of up to three years, the 0.41-Acre portion of Proposed Parcel 3 on which eight or more housing units currently exist. Public Works – Engineering The following comments are required to be addressed during the final map submittal. Comments are provided as a courtesy and are not required to be addressed prior to the Planning entitlement approval: 1. There are many existing encroachments into the storm drain easement. At the time any development is proposed at this site, these structures would need to be relocated outside of the easement. 2. The applicant will need to record the plat/legal document that re-draws the boundary of proposed Parcel 2, prior to recordation of the Final Map. Urban Forestry 1. Submit a site plan with the Final Map application reflecting a numbered tree inventory and all data from the June 2, 2017 Tree Disclosure Statement (TDS), and provide a tree protection report and tree disposition sheet. SECTION 6. Term of Approval. Tentative Map Approval. Within two years of the approval or conditional approval of a tentative map the subdivider shall cause the subdivision or any part thereof to be surveyed, and a final map, as specified in Chapter 21.08, to be prepared in conformance with the tentative map as approved or conditionally approved, and in compliance with the provisions of the Subdivision Map Act and this title and submitted to the city engineer PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ________________________ ________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: __________________________ Senior Assistant City Attorney Planning & Transportation Commission Staff Report (ID # 8228) Report Type: Action Items Meeting Date: 7/12/2017 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: Buena Vista Mobile Home Park and Adjacent Commercial Lots Tentative Map Title: PUBLIC HEARING/QUASI JUDICIAL 3980 El Camino Real [17PLN- 00197]: Request by the Housing Authority of Santa Clara County for a Tentative Map for a 6.19-Acre Site that Includes the Buena Vista Park Site (3980 El Camino Real) and Two Adjacent Commercial Properties (3972 and 3990 El Camino Real), for Lot Reconfiguration and Lot Line Removals to Reduce Five Parcels to Three Parcels, and Provide Access and Utilities Easements. The Three New Parcels Will Be: (1) Parcel 1, at 4.5 Acres, Zoned RM-15 for Multiple Family Residential Use (Buena Vista Park), (2) Parcel 2 at 1.0 Acre, Zoned CN for Neighborhood Commercial Use (Existing Retail Building), (3) Parcel 3 at 0.7 Acres, Zoned CN (Existing Gas Station Site) and RM-15 (0.41-Acre Rear Portion Supporting More than Eight Buena Vista Park Studios/Modular Units). The 0.41-Acre Residential Portion Would Be Leased to the Housing Authority for Up To Three Years, Allowing Tenants to Remain Until They can be Accommodated on Parcel 1. For More Information Contact Project Planner Amy French at Amy.French@CityofPaloAlto.com From: Hillary Gitelman Recommendation Staff recommends the Planning and Transportation Commission (PTC) take the following action(s): 1. Recommend approval of the tentative map application to the City Council based on findings and subject to conditions of approval in the draft Record of Land Use Action City of Palo Alto Planning & Community Environment Department Page 2 (Attachment B). An updated version of Attachment B, including approval conditions, will be provided to the PTC members at places. Report Summary The PTC is requested to review the Tentative Map application submitted by the Housing Authority of the County of Santa Clara (HACSC, Applicant). The proposed map and subdivision agreement would reconfigure and remove lot lines to reduce the number of parcels to three, and provide access and utilities easements. The map is consistent with the Palo Alto Comprehensive Plan and meets tentative map approval findings and, as conditioned, would meet development standards contained in the Zoning Ordinance. Staff therefore recommends City Council approval of the application. Buena Vista Manufactured Home Park Closure of the existing Buena Vista Park (Park) located on the subject property was imminent in 2015, following the owner’s submittal in 2012 of a park closure application. To avoid the loss of these affordable housing units, City Council committed to providing $14.5 million in affordable housing fees via approval of a Memorandum of Understanding (MOU) in June 2016. All MOU parties - the City of Palo Alto via City Council, HACSC via Housing Authority Board, and Santa Clara County via County Board of Supervisors - have committed to preserving the affordable housing at the Park by contributing the same amount of funding. The funding will be used to purchase and make improvements to the housing units in the Park. Background Project Information Owner: Joseph Jisser Architect: Civil Engineer Representative: Housing Authority of the County of Santa Clara Property Information Addresses and APNs: 3972, 3980, and 3990 El Camino Real Neighborhood: Barron Park vicinity (portion of Rancho Rincon de San Francisquito) Lot Dimensions & Area: 6.19 acres (269,636.4 acres; approx. 815’ x 330’) Housing Inventory Site: Yes (3972 El Camino Real: 5 units) Located w/in a Plume: No Protected/Heritage Trees: Yes (Oaks) Historic Resource(s): No (Retail 1958-modified 1999; BV 1925 residence; Station 1959) Existing Improvement(s): 3972 El Camino Real: Two commercial buildings (service station); 3980 El Camino Real (Park): 117 structures (104 Mobile homes, 12 studios, 1 SFR); 3990 El Camino Real: 1 retail building Existing Land Use(s): Multiple family residential use and commercial uses Adjacent Land Uses & Zoning: North: Zoning (R-1, single-family and RM-15, multi-family residential) West: Zoning (RM-30, multiple family residential at 630 Los Robles) East: Zoning (CN, commercial, Keys School and motels) South: Zoning (RM-30, multiple family residential (corner of Los City of Palo Alto Planning & Community Environment Department Page 3 Robles and El Camino), and multiple-family residential PC-2930) across from the Park Special Setbacks: El Camino Real: 25 feet Aerial View of Property (left); Plan View of Existing Building Footprints and Neighborhood (right) Source: Google Streetview Source: GIST (Palo Alto GIS System) Right Image: Five Existing Parcels on Site Show: (1) in blue at bottom - 17 buildings, (2) large green - 93 small buildings, (3) small blue - no buildings (4) smaller green - 1 retail building, (5) white site - two buildings (service station) Land Use Designation & Applicable Plans/Guidelines Zoning Designation: RM-15 and CN zone districts Comp. Plan Designation: Multiple Family Residential and Neighborhood Commercial Context-Based Design: Applicable Downtown Urban Design: NA SOFA II CAP: NA Baylands Master Plan: NA ECR Guidelines ('76 / '02): Applicable Proximity to Residential Uses or Districts (150'): Yes Located w/in AIA (Airport Influence Area): NA Prior City Reviews & Action City Council: Council committed to providing funding in June 2016 to preserve the affordable housing at the Park. ID #7125 Staff report includes MOU: City of Palo Alto Planning & Community Environment Department Page 4 http://www.cityofpaloalto.org/civicax/filebank/documents/53001; item 18 on the agenda; video available here: http://midpenmedia.org/city-council-92/. PTC: None. HRB: None. ARB: None. Project Description Existing Conditions The Barron Park neighborhood was annexed into the City in 1975. While the site, standard buildings on the site, and anchorage of mobile homes are within the review purview of the City of Palo Alto, the State of California Department of Housing and Community Development (HCD) has purview over mobile homes and alterations thereto. The 6.19-acre site owned by Joe Jisser, Family Trust Manager, currently includes: The Park at 3980 El Camino Real, zoned RM-15, A gas service station at 3972 El Camino Real, zoned CN, and A retail building at 3990 El Camino Real, zoned CN. The Park is currently accessible via one driveway each from both Los Robles Avenue and El Camino Real. Access to the Park from El Camino Real is provided across the retail building parcel. There existing access easement from El Camino Real to reach the first set of homes is as deep as the gas service station site; this easement is proposed to be abandoned. Proposed Tentative Map The addresses, zone districts and land uses would remain following recordation of the final map that reduces the number of parcels from five to three and provides new utility and access easements. Prior to recordation, several adjustments would need to be made within the Park, to ensure the proposed new lot lines do not bisect the footprint of any existing mobile homes. The attached location map (Attachment A) shows the site’s zoning; the zoning designations will remain, though one of the new parcel lines will not be coterminous with a zoning district boundary. Information is provided herein about existing and proposed conditions allowing for Council approval of the map. The three new parcels, with proposed ownership and easements, will be as follows: Parcel 1 (4.5 acres): City of Palo Alto Planning & Community Environment Department Page 5 The HACSC would take ownership of Parcel 1 to preserve the property’s use as an affordable modular home park community. HACSC would contract with an entity that would make repairs and updates to the site to ensure compliance with building codes. Some adjustments to the locations of existing housing units will be necessary to ensure building and zoning code development standards (setbacks) will be met. Access will continue to be from the Los Robles Avenue driveway. Access will also be available across Parcel two from both Los Robles Avenue and El Camino Real, as described below. Parcel 2 (1.0 acre): The current owner (Jisser) will continue to own this parcel, which is in neighborhood commercial use. No change is proposed to the existing retail building or uses of the site, and the existing parking spaces for the retail building tenants and customers will be unaffected by the proposed map. Easements on Parcel 2: A 10-foot wide access easement across Parcel 2 from Los Robles Avenue to the Park will be provided west of the retail building from Los Robles Avenue. The easement will double as an electrical utilities easement to allow continued service of electricity to the housing units on Parcels 1 and 3. The electric utilities easement will also bend in a ‘dog leg’ to the east, to incorporate the transformer and switch gear on Parcel 2 that feed electricity to Parcels 1 and 3. The switch gear easement would be a private easement for this equipment that is not owned by Palo Alto Utilities. A 20-foot wide vehicular access easement from El Camino Real to the Park will be provided to the north of the retail building. This easement will also serve as a public utilities easement and private utilities easement. Parcel 3 (0.7 acre): No changes are proposed to the existing gas station site (which has a three year lease), nor to the multiple family residential use on the RM-15 zoned, 0.41-acre rear portion of proposed Parcel 3. There are approximately eight housing units on this 0.41-acre area, which the owner (Jisser) would lease back to the Housing Authority for up to three years, allowing tenants to remain until they can be accommodated on Parcel 1. Requested Entitlements, Findings and Purview: The following discretionary applications are being requested and subject to PTC purview: Tentative Map: The process for evaluating this type of application is set forth in PAMC Chapter 21. If recommended for approval, the map requires review and action by the City Council. Map applications are evaluated to specific findings. As map findings are set up in Title 21, all findings must be made in the negative to approve the project. The findings to approve the application are provided in the attached Record of Land Use Action (Attachment B). Due to the subject property’s acreage (6.19 acres), a Preliminary Parcel Map process is not available; the map must be reviewed by the PTC and City City of Palo Alto Planning & Community Environment Department Page 6 Council in public hearings. Beyond the requested tentative map approval, no other activity is proposed at this time and no subdivision improvement agreement is required, since no right of way improvements are proposed. Analysis1 Neighborhood Setting and Character The 6.19 acre site is in the Barron Park neighborhood that was annexed to Palo Alto in 1975. The site has over 300 feet of frontage on El Camino Real. The current El Camino fronting parcels are developed with one-story buildings (two service station buildings and one retail building). The corner retail building, originally built in 1958 as a grocery store, was converted and updated in 1999. The 1959 gas station buildings have also been modified. There are eight single family residences on R-1 zoned sites along the northerly boundary of the Park. The buildings and mobile units in the Park are one-story, and house approximately 400 people, including many families with children. The residence on the site dates back to 1925, but has not been identified as a historic resource; it is not proposed for demolition in conjunction with this map. The site is next to and across from multiple family residential housing units on Los Robles Avenue, and next to and across from commercially zoned and used El Camino Real fronting properties Potential Redevelopment of El Camino Real Properties The gas station site is listed in the City’s Housing Element as a housing opportunity site for five housing units. The proposed 0.7-acre Parcel 3, on which the gas station is located, includes a 0.41-acre, RM-15 zoned area currently in residential use with approximately eight mobile homes. Development is not proposed at this time; however, if proposed Parcel 3 were to be redeveloped after the three year lease term, a mixed use development could include at least 10 market rate units across the site, in addition to a 5,052 square foot commercial building. Conversion of auto service use existing as of March 19, 2001 to office use is not allowed in the CN zone district. The corner property, updated in 1999, is also a potential redevelopment site for mixed use or commercial use. No such redevelopment is proposed at this time. Zoning Compliance2 The existing mobile homes and residential structures on proposed Parcels 1 and 3 are non- conforming as to setbacks, existing and proposed. As noted, there are no proposed development plans at this time. The proposed lot lines would create the following conformances and non-conformances: A 10-foot setback would be provided for the retail building on Parcel 2 from the common property line with Parcel 1 (Park). This setback allows the proposed access and 1 The information provided in this section is based on analysis prepared by the report author prior to the public hearing. Planning and Transportation Commission in its review of the administrative record and based on public testimony may reach a different conclusion from that presented in this report and may choose to take an alternative action from the recommended action. 2 The Palo Alto Zoning Code is available online: http://www.amlegal.com/codes/client/palo-alto_ca City of Palo Alto Planning & Community Environment Department Page 7 utility easement for Parcels 1 and 3 and will meet the minimum 10-foot setback requirement for CN zoned parcel that abuts a residentially zoned parcel. The CN zone requirement for landscape screening and solid wall or fence between 5 and 8 feet in height cannot required at this time, since this is not a development proposal and there is no room for such improvements given the location of existing buildings and the need for access and utility easements to serve the existing mobile home park. Landscape and fence requirements can be imposed with future development of these parcels. The proposed lot line between Parcels 1 and 3 are shown bisecting two existing mobile homes. One is vacant and will be removed. The other will remain in place for a limited time or adjusted through a building permit and/or HCD process. The proposed lot line between Parcels 2 and 3 will be very near three existing mobile homes but not touching them; these homes will also remain in place for a limited time or adjusted through a building permit and/or HCD process. Consistency with the Comprehensive Plan, Area Plans and Guidelines3 Commercial Properties The Comprehensive Plan Land Use and Community Design Element, Policy L-35, contains a diagram that shows the commercial sites at the northwesterly corner of Los Robles and El Camino Real as a location to encourage street facing convenience commercial shopping. Manufactured Home Park The Palo Alto Housing Element notes that mobile homes represent less than 0.35 percent of the total housing stock in Palo Alto, and cites a total of 99 mobile homes in Palo Alto as of 2013. The Buena Vista Park is cited in the Housing Element, which notes that the Park consists of 104 mobile homes, 12 studio units and one single family home with estimated 400 residents. Program H3.1.8 recognizes the Buena Vista mobile home park as providing low-and moderate- income housing opportunities and states that to the extent feasible, the City will seek appropriate local, State and federal funding to assist in the preservation and maintenance of the existing units. The City’s Housing Element contains policies both supporting the preservation and rehabilitation of existing units (Policy H1.1 and H1.2), and policies supporting actions to increase the supply of affordable housing (Policy H2.1 and H2.2). The Housing Element also documents at length some of the housing challenges facing Palo Alto and the region, and articulates quantified objectives for the 2015-2023 planning period for rehabilitation (600 below market rate units), preservation (334 below market rate units), and new development (1,401 below market rate units), indicating the need for investments in all of these activities. These policies and programs provided the basis for Council’s approval of funding commitment for acquisition and improvements to the Park. Consistency with Application Findings 3 The Palo Alto Comprehensive Plan is available online: http://www.cityofpaloalto.org/gov/topics/projects/landuse/compplan.asp City of Palo Alto Planning & Community Environment Department Page 8 The attached draft Record of Land Use Action contains findings for approval of the Subdivision, in accordance with Title 21 of the Palo Alto Municipal Code. 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. Specifically, the project has been found exempt from CEQA section 15301 (Existing Facilities), and section 15326, Acquisition of Housing for Housing Assistance Programs. Public Notification, Outreach & Comments The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Palo Alto Weekly on June 30, 2017, which is 12 days in advance of the meeting. Postcard mailing to property owners within 300 feet of the site occurred on June 29, 2017, which is 13 in advance of the meeting. The applicant has committed to notifying the tenants of the Park as to the map application and PTC hearing. Public Comments As of the writing of this report, no project-related, public comments were received. Next Steps City Council is scheduled to conduct a hearing on the map on August 14, 2017. A final map process and recordation would quickly follow tentative map approval. Alternative Actions In addition to the recommended action, the Planning and Transportation Commission may: 1. Recommend Council Approve the map with modified findings or conditions; or 2. Recommend denial based on revised findings. City of Palo Alto Planning & Community Environment Department Page 9 Report Author & Contact Information PTC4 Liaison & Contact Information Amy French, Chief Planning Official Jonathan Lait, AICP, Assistant Director (650) 329-2336 (650) 329-2679 amy.french@cityofpaloalto@email jonathan.lait@cityofpaloalto.org Attachments: Attachment A: LOCATION MAP (DOCX) Attachment B: ROLUA Tentative Map BV (DOCX) Attachment C: Tentative Map (DOCX) 4 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org LOCATION MAP: 6.19-acre Site, 3972, 3980 and 3990 El Camino Real File: 17PLN-00197, Tentative Map APPROVAL NO. 2017-xx RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3972, 3980, 3990 EL CAMINO REAL: TENTATIVE MAP APPLICATION [FILE NO.17PLN- 00197] On August 14, 2017, the City Council approved the Tentative Map application for reconfiguration of lot lines on a 6.19-acre site to three parcels, 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 June 2, 2017, the Housing Authority of Santa Clara County applied for a Tentative Map application for the reconfiguration of five lots to three lots on a 6.19-acre site that includes the Buena Vista Modular Home Park (zoned RM-15) and commercial land uses (zoned CN); B. The RM-15 zoning district has a minimum lot size requirement of 8,500 square feet. The Parcel Map would result in a 4.5-acre parcel (Parcel 1) for the Buena Vista Mobile Home Park under RM-15 zoning, and a 0.41-acre (17,859.6 square foot) portion of Parcel 3 that would remain in RM-15 zoning. Multiple family housing use would continue on these RM- 15 zoned sites and compliance with RM-15 standards related to new lot lines would be assured with implementation of approval conditions; C. The CN zoning district will remain on (1) proposed Parcel 2, where no site or building changes are proposed, and where the proposed easements will not adversely impact site improvements and required parking spaces, and (2) the portion of Parcel 3 supporting the 0.29- acre gas station site, where no site or building changes are proposed. Access and utility easements across Parcel 2 to serve housing units on Parcels 1 and 3 are proposed and have been reviewed and approved by relevant City staff; and D. Following staff review, the Planning and Transportation Commission (Commission) reviewed and recommended approval of the Tentative Map on July 12, 2017, supporting a condition of approval requiring up to a three-year lease back of the 0.41-acre housing site on Parcel 3 to the Housing Authority of Santa Clara County. SECTION 2. ENVIRONMENTAL REVIEW. In conformance with the California Environmental Quality Act (CEQA) the project is categorically exempt per CEQA Guidelines Sections CEQA section 15301 (Existing Facilities), and section 15326, Acquisition of Housing for Housing Assistance Programs. SECTION 3. TENTATIVE MAP FINDINGS A legislative body of a city shall deny approval of a Preliminary Parcel Map, if it makes any of the following findings (California Government Code Section 66474): 1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: This finding cannot be made in the affirmative. The proposed Tentative Map, as conditioned, is consistent with applicable Comprehensive Plan policies and programs, including the Housing Element 2015-2023, the design requirements of the Subdivision Ordinance (Palo Alto Municipal Code (PAMC) Section 21.20), and the RM-15 zone district (PAMC Chapter 18.13) development standards. 2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: This finding cannot be made in the affirmative. The site is physically suitable for the existing uses, and the revised lot configuration is compatible with the pattern and scale of existing and neighboring development, with implementation of approval conditions. There is no specific plan designated for the area; 3. That the site is not physically suitable for the type of development: This finding cannot be made in the affirmative. The site’s lot reconfiguration will allow for continuation of existing land uses. No development is proposed at this time; repair and unit footprint(s) adjustment are necessary prior to Final Map recordation. The site is adjacent to commercial, single-family residential and multi-family residential uses, and is zoned to allow the continuation of uses and densities. 4. That the site is not physically suitable for the proposed density of development: This finding cannot be made in the affirmative. As conditioned, the subdivision would be consistent with the site’s development regulations of the RM-15 zone district. The existing densities are not proposed to be changed; in particular, the overall number of housing units will not be increased with this map. 5. That the design of the subdivision or the proposed improvements is likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: This finding cannot be made in the affirmative. The subdivision would not cause environmental damage or injure fish, wildlife, or their habitat. The project site is located in an established urban area with no riparian or tree habitat for the candidate, sensitive, or special status species in the area. The final map will comply with conditions of approval for protected tree preservation. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: This finding cannot be made in the affirmative. The subdivision of the existing parcel will not cause serious health problems. The map is designed to provide easements allowing access for emergency services, and utility services, such as electricity, gas, sanitation and water, and is designed per City and State standards to ensure public safety. 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. This finding cannot be made in the affirmative. The reconfiguration of existing parcels will not conflict with existing public easements, and new public and private easements are proposed for utilities and vehicular access. Because none of the statutory findings authorizing denial can be met, the City Council hereby approves the subject “Tentative Map”. SECTION 4. Conditions of Approval. 1. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6. 2. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. APPROVAL CONDITIONS CITY DEPARTMENTS, IN RESPONSE TO MAP SUBMITTAL OF JULY 6, 2017, SHALL BE PROVIDED IN A REVISED ROLUA SET AT COMMISSIONERS’ PLACES SECTION 6. Term of Approval. Tentative Map Approval. Within two years of the approval or conditional approval of a tentative map the subdivider shall cause the subdivision or any part thereof to be surveyed, and a final map, as specified in Chapter 21.08, to be prepared in conformance with the tentative map as approved or conditionally approved, and in compliance with the provisions of the Subdivision Map Act and this title and submitted to the city engineer PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ________________________ ________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: __________________________ Senior Assistant City Attorney Attachment C Tentative Map Hardcopies of the Tentative Map are provided to Commissioners. The Tentative map is 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 “3990 El Camino Real” 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 “Tentative Map Submitted July 6, 2017” 6. Open the attachment named “Tentative Map” CITY OF PALO ALTO MEMORANDUM TO: PLANNING AND TRANSPORTATION COMMISSION FROM: PCE DIRECTOR DEPARTMENT: PCE AGENDA DATE: July 12, 2017 ID# 8228 SUBJECT: Record of Land Use Action with Approval Conditions The attached Record of Land Use Action includes conditions of approval from several departments. The conditions are based upon the revised Tentative Map submitted July 6, 2017 (received by PTC members), as modified by revised sheets 3 and 5 (submitted July 11, 2017). The only change is to add the 4.8’ dimension for the width of public access easement along El Camino Real to be dedicated along proposed Parcels 2 and 3. ___________________________ ___________________________ AMY FRENCH HILLARY GITELMAN Chief Planning Official Director Planning and Community Environment From:herb To:Planning Commission Cc:French, Amy Subject:July 12, 2016, Planning and Transportatrion Commission Meeting, Item #3: 3980 El Camino Real (17PLN-00197) Date:Wednesday, July 12, 2017 2:04:04 PM Herb BorockP. O. Box 632Palo Alto, CA 94302 July 12, 2017 Planning and Transportation CommissionCity of Palo Alto250 Hamilton AvenuePalo Alto, CA 94301 JULY 12, 2017, PLANNING AND TRANSPORTATION COMMISSION MEETING,AGENDA ITEM #33980 EL CAMINO REAL [17PLN-00197] Dear Planning and Transportation Commission: The required environmental review includes the whole of theproject that will be subject to several governmentalapprovals. (CEQA Regulation 15378.) The May 23, 2017, action of the Housing Authority of the County of Santa Clara provides substantial evidence of the developmentproject that is the subject of this map application and that must be considered as part of the environmental review. (Seehttp://hacsc.granicus.com/MetaViewer.php? view_id=5&clip_id=335&meta_id=11150.) The California Subdivision Map Act defines "development" toinclude uses intended for the land that is the subject of a map(California Government Code Section 66418.1.) When the current development on the Buena Vista Mobile HomePark parcels that does not comply with the RM-15 zoningdistrict regulations is divided to create a smaller parcel tocontain the mobile home park that does not comply with theregulations, the newly created parcel no longer contains alegal use, because the use on the new smaller parcel mustcomply with the site development regulations of the existingRM-15 zone district. Therefore, the Tentative Map should include a condition thatmust be satisfied before approving the Final Map to apply azoning district designation to the resulting smaller parcelthat would create a legal development on the smaller parcel. The alternative zoning districts I have considered are (1) a more intensive exclusive residential district; (2) the use ofthe State Housing Density Bonus law; (3) a site specific zonedistrict pursuant to the existing Planned Community (PC) ZoneDistrict regulations; and (4) a new site specific zone districtfor exclusively residential uses that are 100% affordable (i.e,for occupancy by families at or below the County low incomethreshold that is 80% of the County median income adjusted byfamily size). I oppose increasing the intensity of the current residentialzone district by changing the zone district to another generalzone district. I don't believe that the State Housing Density Bonus law wouldbe applicable, because the development requires more than themaximum number of three concessions (site coverage, floor arearatio, and multiple setbacks, where each setback would be aseparate concession.) I don't believe that it makes sense to set the precedent ofusing the PC zone district, when the first use of the districtwould set the stage for other PC applications that are not 100%affordable housing projects. Therefore, I suggest that the Tentative Map be conditioned onthe creation of a new site specific zone district forexclusively residential uses that are 100% affordable (i.e, foroccupancy by families at or below the County low incomethreshold that is 80% of the County median income adjusted byfamily size) that would be used for the Buena Vista Mobile HomePark and future 100% affordable housing projects. Thank you for your consideration of these comments. Sincerely, Herb Borock cc: Amy French, Chief Planning Official Attachment F Hardcopies of the Tentative map are provided to Council. The Tentative map is 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 the Tentative map online: 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “3990 El Camino Real” 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 “Tentative Map Submitted July 6, 2017” 6. Open the attachment named “Tentative Map” 1 Planning & Transportation Commission 1 Draft Verbatim Minutes 2 July 12, 2017 3 Excerpt 4 5 6 Public Hearing 7 Action Item 3 8 PUBLIC HEARING/QUASI JUDICIAL 3980 El Camino Real [17PLN-00197]: Request by the 9 Housing Authority of Santa Clara County for a Tentative Map for a 6.19-Acre Site that 10 Includes the Buena Vista Park Site (3980 El Camino Real) and Two Adjacent Commercial 11 Properties (3972 and 3990 El Camino Real), for Lot Reconfiguration and Lot Line 12 Removals to Reduce Five Parcels to Three Parcels, and Provide Access and Utilities 13 Easements. The Three New Parcels Will Be: (1) Parcel 1, at 4.5 Acres, Zoned RM-15 for 14 Multiple Family Residential Use (Buena Vista Park), (2) Parcel 2 at 1.0 Acre, Zoned CN for 15 Neighborhood Commercial Use (Existing Retail Building), (3) Parcel 3 at 0.7 Acres, Zoned 16 CN (Existing Gas Station Site) and RM-15 (0.41-Acre Rear Portion Supporting More than 17 Eight Buena Vista Park Studios/Modular Units). The 0.41-Acre Residential Portion Would 18 Be Leased to the Housing Authority for Up To Three Years, Allowing Tenants to Remain 19 Until They can be Accommodated on Parcel 1. For More Information Contact Project 20 Planner Amy French at Amy.French@CityofPaloAlto.com 21 22 Chair Alcheck: Why don’t we begin with item number three, the Buena Vista Mobile Home area 23 adjacent commercial lots tentative map. Let me just reiterate, if there are speaker cards for 24 this item… if anybody wishes to speak on this item please fill out a speaker card and had it to 25 staff so that I can call it out. 26 27 Ms. Amy French, Chief Planning Official: Excellent. Good evening, may I present? I’m Amy 28 French, Chief Planning Official. I am here to present the tentative map for the six plus acre site 29 which houses the Buena Vista Mobile Home Park or manufactured home park. The site is 30 located in Barron Park. It has existing zoning of RM-15, otherwise known as residential multi-31 family, 15 units per acre, and commercial neighborhood zoning. There are currently five parcels 32 on this site. The proposal is to reduce it to three parcels. The site is on the corner of Los Robles 33 and El Camino Real. 34 35 This image shows the three parcels that are proposed. Parcel One would be a mobile home 36 park known at Buena Vista Mobile Home Park, Parcel Three is the gas station parcel, next to El 37 Camino Real. This Parcel Three would include existing mobile home units at the rear. The Parcel 38 2 Two is entirely commercial, CN zone. I should mention that Parcel Three has split zoning; RM-15 1 where the mobile homes are, and CN where the gas station is. 2 3 The proposal would provide an easement for access and utilities across Parcel Two from El 4 Camino and across Parcel Two from Los Robles. The mobile home park currently has an 5 entrance on Los Robles. The parcel currently on the mobile home park has existing trees, both 6 within the park boundaries and along the right of way. There is no proposal to remove trees, 7 there’s no proposal to change zoning, there is no development proposed, there are no land use 8 changes proposed. 9 10 This is a simple matter, the reason it’s before the Planning Commission is because there are six 11 plus acres. Otherwise, it would just be a preliminary parcel map, a different process. The only 12 adjustments that would need to be made to the mobile home park are to observe the new lot 13 lines that are proposed, separating parcels one and three, and parcels three and two. As you 14 see the easement along the back of the retail building would provide the 10-foot setback 15 required by the zoning code, and I can say that the proposed easement will not affect the 16 parking spaced on parcel two; no impact there. 17 18 So, what’s great about this? Housing is going to be preserved, affordable housing. Luckily the 19 Housing Authority, who is here tonight represented by Flaherty Ward, is coming forward to 20 purchase the mobile home park and improve the mobile home park; the existing units. The 21 existing owner, Joe Jisser, would retain the commercial parcels on the parcels fronting El 22 Camino Real. And we are on a direct path to recordation to make sure that this deal goes 23 through. The escrow closes on September 1st, a very quick time line. 24 25 There will be no displacements. Families that are in housing units will remain, including on the 26 rear of parcel three, for up to 3-years. This happens to be the same lease term as the gas 27 station. 28 29 And our condition of approval, in the Record of Land Use Action At Places, includes such a 30 condition to ensure that this 3-year lease term lease-back to the Housing Authority is observed. 31 I should also note that in the At Places Memo there are two plan sheets, shrunk down. The only 32 change on these tentative map sheets is to indicate the dimension of 4.8-feet of easement 33 along El Camino Real, to ensure that we have the sidewalk width that is needed along El Camino 34 Real that’s dedicated back to the City for public access. 35 36 I’ll just quickly breeze through some images here. We have… the neighborhood is single-family 37 residences backing up to the park. We have RM-30 across Los Robles and RM-15 again, backing 38 up to the park on the other side. And then we have one and two-story development primarily 39 and we have retail along El Camino; CN zoning. These are some images of the residential 40 neighborhood context, the RM-30 development. We have… you can see here there are no 41 sidewalks along Los Robles adjacent to the park. In the future, should redevelopment be 42 proposed, that would be the time there would be improvements along this edge but there was 43 nothing proposed to date. The neighborhood retail context is neighborhood commercial zoning. 44 3 The retail building you can see here. We have a cell tower here in a fake magnolia and we have 1 sidewalks that begin here and continue on El Camino Real. These are some other images of the 2 nearby commercial on El Camino. This is an image that just shows the proposed easement, a 3 20-foot easement to get… just as there is there now, an easement to get to the mobile home 4 park from El Camino Real. And that concludes staff’s presentation. The applicant is here for 5 questions. Staff is here to answer questions as well. I should note that we did receive an email 6 today from Mr. Herb Borock, who has submitted a speaker card and let’s see if there’s 7 something else. 8 9 Ms. Gitelman: I’m hoping that I can take the director’s prerogative and jump in for a second 10 before we hear from the Housing Authority representative. Again, Hillary Gitelman the Planning 11 Director. I personally want to thank Amy French, she’s a senior member of our staff and she’s 12 the one who gets these short time frame projects. We think this is a pretty simple one, it’s just 13 a map to preserve an existing condition but it’s an existing condition that we all treasure in Palo 14 Alto. The City and the County have put a great deal of money into preserving the mobile home 15 park and this is one of the prerequisites to closing escrow and letting the Authority actually 16 follow through with the purchase. So, we’re hoping for the Commission’s support with this, this 17 evening and I want to thank Amy for jumping on this so fast. So, we’ll hear from the Housing 18 Authority and then any member of the public who would want to address the Commission. 19 20 Chair Alcheck: Yeah, let me just…before you begin. I have a speaker card also from the 21 [unintelligible]… separately right? She is not speaking as part of the public comment, she’s 22 speaking as an applicant, is that right? Flaherty Ward. 23 24 Ms. Gitelman: Yes, yes. 25 26 Chair Alcheck: Yeah, so why don’t we have you come up and speak as part of the presentation 27 and then... 28 29 Ms. Flaherty Ward: Is it on? Yep. Good evening Commissioners, I am Flaherty Ward, I represent 30 the Santa Clara County Housing Authority. I just wanted to introduce myself. Also, reiterate big 31 thank you to Amy. While it is a simple task, in theory, we have an expedited time line to 32 purchase the park while we have the fund available to us. That is why the close is September 1st 33 so a big thank you to Amy and her Staff. And then we also… we’re looking forward to the 34 purchase and preserving the park so the residents, a lot of who are here tonight, can remain in 35 the park you know, in perpetuity. So, I am here to answer any questions that you might have. 36 Also, with me tonight is Palo Hernandez who is our land use consultant, who was instrumental 37 in getting the application submitted. So, we are both here to field any questions you might 38 have. 39 40 Chair Alcheck: Ok, why don’t… do you have a question? Ok. 41 42 Commissioner Lauing: Just briefly, the funding, does it also include annual maintenance? 43 44 4 Ms. Ward: Yeah, so we’re… the… there’s a… that’s a big question but yes, we… the park… the 1 residents pay space rent so the park actually kicks off cash flow. We envision that there is going 2 to be some upfront investment on the infrastructure that needs to happen and we’re hopeful 3 that after that, the property… we’re going to finance it in a way so that the property cash flow 4 is based on the rent that is kicked off of the space rents. We realize that between now and then 5 there might be some infusion that’s needed. 6 7 Commissioner Lauing: I just didn’t know if every 3-years you needed ‘X’ more just for ongoing 8 maintenance. 9 10 Ms. Ward: Yeah, at this point we’re in the preliminary stages of developing the operating and 11 income budget. A lot of those questions will be answered. You know we’ve had limited access 12 to the site and the residents so we’re just kicking off those assessments to determine what the 13 operating budget will look like. And we’ll have more of those answers as we get into the 14 process but the Housing Authority operates… you know we have 30 assets in our portfolio. All 15 multi-family housing throughout the County. We… it’s something that we’re good at, it’s 16 something that we are sensitive too, we spend a lot of time on our operating budgets to make 17 sure that maintenance, security, up keep and stable housing is what’s kept in mind. 18 19 Commissioner Lauing: This is a wonderful outcome. 20 21 Chair Alcheck: Ok. For her? Ok. 22 23 Commissioner Summa: So, just a quick question about the eight units that are on the gas 24 station parcel. So, they can stay for 3-years and then after that I assume you want to absorb 25 them into the parcel one. 26 27 Ms. Ward: Yeah, for instance, we learned recently and this is what we were hoping for. There 28 are actually twelve vicinities on this site. Either site vacancies where there is no structures or 29 empty coaches so the hope is by improving the park, improving flow, we can absorb those 30 coaches into the site easily. 31 32 Commissioner Summa: So, you won’t be… they won’t be in the position of being… 33 34 Ms. Ward: Nobody is getting displaced. Yeah, everybody can stay. That’s why the 3-years was 35 negotiated so that it gives us the time to pull them in. 36 Commission Summa: Ok, congratulations and thank you. 37 38 Ms. Ward: Thank you. 39 40 Chair Alcheck: Ok, why don’t I invite Herb Borock to speak and then I’ll close the public 41 comment and then we can have a discussion. And if there more question for Staff or the County 42 representative, we can get back into that. 43 44 5 Mr. Herb Borock: Ok, thank you. I attended the Board of Supervisors hearing 2 ½-years ago on 1 January 2015 to support the mobile home park remaining. Rather than saying as some people 2 did, just have a site for affordable housing without an emphasis on the mobile home park. And I 3 estimated that the cost would be 40 million dollars so I am pleased that we’ve gotten to this 4 point. I provided you a letter at your places about my concern about the zoning compliance and 5 that goes to the findings on the tentative map on both finding one and four, as to whether it 6 does comply with the zoning ordinance. The site was originally annexed to the City and already 7 existed and so has been allowed to continue even though the density is much more than the 8 existing zoning. However, I don’t believe you can just arbitrarily draw a line and say that 9 whatever’s on one side of the line since it’s in part of the entire mobile home park suddenly 10 now also complies with the zoning. And I provided you a suggestion of how to remedy that 11 concern. Even if you agree that the existing proposal for 4.5-acres is entitled to keep what was 12 there before, there is a question of what happens when the units from the adjoining parcel that 13 is being created get moved over. Unless the applicant is saying that they are going to reduce 14 the total number to what is on the 4.5-acre parcel. I am not aware that the State overrides the 15 zoning on the mobile home park, such as when another government agency owns land such as 16 like the Veterans Administration Hospital and can build whatever they want. In any event, if you 17 accept the argument that what would be on the new parcel, 4.5-acres, is entitled to be there 18 because it’s there now, what about the units that are going to be moved within the next 3-19 years? Thank you. 20 21 Chair Alcheck: Ok, so seeing no other speaker cards, I am going to close the… what is it? Public 22 comment and then open it up to Commissioners to make comments or ask questions. 23 Commissioner Gardias, do you want to start us off? 24 25 Commissioner Gardias: Sure, but I think that… thank you very much. So, I mean thank you very 26 much for the presentation and of course, kudos to you for backing this problem. So, I think the 27 question that Mr. Borock brought up is a very interesting one. So… and definitely suppresses 28 the questions that I had so could you help us to understand the core of this issue? I understand 29 that right now there is more units per existing zone that’s zone designated. And then once you 30 explain this to us, could you just take us through the response from your side. Thank you. 31 32 Ms. French: Sure. Well, as I noted in the presentation, there will not be any zoning change; so 33 the Parcel Three, I should go back to that slide, will have the same number of housing units 34 within the first 3-years. Should, in the future, Mr. Jisser wish to redevelop this, the back area is 35 still zoned for housing. So, in a redevelopment scenario, density units per acre would apply. The 36 same number of housing units here today and that would not change with this first map, or I 37 should say tentative map. As I noted, this is not a development project, there is no change. I 38 understand the gist of the concern, which is a reduction of acreage and what does that do to 39 the housing units on the other side. It’s not an issue for the parcel one; parcel three there’s no 40 change so it’s not an issue for that one either. I did the review of parcel three to see if that was 41 going to be a problem; it’s not, under today’s zoning. There is no change in zoning, there is no 42 proposal to remove those housing units. 43 44 6 Commissioner Gardias: So, if I understand this correctly, that the current condition because 1 there is no zoning change, it’s pretty much… there is no concern. However, if there was a new… 2 if this… we would be populating this lot of the mobile housing, then we would not be able to 3 have as many of those homes on RM-15 for lot three, is this right? 4 5 Ms. French: That’s not necessarily true. If for instance, all of the mobile homes were to be 6 removed and a new development came in with affordable housing, in this case, I believe it’s 7 one hundred percent of affordable housing, there are density bonuses that allow you to 8 increase beyond the maximum density in the underlying zone, and Hillary can comment on 9 that. 10 11 Ms. Gitelman: Yeah, I just… I just want to avoid speculation about what might happen in the 12 future. What’s happening today is that we’re preserving the existing homes; the subdivision 13 enables that to happen. There is a nonconforming situation where there’s more units on this 14 parcel than would be allowed under the existing zoning but it’s not proposed to change. To the 15 extent that the Housing Authority undertakes renovation in the future, they mentioned utility 16 work and other site improvements, potentially removing some vacant coaches to put in the 17 coaches from the other parcel. All of those things are going to require permits; they will have to 18 be reviewed at the time they are proposed. We can’t really speculate today about what those 19 site changes are because they haven’t planned them but we do know that what we are 20 proposing here is consistent with our interpretation of the map back and with CEQA. We don’t 21 think there’s an issue and while I appreciate Mr. Borock’s input, we think that we’re good to go 22 on this, this evening. 23 24 Commissioner Gardias: Very good, thank you but we always appreciate Mr. Borock’s comments 25 and his presence here; I just wanted to mention this. When there’s going to be renovation 26 probably this… no, let me just talk to Amy because otherwise, we would have to reopen the 27 hearing. So, if there is going to be renovation with the houses and the houses are possibly 28 moved, I don’t know if there will be… under renovation, there might be some movement of the 29 houses within some boundaries. Would they have to comply with the setbacks? I believe that 30 some of them are entering the setbacks. 31 32 Ms. French: Yeah, so for new parcels line being created, then we would want the… you know, 33 any relocated homes to observe the setbacks. For the existing nonconforming coaches that are 34 within the setbacks, we’re not going to have them… relocate those. They are in an existing 35 nonconforming state that we inherited from when the area was annexed back in the 1970’s. 36 We’re not going to go and actively have all of those moved. They probably wouldn’t withstand 37 such a move; relocation. 38 39 Commissioner Gardias: I understand so let me maybe reformulate the question and maybe talk 40 to the representative from the Santa Clara Housing Authority. So, the question is like this, do 41 you expect that any renovation would require movement of any houses? Yes, please. Oh, 42 where’s Mike? Yes, please, if you could… 43 44 7 Ms. Ward: We don’t know yet. We are still in the assessment and fact-finding state of our 1 diligence to purchase the property. So, it is really hard to speculate on what that could look like 2 but am I understand it, any major renovation that we do will have to come through the 3 Planning Department as a land use application. I think at that time we would get comments 4 back on what requirements would be conditioned upon that approval. We would work with 5 planning Staff on trying to think of a thoughtful proposal on how to do all that. We know that 6 there are non-conforming uses out there. 7 8 Commissioner Gardias: Ok, and then if it’s not a so dumb question back to Amy, so say that 9 there may be a need to, because of the renovation, to move… to shift some of the houses that 10 are on the lot. Would it be… would that require a need for an exception… zoning exception or it 11 would be… or this would be a result at the Director’s level? 12 13 Ms. Gitelman: Again, we can’t speculate. We don’t have a specific proposal in front of us. They 14 just don’t know what they are going to need to do to upgrade the site. 15 16 Commissioner Gardias: Ok, let me move that to some other questions. So that 4.5-feet setback 17 along El Camino, I understand that this would allow… I am sorry, easement. That this would 18 allow for an 8-feet sidewalk. 19 20 Ms. French: It would allow … it would meet the El Camino Real Master Plan that prescribes a 21 certain setback. I can’t tell you where the curb is related to the property line. I am sorry but … 22 they are ensuring that 4.8-feet easement along the front of that parcel, and that was coming 23 from our Public Works Department to ensure that we’re meeting our plan lines that are shown 24 on the El Camino Real Master Plan. 25 26 Commissioner Gardias: Yeah, my question was getting to this point, which I hope that this is 27 going to be the result of this easement because as you know, we have an 8-foot minimum of 28 the sidewalk requirement at other areas so probably this would be the same. 29 30 Ms. French: Actually, I would say that, if and when let’s say a redevelopment were to come 31 forward on those commercial parcels, you know we have our El Camino Real Guidelines and the 32 CN zone standards that ask for even more than 8-feet. So, you know, it’s a minimum of a 33 sidewalk but there could be additional setbacks for any redevelopment, but there’s no 34 development proposed right now on those parcels. 35 36 Commissioner Gardias: Very good, thank you very much. Those are my questions, thanks. 37 38 Commissioner Monk: I wanted to also thank Ms. French and Ms. Ward for their presentations 39 today. It’s appreciated and I also want to acknowledge the number of residents that have come 40 out so that it’s reflected in the record when City Council reviews our transcript, I am counting 41 approximately 50 or so residents here. You’re here with your families and some children and it 42 really is important that you are here. That we see you here and it’s definitely noted that you are 43 here. Your presence is very much felt and it’s meaningful so thank you for coming here and 44 8 being a part of this process just by your presences alone. I did have some concerns about the 1 future development of parcel three as well but as Flaherty mentioned, we’re not looking at that 2 at this point so we will revisit that. This might not be within our purview but if there is further 3 development on Los Robles Avenue, I think parking in that area is really difficult. Especially for 4 parcel two and so if there is going to be any parking developed, perhaps you can consider 5 diagonal parking space or something in that area. I don’t think I have anything else so thank you 6 very much. 7 8 Commissioner Summa: There, I think, 117 structures… residential structures on… presently, if 9 that is right. So, kind of what you are saying is that number of residential structures will be 10 retained through grandfather in, is that correct? 11 12 Ms. French: There may end up being some removal of some of the coaches because we don’t 13 know about the building code compliance. We’re going to have to be having a look at a lot of 14 things out there, so we may reduce the number of housing units in the short term and we’ll see 15 in the long term. We don’t have a proposal. 16 17 Ms. Gitelman: Can I just pile on there? I mean I just want to be super clear, the purpose of the 18 map is to enable the purchase of the site with all of the existing structures in their current 19 locations, period. Then what’s going to happen is that the new owner of the parcel, once it 20 closes, is going to do an assessment of the site and what needs to be done to address utilities 21 and other things. At that point, they will know better whether there are, for example, vacant 22 coaches that can be removed so that some of these other ones can be moved on and whether 23 there are other physical changes. What we’ll have to do when they come in for permits for any 24 of these future things that we don’t know what they are, we’ll have to review them for 25 conformance with our codes to make sure that they meet the building code standard and the 26 planning standard, which is that you can’t accentuate or make a nonconforming situation more 27 nonconforming. 28 29 Commissioner Summa: Right but they would… through grandfathering, they retain the right to 30 have that number of units… 31 32 Ms. Gitelman: Correct. 33 34 Commissioner Summa: That’s what I was asking, I am sorry. So, I also appreciate Mr. Borock 35 coming in and I didn’t have a lot of time to study his letter. Is there any additional benefit to the 36 method that he’s suggesting or is it… I was not clear on it so I just wanted to ask your opinion 37 on that because he’s always full of good ideas. 38 39 Ms. Gitelman: It sounds like Mr. Borock is proposing to re-zone the site. You know so a 40 legislative change that would happen concurrent with the map and that’s just really not 41 something that the property owner or the purchaser had anticipated. It’s a lengthy process as 42 you know and it didn’t seem necessary to basically perpetuate the existing condition. 43 44 9 Commissioner Summa: And would that take too long to meet the requirement of the deadline? 1 2 Ms. Gitelman: Certainly. 3 4 Commissioner Summa: Ok, thanks. 5 6 MOTION 7 8 Chair Alcheck: I would like to congratulate the County as well. I think everybody in this 9 community is well aware sort of what’s been taking place and all the effort that’s been made. 10 And I… it’s pretty unique opportunity and I’m thankful that the City also invested its own funds 11 and is sort of achieving sort of a mutual goal here. So, it’s… I think this is a unique and special 12 event. We have a small role here in the review but I’ll make a motion now to… excuse me… to 13 recommend approval to the City Council of the tentative map application based on the findings 14 and subject to the conditions of approval and the draft record of land use. 15 16 SECOND 17 18 Commissioner Lauing: Second. 19 20 Chair Alcheck: Ok, would you like to speak to the motion at all? 21 22 Commissioner Lauing: You were eloquent. 23 24 Chair Alcheck: Ok, thank you. Make sure that is on the record. 25 26 Commissioner Lauing: I said it very loudly. 27 28 VOTE 29 30 Chair Alcheck: Ok, well let’s take a vote. All those in favor of the motion on the floor, please 31 raise your hand and say aye. That’s all-in favor; it's unanimous. Thank you all for your time. 32 Thank you for attending and let’s take a 5-minute break and begin with item number four after 33 that. Thank you 34 35 MOTION PASSED UNANIMOUSLY (5-0-2, Commissioner Rosenblum and Commissioner 36 Waldfogel absent) 37 38 Commission Action: Recommend approval to the City Council of Tentative Map Application 39 based on the finding and conditions in the draft Record of Land Use Action (Motion made by 40 Chair Alcheck, seconded by Commissioner Lauing, motion passed 5-0 (Rosenblum and 41 Waldfogel absent) 42 City of Palo Alto (ID # 8323) City Council Staff Report Report Type: Action Items Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Approval of a Contract for Janitorial Services Title: Approval of a Five-Year General Services Agreement With SWA Services Group in the Amount of $10,652,615 for Janitorial Services and Approval of a Budget Amendment in the General Fund From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council 1.Approve and authorize the City Manager or his designee to execute the attached General Services Agreement in an amount not to exceed $10,652,615 with SWA Services Group (Attachment A) for janitorial services for a term of five years effective September 1, 2017 ending August 31, 2022; including $10,145,347 for Basic Services and $507,268 for Additional Services. 2.Amend Fiscal Year 2018 Budget Appropriation Ordinance for the General Fund by: a.Decreasing the FY 2018 Operations Reserve in Non-Departmental by $500,000; b.Decreasing the General Fund Budget Stabilization Reserve by $753,463; and c.Increasing the appropriation for the Public Works Department by $1,253,463. Executive Summary After a Request for Proposal (RFP) process was completed, staff recommends a five year contract with SWA Services Group beginning September 1, 2017 for janitorial services as the current janitorial services contract expires August 31, City of Palo Alto Page 2 2017. Approval of this contract would ensure continuity of janitorial services citywide at the same specified service levels;however, it does reflect a significant increase in costs from our current provider (approximately an additional $1.2 million in FY 2018). As discussed in detail below, historically vendors have struggled to meet the City’s contract performance standards. Therefore, staff proactively addressed this historic gap in performance by amending the RFP process to 1) include recommended minimum staffing numbers and minimum material costs to the contract RFP and 2) place a greater weighting factor on effective performance solutions and staffing stability.As expected, these changes resulted in significant increases in the cost proposals compared to the current contract, and in selection of a vendor who did not have the lowest cost proposal. SWA Services Group ranked highest in proposal evaluations and second lowest in cost.This contract also complies with the City’s current minimum wage requirements over the term of the contract. Background The City has utilized outside contractors to provide janitorial services for City facilities since 1994.Under the General Services Agreement (Attachment A), Exhibit B lists all City facilities serviced in the agreement and the routine/regular scope of services for each facility (defined as Basic Services). Since 1994, an RFP was used for each solicitation, with cost having the greatest weight in rating criteria resulting in each contract being awarded to the lowest cost vendor. Thus far, all janitorial service vendors have struggled to meet the City’s contract performance standards resulting in significant staff time necessary to manage the contract. For example staff has completed daily facility inspections, documented and reported performance issues with requests for corrective actions, monitored contract employee attendance, and escalated problems to the vendor. Issues consisted of supply and material shortages, prohibited activities on City property, missed services, and poor work performance. In preparation for the RFP for a janitorial service provider, staff researched both past City practices as well as neighboring jurisdictions in order to release an RFP that would result in reliable services to the City. Research areas included reviewing past solicitation practices with contractor performance and benchmarking service levels, performance,and costs with other local agencies. This research demonstrated that other agencies face similar challenges and historic rating criteria that gave preference to cost have not been effective in City of Palo Alto Page 3 obtaining vendors who can adequately meet the City’s contract performance standards for janitorial services. When striving for the lowest cost, the City saw gaps in sufficient staffing including adequate supervision, significantly low wage rates impacting recruitment (including the ability to pass Department of Justice background checks)and retention of staff, and insufficient supplies and materials. All of these have led to cleaning issues throughout the City and additional City staff management of the vendor eroding City staff capacity. Agencies have addressed these issues in different ways. Below is a chart outlining the recommended contract as well as the current contracts of two neighboring jurisdictions: 2017 Local Agency Comparisons Janitorial Palo Alto Mountain View Menlo Park Size (sq miles)26 12 17 (10 land) Population 67,000 78,000 32,000 # Buildings Serviced 43 26 18 Building SF 699,259 365,002 n/a Annual Cost $1.91m $1m $248k # Contract Employees 33 17 5 Includes Chemical Costs Y Y Y Includes Supply Costs Y N N Includes Floor Waxing Y Y N Includes Window Washing*Y N N * Excludes City Hall exterior. Janitorial vendors have challenges recruiting and retaining qualified and reliable employees when paying minimum wage rates. A pay rate of $12 an hour equates to $25,000 annually for a full time position, also equal to the 2017 US Federal Poverty Guideline for a family of four. In 2016,the Bureau of Labor Statistics hourly mean wage for janitors in local government was $15.37. Many agencies have required vendors to pay contract staff higher hourly wages to counteract City of Palo Alto Page 4 these challenges. The City of Los Altos recently moved to $14 an hour and the City of Mountain View will be at $15.60 an hour (union scale wage) in a few months. The City of Mountain View has required union scale wages for the last few years. Staff recognizes the benefits of vendors paying their employees a higher wage and providing health care benefits, resulting in a more reliable workforce.Currently the City of Palo Alto has a minimum wage requirement of $12 an hour. Effective January 1, 2018, it will increase to $13.50 and $15 by January 2, 2019. Discussion In May 2017, staff issued an RFP for the solicitation of janitorial services for the City with the goal of selecting a vendor prior to the sunset of the current contract August 31, 2017. Staff strived to minimize past performance issues by amending the RFP process to 1) include recommended minimum staffing numbers and minimum material costs to the contract RFP and 2) place a greater weighting factor on effective performance solutions and staffing stability. The RFP process allows for an evaluation of proposals based on a number of factors or criteria, with the intent to select a vendor based on best value as opposed to simply the lowest cost responsive and responsible bidder. The RFP evaluation criteria and weighting factors used are shown below: 40% -quality, performance, & effectiveness of services to be provided 20% -cost evaluation 10% -experience 10% -ability to provide future maintenance and services 5% -ability to perform contract within the time specified 5% -contractor’s financial stability 5%-quality of the proposal 5% -prior record Recommended minimum staffing levels of 26 custodians, 2 day porters, 1 lead, 3 utility workers (hard floor finishing, window washing, and monthly/quarterly/biannual/annual cleaning), and 1 supervisor along with material and supply costs were included in the RFP issued. Solicitation Process City of Palo Alto Page 5 A Request for Proposals for Janitorial Services was posted on the City’s eProcurement system on May 1, 2017. Twenty-seven companies registered to view the proposal;however, only three proposals were received on May 23, 2017. Proposals were evaluated and oral interviews completed on June 7, 2017. The City extended to all three proposers an invitation to participate in the Best and Final Offer (BAFO) process to allow them an opportunity to amend their proposal and to reduce their price with no change in scope. Uniserve lowered its price by 1.03%. SWA and Impec elected not to change their price. The price proposals are as follows. Summary of Proposals Year 1 Year 2 Year 3 Year 4 Year 5 Total Uniserv e $1,356,96 4 $1,503,41 2 $1,646,37 5 $1,693,70 7 $1,740,12 5 $7,858,958 SWA $1,910,92 2 $1,968,25 0 $2,027,29 8 $2,088,11 7 $2,150,76 0 $10,145,34 7 Impec $2,240,57 0 $2,399,02 6 $2,539,03 3 $2,716,30 6 $2,784,90 1 $12,679,83 6 Proposals ranged from a low of $7,858,958 to a high of $12,679,836 for the five- year term of the contract. Based on the evaluation team’s overall score for proposal and cost,SWA Services Group was unanimously selected as the best value proposer. Staff reviewed vendor qualifications and found that SWA is a local company and has provided service to many companies and some public agencies in the local area. They currently provide janitorial service to the City of Mountain View. SWA understands the local economy and labor forces and has established resources for backup supplies, equipment, staffing, and supervision. The lowest ranked proposer,Uniserve Facilities Services Corporation, was 2% higher than staff’s cost estimate, based off the five year total cost and is located in the Los Angeles area with only one account in this area. SWA’s price was 30% above staff’s cost estimate and the highest bidder, Impec Group, was 63% greater than staff’s cost estimate.Although SWA’s Year 1 cost is approximately 41% higher than Uniserve, this difference narrows to 23% by Year 3 as Uniserve would be required to raise its wages to comply with Palo Alto’s minimum wage requirements. At Year 3,the primary difference in the cost of the two proposals is the provision of employee benefits, overhead and profit rate. City of Palo Alto Page 6 Janitorial Contractor Year 1 Year 1 Employee Pay Rate/Hr Union Health Benefits, Vacation, Holiday Uniserve $1,356,964 $12 N N SWA $1,910,922 $15 N Y Impec $2,240,570 $13.50 Y Y In the past,the amount set aside for Additional Services (those services beyond routine/regular, Basic Services) in the janitorial services contract has been fifteen percent of the total contract price. To lower overall costs, staff recommends five percent or $507,268 for Additional Services. Additional Services covers work not specified in the original scope of Basic Services and may include but is not limited to,new services, emergency services, and special event services required during the course of the five-year term.Without Additional Services, each request for other janitorial services outside of the contract basic scope will require Council approval and additional funding. Alternatives To reduce costs, staff considered reducing staffing and/or service levels but this is not viable as it would then change the RFP or contract which has already been solicited. The contract also specifies a Custodial Cleaning Standard of Level 2 Ordinary Tidiness. A reduction of service would lower the standard to Level 3 Casual which usually reflects the standard for first budget cuts and will be noticeable. Service reductions may also affect LEED building cleaning requirements, indoor air quality for health and safety, maintenance on heating and ventilation equipment, and flooring life cycles and warranties.Libraries and newly remodeled facilities are also experiencing higher usage and requesting more frequent and higher levels of service to keep them looking presentable for the public and staff. Therefore staff does not recommend reducing the scope of the custodial contract. Hypothetically, a reduction of five employees could save approximately twelve percent each year of the five-year contract ($250,000 in the first year). This reduction would result in eliminating: City of Palo Alto Page 7 1.three utility workers who perform window washing, hard floor care/ finishing, dusting, cobweb cleaning, exterior entry way cleaning, wall, counter and table top cleaning, and refrigerator cleaning; 2.eliminating one day porter who performs the additional daytime cleaning of City Hall, all libraries, certain areas of the MSC, and emergency clean ups; and 3.eliminating one night custodian who performs forty hours of weekly service at various City facilities. Timeline The current janitorial services contract expires August 31, 2017. Pending Council approval of this staff-recommended contract with SWA Services Group, the new vendor contract can be effective September 1, 2017. If Council prefers the selection of another proposal, the selected vendor would need to be notified and would likely need 30-60 days after contract award to transition, leaving the City without custodial services for that time. The current vendor is not willing to work past August 31, 2017. Resource Impact The cost of this five-year contract with SWA Services Group is $10,652,615; including $10,145,347 for Basic Services and $507,268 for Additional Services. The Fiscal Year 2018 Adopted Operating Budget includes a portion of the funding needed for year one of this contract;however,an additional $1,253,463 will be appropriated to the Public Works Department to close the funding gap for the full FY 2018 cost of $2,006,468. The City allocates the cost for custodial services to ensure all funding sources that receive this service contribute to the costs. Currently this allocation is based on square footage resulting in approximately 82% of the costs on the General Fund. Therefore of the $2.0 million annually, approximately $1.6 million is attributed to the General Fund. To fund this contract in FY 2018, an incremental increase of $1.25 million, staff recommends the use of the FY 2018 Operations Reserve in Non-Departmental ($500,000) and the remaining funding of $753,463 is recommended to be taken from the Budget Stabilization Reserve (BSR). As part of the FY 2018 year-end City of Palo Alto Page 8 reconciliation of the General Fund Cost Plan to true-up actual costs to budgeted estimates, it is anticipated that the $225,000 of this increase (18 percent non General Fund related services) will be charge to appropriate non General Fund departments/funds. Ongoing, the budgeted cost of the contract will be allocated across the City as part of the General Fund Cost Plan as part of the annual budget development process. This action would result in a reduction of the Budget Stabilization Reserve below the City Council approved 18.5 percent, however, it is anticipated that sufficient excess revenues and additional expense savings from FY 2017 will offset this once the FY 2017 financials are closed. Therefore, it is staff’s intent to restore the BSR to City Council approved target of 18.5 percent. 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: ·C18168154 Janitorial Contract City of Palo Alto General Services Agreement 1 Rev. February 8, 2017 CITY OF PALO ALTO CONTRACT NO. C18168154 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 14th day of August, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SWA SERVICES GROUP, INC.,a California corporation, located at 68 Harold Avenue, Santa Clara, CA 95050,Telephone Number: (408)591-0088 (“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 “B” -Schedule of Performance “C”–Compensation and Schedule of Fees “D” -Insurance Requirements “E” - Performance Bond “F” -Liquidated Damages CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from September 1, 2017 to August 31, 2022 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 OR City of Palo Alto General Services Agreement 3 Rev. February 8, 2017 Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR’s compensation rates shall be reflected in a written amendment to this Agreement. 7.CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set forth in “Appendix A -Claims for Public Contract Code Section 9204 Public Works Projects”. 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 Agreement shall be governed and interpreted by the laws of the State of California. V.ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. W.NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this 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 SWA SERVICES GROUP, INC. ______________________________By________________________________________ City Manager or Designee Name _____________________________________ Title_______________________________________ Approved as to form: ___________________________ City Attorney or Designee ___________________________ Director of Public Works or Designee City of Palo Alto General Services Agreement 12 Rev. February 8, 2017 EXHIBIT A SCOPE OF SERVICES 1.INTRODUCTION CONTRACTOR shall provide complete Level 2 janitorial cleaning and maintenance services (including floor finishing and window washing) to provide a clean, healthy (hygienic), safe, and professional appearance throughout assigned City facilities. CONTRACTOR shall furnish labor, approved cleaning supplies, supervision, methods and processes, implements, tools, machinery, equipment, transportation,and material for janitorial services. The specifications and performance standards for each facility are set forth in the Schedule of Performance, Exhibit B, attached hereto and incorporated herein. 2. MINIMUM BASIC REQUIREMENTS a.CONTRACTOR shall be an independent contractor and, as such, the hiring, background checks, training, equipping, supervision, directing and discharging of their employees shall be the responsibility of CONTRACTOR. The payment of federal, state and local taxes and overtime wages shall also be the responsibility of CONTRACTOR. b. CONTRACTOR must furnish all labor, supplies, cleaning materials (cleaning chemicals, floor wax, wax stripper, and other expendable supplies) and equipment (including, but not limited to, ladders, lifts,vacuum cleaners, extractors, floor machines, mops and buckets) required to perform interior/exterior janitorial service per building service schedules as specified within this Agreement, excluding holidays. c.For facilities where CITY cannot provide adequate on-site space for storage of custodial supplies, cleaning chemicals, and equipment, CONTRACTOR will need to provide alternate means. d. All employees of CONTRACTOR,must have successfully passed a City approved (e.g. LifeScan) background check –results to be sent to City for review and approval), and be a minimum of twenty-one (21) years of age and have a minimum of two (2) years janitorial experience and be fully trained in the custodial service trade. CONTRACTOR is responsible for the cost of background checks for its employees. No employee who fails the security clearance shall be admitted on the premises. However, in case of an emergency, Contractor may assign personnel who do not have a security clearance who either (1) have an equivalent security clearance from another public agency that is approved by the Santa Clara County Sheriff or (2) are escorted at all time by City personnel, and the Contractor reimburses the City for costs incurred by the City in providing the escort personnel. City of Palo Alto General Services Agreement 13 Rev. February 8, 2017 e. CONTRACTOR must provide CITY’s Facilities Project Manager with an emergency telephone number where CONTRACTOR may be reached at any time, twenty-four (24)hours a day. f. CONTRACTOR must be available twenty-four (24) hours per day to provide an emergency response if requested by CITY. CONTRACTOR must respond onsite within one (1) hour when scheduled staff is on-site and within two (2)hours when no scheduled staff is on-site of the time of the placement of the request. g. Prior to commencement of any services under this Agreement, CONTRACTOR must furnish to CITY for its review and approval, a complete list of all chemicals and floor products, including Material Safety Data Sheets (MSDS) and Product Data Sheets verifying Green Seal Certification, that CONTRACTOR anticipates bringing onto or using in any property belonging to CITY. CONTRACTOR must submit in writing to CITY’s Facilities Project Manager changes to any products and/or product lists used in performance of this Agreement, along with any new Material Safety Data Sheets,. If there are chemical formulation changes or potential hazards on the MSDS change, CONTRACTOR shall notify the CITY in writing as soon as possible. h.CONTRACTOR accepts responsibility and shall be responsible for determining that all necessary safeguards for protection of CONTRACTOR’s employees are available or will be furnished to employees. Work and materials must conform to the requirements of Safety Order –State of California, Division of Industrial Safety, State Fire Marshall, and OSHA Regulations 3. CONTRACTOR RESPONSIBILITY a.Any work completed by CONTRACTOR that does not meet the quality standards as determined by CITY, shall be re-done by the CONTRACTOR at no cost to the CITY. b.CONTRACTOR shall promptly report to CITY any and all damage caused by CONTRACTOR. CONTRACTOR shall repair or replace damaged items or premises at CONTRACTOR’s expense back to its former condition prior to damage c.Minimum Staffing. CONTRACTOR shall at all times maintain minimum staffing levels of 28 full time equivalent custodians (including 2 day custodians 7 days per week), 3 full time utility workers, 1 full time lead person, and 1 full time on-site night supervisor to faithfully execute the Agreement. CONTRACTOR is responsible for determining the proper staffing levels, which may exceed the minimums set forth herein, to perform the scope of services listed in Exhibits A and B for each facility, but if at any time CITY determines the specifications of the Agreement are not being met or completed, CONTRACTOR shall supply City of Palo Alto General Services Agreement 14 Rev. February 8, 2017 additional staff to successfully meet the terms of the Agreement at no additional cost to CITY. d.Removal of CONTRACTOR Employee. CITY may request that CONTRACTOR remove any CONTRACTOR employee from City premises for any reason whatsoever within CITY’s sole discretion.Grounds for removal may include, but are not limited to, improper performance of services, disorderly, abusive, dangerous or disruptive conduct, and failure to follow City’s rules and regulations. CONTRACTOR shall immediately comply with such a request and provide immediate replacement.Contractor shall in no way interpret such removal requested by City to require dismissal or other disciplinary action of the employee e.Wages and Benefits. Pursuant to CONTRACTOR’s proposal, CONTRACTOR shall pay its janitorial employees a minimum of $15 per hour, lead janitor employees a minimum of $18 per hour,and its utility worker employees a minimum of $17 per hour in Year 1 of the Agreement, with 3% annual increases each year of the Agreement. CONTRACTOR further agrees to provide its employees with medical coverage and vacation/paid time off. Should there be increases in the minimum wage under federal, state or local law that exceed the amount herein, CONTRACTOR shall comply with the applicable law. f. Supervision. CONTRACTOR shall assign a full time night supervisor to provide quality inspections and work supervision during scheduled cleaning hours at night and special work assignments. The night supervisor and CONTRACTOR’s lead person shall be able to communicate fluently in English. Weekly janitorial supervisor's reports shall be submitted to City's Facilities Project Manager or his designee noting any building deficiencies needing correction. At a minimum, the CONTRACTOR’s supervisor and lead person will meet weekly during the day with the City’s custodial contract management staff. The site supervisor and lead person shall carry a cell phone by which the City staff will be able to communicate with him/her 24 hours a day and 7 days per week. g. Employee List. CONTRACTOR shall provide CITY with a list of all CONTRACTOR’s employees assigned to each work site, as well as the employee's work schedule and assignment. h. Training CONTRACTOR shall provide environmental, health and safety training to its employees to ensure compliance with all federal, state and local laws,regulations and directives. City of Palo Alto General Services Agreement 15 Rev. February 8, 2017 At least one month prior to the start of services under this Agreement, CONTRACTOR shall provide a Supervisor and Lead Person to train with CITY to learn the location of all facilities, familiarize themselves with the layout of each facility, and scope of work required. This training will be during normal business hours. i. Employee Conduct CONTRACTOR shall ensure that its employees DO NOT do any of the following while performing services under this Agreement: 1.Be accompanied in their work area by acquaintances, family members, pets, assistants, or any other person unless such person is an on-duty authorized Contractor employee. 2.Remove any City property or personal property, equipment, monies, papers or any other item from City buildings. 3.Engage in horseplay or loud boisterous behavior. 4.Use or possession of the following items while working on City premises: guns, knives, other weapons, alcohol, and/or controlled substances. 5.Be under in the influence of alcohol or drugs. 6.Gamble. 7.Smoke in any building. 8.Read or disclose material or documents available in the facilities of the City. 9.Disturb papers or any other items on desks, tables, or cabinets. 10.Turn on or use any equipment other than City-supplied or Contractor's custodial equipment, such as televisions, computers, typewriters, or radios, etc. 11.Use any City telephone except those designated by City’s Building Services Manager or his/her designee for the purpose of business under this Agreement and for emergency reporting. 12.Open any desk, file cabinet or storage cabinet. 13.Remove any article from desks. 14.Consume any food or beverage, other than that brought with or purchased by the employee, and only in areas designated as break or lunchrooms. 15.Engage in non-work related conversations with Contractor employees, City employees or visitors. 16.Come to work late or leave work early j.Employee Appearance and Identification Contractor personnel shall present a neat appearance and be easily recognized as Contractor employees. Contractor shall provide each employee with a uniform that displays the name of the Contractor’s company.The uniform shall be City of Palo Alto General Services Agreement 16 Rev. February 8, 2017 available prior to entering any City building and shall be worn at all times while working in City facilities. The uniform at a minimum shall be a uniform shirt with the Contractor's name or logo on it. Contractor’s employees will be issued an identification/building access card by City. Contractor personnel shall visible wear City contractor badge at all times during work with the City. Contractor employees may be required to “badge in”at start of cleaning and “badge out” at end of cleaning at every location that has a badge reader (or location of nearest badge reader). Any loss of identifications cards must be reported to the City’s Facilities Project Manager immediately. Identifications cards are also building access cards and should not be placed with assigned building keys when not being used. k.Reporting and Inspections 1.Building Inspection/Control Log: CONTRACTOR’s custodial supervisor and/or lead custodian will be responsible for maintaining a "Building Inspection/Control Log" which will be the focal point for communications. CONTRACTOR’s staff will be responsible for sharing work related issues with the CITY Facilities Project Manager for analysis. 2.Status Reports: A report is to be given weekly by the Contractor to the CITY Facilities Project Manager if, and when, unusual circumstances arise; e.g., suspicious people are observed, lighting inoperable, etc. 3.Regular Inspections: At a minimum, CONTRACTOR’s account manager or on-site supervisor and lead person will meet with the City's Facility Maintenance representatives weekly during the day to review work sites to ensure compliance with contract Specifications. l.Work Performance Quality Standards Contractor will adhere to Level 2 Cleaning, as defined by the quality standards of the janitorial profession and the Schedule of Performance, attached as Exhibit B hereto. Level 2 is orderly tidiness. Examples of Level 2 cleaning are washrooms and shower tile and fixtures that gleam and are odor-free, supplies are adequate, floors and base moldings that shine and are bright and clean, no buildup in corners or along walls, all vertical and horizontal surfaces that are clean, trash containers empty, clean, and odor-free. Contractor shall immediately notify the City’s Facilities Project Manager of any occurrence or condition that interferes with the full performance of the Contractor and document such condition or occurrence in writing within 24 hours. m.Response Time for Emergency Calls and Corrective Action City of Palo Alto General Services Agreement 17 Rev. February 8, 2017 CONTRACTOR shall respond to emergency calls related to feces, vomit, urine cleanup and to corrective actions calls for deficiency of service categorized as a major problem by correcting the deficiency within one (1) hour of the placement of the call when Contractor has scheduled staff on-site and within two (2) hours of the call when no scheduled staff is on-site. Examples of major problems are toilets and showers not being cleaned, overflowing waste receptacles, not stocking sufficient supplies, large amount of floor debris, etc. Minor problems that don’t require immediate attention shall be responded to and corrected by Contractor during the next day’s normal clean up. Examples of minor problems include but are not limited to: a partially full waste receptacle not emptied, a small area not vacuumed. Major complaints and a continuing record of minor complaints may result in liquidated damages, non-payment or termination of this Agreement. City’s Facilities Project Manager shall have the authority to classify a complaint as major or minor. n.Security Keys required by CONTRACTOR will be provided to designated CONTRACTOR employees upon a custody receipt and shall be returned to the City on demand. CONTRACTOR is required to have such keys and badge access cards on them at all times while providing service to the City. Keys are assigned to specific individuals and are not to be shared between CONTRACTOR’s staff. All doors are to be unlocked and locked as required by each building’s specification. CONTRACTOR is responsible for after-hours security during performance of janitorial duties. All doors must be locked and shut during the performance of said duties. Doors are not to be propped open and CONTRACTOR employees are not to let anyone into the building. Any loss of keys must be reported to the City’s Facilities Project Manager immediately.Keys are to only be made by the City, and shall not be duplicated by CONTRACTOR or any other person. Lost keys or card-keys will be replaced by the Contractor at the rate of $25.00 per key or card-key and CONTRACTOR will be financially responsible for all costs of re-eying any or all locks affected by lost keys in his/her control.CONTRACTOR shall return or account for all issued keys upon expiration or earlier termination of the Agreement. Contractor shall properly disarm and arm City facilities’ electronic security systems each time that after-hours access is made. Contractor may be charged a minimum of one hundred dollars ($100) for each time the Contractor misuses the alarm system. o.Care of Facilities City of Palo Alto General Services Agreement 18 Rev. February 8, 2017 Contractor and its employees shall regularly observe general conditions of all building areas and report problem areas to Contractor’s supervisor.Contractor shall be responsible for the knowledge and use of all building security alarms. In case of emergency, the Contractor's employees shall notify the City's Dispatch Center by dialing 911, then by calling or paging the Facility Maintenance Manager or Liaison immediately. For non-emergency repairs, the Contractor and its employees shall contact the Facility Project Manager. Contractor shall turn off lights and secure doors when cleaning is completed in each area. p.(omitted) r. Safety Program Contractor shall provide periodic worker training per OSHA regulations on 1.safe work habits 2.safe use of cleaning chemicals 3.how to use MSDS sheets 4.safe use of equipment 5.proper use of cautions signs, barriers, or other devices 6.proper handling of hazardous materials, biological waste, and blood- borne pathogens. Safety Procedures All cleaning chemicals shall be stored in properly labeled containers at all times and secured. s. Supplies and Equipment 1. Contractor shall supply and fully stock each facility for daily use and special events.Where facilities on-site space for custodial supplies, cleaning chemicals, and equipment is not adequate contractor will need to provide alternate means. 2. Contractor shall furnish and keep in good working order all necessary tools and equipment such as,but not limited to cleaning supplies, mops, brooms, buffers, ladders, hoses, vacuums, etc. All supplies and/or equipment used by Contractor must be approved by the City’s Facilities Project Manager, or his designee.Any non-complying equipment or supplies shall be changed out at the request of the City’s Facilities Project Manager or his designee. Janitorial closets areas shall be kept clean and free of debris and odor at all times. All supplies and equipment shall be stored in a neat and orderly manner and in such a way as to prevent injury to City or contractor's employees. An equipment inventory is to be kept with the Contractor's on-site supervisor. City of Palo Alto General Services Agreement 19 Rev. February 8, 2017 3. Contractor shall provide all expendable supplies such as toilet paper; paper towels, toilet seat covers;appropriate trash, compost, recycling,and sanitary napkin can liners; liquid hand soap;feminine hygiene products, and waste collection liners. Contractor shall fill all restroom soap dispensers daily. Contractor shall maintain a minimum of one (1) week’s supply of all expendable supplies in all facilities at all times during the life of the contract that can be utilized by City personnel for the purpose of restocking the facilities’ dispensers if needed. All products listed above shall conform to existing dispensers established in all City facilities and approved by the Project Manager of this Agreement. City will supply a list of products that they currently specify. These products may be substituted with an equivalent or better product with pre-approval from the City’s Facilities Project Manager. Product and dispenser types may change over the term of the Agreement. Compostable plastic bags must be used in compost bins and must meet the following standards: Biodegradable Products Institute (BPI), non Genetically Modified Organism (GMO) preferred, www.bpiworld.org http://www.bpiworld.org/BPI-Public/Approved/1.html. Bags must be of sufficient thickness and within date shelf-life to prevent breakage during waste collection handling. Antibacterial hand soaps are not permitted. t.Contractor shall utilize vacuum cleaners that meet the requirements of the Carpet and Rug Institute “Green Label” Testing Program – Vacuum Cleaner Criteria, that are capable of capturing 96% of particulates 0.3 microns in size, and operate with a sound level less than 70dBA.Other janitorial cleaning equipment shall be capable of capturing fine particulates, removing sufficient moisture so as to dry within 24 hours, operate with a sound level less than 70dBA, and use high- efficiency, low-emissions engines.Upright vacuum cleaners with brush drive systems must be used unless otherwise approved by City for certain applications and locations. u. Janitorial Products/Supplies Contractor shall supply industrial and institutional cleaning products and supplies that are environmentally preferable.The City defines environmentally preferable cleaning products and supplies as those that are Green Seal Certified. Cleaning chemicals, liquid hand soap,and floor care products must be certified through Green Seal GS-37 and GS-40. City of Palo Alto General Services Agreement 20 Rev. February 8, 2017 Environmentally Preferable Cleaning Products, outlined in these specifications, are to be used at all times. Contractor shall use only environmental preferable products (Green Seal Certified) in the following categories: 1. General Purpose Cleaners 2. Bathroom Cleaners 3. Glass Cleaners 4. Cleaners/Degreasers 5. Floor Cleaners 6. Floor Care: Finishes and Strippers 7. Liquid Hand Soap 8. Toilet seat covers need to be biodegradable 9. Toilet Paper Chemicals used for disinfection of blood and other potentially infectious material shall be on EPA's list of registered antimicrobial products effective against blood borne/body fluid pathogens. Mop heads must be replaced after use for blood and body fluid clean up. Disinfectants and toilet bowl cleaners are not required to be Green Seal certified until they become readily available on the market. Training Mandatory Requirements – Contractor must provide sufficient training for their personnel for the products and methods outlined in this document that include Green Seal’s standard for Industrial and Institutional Cleaners (GS-37). Packaging Contractor’s primary packaging for selected janitorial cleaning products should be compliant with Green Seal’s standard for Industrial and Institutional Cleaners (GS-37). Labeling Requirements Contractor selected products must meet the labeling requirements outlined in Green Seal’s standard for Industrial and Institutional Cleaners (GS-37). Dispensing Equipment Contractor may request the option for dispensing equipment that reduces worker exposure to chemicals and promotes the appropriate use of the cleaners. This option will depend on site conditions and must be pre-approved by the Facilities Project Manager. Contractor must provide a description of available equipment and information on the features that reduce risk and exposure. A detailed description of the recommended dilution and/or dispensing system, including benefits, should be included. v. Paper Product Specifications City of Palo Alto General Services Agreement 21 Rev. February 8, 2017 Recycled Content For use in City facilities, contractors will purchase products that contain the highest post-consumer content available that meets the City’s Facilities Department performance requirements and approved by the City’s Facilities Project Manager Prior to start of service, Contractor must provide a complete final list of products, including Material Safety Data Sheets and Product Data Sheets showing amount of recycled content, they will use. Changes to any products and/or product lists used as part of this Agreement must be submitted in writing to the City’s Facilities Project Manager along with any new Material Safety Data Sheets. Non-compliant products must be removed immediately from the building. Chlorine-Free For use in City facilities, Contractor will purchase paper, paper products, and janitorial paper products that are unbleached or that are processed without chlorine or chlorine derivatives to minimize dioxin formation and other toxic pollutants. Process chlorine free (PCF) paper is the preferred environmental option, whereas elemental chlorine free (ECF) processes should include enhanced processes such as extended and oxygen delignification wherever possible. Recycled Content It is desired that products procured through this contract contain the highest post-consumer content practicable, as approved by City’s Facilities Project Manager, using the U.S.EPA’s Comprehensive Procurement Guidelines that specify ranges of minimum recycled content standards for diverse categories representing product types (www.epa.gov/epaoswer/non- hw/procure/products.htm). w. Materials Management: Compost, Recycling and City Pickup Specifications Contractor will be responsible for the following actions: Collect and remove all compost, recyclables, and trash from the Entire Facility of all identified facilities per the schedule in this Agreement. “Entire Facility” means the lobby, the indoor and immediate outdoor public areas, the hallways, the conference rooms, the restrooms, the lunchrooms and kitchens, the office areas, etc. Replace appropriate liners in each receptacle. Liners can only be reused if it is clean and intact. Receptacles are to be returned to their initial locations. Boxes, cans, papers, etc placed near a trash receptacle and marked “trash”or “recycle” shall also be removed. Any other items not marked shall not be removed. City of Palo Alto General Services Agreement 22 Rev. February 8, 2017 Do not drag waste collection bags. Liquid leaking from plastic bags being removed from waste receptacles shall be immediately cleaned. Deliver emptied compost, recyclables and trash to the waste collection area located at each facility and place in proper bin to ensure successful sorting of these waste streams. Dumpsters and totes shall be closed after use. Maintain waste collection areas free of debris and trash. Break down, flatten and place all cardboard in dumpster, toter or other container labeled for cardboard recycling. Modify waste collection procedures upon request of the Facilities Maintenance Manager. Revise schedule, location for loading and unloading, waste collection procedures as directed by the Facilities Maintenance Manager. 4. TRANSITION PLAN CONTRACTOR shall provide a transition plan to CITY for review and approval prior to start of servicing.. The transition plan shall include items such as a staffing plan, work schedule, chemical and material supply plan, security clearances, badging, keys, site training, etc. CONTRACTOR shall submit the following items to the City’s Facilities Project Manager within fourteen (14) days of the contract award date: 1.A complete work schedule for daily, weekly, monthly, quarterly, semi-annual and annual service for all facilities. 2.The name of the person assigned as the Contractor’s Project Manager with full authority to administer the terms of this contract. Contractor’s Project Manager shall have the capability to receive complaints by telephone and email to facilitate timely corrective actions. This representative shall be available Monday through Friday 7:30am through 5:00pm. 3.The names and contact information for Contractor’s supervisors or lead personnel during all work shifts who can be contacted for notification of schedule changes, emergencies, or other issues that come up after normal business hours. 4.A schedule of all Contractor’s employees and the buildings to which they are assigned, along with the labor-hours to perform the required work at each building. 5.A list of all cleaning and floor products and supplies such as liquid hand soap (must be Green Seal Certified, except disinfectants and City of Palo Alto General Services Agreement 23 Rev. February 8, 2017 toilet bowl cleaners) that will be utilized and a description of what each product will be used for. 6.A copy of the Material Safety Data Sheet (MSDS) and Product Data Sheet verifying Green Seal Certification for all chemicals and liquid hand soap that will be used in the performance of the contract. MSDS to be updated as necessary after the initial submission. 7.Product Data Sheet of all paper products to be provided showing the percentage of post-consumer recycled content 5.ADDITIONAL SERVICES The following are not included in the regular services under the Schedule of Performance to this Agreement and related services described above in this Scope of Services (collectively referred to as the “Basic Services” or “Services”). Requests for the following services shall be treated as Additional Services under this Agreement. a.Special Event Service CONTRACTOR can expect to support (i) special events during and outside of normal duty hours for additional service cleaning beyond routine services or (ii) special functions at City facilities for meetings, social events, open houses or dignitary visits, etc. CONTRACTOR shall adjust the service schedule so that these services will be performed after the event. In cases where the work is outside the normal work schedule, CONTRACTOR shall charge the applicable hourly rates per person for the special assignment listed in the billing rate schedule (Schedule C-1 Hour Rate Sheet). Adjusted work schedules that are outside the normal work schedule need to be pre-authorized by City’s Facilities Project Manager. b.Emergency Work Emergency work shall require a shortened response time of one (1) hour when Contractor has scheduled staff on-site and two (2)hours when no scheduled staff is on-site, depending on the nature of said work. CONTRACTOR shall have sufficient labor and call-out procedures to assume that staffing is available to allow for this type of unplanned requirement. CITY will work with CONTRACTOR to develop a specific procedure required to react to emergency situations. City of Palo Alto General Services Agreement 24 Rev. February 8, 2017 EXHIBIT B SCHEDULE OF PERFORMANCE A.Service Locations and Specifications Contractor shall furnish the following services at the designated frequencies at each of the listed facilities. Each servicing shall include performance of all duties listed. Contractor shall supply and stock all required products at each facility with each servicing. B.Work Schedule Janitorial services for City Hall are to be provided five (5) days per week, Monday through Friday, between the hours of 6:00 PM and 2:30 AM. Janitorial services for all other locations listed are to occur between ½ hour after building closure to 2 hours before City Staff starts occupying the building the next day, unless otherwise specified below or by the City’s Facilities Project Manager. Work schedules will need to be adjusted as required for special events or meetings that conflict with normal cleaning schedules. C.Holidays There are 11 City holidays on which the Contractor may need to provide service to City facilities, upon request from the City’s Facility Maintenance Division. Holiday service is listed in the work schedules below. DATE January 1 -New Year’s Day 3rd Monday in January -Martin Luther King Jr. 3rd Monday in February -Lincoln’s Birthday Last Monday in May –Memorial Day 4th of July 1st Monday of September -Labor Day 2nd Monday of October –Columbus Day November 11 -Veteran’s Day Thanksgiving Day (2 days) December 25 -Christmas Day D.Responsibility of Contractor City of Palo Alto General Services Agreement 25 Rev. February 8, 2017 City assumes no responsibility whatsoever for loss or damage of equipment owned or operated by the Contractor, its agents or employees. City of Palo Alto General Services Agreement 26 Rev. February 8, 2017 Facility:Airport Location:1925 Embarcadero Rd. Total Square Feet:12,000 Terminal Bldg (lobby, offices,2 restrooms, hall, storage room) + 718 Hanger Bldg (lobby, 3 restrooms, storage room, two offices) Servicing Frequency:Seven Days per Week + holidays, (day service) Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Seven days per week Type of Service:Entire Facility Empty counter garbage, all central garbage, and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost and central garbage containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Frequency:Seven days per week Type of Service:Entire Facility. Empty all recycling containers each service day. Clean recycling containers when necessary. Replace central recycling liner with proper type, size and depth. City of Palo Alto General Services Agreement 27 Rev. February 8, 2017 Frequency:Seven days per week Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Animal Services Buildings Location:3281 East Bayshore Blvd. City of Palo Alto General Services Agreement 28 Rev. February 8, 2017 Total Square Feet:5,657 Servicing Frequency:Six Days per Week, (Monday through Saturday) Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Monday through Friday Type of Service:(lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly-Detailed Cleaning Protocol (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). City of Palo Alto General Services Agreement 29 Rev. February 8, 2017 Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Arastradero Gateway Facility Location:1530 Arastradero Rd. Total Square Feet:969 Servicing Frequency:Three Days per Week (Sunday, Tuesday, and Friday, 6 am, including holidays) Type of Service:Restrooms -Complete servicing. Empty all recycling containers once per week on Fridays. Empty all garbage and compost containers in all restrooms. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed Empty City of Palo Alto General Services Agreement 30 Rev. February 8, 2017 and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed, all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only).Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Secure facility after service. Frequency:Three Days per Week (Sunday, Tuesday, and Friday, 6 am, including holidays) Entire restroom including walls (porous walls excluded), toilet partitions, floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Type of Service:Meeting Room The sealed cement floors of the main meeting room (432 square feet) are to be mopped, stripped and resealed. Frequency:Quarterly Facility:The Art Center Location:1313 Newell Rd. Total Square Feet:26,441 Servicing Frequency: Six Days per Week, (Tuesday through Sunday) –Full Service Mondays only (extra wet clean of ceramic studio floors) Mid-day restroom service in Children’s wing (2 months during summer) City of Palo Alto General Services Agreement 31 Rev. February 8, 2017 Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Tuesday through Sunday Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. ·Ceramic studio floors due to clay dust hazard must be wet cleaned only. Several consecutive cleanings each service day may be required to provide streak free floors. Frequency:Tuesday through Sunday Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). City of Palo Alto General Services Agreement 32 Rev. February 8, 2017 Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Baylands Interpretive Center Location:2775 Embarcadero Rd. Total Square Feet:3,600 Servicing Frequency:Five Days per Week, (Monday through Friday) Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall City of Palo Alto General Services Agreement 33 Rev. February 8, 2017 areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Monday through Friday Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Monthly Type of Service:Entire Facility Strip and refinish all tiled and linoleum floor areas. Frequency:Four Times Annually Type of Service:Entire Facility City of Palo Alto General Services Agreement 34 Rev. February 8, 2017 Spray Buff with a high-speed buffer all tiled and linoleum and floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Children’s Library Location:1275 Harriet St. Total Square Feet:3,264 Servicing Frequency:Seven days a week, twice daily (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes lobbies and restrooms only. Full service after business hour closing. Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush City of Palo Alto General Services Agreement 35 Rev. February 8, 2017 and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:All items daily, trash pickup, dispenser filling and any required surface cleaning twice daily. Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Daily Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility City of Palo Alto General Services Agreement 36 Rev. February 8, 2017 Clean all counters and table top surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean trash and debris from fireplace. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Children’s Theater Location:1305 Middlefield Rd. Total Square Feet:17,619 Servicing Frequency:Six Days per Week, (Tuesday through Sunday) Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Tuesday through Sunday Type of Service:Entire Facility (including auditorium) Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all City of Palo Alto General Services Agreement 37 Rev. February 8, 2017 trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Tuesday through Sunday Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and table top surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from walls and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually City of Palo Alto General Services Agreement 38 Rev. February 8, 2017 Facility:City Hall Location:250 Hamilton Ave. Total Building Square Feet:104,893 Servicing Frequency:Five days a week, twice daily (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes entry lobbies, elevators, and restrooms only on all floors. Full service after business hour closing. Type of Service:All restrooms not located in the Police Department -Complete servicing. Empty all garbage and compost containers in all restrooms serviced each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Clean all compost and garbage containers when necessary. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill as needed, all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops*, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. *G Level and 7th Floor restroom countertops must only be cleaned with pH neutral chemicals and waxed with an automotive car wax that contains no polishing compounds monthly. Do not allow overspray from glass cleaner for mirror to get on countertop. Frequency:Monday through Friday Type of Service:Entire Facility (including Cafeteria (public area), excluding Police Dept. City of Palo Alto General Services Agreement 39 Rev. February 8, 2017 Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth (includes cafeteria and break rooms). Clean central compost, central garbage, and all recycling containers when necessary. Vacuum carpeted floors and sweep and mop hard floors including any stairwells, offices, and open space areas daily, M-F. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on building entry and elevator lobby doors, public counter windows, and interior Council Chamber entry doors. Wipe down metal interior and exterior elevator panels with damp cloth and water. (do not spray any liquids on floor selection button panel or use any chemicals to clean elevator cabs). Clean tops of all conference room tables and lobby furniture tables. Frequency:Monday through Friday Type of Service:Entire Facility. Empty all desk side and central recycling containers each service day. Replace central recycling liner as with proper type, size and depth. Frequency:Monday through Friday Type of Service:Entire Facility (office area lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior only. Frequency:Once Annually Type of Service:Entire Facility, (cafeteria, restrooms, hallways, elevators and lobby areas only) Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually City of Palo Alto General Services Agreement 40 Rev. February 8, 2017 Type of Service:Entire Facility, (cafeteria, restrooms, hallways, elevators and lobby areas only) Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Dust public areas. Polish metal door pulls, door plates, and other metal fixtures. Polish wood furniture in 1st floor reception area and Council Chamber, all conference rooms. Clean marks from glass in conference rooms. Frequency:Monthly Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:College Terrace Library Location:2300 Wellesley St. Total Square Feet:5,050 Servicing Frequency:Four Days per Week, (Tues, Wed, Fri, & Sat), twice daily (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes lobbies and restrooms only. Full service after business hour closing. One Day per Week, (Monday) Public restroom cleaning only. Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all City of Palo Alto General Services Agreement 41 Rev. February 8, 2017 sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Mon,Tues, Wed, Fri, & Sat Restrooms shared with adjacent Day Care Center needs to be serviced six days per week, Mon through Sat. Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Tues, Wed, Fri, & Sat Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. City of Palo Alto General Services Agreement 42 Rev. February 8, 2017 Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Community Theater Location:1305 Middlefield Rd. Total Square Feet:33,716 Servicing Frequency:Six Days per Week, (Tuesday through Sunday) Type of Service:Restrooms / Showers-Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. All shower areas are to be kept free of mildew, hair, dirt and soap scum. Clean and disinfect all floor City of Palo Alto General Services Agreement 43 Rev. February 8, 2017 mats, benches and tiled areas. Pour one gallon of water down each floor drain. Frequency:Tuesday through Sunday Type of Service:Entire Facility (including auditorium) Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables.Secure facility and set alarm. Frequency:Tuesday through Sunday Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility City of Palo Alto General Services Agreement 44 Rev. February 8, 2017 Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Development Center Location:285 Hamilton Ave. Total Square Feet:10,700 Servicing Frequency:Five Days per Week, (Monday through Friday) Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility Empty counter garbage, all central garbage, and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost and central garbage containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from City of Palo Alto General Services Agreement 45 Rev. February 8, 2017 glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Monday through Friday Type of Service:Entire Facility. Empty all recycling containers each service day. Clean recycling containers when necessary. Replace central recycling liner with proper type, size and depth. Recycle cardboard to cardboard recycling dumpster. Recycle blueprints to recycle collection bin at outside location. Transport polystyrene “blocks” and “peanuts” to specified containers located at the Civic Center. Check the designated collector/hauler garbage containers located outside the building, to see if cardboard is present. If cardboard is present, flatten if needed, and recycle on site to recycling dumpster . Frequency:Monday through Friday. Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility City of Palo Alto General Services Agreement 46 Rev. February 8, 2017 Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Downtown Library Location:270 Forest Ave. Total Square Feet:8,741 Servicing Frequency:Five Days per Week, (Tues, Wed, Thurs, Fri, & Sat), twice daily (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes lobbies and restrooms only. Full service after business hour closing. Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Tues, Wed, Thurs, & Sat Type of Service:Entire Facility City of Palo Alto General Services Agreement 47 Rev. February 8, 2017 Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Tues, Wed, Thurs, & Sat Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs,etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility City of Palo Alto General Services Agreement 48 Rev. February 8, 2017 Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Foothills Park (Interpretive Center, Oak Grove, Orchard Glen, Entrance Gate/Toyon Trail) Location:3300 Page Mill Road Total Square Feet:5,035 Servicing Frequency:Three Days per Week (Sunday, Tuesday, and Friday, 7 am, including holidays) Type of Service:Restrooms -Complete servicing. Empty all trash and waste containers in all restrooms each service day. All waste containers to be kept lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all dispensers and fixtures clean. Sanitize changing stations. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Lock restroom doors after daily service where applicable. All park restrooms are to remain open during daylight hours. Entire restroom (excluding Interpretive Center) including walls (porous walls excluded), toilet partitions, floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. City of Palo Alto General Services Agreement 49 Rev. February 8, 2017 Frequency:Three Days per Week (Sunday, Tuesday, and Friday, 7 am, including holidays) Type of Service:Entire Facility. Empty all recycling containers once per week on Fridays. Replace central recycling liner with proper type, size and depth. Clean recycling containers when necessary. Empty all central garbage and central compost containers once per week on Fridays and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners) all areas, and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Three Days per Week (Sunday, Tuesday, and Friday, 7 am, including holidays) Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Two Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. City of Palo Alto General Services Agreement 50 Rev. February 8, 2017 Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Golf Course Restrooms Location:1875 Embarcadero Rd. Club House Restrooms Total Square Feet:900 Frequency:Seven days a week, twice daily + holidays (once between 11:00 am and noon, once at dusk). Both full services. Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Clean compost and garbage containers when necessary. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only).Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Lock restrooms doors after final daily service. City of Palo Alto General Services Agreement 51 Rev. February 8, 2017 Entire restroom including walls (porous walls excluded), toilet partitions, floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Field Restrooms Total Square Feet:242 Frequency:Seven days a week, twice daily + holidays (once between 11:00 am and noon, once at dusk). Both full services. Type of Service:Restrooms -Complete servicing. Empty all trash and waste containers in all restrooms each service day. All waste containers to be kept lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only).Clean mirrors and keep all chrome fixtures clean. Clean sinks, drains, counter tops, toilet bowls and urinals with brush and disinfectant cleaner. Entire restroom including walls (porous walls excluded), floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Facility:Junior Museum City of Palo Alto General Services Agreement 52 Rev. February 8, 2017 Location:1305 Middlefield Rd. Total Square Feet:5,856 Jr Museum, (excludes live animal exhibits) –14,552 sf per concept design (new bldg. phase 1 to be completed late 2020, includes larger work areas and 4 restrooms (9 toilets, 4 urinals, 9 sinks, and 1 shower room) Servicing Frequency:Seven Days per Week + holidays Tuesday through Sunday, twice daily (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes lobbies and restrooms only. Full service after business hour closing. Monday (one mid-day service only in lobby, restrooms, and zoo feeding room only). Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:All items daily, trash pickup, dispenser filling and any required surface cleaning twice daily. Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central City of Palo Alto General Services Agreement 53 Rev. February 8, 2017 garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Daily Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually City of Palo Alto General Services Agreement 54 Rev. February 8, 2017 Facility:Landfill Office and Toll Booth Location:2380 Embarcadero Rd. Total Square Feet:1,488 Servicing Frequency:Five Days per Week, (Monday through Friday) Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Monday through Friday Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. City of Palo Alto General Services Agreement 55 Rev. February 8, 2017 Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Rinconada Library Location:1213 Newell Rd. Total Square Feet:26,582 Servicing Frequency:Seven Days per Week, twice daily (once mid-day (mid-way through operating hours), once after closing) City of Palo Alto General Services Agreement 56 Rev. February 8, 2017 Mid-day service includes lobbies and restrooms only. Full service after business hour closing. Type of Service:Restrooms -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:All items daily, trash pickup, dispenser filling and any required surface cleaning twice daily. Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Daily Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). City of Palo Alto General Services Agreement 57 Rev. February 8, 2017 Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and table top surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean trash and debris from fireplace. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Mitchell Park Library and Mitchell Park Community Center Location:3700 Middlefield Rd. Total Square Feet:Mitchell Park Library -40,152 sf Mitchell Park Community Center –16,180 sf Servicing Frequency:Seven Days per Week, twice daily (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes lobbies and restrooms only. Full service after business hour closing. City of Palo Alto General Services Agreement 58 Rev. February 8, 2017 Type of Service:Restrooms / Showers -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, toilet bowls and urinals with brush and disinfectant cleaner. All shower areas are to be kept free of mildew, hair, dirt and soap scum. Clean and disinfect all floor mats, benches and tiled areas. Pour one gallon of water down each floor drain. Frequency:Daily Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Daily Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility City of Palo Alto General Services Agreement 59 Rev. February 8, 2017 Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Municipal Service Center Buildings (A,B,C, & SCADA) Location:3201 East Bayshore Rd. & 3241 East Bayshore Rd. Total Square Feet:76,634 Servicing Frequency:Five Days per Week, (Monday through Friday), twice daily for MSC A, B, C only (once mid-day (mid-way through operating hours), once after closing) Mid-day service includes restrooms only. Full service after business hour closing. Servicing Frequency:Five Days per Week, (Monday through Friday) City of Palo Alto General Services Agreement 60 Rev. February 8, 2017 SCADA – service only between the hours of 4pm and 9pm. Type of Service:Restrooms / Showers -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, toilet bowls and urinals with brush and disinfectant cleaner. All shower areas are to be kept free of mildew, hair, dirt and soap scum. Clean and disinfect all floor mats, benches and tiled areas. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility (including offices, locker rooms, lunch rooms, conference rooms, shops and fueling station) Empty all inside central garbage and central compost containers each service day and replace liner with proper type, size and depth. Empty all outside central garbage and central compost containers once per week and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility. Frequency:Monday through Friday Type of Service:Entire Facility (including offices, locker room, lunch rooms, conference room, and limited shop areas) Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Clean recycling containers when necessary. Frequency:Monday City of Palo Alto General Services Agreement 61 Rev. February 8, 2017 Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Type of Service:Building B Exercise Room Disinfect all equipment with proper cleanser. Detail vacuum between and under weight benches and machines. Frequency:Twice Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually City of Palo Alto General Services Agreement 62 Rev. February 8, 2017 Facility:All Park Restrooms Locations:Rinconada Park 777 Embarcadero Rd. 511 sq. ft. Mitchell Park 600 E. Meadow (two sets)1,363 sq. ft. Peers Park 1899 Park Ave.1,046 sq. ft. El Camino Park 100 El Camino Real 272 sq. ft. Greer Park 1098 Amarillo Ave. 597 sq. ft. Baylands Park 1785 Embarcadero Rd. 843 sq. ft. Byxbee Park 2380 Embarcadero Rd. 568 sq. ft. Hoover Park 2901 Cowper St. 500 sq. ft. Stanford Fields 2700 El Camino Real 1,080 sq. ft. Seale Park 3100 Stockton Place 120 sq. ft. Briones 609 Maybell Ave 120 sq. ft. Frequency:Seven days a week +holidays after park closing, except at locations where no restroom lighting is available –one hour before closing). Additional Mid-day service on Saturdays, Sundays, and Holidays for Stanford Fields, Mitchell Park, Greer Park, El Camino Park, Rinconada Park, and Peers Park (between 11 through 2pm). Type of Service:Restrooms -Complete servicing at each service. Empty all trash and waste containers in all restrooms. All waste containers to be kept lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Clean mirrors and keep all dispensers and fixtures clean. Sanitize changing stations. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Lock restroom doors after daily service where applicable. All park restrooms are to remain open during daylight hours. City of Palo Alto General Services Agreement 63 Rev. February 8, 2017 Entire restroom including walls (porous walls excluded), toilet partitions, floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Facility:Rinconada Pool Office and Shower Rooms Location:777 Embarcadero Rd. Total Square Feet:3,585 Servicing Frequency:Seven Days per Week Type of Service:Restrooms / Showers -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. All shower areas are to be kept free of mold/mildew, stains, hair, dirt, and soap scum. Clean and disinfect all floor mats, benches and tiled areas. Clean floor under floor mats. Pour one gallon of water down each floor drain. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Frequency:Daily City of Palo Alto General Services Agreement 64 Rev. February 8, 2017 Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean all table tops. Secure facility and set alarm. Frequency:Daily Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Utilities Offices Location:1005 &1007 Elwell Ct. Total Square Feet:16,157 Servicing Frequency:Five Days per Week, (Monday through Friday) City of Palo Alto General Services Agreement 65 Rev. February 8, 2017 Type of Service:Restrooms / Showers -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, toilet bowls and urinals with brush and disinfectant cleaner. All shower areas are to be kept free of mildew, hair, dirt and soap scum. Clean and disinfect all floor mats, benches and tiled areas. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Monday through Friday Type of Service:Entire Facility. Empty all central recycling containers each service day. Replace central recycling liner with proper type, size and depth. Check the designated collector/hauler garbage containers located outside the building, to see if cardboard is present. If cardboard is present, flatten if needed, and transport material to designated recycling container. Frequency:Tuesdays and Thursdays Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, and table top surfaces throughout office areas. Clean exterior and interior City of Palo Alto General Services Agreement 66 Rev. February 8, 2017 entrance ways and interior space removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Monthly Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Weekly kitchen cleaning, quarterly refrigerator cleaning (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean and dust all counters, cabinets, shelves, ledges, desks, and table top surfaces throughout office areas. Frequency:Twice Annually Facility:Water Quality Control Buildings Location:2501 Embarcadero Way Total Square Feet:12,400 (Admin, Lab, Maintenance Bldgs) Servicing Frequency:Five Days per Week City of Palo Alto General Services Agreement 67 Rev. February 8, 2017 Type of Service:Restrooms / Showers -Complete servicing. Empty all garbage and compost containers in all restrooms each service day. All garbage and compost containers to be kept cleaned and lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains; counter tops, toilet bowls and urinals with brush and disinfectant cleaner. All shower areas are to be kept free of mildew, hair, dirt and soap scum. Clean and disinfect all floor mats, benches and tiled areas. Pour one gallon of water down each floor drain. Frequency:Monday through Friday Type of Service:Entire Facility Empty all recycling containers each service day. Replace central recycling liner with proper type, size and depth. Empty all central garbage and central compost containers each service day and replace liner with proper type, size and depth. Clean central compost, central garbage, and all recycling containers when necessary. Vacuum all carpeted floors including any stairwells, offices, and open space areas. Sweep, damp mop (with proper disinfectant cleaners), and dispose of all trash items on all non-carpeted floors. Remove cobwebs from interior spaces and exterior spaces (exterior: up to one story building only). Refill towel dispensers. Clean marks from glass on entry doors. Clean tops of all conference room tables and lobby furniture tables. Secure facility and set alarm. Frequency:Monday through Friday Type of Service:Entire Facility (lunch rooms and break areas) Clean all counters and tabletop surfaces, chairs, sinks, microwaves and refrigerators (inside and out). Wipe down cabinet fronts. Frequency:Quarterly (advance notice of work needs to be provided so users can clear items out of refrigerators, unmarked items are to be discarded from refrigerators at time of cleaning). Type of Service:Entire Facility Wash all windows, interior and exterior. City of Palo Alto General Services Agreement 68 Rev. February 8, 2017 Frequency:Twice Annually Type of Service:Entire Facility Strip and refinish all tiled, linoleum and wood floor areas. Frequency:Four Times Annually Type of Service:Entire Facility Spray Buff with a high-speed buffer all tiled, linoleum and wood floor areas. Frequency:Monthly Type of Service:Entire Facility Clean all counters and tabletop surfaces removing all graffiti, pen and pencil marks, dirt, etc. Clean exterior entranceways removing all dirt, cobwebs, etc. from wall and floor surfaces. Frequency:Four Times Annually Facility:PARKING FACILITY “Q” Location:400 Block of High St. Total Square Feet:48,000 Type of Service:Garage Areas Sweep and damp mop (with proper disinfectant cleaner) and remove cobwebs in all stairwells, landings, elevator platforms, and elevators. Wipe down the elevator walls with proper disinfectant cleaner. Remove any trash found in these areas. Empty and replace liners in all trash containers. Clean, sanitize, and deodorize any area that may have urine, human waste, blood or vomit. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). Reseal floors in elevators, stairwells, landings, and elevator platforms every six months. Facility:PARKING FACILITY “J” City of Palo Alto General Services Agreement 69 Rev. February 8, 2017 Location:520 Webster St. Total Square Feet:148,000 Type of Service:Garage Areas Sweep and damp mop (with proper disinfectant cleaner) and remove cobwebs in all stairwells, landings, elevator platforms, and elevators. Wipe down the elevator walls with proper disinfectant cleaner. Remove any trash found in these areas. Empty and replace liners in all trash containers. Remove trash from complete facility including parking areas, sidewalks, and ledges, around bike lockers and in storage areas. Clean, sanitize, and deodorize any area that may have urine, human waste, blood or vomit. Sweep and remove trash from sidewalk and around facility. Clean the alley between facility and businesses. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). Reseal floors in elevators, stairwells, landings, and elevator platforms every six months. Facility:PARKING FACILITY “S/L” Location:445 Bryant St. Total Square Feet:229,380 Type of Service:Restrooms -Complete servicing. Empty all trash and waste containers in all restrooms each service day. All waste containers to be kept lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, toilet bowls, changing City of Palo Alto General Services Agreement 70 Rev. February 8, 2017 stations and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Entire restroom including walls (porous walls excluded), toilet partitions, floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). Type of Service:Garage Areas Sweep and damp mop (with proper disinfectant cleaner) and remove cobwebs in all stairwells, landings, elevator platforms, and elevators. Wipe down the elevator walls with proper disinfectant cleaner. Remove any trash found in these areas. Empty and replace liners in all trash containers. Clean, sanitize, and deodorize any area that may have urine, human waste, blood or vomit. Sweep and remove trash from sidewalk and around facility. Clean the alley between facility and businesses. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). Reseal floors in elevators, stairwells, landings, and elevator platforms every six months. Facility:PARKING FACILITY “R” Location:528 High St. Total Square Feet:93,930 City of Palo Alto General Services Agreement 71 Rev. February 8, 2017 Type of Service:Restrooms -Complete servicing. Empty all trash and waste containers in all restrooms each service day. All waste containers to be kept lined with proper liners, which must be replaced immediately when needed. Empty and replace with new liners all sanitary napkin receptacles. Replace and refill, as needed all dispensers and containers. Damp wipe toilet partitions and all wall areas showing any stains, spots, grime and/or any abuse in general. Remove any graffiti immediately from any surface as it appears, as well as "spitballs," etc. Clean mirrors and keep all chrome fixtures clean. Sweep floors and properly dispose of all trash items. Damp mop floor areas with disinfectant cleaner. Clean sinks, drains, counter tops, changing stations, toilet bowls and urinals with brush and disinfectant cleaner. Pour one gallon of water down each floor drain. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). Entire restroom including walls (porous walls excluded), toilet partitions, floors, and fixtures are to be hosed down and scrubbed with disinfectant cleaner monthly. Polish unpainted metal door pulls, door plates, metal fixtures, and toilet/urinal partitions quarterly. Reseal floors every six months. Type of Service:Garage Areas Sweep and damp mop (with proper disinfectant cleaner) and remove cobwebs in all stairwells, landings, elevator platforms, and elevators. Wipe down the elevator walls with proper disinfectant cleaner. Remove any trash found in these areas. Empty and replace liners in all trash containers. Clean, sanitize, and deodorize any area that may have urine, human waste, blood or vomit. Sweep and remove trash from sidewalk and around facility. Clean the alley between facility and businesses. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). City of Palo Alto General Services Agreement 72 Rev. February 8, 2017 Reseal floors in elevators, stairwells, landings, and elevator platforms every six months. Facility:CITY HALL PARKING GARAGE Location:250 Webster St. Total Square Feet:251,508 Type of Service:Garage Areas Sweep and damp mop (with proper disinfectant cleaner) and remove cobwebs in all stairwells, landings, elevator platforms, and elevators. Wipe down the elevator walls with proper disinfectant cleaner. Remove any trash found in these areas. Empty and replace liners in all trash containers. Remove trash from complete facility including parking areas, sidewalks, and ledges, around bike lockers and in storage areas. Clean, sanitize, and deodorize any area that may have urine, human waste, blood or vomit. Sweep and remove trash from plaza, sidewalk, and around facility. Frequency:Seven Days a Week + holidays (service only between the hours of 5am and 2:20pm). Reseal floors in elevators, stairwells, landings, and elevator platforms every six months. City of Palo Alto General Services Agreement 73 Rev. February 8, 2017 EXHIBIT C COMPENSATION AND SCHEDULE OF FEES CITY shall pay CONTRACTOR according to the following rate schedule. A.Maximum Compensation 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. As stated in Section 5 of the Agreement, CITY shall pay CONTRACTOR a maximum compensation amount not to exceed $10,652,615 which includes $10,145,347 for Basic Services and $507,268 for Additional Services over the term of the Agreement beginning September 1, 2017 and ending August 31, 2022. The maximum compensation on an annual basis are as follows: Year 1: Basic Services $1,910,922 Additional Services $95,546 Year 2: Basic Services $1,968,250 Additional Services $98,413 Year 3: Basic Services $2,027,298 Additional Services $101,365 Year 4: Basic Services $2,088,117 Additional Services $104,406 Year 5: Basic Service $2,150,760 Additional Services $107,538 B.Monthly Invoicing Invoicing is addressed in Section 8 of the Agreement. Contractor shall submit invoices monthly. Monthly invoices are to be itemized showing the monthly cost for each facility. Monthly costs for each facility to be determined from annual cost for each facility listed in spreadsheet below. Monthly costs and amounts used of itemized chemicals and supplies are to be reported on an Excel spreadsheet along with each monthly invoice. A sample of an itemized facility listing for invoicing is shown below. City of Palo Alto General Services Agreement 74 Rev. February 8, 2017 Facility Airport $ monthly cost Animal Services $ monthly cost Arastra Gateway $ monthly cost Art Center $ monthly cost Baylands Int. Center $ monthly cost Children's Library $ monthly cost Children's Theater $ monthly cost City Hall $ monthly cost College Terrace Library $ monthly cost Community Theater $ monthly cost Development Center $ monthly cost Downtown Library $ monthly cost Golf Course $ monthly cost Foothills Park $ monthly cost Jr. Museum $ monthly cost Landfill $ monthly cost Rinconada Library $ monthly cost Mitchell Park Library $ monthly cost Mitchell Park Comm Center $ monthly cost MSC & SCADA $ monthly cost All Park Restrooms $ monthly cost Rinconada Pool $ monthly cost Utility Offices $ monthly cost Water Quality Buildings $ monthly cost Parking Lot Q $ monthly cost Parking Lot R $ monthly cost Parking Lot S/L $ monthly cost Parking Lot J $ monthly cost Parking Lot City Hall $ monthly cost C.Additional Services Additional Work not defined in the Scope of Services (Basic Services), will be agreed upon by the CONTRACTOR and City at the hourly rates shown in Exhibit C-1 Hourly Rate Sheet. City of Palo Alto General Services Agreement 1 Rev. February 8, 2017 1. Minimum staffing of 28 custodians, 3 utility workers, 1 lead person, and 1 supervisor, 2. Minimum material cost of $9,000 per month, 3. Minimum wagelaws. Bid Item Facility Number of Staff Hours per Year * Year 1 Labor Cost per Year (in dollars) includes labor, profit, overhead, etc. * Year 1 Material and Chemical Supply Costs per Year (in dollars) Year 1 Total Cost (in dollars)* Year 2 Labor Cost per Year (in dollars) includes labor, profit, overhead, etc. * Year 2 Material and Chemical Supply Costs per Year (in dollars) Year 2 Total Cost (in dollars)* Year 3 Labor Cost per Year (in dollars) includes labor, profit, overhead, etc. * Year 3 Material and Chemical Supply Costs per Year (in dollars) Year 3 Total Cost (in dollars)* Year 4 Labor Cost per Year (in dollars) includes labor, profit, overhead, etc. * Year 4 Material and Chemical Supply Costs per Year (in dollars) Year 4 Total Cost (in dollars)* Year 5 Labor Cost per Year (in dollars) includes labor, profit, overhead, etc. * Year 5 Material and Chemical Supply Costs per Year (in dollars) Year 5 Total Cost (in dollars)Total Cost (All Five Years) (in dollars) 1 Airport 624 $ 18,891.85 $ 1,672.93 $20,565 19,458.61$ 1,723.11$ $21,182 20,042.37$ 1,774.81$ $21,817 20,643.64$ 1,828.05$ $22,472 21,262.95$ 1,882.89$ $23,146 $109,181.20 2 Animal Services 624 $ 18,891.85 $ 1,106.22 $19,998 19,458.61$ 1,139.41$ $20,598 20,042.37$ 1,173.59$ $21,216 20,643.64$ 1,208.80$ $21,852 21,262.95$ 1,245.06$ $22,508 $106,172.48 3 Arastra Gateway 260 $ 7,871.60 $ 460.06 $8,332 8,107.75$ 473.86$ $8,582 8,350.99$ 488.08$ $8,839 8,601.52$ 502.72$ $9,104 8,859.56$ 517.80$ $9,377 $44,233.94 4 Art Center 2808 $ 85,013.33 $ 4,660.54 $89,674 87,563.73$ 4,800.36$ $92,364 90,190.64$ 4,944.37$ $95,135 92,896.36$ 5,092.70$ $97,989 95,683.25$ 5,245.48$ $100,929 $476,090.76 5 Baylands Int. Center 390 $ 11,807.41 $ 474.46 $12,282 12,161.63$ 488.69$ $12,650 12,526.48$ 503.35$ $13,030 12,902.27$ 518.45$ $13,421 13,289.34$ 534.01$ $13,823 $65,206.10 6 Children's Library 1456 $ 44,080.99 $ 1,526.70 $45,608 45,403.42$ 1,572.50$ $46,976 46,765.52$ 1,619.68$ $48,385 48,168.48$ 1,668.27$ $49,837 49,613.54$ 1,718.32$ $51,332 $242,137.42 7 Children's Theater 936 $ 28,337.78 $ 3,765.09 $32,103 29,187.91$ 3,878.05$ $33,066 30,063.55$ 3,994.39$ $34,058 30,965.45$ 4,114.22$ $35,080 31,894.42$ 4,237.65$ $36,132 $170,438.50 8 City Hall 9750 $ 295,185.18 $ 21,774.04 $316,959 304,040.74$ 22,427.26$ $326,468 313,161.96$ 23,100.07$ $336,262 322,556.82$ 23,793.08$ $346,350 332,233.52$ 24,506.87$ $356,740 $1,682,779.52 9 College Terrace Library 624 $ 18,891.85 $ 2,098.81 $20,991 19,458.61$ 2,161.77$ $21,620 20,042.37$ 2,226.63$ $22,269 20,643.64$ 2,293.43$ $22,937 21,262.95$ 2,362.23$ $23,625 $111,442.27 10 Community Theater 1248 $ 37,783.70 $ 2,703.65 $40,487 38,917.21$ 2,784.76$ $41,702 40,084.73$ 2,868.30$ $42,953 41,287.27$ 2,954.35$ $44,242 42,525.89$ 3,042.98$ $45,569 $214,952.84 11 Development Center 780 $ 23,614.81 $ 2,330.63 $25,945 24,323.26$ 2,400.55$ $26,724 25,052.96$ 2,472.57$ $27,526 25,804.55$ 2,546.75$ $28,351 26,578.68$ 2,623.15$ $29,202 $137,747.90 12 Downtown Library 1040 $ 31,486.42 $ 2,776.70 $34,263 32,431.01$ 2,860.01$ $35,291 33,403.94$ 2,945.81$ $36,350 34,406.06$ 3,034.18$ $37,440 35,438.24$ 3,125.21$ $38,563 $181,907.58 13 Foothills Park 780 $ 23,614.81 $ 966.55 $24,581 24,323.26$ 995.54$ $25,319 25,052.96$ 1,025.41$ $26,078 25,804.55$ 1,056.17$ $26,861 26,578.68$ 1,087.86$ $27,667 $130,505.79 14 Golf Course (Clubhouse + Field restrooms) 1820 $ 55,101.23 $ 1,789.69 $56,891 56,754.27$ 1,843.38$ $58,598 58,456.90$ 1,898.68$ $60,356 60,210.61$ 1,955.64$ $62,166 62,016.92$ 2,014.31$ $64,031 $302,041.62 15 Jr. Museum 1279.2 $ 38,728.30 $ 7,083.55 $45,812 39,890.14$ 7,296.05$ $47,186 41,086.85$ 7,514.93$ $48,602 42,319.45$ 7,740.38$ $50,060 43,589.04$ 7,972.59$ $51,562 $243,221.29 17 Landfill Office & Toll Booth 260 $ 7,871.60 $ 407.81 $8,279 8,107.75$ 420.04$ $8,528 8,350.99$ 432.64$ $8,784 8,601.52$ 445.62$ $9,047 8,859.56$ 458.99$ $9,319 $43,956.53 18 Rinconada Library 3276 $ 99,182.22 $ 8,428.16 $107,610 102,157.69$ 8,681.01$ $110,839 105,222.42$ 8,941.44$ $114,164 108,379.09$ 9,209.68$ $117,589 111,630.46$ 9,485.97$ $121,116 $571,318.13 19 Mitchell Park Library 7098 $ 214,894.81 $ 18,054.05 $232,949 221,341.66$ 18,595.67$ $239,937 227,981.90$ 19,153.54$ $247,135 234,821.36$ 19,728.14$ $254,550 241,866.00$ 20,319.99$ $262,186 $1,236,757.12 20 Mitchell Park Community Center 4004 $ 121,222.71 $ 5,235.77 $126,458 124,859.40$ 5,392.84$ $130,252 128,605.18$ 5,554.63$ $134,160 132,463.33$ 5,721.27$ $138,185 136,437.23$ 5,892.90$ $142,330 $671,385.25 21 MSC Buildings (A, B, C, & SCADA)5980 $ 181,046.91 $ 20,342.87 $201,390 186,478.32$ 20,953.16$ $207,431 192,072.67$ 21,581.75$ $213,654 197,834.85$ 22,229.20$ $220,064 203,769.89$ 22,896.08$ $226,666 $1,069,205.70 22 Rinconada Park 364 $ 11,020.25 $ 760.32 $11,781 11,350.85$ 783.12$ $12,134 11,691.38$ 806.62$ $12,498 12,042.12$ 830.82$ $12,873 12,403.38$ 855.74$ $13,259 $62,544.60 23 Mitchell Park 910 $ 27,550.62 $ 1,724.72 $29,275 28,377.14$ 1,776.47$ $30,154 29,228.45$ 1,829.76$ $31,058 30,105.30$ 1,884.65$ $31,990 31,008.46$ 1,941.19$ $32,950 $155,426.76 24 Peers Park 364 $ 11,020.25 $ 571.53 $11,592 11,350.85$ 588.67$ $11,940 11,691.38$ 606.33$ $12,298 12,042.12$ 624.52$ $12,667 12,403.38$ 643.26$ $13,047 $61,542.30 25 El Camino Park 546 $ 16,530.37 $ 777.47 $17,308 17,026.28$ 800.80$ $17,827 17,537.07$ 824.82$ $18,362 18,063.18$ 849.57$ $18,913 18,605.08$ 875.05$ $19,480 $91,889.70 26 Greer Park 546 $ 16,530.37 $ 747.78 $17,278 17,026.28$ 770.21$ $17,796 17,537.07$ 793.32$ $18,330 18,063.18$ 817.12$ $18,880 18,605.08$ 841.63$ $19,447 $91,732.05 27 Baylands Park 364 $ 11,020.25 $ 549.36 $11,570 11,350.85$ 565.84$ $11,917 11,691.38$ 582.82$ $12,274 12,042.12$ 600.30$ $12,642 12,403.38$ 618.31$ $13,022 $61,424.62 28 Byxbee Park 364 $ 11,020.25 $ 642.94 $11,663 11,350.85$ 662.22$ $12,013 11,691.38$ 682.09$ $12,373 12,042.12$ 702.55$ $12,745 12,403.38$ 723.63$ $13,127 $61,921.42 29 Hoover Park 364 $ 11,020.25 $ 388.31 $11,409 11,350.85$ 399.96$ $11,751 11,691.38$ 411.96$ $12,103 12,042.12$ 424.32$ $12,466 12,403.38$ 437.05$ $12,840 $60,569.58 30 Stanford Fields 728 $ 22,040.49 $ 1,032.56 $23,073 22,701.71$ 1,063.54$ $23,765 23,382.76$ 1,095.45$ $24,478 24,084.24$ 1,128.31$ $25,213 24,806.77$ 1,162.16$ $25,969 $122,498.00 31 Seale park 364 $ 11,020.25 $ 346.82 $11,367 11,350.85$ 357.23$ $11,708 11,691.38$ 367.94$ $12,059 12,042.12$ 378.98$ $12,421 12,403.38$ 390.35$ $12,794 $60,349.31 32 Briones Park 364 $ 11,020.25 $ 346.82 $11,367 11,350.85$ 357.23$ $11,708 11,691.38$ 367.94$ $12,059 12,042.12$ 378.98$ $12,421 12,403.38$ 390.35$ $12,794 $60,349.31 33 Rinconada Pool 2184 $ 66,121.48 $ 1,507.92 $67,629 68,105.12$ 1,553.16$ $69,658 70,148.28$ 1,599.75$ $71,748 72,252.73$ 1,647.74$ $73,900 74,420.31$ 1,697.18$ $76,117 $359,053.67 34 Utility Offices (1005 & 1007 Elwell)1560 $ 47,229.63 $ 2,673.90 $49,904 48,646.52$ 2,754.12$ $51,401 50,105.91$ 2,836.74$ $52,943 51,609.09$ 2,921.84$ $54,531 53,157.36$ 3,009.50$ $56,167 $264,944.61 35 Water Quality Buildings (Admin, Lab, Maint Bldgs) 1820 $ 55,101.23 $ 4,500.79 $59,602 56,754.27$ 4,635.81$ $61,390 58,456.90$ 4,774.89$ $63,232 60,210.61$ 4,918.14$ $65,129 62,016.92$ 5,065.68$ $67,083 $316,435.24 36 Parking Lot Q 364 $ 11,020.25 $ 141.11 $11,161 11,350.85$ 145.34$ $11,496 11,691.38$ 149.70$ $11,841 12,042.12$ 154.19$ $12,196 12,403.38$ 158.82$ $12,562 $59,257.16 37 Parking Lot R 546 $ 16,530.37 $ 307.97 $16,838 17,026.28$ 317.21$ $17,343 17,537.07$ 326.73$ $17,864 18,063.18$ 336.53$ $18,400 18,605.08$ 346.62$ $18,952 $89,397.03 38 Parking Lot S/L 910 $ 27,550.62 $ 394.49 $27,945 28,377.14$ 406.32$ $28,783 29,228.45$ 418.51$ $29,647 30,105.30$ 431.07$ $30,536 31,008.46$ 444.00$ $31,452 $148,364.37 39 Parking Lot J 546 $ 16,530.37 $ 184.37 $16,715 17,026.28$ 189.90$ $17,216 17,537.07$ 195.60$ $17,733 18,063.18$ 201.47$ $18,265 18,605.08$ 207.51$ $18,813 $88,740.83 40 City Hall Garage 728 $ 22,040.49 $ 227.63 $22,268 22,701.71$ 234.46$ $22,936 23,382.76$ 241.49$ $23,624 24,084.24$ 248.74$ $24,333 24,806.77$ 256.20$ $25,063 $118,224.49 $1,910,922.48 $1,968,250.16 $2,027,297.66 $2,088,116.59 $2,150,760.09 $10,145,346.97 City of Palo Alto General Services Agreement 1 Rev. February 8, 2017 EXHIBIT “C-1” -Hourly Rate Sheet SCHEDULE OF CONTRACTOR'S LABOR BILLIING RATES FOR ADDITIONAL SERVICES (BY LABOR CLASSIFICATION) Job Class/Title Rate Type Base Labor Rate Direct & Indirect Overhead Rate Mark Up Total Hourly Rate Custodian Straight $17.00 $8.23 $0.62 $25.85 Custodian Overtime $25.50 $9.13 $0.84 $35.48 UtilityWorker Straight $19.00 $8.95 $0.68 $28.63 UtilityWorker Overtime $28.50 $10.21 $0.94 $39.65 Lead Straight $21.00 $9.66 $0.75 $31.41 Lead Overtime $31.50 $11.28 $1.04 $43.82 Supervisor Straight $27.00 $11.81 $0.95 $39.76 Supervisor Overtime $40.50 $14.50 $1.34 $56.35 City of Palo Alto General Services Agreement 2 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 3 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 4 Rev. February 8, 2017 EXHIBIT “E” ANNUAL PERFORMANCE BOND WHEREAS, the City Council of the City of Palo Alto, State of California (“City”) and SWA Services Group, Inc. (“Principal”) have entered into an agreement dated September 1, 2017 and identified as “Janitorial Services”, which is hereby referred to and made a part hereof whereby Principal agrees to install and complete certain designated public improvements; and WHEREAS, Principal is required under the terms of said agreement to furnish a surety bond for the faithful performance of said agreement. NOW, THEREFORE, Principal and _______________________________________________, as Surety, incorporated under the Laws of the State of , and duly authorized to transact business as an admitted surety, under the Laws of the State of California, are held and firmly bound unto City in the penal sum of One Million Nine Hundred Ten Thousand Nine Hundred Twenty Two dollars ($1,910,922), for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. The condition of this obligation is such that if the Principal, Principal’s heirs, executors, administrators, successors, or assigns shall promptly and faithfully keep and perform the covenants, conditions, and provisions of the above-mentioned agreement and any alteration thereof, with or without notice to the Surety, and if Principal shall satisfy all claims and demands incurred under such agreement and shall fully protect, indemnify, defend, and hold harmless City, its officers, agents, and employees from all claims, demands, or liabilities which may arise by reason of Principal’s failure to do so, and shall reimburse and repay City all outlay and expenses which City may incur in making good any default, then this obligation shall be null and void; otherwise, it shall remain in full force and effect. As part of the obligations secured hereto, and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees incurred by City in successfully enforcing such obligations, all to be taxed as costs and included in any judgment rendered. Surety shall be liable for any liquidated damages for which the Principal may be liable under its agreement with the City, and such liquidated damages shall be part of the obligations secured hereto, and in addition to the face amount specified therefore. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same, shall in any way affect its obligations on this security, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the agreement or to the work or to the specifications. Surety hereby waives the provisions of California Civil Code Section 2845 and 2849. The City is the principal beneficiary of this bond and has all rights of a party hereto, City of Palo Alto General Services Agreement 5 Rev. February 8, 2017 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal Surety above named on _______________, 20_____. SURETY, PHONE NUMBER: BY: Its: Contractor: Principal: _________________________________________________ CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ) COUNTY OF ) On , before me, , a notary public in and for said County, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) City of Palo Alto General Services Agreement 6 Rev. February 8, 2017 EXHIBIT “F” LIQUIDATED DAMAGES THE PARTIES HERETO AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO DETERMINE THE ACTUAL DAMAGE TO THE CITY IF CONTRACTOR WERE TO TERMINATE THIS AGREEMENT PRIOR TO EXPIRATION OR OTHERWISE BREACH. IN ADDITION TO THE SERVICES PROVIDED, CITY EXPECTS TO RECEIVE OTHER BENEFIT FROM CONTRACTOR’S SERVICES. THE PARTIES MUTUALLY AGREE THAT LIQUIDATED DAMAGES SET FORTH IN BELOW ARE ACCEPTABLE TO EACH PARTY AND ARE A REASONABLE ESTIMATE OF CITY’S LOSS IF CONTRACTOR FAILS TO COMPLETE SERVICES IN ACCORDANCE WITH THE SCHEDULE OF PERFORMANCE AND/OR FAILS TO MEET THE PERFORMANCE STANDARDS. CITY’S ACCEPTANCE OF ANY LIQUIDATED DAMAGES AS A RESULT OF A PERFORMANCE STANDARD BREACH SHALL NOT PREVENT CITY FROM EXERCISING ANY OTHER RIGHT OR REMEDY FOR DEFAULT AVAILABLE TO CITY UNDER THIS AGREEMENT. Liquidated Damages (LDs) shall be incurred if Contractor fails to meet the performance standards and specifications as set forth in Exhibit A,Scope of Services, and Exhibit B, Schedule of Performance. The City will allow three (3) verified complaints for below standard cleaning service of any City facilities per month. (A “verified complaint” shall mean an observation of a cleaning deficiency by or confirmed by City Staff.) If a fourth verified complaint occurs, $250 will be deducted from the monthly price under the contract. Each additional complaint will result in an additional assessment of $150 per complaint to be deducted until the end of the month. a.CONTRACTOR shall respond to emergency calls related to feces, vomit, urine cleanup and to corrective actions calls for deficiency of service categorized as a major problem by correcting the deficiency within one (1) hour of the placement of the call when Contractor has scheduled staff on-site and within two (2) hours of the call when no scheduled staff is on-site. Examples of major problems are toilets and showers not being cleaned, overflowing waste receptacles, not stocking sufficient supplies, large amount of floor debris, etc. Minor problems that don’t require immediate attention shall be responded to and corrected by Contractor during the next day’s normal clean up. Examples of minor problems include but are not limited to: a partially full waste receptacle not emptied, a small area not vacuumed. Failure to correct a reported problem within the applicable time frame will result in one additional verified complaint. City of Palo Alto General Services Agreement 7 Rev. February 8, 2017 b. Contractor shall correct all items identified as deficiencies in City’s daily and weekly inspections within 24 hours of notification. Failure to resolve the items in the report within 24 hours will result in one additional verified complaint per item for each 24 hour period that the items remain unresolved. c. Contractor’s supervisor(s) or designee shall respond to calls from City staff within 30 minutes while on their scheduled shift and within 2 hours when they are outside their normal shift.Each failure to respond within this timeframe will result in one additional verified complaint. City of Palo Alto (ID # 8326) City Council Staff Report Report Type: Action Items Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Amend the Contract Between the Board of Administration of the California Public Employees’ Retiremen Title: Adoption of (1) Resolution of Intent and (2) Ordinance to Amend the Contract Between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to Implement the Share of Employer Contribution in Accordance With Section 20516 of the California Government Code and the Memorandum of Agreement Between the City of Palo Alto and Service Employees International Union (SEIU) Local 521, International Association of Fire Fighters (IAFF), Palo Alto Fire Chief's Association (FCA), Palo Alto Peace Officers' Association (PAPOA) and Palo Alto Police Management Association (PAPMA) From: City Manager Lead Department: Human Resources Recommendation Staff recommends the City Council: (1) Adopt the attached Resolution of Intention of the Council of the City of Palo Alto stating its intent to amend the contract between the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto in order to implement the pension cost share provision in accordance with California Government Code section 20516 and the Memoranda of Agreement between the City of Palo Alto and the following groups: (a) Service Employees International Union (SEIU), (b) Local 521 International Association of Fire Fighters (IAFF), (c) Palo Alto Fire Chief's Association (FCA), (d) Palo Alto Peace Officers' Association (PAPOA), and (e) Palo Alto Police Management Association (PAPMA). (2) Adopt, on first reading, the attached ordinance amending the City’s contract with CalPERS. This ordinance will return to the Council on second reading in accordance with state law. City of Palo Alto Page 2 Background In the most recent negotiations between the City and the represented labor units, the parties agreed to Memoranda of Agreement (MOAs) that include provisions for employees to accept a greater share of pension costs to assist in curtailing the City’s growing pension expense. While Council has already approved these provisions in the MOAs, approval of this resolution to amend the pension contracts is an administrative step required by CalPERS. The CalPERS contract amendment process is stringent and complex, which resulted in staff combining the implementation steps for these units. Following full execution of this contract amendment, the pension cost sharing agreement includes a phase-in schedule for the employee pick-up of the employer contribution. This chart outlines the total employee share over the current MOA contract term: Employee share of CalPERS Employer Contribution Following council approval of contract amendment with CalPERS Total contribution over the course of the current MOA IAFF 3.00% 3.00% FCA 3.00% 3.00% PAPOA 3.00% 3.00% PAPMA 3.00% 3.00% SEIU 0.50% 1.00% Management and Professional* 1.00% UMPAPA** 0.00% N/A *Unrepresented groups require additional steps before the resolution can be brought before Council. Additional amendments will be brought forward for City Council review once these additional steps are completed. ** No current agreement for a cost share of the CalPERS Employer contribution has been reached with the Utilities Management group at this time. Discussion The first step in the process is for the Council to adopt a Resolution of Intent and conduct a first reading of the ordinance amending the California Public Employees Retirement System (CalPERS) contract. An amendment to the contract, which changes the employees’ rate of contribution, requires a secret ballot election among the employees affected. This election must follow adoption of the Resolution of Intention and precede adoption of the final documents. The final ordinance will return to Council for approval of the second reading and adoption on September 11, 2017. The contract amendment will become effective during the payroll period 31 days after this ordinance is adopted. City of Palo Alto Page 3 With the employer contribution of pension costs continuing to rise, it was in the City’s best interest to negotiate a cost share arrangement with all bargaining units. Although the cost share arrangements have already been agreed upon through the MOA’s, with the final contract for the represented units being approved in March 2017, CalPERS requires this administrative step for Council to adopt a resolution in order to amend the pension contracts. This amendment seeks to bring the CalPERS contract in alignment with the current adopted MOA’s. Policy Implications This recommendation supports the City Council’s goal of reducing pension costs to the City and is consistent with existing City policies. Resource Impact Per the adopted MOA terms for these groups, the employee contribution to CalPERS employer contribution as outlined in this memorandum is anticipated to save $1.0 million annually across all funds. This savings would be prorated to the date of adoption in FY 2018. The terms of the adopted MOA’s, including this savings were factored into the development of the FY 2018 Adopted Budget. Attachments: Attachment A: Resolution of Intention Attachment B: Ordinance Amending CalPERS Contract Attachment C: CalPERS Sample Amendment to Contract RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF PALO ALTO WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide Section 20516 (Employees Sharing Additional Cost) of .5% for local miscellaneous members in the Service Employees International Union Local 521 and 3% for local safety members in the International Association of Fire Fighters, Palo Alto Fire Chief’s Association, Palo Alto Peace Officers’ Association and Palo Alto Police Management Association NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. By:_________________________________ Presiding Officer _________________________________ Title ________________________________ Date adopted and approved (Amendment) CalPERS ID# 6373437857 CON-302 (Rev. 3/9/2016 rc) Attachment A Not Yet Approved AY/HR/2017-07-26 Ord Amending CalPERS Contract 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Authorizing an Amendment to the Contract between the City of Palo Alto and the Board of Administration of the California Public Employees’ Retirement System to Add Cost-Sharing Pursuant to Government Code Section 20516 The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. That an amendment to the contract between the City of Palo Alto and the Board of Administration, California Employees’ System is hereby authorized, a copy of said amendment hereto, marked Exhibit A, and such reference made a part hereof as though herein set out in full. SECTION 2. The City Manager, or his designee is authorized, empowered, and directed to execute said amendment for and on behalf of the City of Palo Alto. SECTION 3. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Human Resources ____________________________ Director of Administrative Services Attachment B Attachment C CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 14, 2017 The Honorable City Council Palo Alto, California Designation of Voting Delegate and Alternate for the League of California Cities Annual 2017 Conference, to be Held September 13-15, 2017 in Sacramento, CA The City Council should designate Council Member Wolbach as the voting delegate, and either Mayor Scharff or Vice Mayor Kniss as alternate delegate, for the 2017 League of California Cities Annual Conference. BACKGROUND: The League’s 2017 Annual Conference is scheduled for September 13-15, 2017 in Sacramento. An important part of the Annual Conference is the Annual Business Meeting scheduled for 12:30 p.m. on Friday, September 15, 2017 at the Sacramento Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. The resolutions will be agendized for Council consideration prior to the conference. In order to vote at the Annual Business Meeting, the City Council must delegate a voting delegate and could appoint up to two alternate voting delegates. At this time Mayor Scharff, Vice Mayor Kniss and Council Member Wolbach have been registered for the conference. Attached please find correspondence received from the League of California Cities. ATTACHMENTS: Attachment A: Conference Voting Delegate Letter (PDF) Department Head: Beth Minor, City Clerk Page 2 City of Palo Alto (ID # 8333) City Council Staff Report Report Type: Informational Report Meeting Date: 8/14/2017 City of Palo Alto Page 1 Summary Title: Investment Activity Report Title: City of Palo Alto Investment Activity Report for the Fourth Quarter, Fiscal Year 2017 From: City Manager Lead Department: Administrative Services Background The purpose of this report is to inform Council of the City’s investment portfolio status as of the end of the fourth quarter; ending June 30, 2017. The City’s investment policy requires that staff report quarterly to Council on the City’s portfolio composition compared to Council-adopted policy, portfolio performance, and other key investment and cash flow information. Discussion The City’s investment portfolio is detailed in Attachment B. It is grouped by investment type and includes the investment issuer, date of maturity, current market value, the book and face (par) value, and the weighted average maturity of each type of investment and of the entire portfolio. The par value of the City’s portfolio is $519.8 million; in comparison, last quarter it was $511.8 million and last year it was $523.3 million. The growth in the portfolio of $8.0 million since the last quarter primarily results from timing of cash flows. Such factors as the timing and seasonality of property tax and special assessments receipts (e.g. general obligation and parking assessment bonds); and not having to pay the bi-weekly pensions to Public Employers’ Retirement System (PERS) because the annual (Fiscal Year 2017) employer contribution of $30.8 million was fully paid in July 2016, contributed to realize savings. The portfolio consists of $42.1 million in liquid accounts and $477.7 million in U. S. government treasury investments, agency securities, bonds of State of California local government agencies, bonds of some of the fifty United States, medium-term corporate notes, and certificates of deposit. The $477.7 million includes $134.8 million in investments maturing in less than two years, comprising 28.2 percent of the City’s investment in notes and securities. The investment policy requires that at least $50 million be maintained in securities maturing in less than two years. City of Palo Alto Page 2 The current market value of the portfolio is 99.7 percent of the book value. The market value of securities fluctuates, depending on how interest rates perform. When interest rates decrease, the market value of the securities in the City’s portfolio will likely increase; likewise, when interest rates increase, the market value of the securities will likely decrease. Understanding and showing market values is not only a reporting requirement, but essential to knowing the principal risks in actively buying and selling securities. It is important to note, however, that the City’s practice is to buy and hold investments until they mature so changes in market price do not affect the City’s investment principal. The market valuation is provided by Union Bank of California, which is the City’s safekeeping agent. The average life to maturity of the investment portfolio is 3.81 years compared to 3.86 years last quarter and 3.63 years last year. Investments Made During the Fourth Quarter During the fourth quarter, $34.8 million of government agency securities with an average yield of 2.0% percent matured. During the same period, government securities totaling $36.8 million with an average yield of 2.3% percent were purchased. The expectation is interest rates and City’s portfolio’s average yield will gradually rise. The City’s short-term money market and pool account increased by $6.1 million compared to the third quarter. Investment staff continually monitors the City’s short term cash flow needs and adjusts liquid funds to meet them. Availability of Funds for the Next Six Months Normally, the flow of revenues from the City’s utility billings and General Fund sources is sufficient to provide funds for ongoing expenditures in those respective funds. Projections indicate receipts will be $230.0 million and expenditures will be $240.8 million over the next six months, indicating an overall decline in the portfolio of $10.8 million. The decline is attributable to pre-paying the Fiscal Year 2018 Public Employers’ Retirement System’s (PERS) annual Unfunded Accrued Liability (UAL) of $22.1 million. By prepaying PERS instead of making payments with each payroll period, the City is expected to save $0.8 million in PERS payment; however, the savings will be offset by the loss of approximately $0.2 million in interest income. This results in net citywide savings of $0.6 million. The saving is a consequence of PERS’ ability to earn interest earlier and at a higher rate than the City could realize. Without this pre- payment, the portfolio would have increased by $11.3 million. As of June 30, 2017, the City had $42.1 million deposited in the Local Agency Investment Fund (LAIF) and a money market account that could be withdrawn on a daily basis. In addition, investments totaling $27.1 million will mature between July 1, 2017 and December 31, 2017. On the basis of the above projections, staff is confident that the City will have more than sufficient funds or liquidity to meet expenditure requirements for the next six months which includes the PERS pre-payment and City’s contribution toward the purchase of Buena Vista Mobile Home Park. City of Palo Alto Page 3 Compliance with City Investment Policy During the fourth quarter, staff complied with all aspects of the investment policy. Attachment C lists the major restrictions in the City’s investment policy compared with the portfolio’s actual performance. Investment Yields Interest income on an accrual basis for the fourth quarter was $2.5 million; $0.1 million higher than the last quarter and the prior year fourth quarter. As of June 30, 2017, the yield to maturity of the City’s portfolio was 1.95 percent; last year the yield was 1.88 percent. The rising interest rate is expected to gradually increase the portfolio’s yields. The City’s portfolio yield of 1.95 percent compares to LAIF’s average yield for the quarter of 0.93 percent and an average yield on the two-year and five-year Treasury bonds during the fourth quarter of approximately 1.52 percent and 1.80 percent, respectively. Yield Trends In June 2017, the Federal Open Market Committee (FOMC) raised the federal funds and discount rates by a quarter percent to 1.25 and 1.75 percent, respectively. FOMC’s June 2017 report is consistent with the prior several quarter reports, the FOMC continues to cite strengthening consumer spending, improving labor market and moderate economic growth with inflation rising but still remaining below the FOMC’s long-term goal of 2 percent. Business spending is improving. The FOMC expects future rate increase to be gradual and dependent on the economic outlook. Though the expectation is rates will rise, factors that could keep a lid on rate increases include: low inflation, weak wage growth, and domestic and global economic weakness. Funds Held by the City or Managed Under Contract Attachment A is a consolidated report of all City investment funds, including those not held directly in the investment portfolio. These include cash in the City’s regular bank account with US Bank and Wells Fargo. (A description of the City’s banking relationships can be found in City Council Staff Report ID # 7858.) The bond proceeds, reserves, and debt service payments being held by the City’s fiscal agents are subject to the requirements of the underlying debt indenture. The trustees for the bond funds are U.S. Bank and California Asset Management Program (CAMP). Bond funds with U.S. Bank are invested in federal agency and money market mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in CAMP are invested in banker’s acceptance notes, certificates of deposit, commercial paper, federal agency securities, and repurchase agreements. The most recent data on funds held by the fiscal agent is as of June 30, 2017. Fiscal Impact This is an information report. City of Palo Alto Page 4 Environmental Review This information report is not a project under the California Environmental Quality Act; therefore, an environmental review is not required. Attachments: Attachment A: Consolidated Report of Cash Management Attachment B: Investment Portfolio Attachment C: Investment Policy Compliance Book Value Market Value City Investment Portfolio (see Attachment B)525,396,743$ 523,653,227$ Other Funds Held by the City Cash with Wells Fargo Bank 991,932 991,932 (includes general and imprest accounts) Cash with US Bank 5,500,474 5,500,474 (includes general and imprest accounts) Petty/Working Cash 12,678 12,678 Total - Other Funds Held By City 6,505,084 6,505,084 Funds Under Management of Third Party Trustees * US Bank Trust Services ** 1995 Utility Revenue Bonds Debt Service Fund 11 11 1999 Utility Revenue Bonds Debt Service Fund 6 6 2002 Downtown Parking Impvt. (Taxable) Certificates of Participation Reserve Fund 237,441 237,441 2009 Water Revenue Bonds (Build America Bonds) Project, Debt Service, Reserve, Cost of Issuance Funds 2,594,927 2,594,927 2010 General Obligation Bonds Debt Service 3,720 3,720 2011 Utility Revenue Refunding Bonds Debt Service, Reserve, and Cost of Issuance Funds 1,478,366 1,478,366 2013 General Obligation Bonds Debt Service 19,215 19,215 California Asset Management Program (CAMP) *** 2012 University Ave. Parking Refunding Bonds Reserve Fund 2,556,288 2,556,288 2013 General Obligation (Library) Bond Project Fund 716,146 716,146 Total Under Trustee Management 7,606,120 7,606,120 GRAND TOTAL 539,507,947$ 537,764,431$ * These funds are subject to the requirements of the underlying debt indenture. ** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities. *** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit, commercial paper, federal agency securities, and repurchase agreements. Fourth Quarter, Fiscal Year 2016-17 (Unaudited) (Debt Service Proceeds) Attachment A Consolidated Report of Cash Management City of Palo Alto Cash and Investments City of Palo Alto City of Palo Alto Administration Svcs. Dept. 250 Hamilton Ave., 4th Floor Palo Alto, CA 94301 (650)329-2362 June 30, 2017 Fund ALL - Portfolio Listings Investments by Fund Par Value Days To Maturity Maturity Date Current RateMarket ValueCUSIPInvestment #Issuer PurchaseDate Book Value YTM 360 YTM 365 Managed Pool Accounts Fidelity Investments158 3,827,726.32SYS158 10.01007/01/2015 3,827,726.32 0.009 0.0103,827,726.32 Local Agency Investment Fund159 38,245,388.90SYS159 11.01007/01/2015 38,204,874.45 0.996 1.01038,245,388.90 Subtotal and Average 42,073,115.22 42,073,115.22 42,032,600.77 0.906 0.919 1 Negotiable CD's Comenity Capital Bank1183 NCD 245,000.0020033ABE5 05/03/2018 3061.00005/03/2013 245,252.35 0.986 1.000245,000.00 American Federal Bank1476 NCD 245,000.0002600ADE4 09/30/2022 1,9172.45009/30/2015 245,877.10 2.418 2.451245,000.00 Alpine Bank1525 NCD 245,000.0002082CBG4 08/16/2023 2,2372.40002/16/2016 244,318.90 2.367 2.400245,000.00 American City Bank1692 NCD 245,000.00025140BC7 03/30/2021 1,3681.45009/30/2016 240,394.00 1.429 1.449245,000.00 American Eagle Bank1371 NCD 245,000.0002554BCE9 05/28/2019 6961.85008/26/2014 246,327.90 1.825 1.850245,000.00 American National Bank1766 NCD 245,000.0002772JAC4 08/04/2021 1,4952.05004/04/2017 245,556.15 2.023 2.051245,000.00 American State Bank OSCE1805 NCD 245,000.00029733BX9 05/30/2024 2,5252.30005/30/2017 240,714.95 2.270 2.301245,000.00 American Express Centurion Bk1178 NCD 245,000.0002587DMV7 05/02/2018 3051.10005/02/2013 245,257.25 1.084 1.100245,000.00 American Express Centurion Bk1333 NCD 245,000.0002587CAC4 07/10/2019 7391.95007/10/2014 246,798.30 1.923 1.950245,000.00 Barclays Bank / Delaware1187 NCD 245,000.0006740AZB8 04/30/2018 3030.70005/07/2013 246,989.40 0.690 0.699245,000.00 Bankers Bank1776 NCD 245,000.0006610RAM1 04/19/2021 1,3881.90004/19/2017 244,732.95 1.875 1.901245,000.00 Bank of Wisconsin Dells1696 NCD 245,000.00065847DH5 10/12/2021 1,5641.50010/12/2016 239,485.05 1.480 1.500245,000.00 Bank of Grove1821 NCD 245,000.0006246PBP9 12/29/2021 1,6422.00006/29/2017 243,797.05 1.974 2.001245,000.00 Bankers Bank of the West1421 NCD 245,000.0006610TDB8 12/30/2019 9121.85012/29/2014 247,312.80 1.824 1.850245,000.00 Belmont Savings Bank1280 NCD 245,000.00080515AT6 11/13/2018 5001.55005/13/2014 246,102.50 1.528 1.550245,000.00 Bar Harbor Bank & Trust1377 NCD 245,000.00066851SG2 08/27/2019 7871.75008/27/2014 245,548.80 1.726 1.750245,000.00 Bank Champaign1477 NCD 245,000.0006607ABD2 09/30/2022 1,9172.50009/30/2015 245,311.15 2.467 2.501245,000.00 Texas Exchange Bank1796 NCD 245,000.0088241TBM1 05/20/2022 1,7842.25005/22/2017 245,218.05 2.220 2.251245,000.00 Bank of Deerfield1396 NCD 245,000.00061785CM1 09/30/2020 1,1872.20009/30/2014 247,807.70 2.171 2.201245,000.00 Bank of Holland Michigan1302 NCD 245,000.00062649ZV3 05/21/2019 6891.70005/21/2014 246,844.85 1.677 1.701245,000.00 Frontier Bank Madison NE1498 NCD 245,000.0035907XCL9 11/22/2021 1,6052.00011/20/2015 244,154.75 1.974 2.001245,000.00 Bank West1472 NCD 245,000.00063615AX6 09/16/2022 1,9032.25009/16/2015 244,382.60 2.220 2.251245,000.00 Apex Bank1693 NCD 245,000.0003753XAN0 09/30/2022 1,9171.70009/30/2016 237,647.55 1.676 1.700245,000.00 BMO Harris Bank1783 NCD 245,000.0005581WNY7 10/28/2022 1,9452.25004/28/2017 244,171.90 2.220 2.251245,000.00 BMW Bank of North America1807 NCD 245,000.0005580AJK1 06/16/2020 1,0811.85006/16/2017 245,443.45 1.824 1.850245,000.00 Beneficial Bank1680 NCD 245,000.0008173QBR6 09/13/2021 1,5351.50009/12/2016 239,538.95 1.479 1.500245,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 2 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Negotiable CD's BankFirst1767 NCD 245,000.0006644QAA9 04/13/2022 1,7472.00004/13/2017 242,753.35 1.973 2.001245,000.00 BankWest, Inc.1380 NCD 150,000.0006652CEY3 09/16/2019 8071.90009/15/2014 150,801.00 1.873 1.900150,000.00 Bofi Federal Bank1381 NCD 50,000.0009710LAF2 08/30/2022 1,8862.25008/25/2014 49,650.50 2.493 2.52749,355.65 Bofi Federal Bank1382 NCD 100,000.0009710LAE5 08/08/2022 1,8642.35008/25/2014 99,848.00 2.592 2.62898,716.70 Bofi Federal Bank1402 NCD 100,000.0009710LAF2 08/30/2022 1,8862.25010/21/2014 99,301.00 2.462 2.49698,850.00 Banco Poplar North America1478 NCD 245,000.0005965GVP8 10/07/2020 1,1942.25010/07/2015 248,177.65 2.219 2.250245,000.00 Bridgewater Bank Bloom MN1393 NCD 245,000.00108622EA5 09/24/2019 8151.85009/24/2014 246,031.45 1.825 1.850245,000.00 Business Bank1531 NCD 245,000.0012325EHA3 02/10/2021 1,3201.55002/10/2016 242,028.15 1.530 1.551245,000.00 Worlds Foremost Bank1387 NCD 200,000.00981571AT9 09/04/2019 7952.10009/04/2014 201,502.00 2.072 2.101200,000.00 Campbell County Bank1307 NCD 245,000.00134204BZ8 05/30/2019 6981.65005/30/2014 246,888.95 1.628 1.650245,000.00 Cathay Bank1194 NCD 245,000.00149159HS7 04/30/2018 3031.00005/14/2013 244,710.90 0.987 1.000244,999.59 Commercial Bank - Alma1772 NCD 245,000.00201282HM5 04/21/2022 1,7552.05004/21/2017 243,228.65 2.023 2.051245,000.00 CBC National Bank1571 NCD 245,000.0012480LDV6 04/15/2021 1,3841.50004/15/2016 241,178.00 1.479 1.500245,000.00 Celtic Bank1362 NCD 245,000.0015118RJW8 08/20/2019 7801.90008/20/2014 246,798.30 1.875 1.901245,000.00 Central State Bank1538 NCD 245,000.0015524EAA2 02/16/2022 1,6911.70002/16/2016 240,090.20 1.678 1.701245,000.00 Charter Bank Eau Claire1811 NCD 245,000.0016116PHU8 06/13/2022 1,8082.10006/13/2017 243,270.30 2.071 2.100245,000.00 CIBM Bank1809 NCD 245,000.0012545JAM7 06/16/2022 1,8112.10006/16/2017 243,238.45 2.072 2.101245,000.00 CIT Bank1175 NCD 245,000.0017284CCN2 04/24/2018 2971.20004/24/2013 244,867.70 1.183 1.200245,000.00 Citizens Deposit Bank1677 NCD 245,000.0017453FBP6 08/24/2021 1,5151.40008/24/2016 239,563.45 1.380 1.400245,000.00 Citizens State Bank1541 NCD 250,000.0017670BAQ1 02/17/2023 2,0571.75002/19/2016 241,842.50 1.727 1.751250,000.00 Enerbank USA1246 NCD 245,000.0029266NYZ4 01/30/2020 9432.05001/30/2014 247,031.05 2.021 2.050245,000.00 City National Bk of Metropolis1791 NCD 245,000.0017801GBQ1 05/16/2022 1,7802.00005/15/2017 242,403.00 1.972 2.000245,000.00 Community State Bank1536 NCD 245,000.0020404YBQ7 02/24/2022 1,6991.95002/24/2016 242,721.50 1.924 1.951245,000.00 Country Bank of New York1799 NCD 245,000.0022230PBN9 05/26/2022 1,7902.10005/26/2017 243,454.05 2.072 2.101245,000.00 Capital One Bank USA NA1384 NCD 250,000.00140420NR7 09/04/2019 7951.80009/04/2014 251,827.50 1.775 1.800250,000.00 Capital One Bank USA NA1457 NCD 245,000.0014042E5M8 08/12/2020 1,1382.30008/12/2015 248,594.15 2.268 2.300245,000.00 Community Bank Pasadena1627 NCD 245,000.00203507BA5 06/15/2021 1,4451.55006/16/2016 241,677.80 1.529 1.550245,000.00 Commuincity Finl Svcs Bank1530 NCD 245,000.0020364ABA2 02/17/2021 1,3271.60002/17/2016 242,412.80 1.579 1.601245,000.00 Commerce Bank - Geneva1816 NCD 245,000.0020056QQK2 06/21/2021 1,4512.00006/21/2017 245,389.55 1.973 2.001245,000.00 Commercial Bank1369 NCD 245,000.0020143PDB3 05/20/2019 6881.85008/19/2014 246,340.15 1.824 1.850245,000.00 Commerce State Bank1797 NCD 245,000.0020070PJA6 05/23/2022 1,7872.00005/22/2017 242,327.05 1.972 2.000245,000.00 Community State Bank, IA1471 NCD 245,000.0020404MAN1 09/12/2022 1,8992.25009/11/2015 244,404.65 2.224 2.255245,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 3 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Negotiable CD's Cornerstone Bank1757 NCD 245,000.00219232CN3 03/10/2022 1,7132.10003/10/2017 244,201.30 2.072 2.101245,000.00 Discover Bank / Delaware1176 NCD 245,000.00254671NJ5 05/01/2018 3041.15005/01/2013 245,257.25 1.134 1.150245,000.00 Dollar Bank FSB1756 NCD 245,000.0025665QAV7 03/08/2022 1,7112.05003/08/2017 243,669.65 2.021 2.050245,000.00 East Boston Savings Bank1463 NCD 245,000.0027113PAL5 08/24/2020 1,1501.90008/24/2015 245,605.15 1.876 1.902245,000.00 TBK Bank SSB1812 NCD 245,000.0087219RBK9 06/23/2022 1,8182.10006/23/2017 243,147.80 2.072 2.101245,000.00 Ever Bank1454 NCD 245,000.0029976DZK9 07/30/2020 1,1252.00007/30/2015 246,403.85 1.972 2.000245,000.00 Farmer's and Merchants Bank1360 NCD 250,000.00308702BQ1 02/16/2021 1,3262.20008/15/2014 252,622.50 2.169 2.200250,000.00 First Bank of Highland1330 NCD 245,000.00319141BV8 07/03/2019 7321.85007/03/2014 245,441.00 1.824 1.850245,000.00 First Business Bank1250 NCD 245,000.0031938QF25 02/19/2020 9632.00002/19/2014 246,695.40 1.972 2.000245,000.00 FirstBank Puerto Rico1768 NCD 245,000.0033767A2C4 04/07/2022 1,7412.10004/07/2017 243,924.45 2.072 2.101245,000.00 First Choice Bank / NJ1297 NCD 245,000.00319464AR4 05/28/2019 6961.70005/28/2014 246,886.50 1.677 1.701245,000.00 State Bank of Fenton (MI)1283 NCD 245,000.00856188AU1 02/15/2019 5941.65005/15/2014 245,519.40 1.630 1.653245,000.00 First Federal S&L Bank1626 NCD 245,000.0032018YAW8 06/22/2023 2,1821.80006/22/2016 237,836.20 1.776 1.800245,000.00 1st Financial Bank1485 NCD 245,000.0032022RFD4 03/16/2022 1,7192.10010/19/2015 244,137.60 2.120 2.150244,460.06 Flushing Bank1413 NCD 245,000.0034387ABA6 12/10/2018 5271.80012/10/2014 245,703.15 1.776 1.801245,000.00 First General Bank1222 NCD 245,000.00320337AR9 07/03/2018 3671.30007/03/2013 244,995.10 1.282 1.300245,000.00 First Eagle National Bank1400 NCD 245,000.0032008JAG8 10/15/2021 1,5672.45010/17/2014 251,428.80 2.416 2.449245,000.00 Farmers & Merchant Bank1735 NCD 245,000.0030781TBD9 01/18/2022 1,6622.05001/18/2017 242,858.70 2.021 2.050245,000.00 First National Bank of America1391 NCD 240,000.0032110YEF8 08/03/2022 1,8592.35009/09/2014 240,300.00 2.665 2.703236,133.80 First Nationnal Bank / KS1537 NCD 245,000.00334342BU5 02/26/2021 1,3361.55002/26/2016 241,937.50 1.530 1.551245,000.00 The FNB of Mcgregor1480 NCD 245,000.0032112UBW0 09/30/2021 1,5522.00010/01/2015 244,605.55 1.972 1.999245,000.00 First Nat. Bank of Park Falls1473 NCD 245,000.0032114RAQ9 09/17/2021 1,5392.20009/17/2015 245,137.20 2.171 2.201245,000.00 First Premier Bank1255 NCD 245,000.0033610RNX7 03/08/2021 1,3462.50003/07/2014 250,127.85 2.465 2.500245,000.00 Franklin Synergy Bank1771 NCD 103,000.0035471TCV2 01/31/2022 1,6752.00004/04/2017 102,361.40 1.975 2.003103,000.00 First Merchants Bank1351 NCD 245,000.0032082BDH9 08/06/2019 7661.90008/06/2014 246,847.30 1.873 1.900245,000.00 Community First Bank1555 NCD 250,000.0020369JAA9 03/17/2022 1,7201.70003/17/2016 244,650.00 1.677 1.700250,000.00 Farmer's & Merchant's SVG Bank1551 NCD 245,000.00308863AH2 02/26/2021 1,3361.55002/29/2016 245,301.35 1.528 1.550245,000.00 First Neighbor Bank, NA1469 NCD 245,000.0033581VAF6 09/03/2021 1,5252.40009/03/2015 249,728.50 2.367 2.400245,000.00 First Savings Bank Northwest1335 NCD 245,000.0033621JAB4 07/18/2019 7471.80007/18/2014 245,095.55 1.776 1.801245,000.00 First National Bank of Elkhart1801 NCD 245,000.00321130AB2 05/31/2022 1,7952.10005/31/2017 243,390.35 2.072 2.101245,000.00 First Northeast Bank1779 NCD 245,000.0033583FAA0 10/19/2022 1,9362.10004/19/2017 242,366.25 2.072 2.101245,000.00 First State Bank1366 NCD 245,000.0033648RAT6 08/20/2019 7801.85008/20/2014 246,852.20 1.825 1.851245,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 4 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Negotiable CD's First State Bank - Dequeen1824 NCD 245,000.00336460CH1 04/29/2022 1,7632.00006/30/2017 242,584.30 1.973 2.000245,000.00 First State Bank of Purdy1475 NCD 248,000.0033646TAE7 04/13/2022 1,7472.35009/25/2015 248,872.96 2.321 2.353247,981.89 First State Community Bank1819 NCD 245,000.0033708UCF4 06/30/2022 1,8252.10006/30/2017 243,081.65 2.071 2.100245,000.00 First Western Bank & Trust1770 NCD 245,000.0033749VAM0 04/07/2022 1,7412.00004/07/2017 242,817.05 1.973 2.001245,000.00 Fox Chase Bank1305 NCD 245,000.0035137QAV6 06/06/2019 7051.70006/06/2014 246,876.70 1.677 1.700245,000.00 Gulf Coast Bank & Trust1462 NCD 200,000.00402194ES9 05/20/2021 1,4192.00008/13/2015 200,276.00 1.972 1.999200,000.00 Gold Coast Bank1375 NCD 245,000.0038058KDA1 08/05/2019 7651.80009/04/2014 246,651.30 1.775 1.800245,000.00 GE Capital Bank1184 NCD 245,000.0036161TJR7 05/03/2018 3061.00005/03/2013 244,426.70 0.986 1.000245,000.00 GE Capital Bank1262 NCD 245,000.0036157PXV6 03/22/2021 1,3602.65003/21/2014 251,438.60 2.613 2.650245,000.00 Goldman Sachs Bank USA1177 NCD 245,000.0038147JEC2 05/01/2018 3041.15005/01/2013 244,745.20 1.134 1.150245,000.00 Happy State Bank1683 NCD 245,000.00411394AN9 09/16/2021 1,5381.50009/16/2016 239,597.75 1.500 1.520245,000.00 HSBC Bank1564 NCD 245,000.0040434AR84 10/07/2021 1,5592.00004/07/2016 244,355.65 1.972 2.000245,000.00 Dubuque Bank & Trust1372 NCD 245,000.00263849BD2 08/21/2019 7811.90008/21/2014 246,793.40 1.873 1.900245,000.00 Investors Community Bank1765 NCD 245,000.0046147USQ4 09/23/2022 1,9102.20003/24/2017 243,738.25 2.172 2.202245,000.00 Industrial & Com Bk of China1773 NCD 245,000.0045581EAC5 04/12/2022 1,7462.15004/12/2017 244,431.60 2.121 2.151245,000.00 Interaudi Bank1808 NCD 245,000.0045842PAK7 06/10/2024 2,5362.50006/09/2017 243,799.50 2.465 2.500245,000.00 Iroquois Federal Sav Loan Asso1535 NCD 245,000.0046355PBV9 08/12/2020 1,1381.60002/12/2016 243,419.75 1.578 1.600245,000.00 Investors Bank1460 NCD 245,000.0046176PEJ0 08/25/2020 1,1512.00008/25/2015 248,608.85 1.972 2.000245,000.00 Inst. for Sav in Newburyport1455 NCD 245,000.0045780PAN5 07/30/2021 1,4902.30007/31/2015 249,451.65 2.269 2.301245,000.00 Iowa State Bank1343 NCD 250,000.0046256YAB5 07/23/2019 7521.80007/23/2014 251,837.50 1.775 1.800250,000.00 JP Morgan Chase BAnk NA1200 NCD 245,000.0048124JD39 12/05/2018 5221.25006/05/2013 244,252.75 1.232 1.250245,000.00 Kansas State Bank Manhattan1798 NCD 245,000.0050116CAX7 05/31/2024 2,5262.50005/31/2017 243,809.30 2.495 2.530245,000.00 Key Bank1785 NCD 245,000.0049306SYB6 05/18/2020 1,0521.75005/17/2017 244,838.30 1.726 1.750245,000.00 Lakeside Bank1686 NCD 245,000.0051210SLR6 09/18/2023 2,2701.80009/16/2016 235,788.00 1.775 1.800245,000.00 LCA Bank Corporation1306 NCD 245,000.00501798FJ6 05/30/2019 6981.65005/30/2014 246,888.95 1.627 1.650245,000.00 Leader Bank1364 NCD 245,000.0052168UCN0 08/22/2019 7822.00008/22/2014 245,147.00 1.973 2.001245,000.00 Legends Bank1533 NCD 245,000.0052465JGM3 02/11/2022 1,6861.70002/12/2016 247,280.95 1.678 1.701245,000.00 Live Oak Banking Company1671 NCD 245,000.00538036CH5 08/19/2021 1,5101.40008/19/2016 239,700.65 1.381 1.400245,000.00 Luana Savings Bank1367 NCD 245,000.00549103QA0 09/07/2021 1,5292.25009/05/2014 247,246.65 2.219 2.250245,000.00 Machias Savings Bank1358 NCD 245,000.00554479DN2 08/28/2019 7881.80008/28/2014 246,903.65 1.776 1.801245,000.00 Marathon Savings Bank1818 NCD 245,000.0056585YAA8 06/28/2022 1,8232.05006/28/2017 242,510.80 2.023 2.051245,000.00 Mascoma Savings Bank1319 NCD 248,000.0057461PAG1 01/15/2019 5631.80006/20/2014 249,758.32 1.627 1.650248,551.81 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 5 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Negotiable CD's MB Financial Bank NA1730 NCD 245,000.0055266CUF1 01/13/2022 1,6572.10001/13/2017 244,713.35 2.072 2.101245,000.00 Mercantile Bank of Michigan1793 NCD 245,000.0058740XZF0 05/12/2022 1,7762.10005/12/2017 243,576.55 2.071 2.100245,000.00 Mechanics Coop Bank1803 NCD 245,000.00583626AC0 05/26/2022 1,7902.05005/26/2017 242,863.60 2.023 2.051245,000.00 Medallion Bank - Salt Lake1238 NCD 245,000.0058403BJ31 01/10/2019 5581.85001/10/2014 246,697.85 1.825 1.850245,000.00 Merrick Bank1464 NCD 245,000.0059013JHE2 08/20/2020 1,1461.90008/20/2015 245,614.95 1.876 1.902245,000.00 Merchants National Bank OH1534 NCD 245,000.00588806AV1 02/17/2022 1,6921.80002/17/2016 246,568.00 1.776 1.801245,000.00 Mid-Country Bank1810 NCD 245,000.0059565QCG8 06/14/2022 1,8092.05006/14/2017 242,684.75 2.023 2.051245,000.00 Mid-Missouri Bank1806 NCD 245,000.0059541KBL0 06/10/2022 1,8052.05006/12/2017 242,704.35 2.023 2.051245,000.00 Mifflinburg Bank & Trust Co.1321 NCD 132,000.00598580AB4 04/30/2019 6681.65006/20/2014 133,000.56 1.627 1.649132,000.00 Marlin Business Bank1483 NCD 245,000.0057116AKU1 10/21/2020 1,2081.75010/21/2015 248,199.70 1.727 1.751245,000.00 Municipal Trust and Savings1800 NCD 245,000.00625925AP7 05/02/2024 2,4972.35005/22/2017 241,717.00 2.317 2.349245,000.00 Mutual One Bank1407 NCD 250,000.0062847HAA7 11/21/2019 8731.85011/21/2014 252,372.50 1.825 1.850250,000.00 MY Safra Bank FSB1467 NCD 245,000.0055406JAL6 09/03/2020 1,1601.90009/03/2015 248,687.25 1.873 1.900245,000.00 NBT Bank1322 NCD 156,000.00628779FJ4 06/06/2019 7051.80006/20/2014 157,165.32 1.775 1.799156,000.00 NBT Bank1373 NCD 94,000.00628779FN5 08/20/2019 7802.10008/20/2014 94,686.20 2.071 2.10094,000.00 Customers Bank1388 NCD 250,000.0023204HCA4 09/10/2019 8012.10009/10/2014 251,817.50 2.071 2.100250,000.00 NCB Savings Bank1344 NCD 245,000.00628825JL6 07/25/2019 7541.80007/25/2014 245,852.60 1.775 1.800245,000.00 National Bank Commerce1607 NCD 245,000.00633368DY8 05/11/2023 2,1401.80005/11/2016 241,163.30 1.776 1.800245,000.00 Nebraska State Bank & Trust1466 NCD 245,000.0063969ABL7 08/26/2022 1,8822.25008/26/2015 249,912.25 2.220 2.251245,000.00 Lake Sunapee Bank FSB1309 NCD 245,000.00510868AG7 06/05/2019 7041.75006/05/2014 246,876.70 1.727 1.750245,000.00 Northern Bank & Trust MA1814 NCD 245,000.0066476QBX5 06/29/2022 1,8242.10006/29/2017 243,079.20 2.072 2.101245,000.00 Connectone Bank1355 NCD 245,000.0020786AAT2 08/13/2019 7731.85008/13/2014 246,847.30 1.824 1.850245,000.00 Bank of Northern Michigan1298 NCD 245,000.0006414TNW9 05/21/2020 1,0552.00005/21/2014 248,361.40 1.972 2.000245,000.00 Northfield Bank1365 NCD 245,000.0066612AAA6 08/12/2019 7721.85008/13/2014 246,744.40 1.824 1.850245,000.00 Northstar Bank1326 NCD 245,000.0066704MEG2 07/18/2019 7471.75007/18/2014 246,857.10 1.727 1.751245,000.00 National Bank of NY City1312 NCD 245,000.00634116CB1 06/18/2019 7171.65006/18/2014 246,822.80 1.627 1.650245,000.00 Oostburg State Bank1532 NCD 245,000.00683430BU5 02/09/2021 1,3191.55002/09/2016 246,746.85 1.530 1.551245,000.00 Williamette Valley Bank1524 NCD 245,000.00969294BY2 02/06/2023 2,0462.10002/04/2016 247,075.15 2.072 2.101245,000.00 Orrstown Bank1465 NCD 245,000.00687377DR9 08/20/2020 1,1462.00008/20/2015 245,134.75 1.974 2.002245,000.00 Peoples United Bank1378 NCD 245,000.0071270QGB6 08/27/2019 7871.95008/27/2014 246,790.95 1.923 1.950245,000.00 Ponce De Leon Federal Bank1795 NCD 245,000.00732333AH2 05/26/2022 1,7902.10005/26/2017 243,432.00 2.072 2.101245,000.00 Peapack-Gladstone Bank1275 NCD 245,000.00704692AK8 04/17/2019 6551.80004/17/2014 246,859.55 1.776 1.801245,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 6 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Negotiable CD's Planters Bank1363 NCD 245,000.0072741PCU9 08/20/2021 1,5112.50008/20/2014 239,911.35 2.467 2.501245,000.00 Prime Alliance Bank1331 NCD 245,000.0074160NED8 07/11/2019 7401.70007/11/2014 246,808.10 1.677 1.701245,000.00 Park National Bank1395 NCD 250,000.00700654AV8 03/26/2019 6332.10009/26/2014 250,957.50 2.070 2.099250,000.00 Providence Bank1445 NCD 245,000.00743738BQ8 02/25/2022 1,7002.10002/26/2015 250,461.05 2.072 2.101245,000.00 Peoples State Bank, WI1304 NCD 245,000.00712515GY5 05/23/2019 6911.70005/23/2014 246,844.85 1.676 1.700245,000.00 Private Bank & Trust Co.1293 NCD 245,000.0074267GUN5 11/21/2018 5081.65005/21/2014 246,134.35 1.627 1.650245,000.00 Ohio Valley Bank1338 NCD 250,000.00677721CE0 07/23/2019 7521.80007/23/2014 251,895.00 1.776 1.801250,000.00 Reliance Savings Bank1636 NCD 245,000.0075950XAD1 06/22/2021 1,4521.45006/22/2016 241,623.90 1.430 1.450245,000.00 Sallie Mae Bank1350 NCD 245,000.00795450SC0 07/30/2019 7592.05007/30/2014 246,844.85 2.021 2.050245,000.00 State Bank Definace1233 NCD 245,000.00855736CX0 07/19/2018 3831.65007/19/2013 246,092.70 1.628 1.650245,000.00 State Bank of India1390 NCD 245,000.00856284Z98 09/11/2019 8022.15009/11/2014 246,832.60 2.120 2.150245,000.00 State Bank of Texas1230 NCD 245,000.00856528CG7 07/17/2018 3811.60007/17/2013 245,068.60 1.578 1.600245,000.00 Security National Bank1499 NCD 245,000.00814414AC2 11/19/2021 1,6022.00011/19/2015 244,181.70 1.974 2.001245,000.00 Security State Bank1774 NCD 245,000.0081489TAS5 04/07/2022 1,7412.10004/07/2017 243,931.80 2.072 2.101245,000.00 Somerset Trust Company Bank1616 NCD 245,000.00835104BL3 06/12/2023 2,1721.80006/10/2016 237,924.40 1.776 1.800245,000.00 Bank of New England1704 NCD 245,000.00063847AW7 10/19/2021 1,5711.50010/19/2016 238,904.40 1.480 1.500245,000.00 Bell State Bank & Trust1223 NCD 245,000.0007815AAG2 06/28/2018 3621.30006/28/2013 244,982.85 1.282 1.300245,000.00 Security Bank1777 NCD 245,000.00814107AQ1 04/19/2022 1,7532.00004/19/2017 242,689.65 1.973 2.001245,000.00 Sterns Bank NA1221 NCD 245,000.00857894NG0 06/28/2018 3621.30006/28/2013 245,007.35 1.282 1.300245,000.00 Stockman Bank1557 NCD 245,000.0086128QBX5 03/30/2023 2,0982.00003/30/2016 243,576.55 1.973 2.000245,000.00 Third Federal Savings and Loan1242 NCD 245,000.0088413QAF5 10/22/2018 4781.75001/22/2014 246,298.50 1.726 1.750245,000.00 Thomasville Natl Bank1266 NCD 245,000.00884693BJ0 04/12/2021 1,3812.40004/11/2014 251,494.95 2.367 2.400245,000.00 Crossfirst Bank of Leawood1804 NCD 245,000.0022766ABF1 06/09/2023 2,1692.15006/09/2017 241,359.30 2.121 2.151245,000.00 Toyota Financial Savings Bank1740 NCD 245,000.0089235MHU8 02/12/2024 2,4172.65002/10/2017 245,443.45 2.613 2.650245,000.00 Traverse City State Bank1820 NCD 245,000.00894333FF5 06/28/2022 1,8232.00006/28/2017 241,942.40 1.972 2.000245,000.00 UBS Bank USA1815 NCD 250,000.0090348JBR0 01/20/2022 1,6642.25006/15/2017 251,270.00 2.219 2.249250,000.00 United Community Bank GA1749 NCD 245,000.0090984P5A9 03/01/2022 1,7042.05003/01/2017 243,738.25 2.021 2.050245,000.00 Uinta Bank1639 NCD 245,000.00903572BC8 12/26/2023 2,3691.70006/24/2016 236,790.05 1.676 1.700245,000.00 United Bankers' Bank1379 NCD 245,000.00909557EA4 04/29/2019 6671.80008/29/2014 246,146.60 1.776 1.800245,000.00 United Community Bank1694 NCD 245,000.0090983WBD2 03/28/2022 1,7311.60009/29/2016 239,267.00 1.577 1.599245,000.00 Unity Bank1529 NCD 245,000.0091330ABF3 02/26/2021 1,3361.60002/26/2016 246,786.05 1.579 1.601245,000.00 Valley Central Savings Bank1422 NCD 245,000.0091944RAF5 12/30/2019 9121.85012/29/2014 247,312.80 1.824 1.850245,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 7 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Negotiable CD's Washington Trst Westerly1345 NCD 245,000.00940637GJ4 07/31/2019 7601.90007/31/2014 246,847.30 1.873 1.900245,000.00 Webster Bank NA1252 NCD 245,000.0094768NJM7 02/12/2019 5911.90002/12/2014 246,499.40 1.873 1.900245,000.00 Northwest Bank1308 NCD 245,000.0066736AAK5 05/29/2019 6971.65005/29/2014 246,886.50 1.628 1.650245,000.00 Western State Bank1392 NCD 245,000.0095960NJA6 03/26/2020 9992.10009/26/2014 247,303.00 2.071 2.100245,000.00 Washington First Bank1745 NCD 245,000.00940727AH3 02/23/2022 1,6982.05002/23/2017 243,797.05 2.021 2.050245,000.00 Wells Fargo Bank1656 NCD 245,000.009497486H5 06/30/2021 1,4601.60006/30/2016 241,582.25 1.578 1.600245,000.00 Woodford State Bank1459 NCD 245,000.00979424AA6 07/29/2022 1,8542.35008/12/2015 249,383.05 2.317 2.349245,000.00 Zions First National Bank1417 NCD 250,000.0098970TU79 12/10/2019 8921.90012/08/2014 250,807.50 1.873 1.899250,000.00 Subtotal and Average 46,414,049.50 46,421,000.00 46,389,559.31 1.873 1.899 1,292 Medium Term Notes Apple, Inc.1342 MTN 2,000,000.00037833AQ3 05/06/2019 6742.10007/15/2014 2,018,760.00 1.982 2.0102,003,142.52 Apple, Inc.1461 MTN 750,000.00037833AX8 02/07/2020 9511.55008/13/2015 746,310.00 1.980 2.008741,492.49 Apple, Inc.1497 MTN 1,500,000.00037833BD1 05/06/2020 1,0402.00011/05/2015 1,507,200.00 1.854 1.8791,504,894.20 Apple, Inc.1543 MTN 700,000.00037833BS8 02/23/2021 1,3332.25002/23/2016 704,641.00 2.140 2.169701,898.03 Alphabet (Google) Inc.1657 MTN 100,000.0002079KAA5 05/19/2021 1,4183.62507/11/2016 105,860.00 1.271 1.288108,765.49 Alphabet (Google) Inc.1658 MTN 946,000.0038259PAB8 05/19/2021 1,4183.62507/11/2016 1,001,435.60 1.271 1.2881,028,921.55 Alphabet (Google) Inc.1660 MTN 1,500,000.0002079KAA5 05/19/2021 1,4183.62507/12/2016 1,587,900.00 1.238 1.2551,633,454.18 Alphabet (Google) Inc.1734 MTN 871,000.0002079KAA5 05/19/2021 1,4183.62501/11/2017 922,040.60 2.012 2.040922,034.47 Johnson & Johnson1411 MTN 2,000,000.00478160BM5 12/05/2019 8871.87511/24/2014 2,015,660.00 1.874 1.9001,998,841.74 Johnson & Johnson1418 MTN 1,500,000.00478160BM5 12/05/2019 8871.87512/08/2014 1,511,745.00 1.824 1.8501,500,860.14 Johnson & Johnson1624 MTN 1,000,000.00478160BS2 03/01/2021 1,3391.65006/07/2016 990,150.00 1.530 1.5511,003,392.96 Microsoft Corporation1448 MTN 2,000,000.00594918AV0 02/12/2020 9561.85002/12/2015 2,003,520.00 1.785 1.8102,001,964.50 Microsoft Corporation1496 MTN 2,000,000.00594918BG8 11/03/2020 1,2212.00011/05/2015 2,007,200.00 1.913 1.9402,003,743.72 Microsoft Corporation1515 MTN 900,000.00594918BG8 11/03/2020 1,2212.00001/07/2016 903,240.00 1.887 1.913902,467.70 Stanford University1336 MTN 300,000.00854403AC6 05/01/2019 6694.75007/10/2014 316,935.00 1.966 1.993314,385.83 Stanford University1347 MTN 150,000.00854403AC6 05/01/2019 6694.75007/24/2014 158,467.50 1.896 1.922157,393.00 Stanford University1349 MTN 225,000.00854403AC6 05/01/2019 6694.75007/25/2014 237,701.25 1.895 1.921236,095.96 Stanford University1419 MTN 105,000.00854403AC6 05/01/2019 6694.75012/11/2014 110,927.25 1.893 1.920110,199.69 Subtotal and Average 18,873,948.17 18,547,000.00 18,849,693.20 1.789 1.814 1,072 Federal Agency Issues - Coupon Federal Agricultural Mortgage1028 3,000,000.0031315PPC7 02/21/2019 6001.79002/21/2012 3,018,480.00 1.765 1.7903,000,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 8 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Agricultural Mortgage1031 2,000,000.0031315PQC6 09/06/2018 4321.55003/06/2012 2,007,620.00 1.528 1.5502,000,000.00 Federal Agricultural Mortgage1052 1,500,000.0031315PTW9 04/10/2019 6481.87004/10/2012 1,507,590.00 1.844 1.8701,500,000.00 Federal Agricultural Mortgage1098 2,000,000.0031315PPK9 07/03/2017 21.02007/03/2012 2,000,000.00 1.006 1.0202,000,000.00 Federal Agricultural Mortgage1109 2,000,000.0031315PSX8 08/23/2017 531.03008/23/2012 2,000,060.00 1.015 1.0302,000,000.00 Federal Agricultural Mortgage1123 Call 1,500,000.0031315PQL6 11/29/2021 1,6122.00011/29/2012 1,497,030.00 1.972 2.0001,500,000.00 Federal Agricultural Mortgage1130 1,500,000.0031315PPX1 07/05/2022 1,8302.20012/13/2012 1,510,020.00 1.930 1.9571,516,579.56 Federal Agricultural Mortgage1134 750,000.0031315PB32 11/21/2022 1,9692.00012/19/2012 744,232.50 2.081 2.110746,004.05 Federal Agricultural Mortgage1136 1,500,000.0031315PTY5 12/27/2019 9091.48012/27/2012 1,494,690.00 1.395 1.4151,502,298.67 Federal Agricultural Mortgage1137 1,500,000.0031315PUE7 12/27/2022 2,0052.18001/04/2013 1,497,600.00 2.165 2.1961,498,819.51 Federal Agricultural Mortgage1138 740,000.0031315PEY1 12/30/2019 9124.50001/04/2013 794,190.20 1.514 1.535791,755.96 Federal Agricultural Mortgage1139 500,000.0031315PWN5 06/01/2021 1,4313.84001/04/2013 534,280.00 1.946 1.973533,531.17 Federal Agricultural Mortgage1141 1,500,000.0031315PUE7 12/27/2022 2,0052.18001/08/2013 1,497,600.00 2.195 2.2251,496,647.02 Federal Agricultural Mortgage1142 1,200,000.0031315PTW9 04/10/2019 6481.87001/09/2013 1,206,072.00 1.400 1.4201,209,137.90 Federal Agricultural Mortgage1143 451,000.0031315PPC7 02/21/2019 6001.79001/09/2013 453,778.16 1.372 1.392453,809.90 Federal Agricultural Mortgage1144 1,500,000.0031315PUE7 12/27/2022 2,0052.18001/23/2013 1,497,600.00 2.111 2.1411,502,869.46 Federal Agricultural Mortgage1147 2,595,000.0031315PUE7 12/27/2022 2,0052.18001/28/2013 2,590,848.00 2.199 2.2292,588,635.25 Federal Agricultural Mortgage1152 2,000,000.0031315PPF0 01/30/2019 5781.32002/11/2013 1,996,620.00 1.220 1.2372,002,520.65 Federal Agricultural Mortgage1155 1,500,000.0031315PPF0 01/30/2019 5781.32002/21/2013 1,497,465.00 1.262 1.2801,500,906.57 Federal Agricultural Mortgage1160 1,500,000.0031315PQM4 03/06/2018 2480.94003/07/2013 1,497,945.00 0.925 0.9371,500,019.90 Federal Agricultural Mortgage1163 1,500,000.0031315PQM4 03/06/2018 2480.94003/08/2013 1,497,945.00 0.987 1.0011,499,390.91 Federal Agricultural Mortgage1179 1,500,000.0031315PXM6 05/02/2018 3050.85005/02/2013 1,494,315.00 0.864 0.8771,499,669.40 Federal Agricultural Mortgage1186 1,450,000.0031315PXH7 01/09/2019 5572.10005/01/2013 1,465,399.00 1.055 1.0701,471,995.06 Federal Agricultural Mortgage1199 1,500,000.0031315PZZ5 03/09/2018 2510.77005/15/2013 1,496,175.00 0.961 0.9751,497,934.05 Federal Agricultural Mortgage1209 1,500,000.0031315PZZ5 03/09/2018 2510.77005/30/2013 1,496,175.00 1.151 1.1671,496,021.40 Federal Agricultural Mortgage1224 1,500,000.0031315PC98 06/12/2018 3461.18006/21/2013 1,497,675.00 1.549 1.5701,494,675.94 Federal Agricultural Mortgage1225 1,500,000.0031315PC98 06/12/2018 3461.18006/21/2013 1,497,675.00 1.575 1.5971,494,316.67 Federal Agricultural Mortgage1226 1,500,000.0031315PC98 06/12/2018 3461.18006/25/2013 1,497,675.00 1.783 1.8081,491,502.00 Federal Agricultural Mortgage1243 1,500,000.0031315PQT9 03/06/2020 9791.41001/15/2014 1,488,585.00 2.462 2.4961,459,717.47 Federal Agricultural Mortgage1244 1,500,000.0031315P3G2 09/09/2020 1,1662.80001/15/2014 1,534,980.00 2.635 2.6721,505,560.18 Federal Agricultural Mortgage1256 1,500,000.0031315PXH7 01/09/2019 5572.10003/05/2014 1,515,930.00 1.702 1.7261,508,149.30 Federal Agricultural Mortgage1257 300,000.0031315PTU3 03/09/2021 1,3474.16003/06/2014 322,830.00 2.574 2.609315,584.66 Federal Agricultural Mortgage1258 1,500,000.0031315P6P9 03/05/2024 2,4393.40003/07/2014 1,570,650.00 3.325 3.3721,502,355.23 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 9 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Agricultural Mortgage1259 1,500,000.0031315P6P9 03/05/2024 2,4393.40003/10/2014 1,570,650.00 3.424 3.4711,493,981.64 Federal Agricultural Mortgage1264 1,500,000.0031315PK40 03/26/2021 1,3642.50003/26/2014 1,527,945.00 2.495 2.5301,498,438.84 Federal Agricultural Mortgage1265 1,800,000.0031315PJ67 02/28/2019 6071.70003/28/2014 1,807,722.00 1.784 1.8091,796,894.59 Federal Agricultural Mortgage1271 1,000,000.0031315P4B2 01/30/2024 2,4043.46004/09/2014 1,053,320.00 3.297 3.3431,006,460.91 Federal Agricultural Mortgage1279 1,250,000.0031315PPX1 07/05/2022 1,8302.20004/23/2014 1,258,350.00 2.889 2.9301,209,598.42 Federal Agricultural Mortgage1399 500,000.0031315PVF3 04/03/2020 1,0071.47510/15/2014 497,635.00 1.857 1.882494,682.11 Federal Agricultural Mortgage1406 1,500,000.0031315PA58 11/20/2019 8721.31011/07/2014 1,491,555.00 1.854 1.8801,480,619.20 Federal Agricultural Mortgage1408 2,000,000.0031315PM22 11/20/2019 8721.84011/20/2014 2,013,600.00 1.814 1.8402,000,000.00 Federal Agricultural Mortgage1410 1,500,000.0031315PM22 11/20/2019 8721.84011/20/2014 1,510,200.00 1.848 1.8731,498,854.67 Federal Agricultural Mortgage1423 1,500,000.0031315PZ85 12/23/2019 9051.85012/23/2014 1,507,215.00 1.851 1.8761,499,055.97 Federal Agricultural Mortgage1427 675,000.0031315P2C2 05/05/2021 1,4042.51001/09/2015 688,493.25 2.110 2.140683,927.44 Federal Agricultural Mortgage1428 404,000.0031315PL23 03/27/2024 2,4613.33001/09/2015 419,283.32 2.540 2.575422,166.48 Federal Agricultural Mortgage1433 1,604,000.0031315PD89 06/12/2023 2,1722.61001/22/2015 1,618,211.44 2.269 2.3011,630,652.30 Federal Agricultural Mortgage1447 1,450,000.0031315PD89 06/12/2023 2,1722.61002/09/2015 1,462,847.00 2.377 2.4101,465,517.08 Federal Agricultural Mortgage1452 1,000,000.003130H0AJ2 03/01/2022 1,7042.15003/05/2015 1,007,090.00 2.120 2.1501,000,000.00 Federal Agricultural Mortgage1552 Call 1,500,000.003132X0EU1 01/27/2026 3,1322.93002/26/2016 1,470,210.00 2.831 2.8701,506,559.15 Federal Agricultural Mortgage1554 Call 1,500,000.003132X0EU1 01/27/2026 3,1322.93003/02/2016 1,470,210.00 2.878 2.9181,501,298.46 Federal Agricultural Mortgage1576 1,000,000.0031315PZS1 01/24/2023 2,0332.13004/06/2016 997,580.00 1.839 1.8641,013,777.99 Federal Agricultural Mortgage1580 474,000.0031315PEM7 08/04/2025 2,9564.35004/08/2016 530,571.90 2.296 2.328543,338.44 Federal Agricultural Mortgage1595 1,500,000.0031315P2J7 05/01/2024 2,4963.30004/21/2016 1,562,790.00 2.084 2.1121,611,363.94 Federal Agricultural Mortgage1604 1,500,000.0031315P2J7 05/01/2024 2,4963.30004/26/2016 1,562,790.00 2.159 2.1891,603,831.61 Federal Agricultural Mortgage1617 500,000.0031315PUE7 12/27/2022 2,0052.18005/26/2016 499,200.00 1.844 1.870507,950.67 Federal Agricultural Mortgage1655 1,500,000.0031315PQT9 03/06/2020 9791.41007/01/2016 1,488,585.00 0.992 1.0051,515,911.58 Federal Agricultural Mortgage1663 510,000.0031315PQT9 03/06/2020 9791.41007/21/2016 506,118.90 1.135 1.150513,457.12 Federal Agricultural Mortgage1665 2,000,000.003132X0BH3 07/15/2022 1,8402.38007/25/2016 2,015,740.00 1.499 1.5202,082,532.78 Federal Agricultural Mortgage1681 1,750,000.003132X0BG5 06/15/2020 1,0801.75008/24/2016 1,750,630.00 1.136 1.1521,780,168.20 Federal Agricultural Mortgage1698 1,500,000.003132X0EQ0 01/25/2021 1,3041.55010/03/2016 1,482,795.00 1.256 1.2741,514,308.49 Federal Agricultural Mortgage1710 1,500,000.0031315PRA9 02/03/2026 3,1394.81010/18/2016 1,716,975.00 2.131 2.1601,807,674.80 Federal Agricultural Mortgage1736 Call 1,000,000.003130H0BL6 01/01/2027 3,4713.20001/19/2017 1,000,320.00 3.156 3.2001,000,000.00 Federal Agricultural Mortgage1755 1,000,000.003132X0PX3 02/23/2022 1,6982.10002/23/2017 1,004,220.00 2.034 2.0631,001,620.91 Federal Agricultural Mortgage1758 1,500,000.003132X0PX3 02/23/2022 1,6982.10003/02/2017 1,506,330.00 2.085 2.1141,499,019.77 Federal Agricultural Mortgage1769 1,500,000.003132X0RS2 04/06/2022 1,7402.07504/06/2017 1,503,885.00 2.046 2.0751,500,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 10 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Agricultural Mortgage1781 1,000,000.003132X0QG9 02/22/2021 1,3321.90004/12/2017 1,001,320.00 1.781 1.8051,003,287.87 Federal Agricultural Mortgage1784 Call 1,500,000.003132X0QC8 02/23/2027 3,5243.25004/27/2017 1,501,815.00 3.200 3.2451,500,549.37 Federal Agricultural Mortgage1788 1,000,000.003132X0NZ0 01/03/2022 1,6472.10005/04/2017 1,002,410.00 1.938 1.9651,005,776.99 Federal Agricultural Mortgage1789 Call 1,000,000.003130H0BN2 05/01/2027 3,5913.20005/11/2017 998,390.00 3.156 3.2001,000,000.00 Federal Agricultural Mortgage1792 Call 1,500,000.003132X0QC8 02/23/2027 3,5243.25005/09/2017 1,501,815.00 3.201 3.2451,500,000.00 Federal Agricultural Mortgage1794 Call 1,000,000.003132X0MM0 12/22/2026 3,4613.37505/10/2017 1,003,060.00 3.244 3.2891,006,896.88 Federal Agricultural Mortgage1817 1,000,000.0031315PPX1 07/05/2022 1,8302.20006/14/2017 1,006,680.00 1.908 1.9341,012,601.25 Federal Agricultural Mortgage1830 1,500,000.003132X0UA7 06/29/2022 1,8241.88006/29/2017 1,496,925.00 1.903 1.9301,496,433.97 Federal Agricultural Mortgage1831 1,000,000.003132X0UA7 06/29/2022 1,8241.88006/29/2017 997,950.00 1.923 1.949996,684.69 Federal Agricultural Mortgage839 1,500,000.0031315PEY1 12/30/2019 9124.50012/30/2009 1,609,845.00 4.438 4.5001,500,000.00 Federal Agricultural Mortgage923 1,500,000.0031315PNM7 12/28/2017 1803.15012/28/2010 1,515,405.00 3.106 3.1501,500,000.00 Federal Agricultural Mortgage942 1,500,000.0031315PTU3 03/09/2021 1,3474.16003/09/2011 1,614,150.00 4.103 4.1601,500,000.00 Federal Farm Credit Bank1092 1,500,000.003133EAUF3 06/14/2019 7131.50006/14/2012 1,499,250.00 1.479 1.5001,500,000.00 Federal Farm Credit Bank1205 575,000.0031331JQM8 06/04/2018 3383.40005/23/2013 586,367.75 1.045 1.060587,088.43 Federal Farm Credit Bank1206 950,000.0031331YW63 06/12/2018 3464.90005/23/2013 982,737.00 1.045 1.060983,558.02 Federal Farm Credit Bank722 2,000,000.0031331YCJ7 10/30/2017 1214.90010/30/2007 2,026,500.00 4.832 4.9002,000,000.00 Federal Farm Credit Bank725 2,000,000.0031331YHQ6 12/15/2017 1674.62512/12/2007 2,032,160.00 4.561 4.6242,000,000.00 Federal Farm Credit Bank903 1,000,000.0031331JN90 09/29/2020 1,1862.87509/29/2010 1,028,250.00 2.835 2.8751,000,000.00 Federal Farm Credit Bank918 2,000,000.0031331J5F6 12/16/2020 1,2643.62512/16/2010 2,116,880.00 3.575 3.6252,000,000.00 Federal Farm Credit Bank .1181 Call 1,500,000.003133EA4J4 10/11/2018 4671.15004/30/2013 1,495,905.00 1.137 1.1531,499,929.63 Federal Farm Credit Bank .1189 Call 1,500,000.003133ECMF8 04/24/2018 2970.98005/06/2013 1,497,150.00 0.986 1.0001,499,754.19 Federal Farm Credit Bank .1227 1,500,000.003133ECTM6 07/02/2018 3661.90007/02/2013 1,510,425.00 1.873 1.9001,500,000.00 Federal Farm Credit Bank .1241 500,000.003133ECRH9 06/06/2023 2,1662.45001/09/2014 503,865.00 3.383 3.430475,334.35 Federal Farm Credit Bank .1526 625,000.003133EAA65 07/26/2023 2,2162.12501/27/2016 620,243.75 2.024 2.052627,550.11 Federal Farm Credit Bank .1563 500,000.0031331XSS2 03/14/2022 1,7175.16003/17/2016 570,635.00 1.876 1.902572,064.74 Federal Farm Credit Bank .1565 Call 1,000,000.003133EFT98 03/28/2025 2,8272.62003/28/2016 987,080.00 2.596 2.632999,139.81 Federal Farm Credit Bank .1582 Call 1,500,000.003133EF3D7 04/21/2025 2,8512.54004/21/2016 1,475,820.00 2.505 2.5401,500,000.00 Federal Farm Credit Bank .1584 Call 1,500,000.003133EF3D7 04/21/2025 2,8512.54004/21/2016 1,475,820.00 2.505 2.5401,500,000.00 Federal Farm Credit Bank .1585 Call 1,500,000.003133EF4A2 04/19/2022 1,7531.92004/19/2016 1,487,925.00 1.893 1.9201,500,000.00 Federal Farm Credit Bank .1591 Call 1,500,000.003133EF2D8 04/13/2026 3,2082.64004/19/2016 1,468,125.00 2.603 2.6391,500,000.00 Federal Farm Credit Bank .1593 250,000.003133EC4L5 11/23/2021 1,6061.61004/21/2016 245,570.00 1.558 1.580250,312.55 Federal Farm Credit Bank .1596 1,000,000.003133ECPF5 05/13/2022 1,7771.87504/21/2016 991,460.00 1.578 1.6001,012,702.40 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 11 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Farm Credit Bank .1598 Call 1,000,000.003133EFX44 10/05/2022 1,9222.05004/22/2016 992,720.00 2.021 2.0491,000,000.00 Federal Farm Credit Bank .1603 Call 1,930,000.003133EFYV3 02/17/2026 3,1532.82004/26/2016 1,919,597.30 2.722 2.7601,938,658.27 Federal Farm Credit Bank .1606 Call 1,605,000.003133EFYF8 02/10/2025 2,7812.73004/28/2016 1,587,248.70 2.621 2.6571,612,785.62 Federal Farm Credit Bank .1609 Call 1,000,000.003133EF6T9 05/12/2025 2,8722.47005/12/2016 982,500.00 2.436 2.4701,000,000.00 Federal Farm Credit Bank .1612 Call 1,000,000.003133EFWF0 01/26/2023 2,0352.34005/10/2016 995,150.00 2.191 2.2211,006,078.90 Federal Farm Credit Bank .1615 1,000,000.003133EC7D0 12/13/2024 2,7222.12505/13/2016 965,720.00 1.930 1.9561,011,474.45 Federal Farm Credit Bank .1623 Call 1,500,000.003133EGEB7 06/09/2026 3,2652.57006/09/2016 1,463,565.00 2.534 2.5701,500,000.00 Federal Farm Credit Bank .1630 Call 1,000,000.003133EF2D8 04/13/2026 3,2082.64006/13/2016 978,750.00 2.522 2.5571,006,341.86 Federal Farm Credit Bank .1634 Call 1,000,000.003133EF2D8 04/13/2026 3,2082.64006/16/2016 978,750.00 2.489 2.5241,008,939.78 Federal Farm Credit Bank .1638 Call 2,000,000.003133EGGR0 06/22/2026 3,2782.50006/22/2016 1,950,420.00 2.582 2.6182,000,000.00 Federal Farm Credit Bank .1641 Call 1,500,000.003133EGHN8 06/30/2025 2,9212.42006/30/2016 1,463,370.00 2.386 2.4201,500,000.00 Federal Farm Credit Bank .1647 Call 1,500,000.003133EGJH9 01/06/2025 2,7462.24007/06/2016 1,451,940.00 2.209 2.2401,500,000.00 Federal Farm Credit Bank .1650 1,500,000.003133EGKM6 07/06/2020 1,1011.00007/06/2016 1,462,095.00 0.986 1.0001,500,000.00 Federal Farm Credit Bank .1659 500,000.0031331XSS2 03/14/2022 1,7175.16007/08/2016 570,635.00 1.215 1.232588,928.01 Federal Farm Credit Bank .1664 Call 1,500,000.003133EGFB6 06/16/2025 2,9072.36007/25/2016 1,468,755.00 2.309 2.3411,502,013.82 Federal Farm Credit Bank .1675 Call 1,500,000.003133EGQA6 11/08/2023 2,3211.85008/09/2016 1,437,570.00 1.859 1.8851,496,910.05 Federal Farm Credit Bank .1679 Call 1,350,000.003133EGQH1 08/10/2026 3,3272.14008/18/2016 1,276,641.00 2.110 2.1391,350,000.00 Federal Farm Credit Bank .1701 Call 1,625,000.003133EGXB6 10/05/2026 3,3832.14010/06/2016 1,531,968.75 2.154 2.1841,618,978.61 Federal Farm Credit Bank .1705 Call 1,000,000.003133EGYL3 10/17/2025 3,0302.09010/17/2016 956,820.00 2.061 2.0901,000,000.00 Federal Farm Credit Bank .1733 Call 1,225,000.003133EFEQ6 09/28/2022 1,9152.42001/09/2017 1,225,085.75 2.397 2.4301,224,326.40 Federal Farm Credit Bank .1782 500,000.0031331XHX3 12/21/2021 1,6345.05004/12/2017 565,320.00 1.884 1.910566,835.97 Federal Farm Credit Bank .1786 Call 300,000.003133EFRJ8 11/30/2023 2,3432.65005/03/2017 299,076.00 2.614 2.650299,985.37 Federal Farm Credit Bank .1787 900,000.003133EEVD9 03/25/2024 2,4592.30005/04/2017 896,256.00 2.274 2.306899,639.48 Federal Farm Credit Bank .1822 500,000.003133EDWX6 10/07/2024 2,6552.91006/21/2017 520,365.00 2.143 2.172524,630.85 Federal Farm Credit Bank .1825 Call 1,000,000.003133EGS71 09/06/2022 1,8932.29006/21/2017 994,060.00 2.258 2.2891,000,000.00 Federal Farm Credit Bank .1826 Call 1,000,000.003133EHGK3 04/24/2025 2,8542.85006/22/2017 992,780.00 2.798 2.8361,000,000.00 Federal Farm Credit Bank .1827 Call 1,000,000.003133EFWF0 01/26/2023 2,0352.34006/27/2017 995,150.00 2.307 2.3391,000,000.00 Federal Farm Credit Bank .1829 Call 1,100,000.003133EFVJ3 01/27/2025 2,7672.82006/28/2017 1,090,001.00 2.784 2.8231,099,725.30 Federal Home Loan Bank1012 2,000,000.00313376BR5 12/14/2018 5311.75012/16/2011 2,010,780.00 1.725 1.7492,000,000.00 Federal Home Loan Bank1039 1,500,000.003133782M2 03/08/2019 6151.50003/08/2012 1,501,845.00 1.574 1.5961,497,705.68 Federal Home Loan Bank1041 1,500,000.00313378LA7 02/25/2022 1,7002.33003/20/2012 1,522,335.00 2.298 2.3301,500,000.00 Federal Home Loan Bank1049 1,500,000.00313378VG3 05/22/2019 6901.85004/09/2012 1,507,485.00 1.824 1.8501,500,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 12 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank1058 1,500,000.003133792L2 10/20/2017 1111.23004/20/2012 1,500,525.00 1.213 1.2301,500,000.00 Federal Home Loan Bank1068 1,500,000.00313379BL2 12/29/2017 1811.25004/30/2012 1,500,120.00 1.232 1.2501,500,000.00 Federal Home Loan Bank1073 2,000,000.00313379EC9 11/18/2020 1,2362.00005/18/2012 2,005,900.00 1.972 2.0002,000,000.00 Federal Home Loan Bank1089 2,000,000.00313379PD5 09/20/2017 811.09006/07/2012 1,999,920.00 1.075 1.0902,000,000.00 Federal Home Loan Bank1125 1,500,000.00313381C94 12/13/2019 8951.25011/30/2012 1,491,150.00 1.196 1.2121,501,307.49 Federal Home Loan Bank1126 Call 750,000.00313381DA0 12/05/2022 1,9832.19012/05/2012 741,090.00 2.165 2.195749,796.46 Federal Home Loan Bank1127 1,500,000.00313381GB5 11/30/2018 5171.00011/30/2012 1,493,250.00 0.986 1.0001,500,000.00 Federal Home Loan Bank1131 1,500,000.00313381C94 12/13/2019 8951.25012/13/2012 1,491,150.00 1.232 1.2491,500,000.00 Federal Home Loan Bank1135 1,500,000.00313376BR5 12/14/2018 5311.75012/19/2012 1,508,085.00 1.075 1.0901,513,886.20 Federal Home Loan Bank1140 1,500,000.00313376BR5 12/14/2018 5311.75001/08/2013 1,508,085.00 1.117 1.1321,512,972.16 Federal Home Loan Bank1146 Call 212,500.00313381DA0 12/05/2022 1,9832.19001/25/2013 209,975.50 2.201 2.232212,061.38 Federal Home Loan Bank1154 1,500,000.003133XRFZ8 06/08/2018 3424.75002/21/2013 1,547,895.00 1.020 1.0351,550,627.40 Federal Home Loan Bank1156 1,315,000.003133XHRJ3 12/10/2021 1,6235.00002/25/2013 1,485,029.50 1.825 1.8501,484,031.96 Federal Home Loan Bank1157 2,000,000.003133XSR59 12/14/2018 5313.75002/25/2013 2,067,180.00 1.128 1.1442,073,033.23 Federal Home Loan Bank1168 530,000.003133XSR59 12/14/2018 5313.75003/11/2013 547,802.70 1.165 1.182549,058.32 Federal Home Loan Bank1182 Call 1,500,000.00313381C29 06/04/2018 3381.05004/30/2013 1,496,250.00 1.039 1.0541,499,945.53 Federal Home Loan Bank1204 Call 557,958.01313383EP2 06/20/2018 3541.25006/20/2013 557,807.36 1.232 1.250557,958.01 Federal Home Loan Bank1212 1,500,000.00313379DT3 06/08/2018 3421.25006/05/2013 1,499,445.00 1.222 1.2391,500,148.59 Federal Home Loan Bank1213 2,000,000.00313379DT3 06/08/2018 3421.25006/06/2013 1,999,260.00 1.191 1.2082,000,759.86 Federal Home Loan Bank1216 Call 1,500,000.00313382Y98 05/16/2018 3191.00006/12/2013 1,496,160.00 1.412 1.4321,494,539.88 Federal Home Loan Bank1217 Call 1,000,000.00313382FP3 03/20/2018 2621.00006/12/2013 997,260.00 1.372 1.391997,286.38 Federal Home Loan Bank1228 1,500,000.00313373UU4 06/08/2018 3422.75007/01/2013 1,520,100.00 1.605 1.6271,515,086.49 Federal Home Loan Bank1240 1,500,000.00313371U79 12/11/2020 1,2593.12501/09/2014 1,569,360.00 2.615 2.6511,522,182.66 Federal Home Loan Bank1248 1,500,000.003130A0J27 01/07/2020 9202.22001/23/2014 1,524,045.00 2.194 2.2251,499,816.18 Federal Home Loan Bank1253 1,500,000.003130A12B3 03/13/2020 9862.12502/24/2014 1,517,205.00 2.095 2.1241,500,000.00 Federal Home Loan Bank1261 1,500,000.00313382K69 03/12/2021 1,3501.75003/13/2014 1,498,380.00 2.418 2.4511,464,437.10 Federal Home Loan Bank1267 1,500,000.00313370US5 09/11/2020 1,1682.87504/02/2014 1,554,495.00 2.271 2.3031,525,328.27 Federal Home Loan Bank1270 200,000.00313379EC9 11/18/2020 1,2362.00004/08/2014 200,590.00 2.263 2.295198,158.14 Federal Home Loan Bank1272 550,000.00313379EC9 11/18/2020 1,2362.00004/09/2014 551,622.50 2.263 2.295544,932.75 Federal Home Loan Bank1278 325,000.003133XTYY6 06/14/2019 7134.37504/22/2014 342,969.25 1.889 1.916339,791.42 Federal Home Loan Bank1314 1,500,000.00313379EE5 06/14/2019 7131.62506/04/2014 1,505,100.00 1.700 1.7241,497,221.01 Federal Home Loan Bank1318 1,500,000.00313379EE5 06/14/2019 7131.62506/16/2014 1,505,100.00 1.774 1.7991,495,146.11 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 13 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank1324 Call 1,250,000.003133836A4 05/22/2019 6900.80006/24/2014 1,231,162.50 1.766 1.7911,227,611.35 Federal Home Loan Bank1332 1,500,000.003130A2FH4 06/14/2019 7131.75007/02/2014 1,507,485.00 1.686 1.7101,501,112.49 Federal Home Loan Bank1577 1,500,000.003130A7Q73 12/08/2021 1,6211.53004/08/2016 1,476,090.00 1.450 1.4701,503,799.92 Federal Home Loan Bank1583 Call 1,690,000.003130A7RS6 04/27/2026 3,2222.65004/27/2016 1,657,383.00 2.619 2.6551,689,254.52 Federal Home Loan Bank1587 Call 1,500,000.003130A7TA3 04/28/2023 2,1272.07004/28/2016 1,481,760.00 2.041 2.0701,500,000.00 Federal Home Loan Bank1605 1,000,000.00313382K69 03/12/2021 1,3501.75004/27/2016 998,920.00 1.490 1.5111,008,463.79 Federal Home Loan Bank1619 500,000.003133827D9 02/08/2021 1,3181.75006/02/2016 497,030.00 1.476 1.496504,391.41 Federal Home Loan Bank1620 400,000.003133XDVS7 12/11/2020 1,2595.25006/02/2016 446,592.00 1.461 1.481450,040.89 Federal Home Loan Bank1628 Call 1,500,000.003130A8F99 06/15/2026 3,2712.58006/15/2016 1,461,300.00 2.544 2.5801,500,000.00 Federal Home Loan Bank1632 Call 2,000,000.003130A8J46 06/29/2026 3,2852.52006/29/2016 1,948,920.00 2.485 2.5202,000,000.00 Federal Home Loan Bank1633 Call 1,363,636.273130A8J79 12/27/2024 2,7362.35006/27/2016 1,321,227.18 2.317 2.3501,363,636.27 Federal Home Loan Bank1635 Call 1,500,000.003130A8JG9 06/22/2023 2,1822.07006/22/2016 1,481,820.00 2.041 2.0701,500,000.00 Federal Home Loan Bank1637 Call 909,091.003130A8J79 12/27/2024 2,7362.35006/27/2016 880,818.27 2.317 2.350909,091.00 Federal Home Loan Bank1640 Call 1,500,000.003130A8JX2 06/29/2026 3,2852.54006/29/2016 1,456,605.00 2.505 2.5401,500,000.00 Federal Home Loan Bank1643 Call 1,500,000.003130A8HF3 09/23/2025 3,0062.44006/23/2016 1,466,265.00 2.430 2.4641,497,331.53 Federal Home Loan Bank1644 Call 1,500,000.003130A8HT3 12/29/2025 3,1032.47006/29/2016 1,500,135.00 2.451 2.4851,498,296.64 Federal Home Loan Bank1648 Call 1,500,000.003130A8J46 06/29/2026 3,2852.52006/29/2016 1,461,690.00 2.425 2.4591,500,404.75 Federal Home Loan Bank1649 250,000.003130A0EN6 12/10/2021 1,6232.87506/28/2016 259,825.00 1.232 1.249267,392.79 Federal Home Loan Bank1651 Call 1,500,000.003130A8MQ3 10/12/2022 1,9291.87507/12/2016 1,478,205.00 1.849 1.8751,500,000.00 Federal Home Loan Bank1652 Call 980,000.003130A8F99 06/15/2026 3,2712.58006/29/2016 954,716.00 2.524 2.560981,534.83 Federal Home Loan Bank1661 Call 1,000,000.003130A8SJ3 11/01/2024 2,6802.15008/01/2016 972,870.00 2.120 2.1501,000,000.00 Federal Home Loan Bank1662 Call 1,500,000.003130A8R54 07/28/2023 2,2181.80007/28/2016 1,454,400.00 1.795 1.8201,498,295.96 Federal Home Loan Bank1667 Call 1,500,000.003130A8VP5 08/23/2024 2,6102.00008/23/2016 1,450,305.00 1.972 2.0001,500,000.00 Federal Home Loan Bank1668 Call 1,500,000.003130A8VN0 11/17/2023 2,3301.94008/17/2016 1,444,740.00 1.913 1.9401,500,000.00 Federal Home Loan Bank1690 Call 1,000,000.003130A94L2 09/02/2026 3,3502.12509/15/2016 943,090.00 2.129 2.158997,239.20 Federal Home Loan Bank1695 Call 1,500,000.003130A9N64 10/06/2026 3,3842.15010/06/2016 1,451,805.00 2.120 2.1501,500,000.00 Federal Home Loan Bank1697 Call 1,000,000.003130A9N64 10/06/2026 3,3842.15010/06/2016 967,870.00 2.131 2.161999,073.61 Federal Home Loan Bank1699 500,000.003133827E7 02/06/2023 2,0462.13010/05/2016 497,550.00 1.578 1.600514,045.81 Federal Home Loan Bank1700 Call 1,500,000.003130A9P62 10/13/2026 3,3912.20010/13/2016 1,443,435.00 2.169 2.2001,500,000.00 Federal Home Loan Bank1702 Call 2,000,000.003130A9PT2 10/26/2026 3,4042.23010/26/2016 1,881,060.00 2.199 2.2302,000,000.00 Federal Home Loan Bank1706 Call 310,000.003130A9PT2 10/26/2026 3,4042.23010/26/2016 291,564.30 2.214 2.245309,612.87 Federal Home Loan Bank1707 Call 1,000,000.003130A9RH6 10/20/2026 3,3982.30010/20/2016 957,440.00 2.270 2.302999,813.94 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 14 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal Home Loan Bank1709 Call 1,000,000.003130A9RH6 10/20/2026 3,3982.30010/20/2016 957,440.00 2.271 2.302999,767.43 Federal Home Loan Bank1713 Call 2,000,000.003130A9XC0 11/17/2026 3,4262.36011/17/2016 1,915,020.00 2.327 2.3602,000,000.00 Federal Home Loan Bank1716 Call 1,500,000.003130A9XC0 11/17/2026 3,4262.36011/17/2016 1,436,265.00 2.361 2.3931,495,780.00 Federal Home Loan Bank1717 Call 1,500,000.003130AA2Z0 11/23/2026 3,4322.69011/23/2016 1,472,505.00 2.653 2.6901,500,000.00 Federal Home Loan Bank1718 Call 205,000.003130AA2Z0 11/23/2026 3,4322.69011/23/2016 201,242.35 2.682 2.720204,495.42 Federal Home Loan Bank1719 Call 1,500,000.003130A7C29 02/24/2026 3,1602.75011/16/2016 1,490,100.00 2.712 2.7491,500,000.00 Federal Home Loan Bank1720 Call 1,500,000.003130AAAZ1 12/14/2026 3,4532.90012/14/2016 1,474,185.00 2.860 2.9001,500,000.00 Federal Home Loan Bank1724 Call 800,000.003130AAEX2 12/28/2021 1,6412.15012/28/2016 799,120.00 2.120 2.150800,000.00 Federal Home Loan Bank1727 1,000,000.003130AABG2 11/29/2021 1,6121.87512/16/2016 1,002,100.00 2.168 2.198986,483.74 Federal Home Loan Bank1741 Call 315,000.003130AAAZ1 12/14/2026 3,4532.90001/27/2017 309,578.85 3.008 3.050311,157.63 Federal Home Loan Bank1751 Call 325,000.003130A8HF3 09/23/2025 3,0062.44002/15/2017 317,690.75 2.836 2.875314,745.82 Federal Home Loan Bank1752 Call 250,000.003130A7C29 02/24/2026 3,1602.75002/15/2017 248,350.00 2.958 3.000245,293.13 Federal Home Loan Bank1763 1,910,000.003133XHRJ3 12/10/2021 1,6235.00003/10/2017 2,156,963.00 2.150 2.1802,136,038.38 Federal Home Loan Bank1780 1,000,000.00313378CR0 03/11/2022 1,7142.25004/12/2017 1,014,300.00 1.903 1.9301,014,244.15 Federal Home Loan Bank1823 Call 1,500,000.003130ABJW7 06/27/2024 2,5532.55006/27/2017 1,487,610.00 2.515 2.5501,500,000.00 Federal Home Loan Bank822 3,000,000.003133XUMS9 09/13/2019 8044.50008/12/2009 3,192,630.00 4.437 4.4993,000,000.00 Federal Home Loan Bank940 2,000,000.003133X0PF0 08/15/2018 4105.37502/17/2011 2,089,340.00 3.423 3.4702,037,345.29 Federal Home Loan Bank992 2,000,000.00313371ZX7 12/08/2017 1602.62509/13/2011 2,011,640.00 1.526 1.5472,008,920.68 Fed. Home Loan Mortgage Corp.1036 1,500,000.003137EABA6 11/17/2017 1395.12503/01/2012 1,522,350.00 1.227 1.2441,521,158.05 Fed. Home Loan Mortgage Corp.1106 1,500,000.003134G3A91 08/22/2019 7821.40008/22/2012 1,497,210.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.1113 1,500,000.003134G3L73 12/26/2019 9081.50009/26/2012 1,492,125.00 1.479 1.5001,500,000.00 Fed. Home Loan Mortgage Corp.1153 1,500,000.003137EADP1 03/07/2018 2490.87502/11/2013 1,496,115.00 0.960 0.9731,499,018.69 Fed. Home Loan Mortgage Corp.1166 1,500,000.003137EADN6 01/12/2018 1950.75003/15/2013 1,496,520.00 0.948 0.9621,498,354.89 Fed. Home Loan Mortgage Corp.1273 2,000,000.003134G45T1 12/10/2021 1,6232.00004/10/2014 2,003,620.00 2.564 2.6001,951,937.30 Fed. Home Loan Mortgage Corp.1277 1,000,000.003134G45T1 12/10/2021 1,6232.00004/22/2014 1,001,810.00 2.643 2.680972,837.95 Fed. Home Loan Mortgage Corp.1282 300,000.003134G3A91 08/22/2019 7821.40005/01/2014 299,442.00 1.914 1.941296,707.82 Fed. Home Loan Mortgage Corp.1286 300,000.003134G35V8 03/13/2020 9861.65005/02/2014 300,021.00 2.053 2.082296,717.95 Fed. Home Loan Mortgage Corp.1287 300,000.003134G3U40 11/21/2019 8731.45005/02/2014 299,421.00 1.938 1.965296,515.26 Fed. Home Loan Mortgage Corp.1291 1,000,000.003134G3K58 03/19/2020 9921.50005/06/2014 996,680.00 2.041 2.070985,485.05 Fed. Home Loan Mortgage Corp.1292 1,000,000.003134G44G0 05/22/2020 1,0561.50005/06/2014 995,750.00 2.091 2.120983,251.19 Fed. Home Loan Mortgage Corp.1301 1,000,000.003134G3L73 12/26/2019 9081.50005/13/2014 994,750.00 1.945 1.972988,939.69 Fed. Home Loan Mortgage Corp.1352 1,000,000.003134G43G1 05/07/2019 6751.20007/25/2014 995,400.00 1.765 1.790989,581.27 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 15 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Fed. Home Loan Mortgage Corp.1678 Call 1,000,000.003134GAEF7 09/29/2021 1,5511.65009/29/2016 989,970.00 1.627 1.6501,000,000.00 Fed. Home Loan Mortgage Corp.1744 Call 1,000,000.003134GAZ80 02/24/2022 1,6992.30002/24/2017 1,000,080.00 2.268 2.3001,000,000.00 Fed. Home Loan Mortgage Corp.1750 Call 1,500,000.003134GA5D2 03/15/2022 1,7182.30003/15/2017 1,500,150.00 2.268 2.3001,500,000.00 Fed. Home Loan Mortgage Corp.1754 Call 1,500,000.003134GA5V2 03/14/2022 1,7172.37503/14/2017 1,500,315.00 2.342 2.3751,500,000.00 Fed. Home Loan Mortgage Corp.1759 Call 1,500,000.003134GBBF8 03/29/2022 1,7322.37503/29/2017 1,500,180.00 2.342 2.3751,500,000.00 Fed. Home Loan Mortgage Corp.1764 Call 1,500,000.003134GBCV2 04/21/2022 1,7552.50004/21/2017 1,500,105.00 2.465 2.5001,500,000.00 Fed. Home Loan Mortgage Corp.1828 Call 1,500,000.003134GBNX6 05/28/2021 1,4272.00006/28/2017 1,497,390.00 1.969 1.9961,500,000.00 Fed. Home Loan Mortgage Corp.993 2,000,000.003137EAAY5 08/23/2017 535.50009/13/2011 2,012,120.00 1.415 1.4352,011,217.42 Federal National Mortgage Asso1023 2,590,000.003136FPXN2 11/24/2017 1462.30001/25/2012 2,602,872.30 1.406 1.4262,598,596.68 Federal National Mortgage Asso1035 2,000,000.0031398ALG5 01/23/2018 2064.37703/01/2012 2,033,860.00 1.388 1.4082,031,861.17 Federal National Mortgage Asso1048 2,000,000.003136G0AW1 10/16/2020 1,2032.35004/16/2012 2,039,580.00 2.317 2.3502,000,000.00 Federal National Mortgage Asso1059 2,000,000.003136G0DU2 04/30/2020 1,0342.00004/30/2012 2,018,620.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1061 1,500,000.003136G0EC1 04/30/2020 1,0342.05004/30/2012 1,516,920.00 2.021 2.0501,500,000.00 Federal National Mortgage Asso1066 2,000,000.003136G0FJ5 10/30/2020 1,2172.00004/30/2012 2,018,420.00 1.972 2.0002,000,000.00 Federal National Mortgage Asso1118 500,000.003136FPXN2 11/24/2017 1462.30010/18/2012 502,485.00 0.927 0.940502,631.19 Federal National Mortgage Asso1149 1,500,000.003135G0TG8 02/08/2018 2220.87501/31/2013 1,497,075.00 1.019 1.0341,498,602.17 Federal National Mortgage Asso1174 1,500,000.003135G0WJ8 05/21/2018 3240.87504/15/2013 1,494,870.00 0.905 0.9171,499,440.52 Federal National Mortgage Asso1190 Call 1,000,000.003135G0XD0 05/21/2018 3241.00005/21/2013 997,230.00 0.996 1.010999,911.11 Federal National Mortgage Asso1191 Call 2,000,000.003135G0XA6 05/21/2018 3241.03005/21/2013 1,995,140.00 1.015 1.0302,000,000.00 Federal National Mortgage Asso1197 1,500,000.003135G0WJ8 05/21/2018 3240.87505/21/2013 1,494,870.00 0.986 1.0001,498,378.13 Federal National Mortgage Asso1210 Call 1,500,000.003135G0XK4 05/25/2018 3281.05005/30/2013 1,496,085.00 1.035 1.0501,500,000.00 Federal National Mortgage Asso1214 Call 1,500,000.003135G0XD0 05/21/2018 3241.00006/07/2013 1,495,845.00 1.262 1.2791,496,394.62 Federal National Mortgage Asso1268 1,500,000.003136FTR43 08/28/2020 1,1542.00004/08/2014 1,515,225.00 2.172 2.2021,491,094.32 Federal National Mortgage Asso1276 1,000,000.003136G0U58 04/30/2021 1,3991.75004/16/2014 997,610.00 2.364 2.397977,306.91 Federal National Mortgage Asso1288 250,000.003136G0M57 04/09/2021 1,3781.75005/02/2014 247,457.50 2.452 2.486243,653.24 Federal National Mortgage Asso1290 1,000,000.003136G0Y70 01/30/2019 5781.08005/05/2014 995,110.00 1.633 1.656991,276.45 Federal National Mortgage Asso1315 1,200,000.003136G0YK1 08/28/2019 7881.50006/05/2014 1,197,828.00 1.815 1.8401,191,631.67 Federal National Mortgage Asso1317 1,000,000.003136G02P5 04/29/2019 6671.20006/12/2014 995,840.00 1.765 1.790989,715.89 Federal National Mortgage Asso1546 Call 1,000,000.003136G3AN5 03/16/2021 1,3541.50003/16/2016 996,220.00 1.978 2.0061,000,000.00 Federal National Mortgage Asso1654 1,000,000.003136G0EG2 04/23/2021 1,3922.28006/30/2016 1,009,650.00 1.171 1.1871,040,350.89 Federal National Mortgage Asso1669 Call 1,350,000.003136G3XZ3 07/28/2021 1,4881.50007/28/2016 1,326,456.00 1.505 1.5261,348,624.69 Federal National Mortgage Asso1687 Call 1,050,000.003136G36A8 09/27/2024 2,6452.00009/27/2016 1,012,452.00 1.972 2.0001,050,000.00 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 16 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Federal Agency Issues - Coupon Federal National Mortgage Asso1715 500,000.0031364CCC0 04/30/2026 3,2257.12511/10/2016 671,440.00 2.367 2.400685,612.66 State of Tennessee1676 MUN 700,000.00880541XX0 08/01/2025 2,9532.06608/25/2016 670,824.00 1.893 1.920707,550.07 Tennessee Valley Authority1132 500,000.00880591EL2 02/15/2021 1,3253.87512/14/2012 537,005.00 1.596 1.618538,135.68 Tennessee Valley Authority1133 1,010,000.00880591EN8 08/15/2022 1,8711.87512/14/2012 1,004,414.70 1.893 1.9201,007,878.59 Tennessee Valley Authority1145 1,500,000.00880591EL2 02/15/2021 1,3253.87501/23/2013 1,611,015.00 1.647 1.6691,611,651.07 Tennessee Valley Authority1170 1,500,000.00880591EC2 04/01/2018 2744.50003/25/2013 1,535,040.00 0.913 0.9261,539,198.89 Tennessee Valley Authority1260 1,160,000.00880591EL2 02/15/2021 1,3253.87503/12/2014 1,245,851.60 2.427 2.4611,214,304.56 Tennessee Valley Authority1508 1,000,000.00880591CJ9 11/01/2025 3,0456.75011/20/2015 1,310,330.00 2.807 2.8461,281,544.26 Tennessee Valley Authority1519 750,000.00880591ER9 09/15/2024 2,6332.87501/15/2016 773,902.50 2.564 2.600763,213.19 Tennessee Valley Authority1589 775,000.00880591CJ9 11/01/2025 3,0456.75004/18/2016 1,015,505.75 2.337 2.3701,026,849.04 Tennessee Valley Authority1703 1,490,000.00880591EN8 08/15/2022 1,8711.87510/07/2016 1,481,760.30 1.538 1.5601,512,874.61 Tennessee Valley Authority1714 1,250,000.00880591CJ9 11/01/2025 3,0456.75011/10/2016 1,637,912.50 2.317 2.3501,661,049.21 Tennessee Valley Authority861 2,000,000.00880591EA6 07/18/2017 175.50004/26/2010 2,003,480.00 3.602 3.6522,001,520.20 Tennessee Valley Authority954 2,000,000.00880591CU4 12/15/2017 1676.25005/23/2011 2,045,040.00 2.624 2.6612,029,819.95 Subtotal and Average 352,944,317.45 349,711,185.28 351,794,716.83 2.024 2.052 1,532 Treasury Securities - Coupon U.S. Treasury1201 TB 2,000,000.00912828UJ7 01/31/2018 2140.87505/16/2013 1,996,500.00 0.779 0.7902,000,971.46 U.S. Treasury1237 TB 2,000,000.00912828SD3 01/31/2019 5791.25001/07/2014 1,996,480.00 1.682 1.7051,986,209.63 U.S. Treasury1284 TB 1,500,000.00912828TH3 07/31/2019 7600.87505/02/2014 1,484,070.00 1.726 1.7501,473,997.83 U.S. Treasury1285 TB 1,500,000.00912828TN0 08/31/2019 7911.00005/02/2014 1,486,935.00 1.755 1.7801,475,933.61 U.S. Treasury1289 TB 1,500,000.00912828SX9 05/31/2019 6991.12505/05/2014 1,493,025.00 1.692 1.7161,483,811.80 U.S. Treasury1299 TB 1,500,000.00912828SX9 05/31/2019 6991.12505/13/2014 1,493,025.00 1.654 1.6771,484,852.12 U.S. Treasury1316 TB 1,500,000.00912828TC4 06/30/2019 7291.00006/10/2014 1,488,870.00 1.687 1.7111,479,683.84 U.S. Treasury1761 TB 1,500,000.00912828J43 02/28/2022 1,7031.75003/09/2017 1,493,610.00 2.071 2.1001,476,864.97 Subtotal and Average 12,862,325.26 13,000,000.00 12,932,515.00 1.599 1.621 741 Municipal Bonds Acalanes Union High School Dis1494 MUN 1,000,000.00004284B38 08/01/2021 1,4922.38110/30/2015 1,005,850.00 2.120 2.1501,008,815.74 Antelope Valley Community Coll1790 MUN 220,000.0003667PFL1 08/01/2022 1,8572.60805/09/2017 221,702.80 2.266 2.298223,223.79 Burlingame School District1548 MUN 730,000.00121457EQ4 08/01/2025 2,9536.23802/24/2016 830,973.60 3.557 3.606860,642.57 Carlsbad Unified School Dist .1547 MUN 300,000.00142665DH8 08/01/2021 1,4924.58402/24/2016 325,392.00 2.130 2.159327,888.75 Carlsbad Unified School Dist .1556 MUN 1,250,000.00142665DH8 08/01/2021 1,4924.58403/04/2016 1,355,800.00 2.138 2.1681,365,656.43 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 17 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Municipal Bonds Carlsbad Unified School Dist .1753 MUN 350,000.00142665DH8 08/01/2021 1,4924.58402/17/2017 379,624.00 2.317 2.350380,175.84 Cerritos Community College Dis1523 MUN 500,000.00156792GV9 08/01/2021 1,4922.78101/27/2016 508,715.00 2.012 2.040514,236.92 Fremon Union High School Distr1646 MUN 525,000.00357172VA0 02/01/2026 3,1376.08006/28/2016 628,792.50 2.994 3.035644,801.26 State of Georgia1613 MUN 500,000.00373384RU2 10/01/2022 1,9183.57005/17/2016 530,690.00 1.878 1.904541,095.55 State of Georgia1645 MUN 365,000.00373384W69 02/01/2023 2,0413.25006/27/2016 381,768.10 1.898 1.925390,238.92 State of Georgia1666 MUN 1,825,000.003733844V5 02/01/2025 2,7722.37507/29/2016 1,785,744.25 1.972 1.9991,872,495.71 State of Georgia1691 MUN 385,000.00373384RU2 10/01/2022 1,9183.57009/26/2016 408,631.30 1.630 1.653421,799.26 State of Georgia1775 MUN 250,000.00373384RX6 10/01/2025 3,0144.00004/10/2017 273,047.50 2.739 2.777272,335.84 State of Hawaii1685 MUN 1,045,000.00419792DA1 10/01/2026 3,3793.15010/19/2016 1,060,894.45 2.431 2.4651,103,356.95 City of Los Angeles1748 MUN 1,000,000.00544351KS7 09/01/2023 2,2532.64002/14/2017 1,009,770.00 2.784 2.8231,001,676.54 State of Maryland1689 MUN 485,000.005741925C0 03/01/2022 1,7044.30009/16/2016 532,719.15 1.534 1.555544,457.59 State of Maryland1762 MUN 1,000,000.00574193NC8 03/15/2022 1,7182.25003/22/2017 1,007,650.00 2.219 2.2501,000,000.00 Mtn. View-Whisman School Dist.1348 MUN 500,000.0062451FFK1 08/01/2021 1,4922.97307/24/2014 511,835.00 2.893 2.933504,112.74 Mt. San Antonio Community Coll1489 MUN 1,335,000.00623040GX4 08/01/2023 2,2224.10310/26/2015 1,438,649.40 2.490 2.5251,450,680.31 State of Ohio1550 MUN 1,500,000.00677522HZ0 05/01/2021 1,4001.57003/09/2016 1,464,945.00 1.548 1.5691,500,000.00 State of Ohio1688 MUN 800,000.00677522JB1 05/01/2023 2,1302.11009/13/2016 787,600.00 1.764 1.788814,070.35 State of Ohio1742 MUN 2,000,000.00677522JB1 05/01/2023 2,1302.11001/31/2017 1,969,000.00 2.485 2.5201,955,965.33 State of Ohio1832 MUN 900,000.006775207G7 04/01/2024 2,4664.97106/30/2017 1,034,703.00 2.416 2.4501,040,324.25 State of Oregon1682 MUN 570,000.0068609BGH4 05/01/2022 1,7652.50008/29/2016 576,805.80 1.528 1.550594,955.28 Palo Alto Unified School Dist.1192 MUN 2,000,000.00697379UE3 08/01/2021 1,4922.44105/10/2013 2,024,160.00 2.031 2.0602,028,466.67 Palo Alto Unified School Dist.1193 MUN 1,800,000.00697379UE3 08/01/2021 1,4922.44105/13/2013 1,821,744.00 2.031 2.0601,825,619.15 Palo Alto Unified School Dist.1195 MUN 1,990,000.00697379UE3 08/01/2021 1,4922.44105/15/2013 2,014,039.20 2.051 2.0802,016,818.55 Palo Alto Unified School Dist.1437 MUN 200,000.00697379UE3 08/01/2021 1,4922.44101/27/2015 202,416.00 2.041 2.070202,819.59 Palo Alto Unified School Dist.1610 MUN 1,000,000.00697379UE3 08/01/2021 1,4922.44105/12/2016 1,012,080.00 1.528 1.5501,034,805.91 Palo Alto Unified School Dist.1684 MUN 600,000.00697379UD5 08/01/2020 1,1272.29109/02/2016 607,434.00 1.290 1.308617,668.62 City & County of San Francisco1441 MUN 360,000.00797646NL6 06/15/2022 1,8104.95002/09/2015 399,783.60 2.416 2.450400,580.54 City & County of San Francisco1509 MUN 1,000,000.00797646NC6 06/15/2025 2,9065.45011/27/2015 1,176,310.00 3.067 3.1101,159,977.48 City & County of San Francisco1711 MUN 2,105,000.00797646T48 06/15/2025 2,9062.29011/01/2016 2,013,137.80 2.219 2.2492,111,020.95 City & County of San Francisco1712 MUN 245,000.00797646T55 06/15/2026 3,2712.39011/01/2016 232,480.50 2.376 2.410244,605.52 San Jose Unified School Dist.1435 MUN 580,000.00798186C83 08/01/2023 2,2222.50001/29/2015 579,420.00 2.663 2.700573,731.97 San Mateo Union High School Dt1516 MUN 245,000.00799017KT4 09/01/2019 7922.19301/08/2016 247,440.20 1.775 1.800247,008.51 San Mateo Union High School Dt1518 MUN 180,000.00799017KV9 09/01/2021 1,5232.72001/19/2016 183,096.00 2.046 2.075184,541.39 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a June 30, 2017 Par Value Days To Maturity Maturity Date Current RateMarket Value Fund ALL - Portfolio Listings Investments by Fund Page 18 CUSIP Investment #Issuer Purchase Date Book Value YTM 360 YTM 365 Municipal Bonds State of Tennessee1673 MUN 1,000,000.00880541XY8 08/01/2026 3,3182.11608/25/2016 943,030.00 1.923 1.9501,013,634.14 State of Tennessee1674 MUN 1,650,000.00880541XX0 08/01/2025 2,9532.06608/25/2016 1,581,228.00 1.893 1.9201,667,796.60 State of Texas1482 MUN 920,000.00882723PP8 10/01/2021 1,5532.58910/14/2015 937,894.00 1.864 1.890945,726.23 State of Texas1586 MUN 1,000,000.00882722KA8 10/01/2023 2,2835.64304/19/2016 1,079,020.00 3.339 3.3851,123,750.00 State of Texas1592 MUN 235,000.00882722JZ5 10/01/2022 1,9185.50304/21/2016 253,346.45 3.047 3.090261,802.16 State of Texas1621 MUN 500,000.00882723A41 10/01/2020 1,1881.77706/07/2016 497,575.00 1.450 1.470504,811.00 State of Texas1625 MUN 485,000.00882722KC4 10/01/2025 3,0145.91306/09/2016 525,298.65 3.831 3.885552,514.65 State of Texas1708 MUN 110,000.00882722VJ7 04/01/2022 1,7353.67310/19/2016 116,564.80 1.825 1.850119,019.60 University of California1340 MUN 1,875,000.0091412GSB2 07/01/2019 7301.79607/14/2014 1,877,381.25 2.007 2.0351,866,508.67 University of California1356 MUN 425,000.0091412GGU3 05/15/2020 1,0493.34807/31/2014 441,222.25 2.281 2.313436,755.92 University of California1368 MUN 250,000.0091412GGT6 05/15/2019 6833.04808/08/2014 256,045.00 1.982 2.010254,608.48 University of California1383 MUN 955,000.0091412GSB2 07/01/2019 7301.79608/27/2014 956,212.85 1.972 2.000951,293.90 University of California1414 MUN 750,000.0091412GSB2 07/01/2019 7301.79611/28/2014 750,952.50 1.923 1.950747,798.19 University of California1420 MUN 1,500,000.0091412GSB2 07/01/2019 7301.79612/12/2014 1,501,905.00 1.943 1.9701,495,025.02 University of California1481 MUN 260,000.0091412GQB4 05/15/2020 1,0491.99510/08/2015 260,195.00 1.824 1.850261,031.88 State of Utah1622 MUN 750,000.00917542QT2 07/01/2020 1,0963.28906/07/2016 779,017.50 1.430 1.450790,035.25 State of Utah1731 MUN 770,000.00917542QR6 07/01/2024 2,5574.55401/04/2017 844,566.80 2.904 2.944847,321.02 State of Vermont1456 MUN 2,000,000.00924258TT3 08/15/2023 2,2364.25008/06/2015 2,059,560.00 3.275 3.3202,099,145.67 State of Washington1672 MUN 250,000.0093974DHW1 08/01/2022 1,8572.74008/08/2016 253,140.00 1.504 1.524264,707.63 State of Washington1721 MUN 515,000.0093974CPH7 08/01/2022 1,8574.63612/05/2016 569,559.10 2.465 2.500566,830.12 State of Washington1778 MUN 1,500,000.0093974CPG9 08/01/2021 1,4924.58604/12/2017 1,638,060.00 2.081 2.1101,644,200.45 State of Washington1802 MUN 485,000.0093974CRC6 08/01/2024 2,5884.66905/23/2017 545,076.95 2.416 2.450554,488.34 West Valley-Mission Community1479 MUN 250,000.0095640HBT4 08/01/2024 2,5886.09010/01/2015 270,172.50 4.030 4.086279,511.44 Subtotal and Average 52,228,987.13 50,075,000.00 51,481,867.75 2.244 2.275 1,935 Total Investments and Average 525,396,742.73 519,827,300.50 523,480,952.86 1.924 1.951 1,392 Portfolio CPA AP Run Date: 07/24/2017 - 16:48 FI (PRF_FI) 7.1.1 Report Ver. 7.3.3a 1 General Investment Guidelines: a) The max. stated final maturity of individual securities in the portfolio should be 10 years.Full Compliance b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities beyond 5 years.29.98% c) The City shall maintain a minimum of one month's cash needs in short term investments.Full Compliance d) At least $50 million shall be maintained in securities maturing in less than 2 years. Plus two managed pool accounts which provide instant liquidity: - Local Agency Investment Fund (LAIF) - maximum investment limit is $65 million $38.2 million - Fidelity Investments e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.99.64% d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing.Full Compliance f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market accounts, and mutual funds).Full Compliance 2 U.S. Government Securities:Full Compliance a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. 3 U.S. Government Agency Securities:Full Compliance 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;Full Compliance - the interest rates at which they "step-up" are known at the time of purchase; and Full Compliance - the entire face value of the security is redeemed at the call date.Full Compliance - No more than 25 percent of the par value of portfolio.22.89% b) Securities will not exceed 10 years maturity. 4 Bonds of the State of California Local Government Agencies Full Compliance a)Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally 9.64% recognized rating service (e.g., Moody’s and/or Standard and Poor’s). b)May not exceed 20 percent of the par value of the portfolio. 5 Certificates of Deposit:Full Compliance 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 agency (e.g. Moody's, Standard & Poor's, etc.). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) e) Rollovers are not permitted without specific instruction from authorized City staff. 6 Banker's Acceptance Notes:None Held 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. $134.8 million $3.8 million 2.50% Attachment C Investment Policy Compliance As of June 30, 2017 Investment Policy Requirements Compliance Check Attachment C Investment Policy Compliance As of June 30, 2017 Investment Policy Requirements Compliance Check 7 Commercial Paper:None Held a) No more than 15 percent of the par value of the portfolio. b) Having highest letter or numerical rating from a nationally recognized rating service. 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. 8 Short-Term Repurchase Agreement (REPO):None Held 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. 9 Money Market Deposit Accounts Full Compliance a) Liquid bank accounts which seek to maintain a net asset value of $1.00. 10 Mutual Funds:None Held 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. 11 Negotiable Certificates of Deposit (NCD):Full Compliance a) No more than 10 percent of the par value of the portfolio.8.93% b) No more than $5 million in any one institution.FDIC Insured 12 Medium-Term Corporate Notes:Full Compliance a) No more than 10 percent of the par value of the portfolio.3.56% b) Not to exceed 5 years maturity. c) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized rating service. 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 rating agencies 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. 13 Prohibited Investments: a) Reverse Repurchase Agreements b) Derivatives as defined in Appendix B of the Investment Policy 14 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the City, with the exception of : - Certificates of Deposit, Mutual Funds, and LAIF Full Compliance None Held Full Compliance CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR August 14, 2017 The Honorable City Council Palo Alto, California City of Palo Alto Sales Tax Digest Summary Fourth Quarter Sales (October - December 2016) The following files are attached for this informational report for which no action is required. ATTACHMENTS: Attachment A: Sales Tax Highlights (PDF) Attachment B: MuniServices Sales Tax Digest Summary (PDF) Attachment C: Economic Categories and Segments (PDF) Attachment D: MuniServices Economic News and Trends (PDF) Department Head: Harriet Richardson, City Auditor Page 2 Informational Report to the City Council BACKGROUND Sales and use tax represents about $29.2 million, or 15 percent, of projected General Fund revenue in the City’s adopted operating budget for fiscal year 2017. This revenue includes sales and use tax for the City of Palo Alto and pool allocations from the state and Santa Clara County.1 We contract with MuniServices LLC (MuniServices) for sales and use tax recovery services and informational reports. We use the recovery services and informational reports to help identify misallocation of tax revenue owed to the City, and to follow up with the State Board of Equalization to ensure that the City receives identified revenues. We include sales and use tax recovery information in our quarterly reports to the Policy and Services Committee. The California Revenue and Taxation Code, Section 7056, requires that sales and use tax data remain confidential. Therefore, the City may not disclose amounts of tax paid, fluctuations in tax amounts, or any other information that would disclose the operations of a business. This report, including the attached Sales Tax Digest Summary, includes certain modifications and omissions to maintain the required confidentiality of taxpayer information. MuniServices prepares the Sales Tax Digest Summary and Economic & News Trends report (Attachments B and D), which we share with the Administrative Services Department (ASD) for use in revenue forecasting and budgeting. Sales tax information is reported on a calendar-year basis. DISCUSSION The Sales Tax Digest Summary covers fourth quarter sales for calendar year 2016, which are reported as part of the City’s fiscal year 2017 revenue. In June 2017, ASD should receive information from the state on aggregate sales and use tax receipts for the first quarter of 2017. Following are some highlights of the sales and use tax information: •Palo Alto’s overall sales and use tax revenue (cash receipts) for the fourth quarter of 2016 increased by about $160,000, or 2.0 percent, including pool allocations, compared to the fourth quarter of 2015. For all Santa Clara County jurisdictions, sales and use tax revenue for the fourth quarter of 2016 increased by $1.4 million, or 1.2 percent, compared to the fourth quarter of 2015. •Statewide, most regions in California experienced an increase in sales and use tax revenue for the year ending in December 2016, with a one-year statewide increase of 2.1 percent. •Palo Alto’s sales and use tax revenue totaled $28.4 million for the year ending in December 2016, an increase of 5.1 percent from $27.1 million during the prior one-year period. Most of this revenue increase came from a small number of businesses. 1 See definitions of state and county pools on page 3. Office of the City Auditor Sales Tax Highlights – Fourth Quarter Sales (October – December 2016) Attachment A Office of the City Auditor | Sales Tax Highlights 2 •Excluding pool allocations and adjusting for prior-period and late payments, Palo Alto’s sales and use tax revenue for the fourth quarter of 2016 decreased by 0.7 percent compared to the fourth quarter of 2015 and increased by 3.4 percent compared to the prior year. Economic Influences on Sales and Use Tax The Economic News & Trends report discusses economic influences, including national and state economic trends, auto, gasoline, retail, e-commerce, food service and restaurant trends, that may affect the City’s sales and use tax revenue. Preliminary estimates from the California Employment Development Department show that the March 2017 unemployment rate, which is not seasonally adjusted, was 3.4 percent in Santa Clara County and 2.4 percent in Palo Alto. Economic Category Analysis MuniServices’ analysis of economic categories for the year ending December 2016 shows: Economic category Percent of Palo Alto’s sales and use tax revenue Percent Increase (Decrease) compared to prior year General retail 36.1% 3.1% Food products 20.0% 4.9% Business-to-business 17.1% (5.8%) Construction 3.6% (3.6%) Miscellaneous 23.2% 7.0% The following chart shows sales and use tax revenue by geographic area: Palo Alto’s Sales and Use Tax Revenue by Geographic Area For the Year Ending December 2016 (Amounts include tax estimates and exclude pool allocations) Stanford Shopping Center $5.3 million, 22% Stanford Research Park $3.0 million, 13% Downtown/University Avenue $4.1 million, 17%California Ave/Park Blvd/Lambert Ave $1.5 million, 6% Town & Country $0.6 million, 3% All Other Areas $9.3 million, 39% Attachment A Office of the City Auditor | Sales Tax Highlights 3 DEFINITIONS In California, either sales tax or use tax may apply to a transaction, but not both. The sales and use tax rate in Palo Alto was 8.75 percent during the fourth quarter of 2016. Effective April 1, 2017, the sales and use tax rate in Palo Alto changed to 9.0 percent. Sales tax – imposed on all California retailers; applies to all retail sales of merchandise (tangible personal property) in the state. Use tax – generally imposed on consumers of merchandise (tangible personal property) that is used, consumed, or stored in this state; purchases from out-of-state retailers when the retailer is not registered to collect California tax or does not collect California tax for some other reason; and leases of merchandise (tangible personal property). Countywide/statewide pools – mechanisms used to allocate local tax that cannot be identified with a specific place of sale or use in California. Local tax reported to the pool is distributed to the local jurisdiction each calendar quarter using a formula that relates to the direct allocation of local tax to each jurisdiction for a given period. Examples of taxpayers who report use tax allocated through the countywide pool include: •Construction contractors who consume materials used when improving real property and whose job site is regarded as the place of business •California or out-of-state sellers who ship goods directly to consumers in the county from inventory located outside the state •Auctioneers, catering trucks, itinerant vendors, and vending machine operators and other permit holders who operate in more than one local jurisdiction but are unable to readily identify the particular jurisdiction where the taxable transaction takes place Respectfully submitted, Harriet Richardson City Auditor Sources: MuniServices California State Board of Equalization California Employment Development Department City of Palo Alto Fiscal Year 2017 Adopted Operating Budget Audit staff: Lisa Wehara Attachment A City of Palo Alto Sales Tax Digest Summary Collections through March 2017 Sales through December 2016 (2016Q4) www.MuniServices.com (800) 800-8181 Page 1 California Overview The percent change in cash receipts from the prior year was 2.1% statewide, 2.9% in Northern California and 1.6% in Southern California. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When we adjust for non-period related payments, we determine the overall business activity increased for the year ended 4th Quarter 2016 by 1.5% statewide, 1.4% in Southern California and 1.5% in Northern California. City of Palo Alto For the year ended 4th Quarter 2016, sales tax cash receipts for the City increased by 5.1% from the prior year. On a quarterly basis, sales tax revenues increased by 2.0% from 4th Quarter 2015 to 4th Quarter 2016. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. Excluding state and county pools and adjusting for anomalies (payments for prior periods) and late payments, local sales tax increased by 3.4% for the year ended 4th Quarter 2016 from the prior year. On a quarterly basis, sales tax activity decreased by -0.7% in 4th Quarter 2016 compared to 4th Quarter 2015. Regional Overview This seven-region comparison includes estimated payments and excludes net pools and adjustments. % of Total / % Change City of Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast General Retail 36.1 / 3.1 28.3 / 1.3 26.5 / -0.2 27.9 / 2.9 31.3 / 4.5 28.9 / 0.4 27.2 / 5.2 28.7 / 3.0 31.0 / -1.0 Food Products 20.0 / 4.9 21.0 / 4.6 22.3 / 3.9 17.1 / 3.8 16.9 / 4.1 22.3 / 5.1 17.5 / 5.2 18.8 / 4.2 31.0 / 0.6 Construction 3.6 / -3.6 9.5 / 1.6 9.6 / 1.7 11.7 / 5.6 12.2 / 2.5 8.3 / 2.3 11.3 / -2.4 13.5 / 3.5 9.5 / 3.1 Business to Business 17.1 / -5.8 16.4 / 0.4 19.7 / 0.8 13.6 / -1.6 12.3 / -4.5 16.2 / 0.5 15.7 / 3.0 8.1 / -3.7 6.4 / 2.8 Miscellaneous/Other 23.2 / 7.0 24.7 / 2.4 21.7 / 1.2 29.7 / 7.0 27.6 / 3.8 24.2 / 0.5 28.3 / 7.8 30.7 / 1.4 21.8 / 1.3 Total 100.0 / 3.4 100.0 / 1.5 100.0 / 1.2 100.0 / 2.5 100.0 / 1.9 100.0 / 1.1 100.0 / 2.9 100.0 / 1.8 100.0 / 0.2 City of Palo Alto State Wide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Restaurants Restaurants Restaurants Restaurants Department Stores Service Stations Restaurants Auto Sales - New Restaurants % of Total / % Change 17.7 / 4.5 14.9 / 5.4 15.9 / 4.5 16.4 / 5.8 13.5 / 1.5 18.1 / -57.5 11.5 / 6.3 12.0 / 9.4 22.4 / -0.5 2nd Largest Segment ***Auto Sales - New Auto Sales - New Auto Sales - New Auto Sales - New Restaurants Auto Sales - New Restaurants Misc. Retail % of Total / % Change *** / *** 11.4 / 4.3 11.2 / 5.0 11.4 / 3.1 11.0 / 5.6 14.3 / -31.8 11.1 / 5.3 10.9 / 4.8 10.4 / -1.2 3rd Largest Segment Miscellaneous Retail Department Stores Department Stores Department Stores Restaurants Auto Sales - New Department Stores Department Stores Auto Sales - New % of Total / % Change 11.6 / 28.3 9.3 / -0.9 7.6 / -2.8 9.1 / -1.4 10.9 / 5.6 11.6 / 12.2 10.3 / 0.7 10.8 / -0.5 9.3 / 13.6 *** Not specified to maintain confidentiality of tax information CITY OF PALO ALTO ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 4th QUARTER 2016 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 4th QUARTER 2016 BENCHMARK YEAR 2016Q4 COMPARED TO BENCHMARK YEAR 2015Q4 Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 2 Gross Historical Sales Tax Performance by Benchmark Year and Quarter (Before Adjustments) $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 BENCHMARK YEAR QUARTERLY Net Cash Receipts for Benchmark Year 4th Quarter 2016: $28,448,802 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2016Q4 BMY is sum of 2016 Q4, Q3, Q2, & Q1) Restaurants 15% Miscellaneous Retail 10% Department Stores 7% Apparel Stores 6%Electronic Equipment 4% Food Markets 2% Recreation Products 1% All Other 39% Net Pools & Adjustments 16% Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 3 TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended 4th Quarter 2016. The Top 25 Sales/Use Tax contributors generate 50.8% of Palo Alto’s total sales and use tax revenue. Anderson Honda Integrated Archive Systems Tesla Lease Trust Apple Stores Lucile Packard Children's Hospital Tesla Motors Audi Palo Alto Macy's Department Store The Pace Gallery Bloomingdale's Magnussen'S Toyota Tiffany & Company Bon Appetit Management Co. Neiman Marcus Department Store Urban Outfitters CVS/Pharmacy Nordstrom Department Store USB Leasing Eat Club Redwood City Electric Volvo Cars Palo Alto Fry's Electronics Space Systems Loral Hewlett-Packard Stanford University Hospital Sales Tax from Largest Non-confidential Economic Segments $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Benchmark Year 2016Q4 Benchmark Year 2015Q4 Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 4 Historical Analysis by Calendar Quarter Economic Category % 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4 2015Q3 2015Q2 2015Q1 2014Q4 2014Q3 2014Q2 General Retail 34.8% 2,784,731 1,983,231 2,141,794 1,673,846 2,526,551 1,935,178 2,009,743 1,797,756 2,591,589 1,994,264 2,032,155 Miscellaneous/Other 20.3% 1,621,044 1,727,134 1,617,307 1,413,133 1,491,158 1,609,541 1,564,157 1,400,769 1,655,225 1,400,415 1,437,507 Food Products 15.5% 1,235,801 1,213,382 1,194,369 1,126,103 1,166,195 1,146,174 1,167,014 1,061,755 1,096,087 1,054,462 1,051,681 Business To Business 12.6% 1,004,883 1,027,730 1,140,526 974,162 1,428,210 888,609 833,370 757,827 885,327 596,226 970,762 Net Pools & Adjustments 16.9% 1,351,709 831,377 1,313,745 1,072,794 1,226,261 1,060,979 1,039,250 968,777 1,178,482 945,653 786,945 Total 100.0% 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375 6,640,481 6,613,534 5,986,884 7,406,710 5,991,020 6,279,050 Economic Segments % 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4 2015Q3 2015Q2 2015Q1 2014Q4 2014Q3 2014Q2 Miscellaneous/Other 36.7% 2,939,228 3,027,081 2,973,047 2,607,097 3,237,983 2,720,241 2,549,852 2,370,361 2,906,134 2,211,697 2,577,014 Restaurants 13.4% 1,071,053 1,068,101 1,068,502 1,005,688 1,029,733 1,019,505 1,045,011 942,709 962,018 936,160 940,540 Miscellaneous Retail 12.5% 1,002,389 581,831 681,345 469,360 714,151 478,994 479,298 415,270 628,099 508,061 514,133 Department Stores 8.0% 641,541 491,433 546,629 435,470 714,831 553,325 595,374 503,590 750,481 548,595 591,500 Apparel Stores 6.9% 553,250 398,170 444,383 337,880 519,318 397,534 428,100 370,810 507,843 398,747 429,748 Service Stations 1.6% 130,396 138,155 144,735 123,004 140,758 173,082 181,582 148,902 166,861 203,484 215,162 Food Markets 1.8% 145,179 126,755 109,108 104,676 116,778 113,092 106,818 104,856 117,245 105,600 98,705 Business Services 1.3% 102,095 47,066 65,510 51,647 76,156 51,885 120,003 103,773 131,505 66,163 62,060 Recreation Products 0.8% 61,328 72,885 60,737 52,422 62,406 71,844 68,246 57,836 58,042 66,860 63,243 Net Pools & Adjustments 16.9% 1,351,709 831,377 1,313,745 1,072,794 1,226,261 1,060,979 1,039,250 968,777 1,178,482 945,653 786,945 Total 100.0% 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375 6,640,481 6,613,534 5,986,884 7,406,710 5,991,020 6,279,050 *Net Pools & Adjustments reconcile economic performance to periods’ net cash receipts. The historical amounts by calendar quarter: (1) include any prior period adjustments and payments in the appropriate category/segment and (2) exclude businesses no longer active in the current period. Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 5 Quarterly Analysis by Economic Category, Total and Segments: Change from 2015Q4 to 2016Q4 Ge n e r a l R e t a i l Fo o d P r o d u c t s Co n s t r u c t i o n Bu s i n e s s t o Bu s i n e s s Mi s c / O t h e r 20 1 6 / 4 T o t a l 20 1 5 / 4 T o t a l % C h g La r g e s t G a i n Se c o n d L a r g e s t Ga i n La r g e s t D e c l i n e Se c o n d L a r g e s t De c l i n e Campbell 0.8% 3.1% 3.3% 9.3% -1.0%2,526,356 2,453,879 3.0% Office Equipment Restaurants Miscellaneous Retail Electronic Equipment Cupertino -15.0% 10.3% -48.3% 42.2% 2.1%7,641,209 6,201,976 23.2% Business Services Office Equipment Bldg.Matls-Whsle Department Stores Gilroy 1.8% 4.4% 30.5% 14.5% 10.9%4,081,919 3,801,759 7.4% Auto Sales - New Bldg.Matls-Retail Recreation Products Service Stations Los Altos -11.9% -11.6% -15.1% -24.6% 4.3%601,337 668,016 -10.0% Auto Parts/Repair Apparel Stores Food Processing Eqp Restaurants Los Gatos -9.1% 1.2% -17.8% 21.5% -6.0%1,756,993 1,821,060 -3.5% Business Services Leasing Miscellaneous Other Furniture/Appliance Milpitas 1.8% 3.2% 58.2% 3.9% 4.7%5,524,820 5,138,854 7.5% Bldg.Matls-Whsle Electronic Equipment Business Services Heavy Industry Morgan Hill 10.1% 5.4% 5.0% 4.6% -2.4%1,925,863 1,866,617 3.2% Electronic Equipment Recreation Products Light Industry Heavy Industry Mountain View -2.1% -3.0% 2.5% -28.9% -3.7%4,004,516 4,460,195 -10.2% Recreation Products Bldg.Matls-Whsle Business Services Office Equipment Palo Alto 9.0% 5.0% 2.4% -33.4% 12.9%6,646,458 6,693,230 -0.7% Miscellaneous Retail Leasing Electronic Equipment Office Equipment San Jose -4.0% 4.0% -3.8% -8.4% 0.2%39,362,635 40,479,156 -2.8% Restaurants Leasing Light Industry Bldg.Matls-Whsle Santa Clara -14.0% 1.0% -6.6% -23.0% -2.0%11,278,287 13,036,702 -13.5% Auto Sales - New Leasing Office Equipment Electronic Equipment Santa Clara Co.3.0% 1.6% 22.0% -51.0% 1.8%263,696 266,297 -1.0% Restaurants Auto Parts/Repair Office Equipment Electronic Equipment Saratoga -6.3% 0.0% -49.1% 13.7% -1.1%6,939,309 6,969,592 -0.4% Electronic Equipment Office Equipment Bldg.Matls-Whsle Bldg.Matls-Retail Sunnyvale -18.9% -4.6% -5.7% 35.4% -22.7%1,041,692 1,137,588 -8.4% Heavy Industry Apparel Stores Miscellaneous Retail Health & Government Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 6 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 El Camino Real 1,038,409 2,563,317 1,084,815 1,108,045 1,102,757 1,105,340 1,090,236 1,088,571 1,140,412 1,188,495 1,210,148 1,258,506 1,282,296 Town and Country 550,852 570,860 590,134 624,333 629,346 637,224 644,288 636,497 639,830 642,372 632,157 645,939 634,372 Midtown 185,348 185,472 185,910 187,120 188,251 192,122 194,028 195,907 192,190 193,066 207,568 206,960 206,327 East Meadow Area 103,590 107,316 109,171 114,419 104,735 117,701 172,602 166,805 161,897 173,019 185,564 192,748 191,467 Charleston Center 90,116 84,760 86,432 86,288 87,413 88,622 89,612 90,642 91,711 91,991 92,121 91,914 92,495 City of Palo Alto - Selected Geographic Areas of the City Benchmark Year 4th Quarter 2016 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 El Camino Real Town and Country Midtown East Meadow Area Charleston Center *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2016Q4 BMY is sum of 2016 Q4, Q3, Q2 & Q1) Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 7 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 Stanford Shopping Ctr 5,637,256 5,647,210 5,685,894 5,713,169 5,726,273 5,769,236 5,775,751 5,765,715 5,670,796 5,501,966 5,464,490 5,371,067 5,309,725 Stanford Research Park 7,307,557 4,299,015 4,027,889 3,724,671 3,304,003 3,082,331 2,869,143 2,411,043 2,953,900 2,924,944 3,119,427 3,257,664 2,999,685 Downtown 3,068,553 3,108,592 3,124,224 3,189,273 3,220,248 3,251,198 3,318,323 3,351,331 3,399,758 3,445,331 3,672,532 3,838,501 4,144,463 San Antonio 2,122,586 2,234,235 2,393,463 2,453,548 2,495,915 2,504,156 2,465,311 2,483,850 2,476,949 2,517,603 2,451,491 2,414,093 2,448,764 California Avenue 1,104,341 1,104,237 1,109,685 1,119,047 1,120,996 1,113,385 1,108,904 1,106,175 1,097,493 1,091,796 1,090,901 1,073,085 1,048,035 City of Palo Alto - Selected Geographic Areas of the City Benchmark Year 4th Quarter 2016 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 Stanford Shopping Ctr Downtown #REF!San Antonio California Avenue 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 Stanford Shopping Ctr Downtown San Antonio California Avenue $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 Stanford Shopping Ctr Stanford Research Park Downtown San Antonio California Avenue *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2016Q4 BMY is sum of 2016 Q4, Q3, Q2 & Q1) Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 8 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 Valley Fair 6,883,838 6,885,378 6,958,214 7,108,448 7,455,179 7,588,546 7,273,028 7,282,265 7,248,371 7,228,310 7,063,549 7,053,562 6,851,598 Stanford Shopping Ctr 5,637,256 5,647,210 5,685,894 5,713,169 5,726,273 5,769,236 5,775,751 5,765,715 5,670,796 5,501,966 5,464,490 5,371,067 5,309,725 Oakridge Mall 3,924,360 3,934,469 3,972,556 4,005,370 4,040,521 4,159,367 4,236,080 4,215,653 4,158,194 4,075,061 3,871,802 3,909,043 3,831,354 Hillsdale 2,387,185 2,374,185 2,401,370 2,438,295 2,450,278 2,494,792 2,513,866 2,470,404 2,434,086 2,410,095 2,363,729 2,363,729 2,251,467 Santana Row 1,765,101 2,453,638 2,523,193 2,525,349 2,565,665 2,634,908 2,706,867 2,735,522 2,834,796 2,807,754 2,754,804 2,933,889 3,005,007 City of Palo Alto - Regional Shopping Mall Comparison Benchmark Year 4th Quarter 2016 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 Valley Fair Stanford Shopping Ctr Oakridge Mall Hillsdale Santana Row *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2016Q4 BMY is sum of 2016 Q4, Q3, Q2 & Q1) Attachment B Economic Categories and Segments Economic Category Economic Segment Description Business to Business - sales of tangible personal property from one business to another business and the buyer is the end user. Also includes use tax on certain purchases and consumables. Business Services Advertising, banking services, copying, printing and mailing services Chemical Products Manufacturers and wholesalers of drugs, chemicals, etc. Electronic Equipment Manufacturers of televisions, sound systems, sophisticated electronics, etc. Energy Sales Bulk fuel sales and fuel distributors and refiners Heavy Industry Heavy machinery and equipment, including heavy vehicles, and manufacturers and wholesalers of textiles and furniture and furnishings Leasing Equipment leasing Light Industry Includes, but is not limited to, light machinery and automobile, truck, and trailer rentals Office Equipment Businesses that sell computers, and office equipment and furniture, and businesses that process motion pictures and film development Construction Building Materials – Retail Building materials, hardware, and paint and wallpaper stores Building Materials - Wholesale Includes, but is not limited to, sheet metal, iron works, sand and gravel, farm equipment, plumbing materials, and electrical wiring Food Products Food Markets Supermarkets, grocery stores, convenience stores, bakeries, delicatessens, health food stores Food Processing Equipment Processing and equipment used in mass food production and packaging Liquor stores Stores that sell alcoholic beverages Restaurants Restaurants, including fast food and those in hotels, and night clubs Attachment C Economic Categories and Segments Economic Category Economic Segment Description General Retail – all consumer focused sales, typically brick and mortar stores Apparel Stores Men’s, women’s, and family clothing and shoe stores Department Stores Department, general, and variety stores Drug Stores Stores where medicines and miscellaneous articles are sold Florist/Nursery Stores where flowers and plants are sold Furniture/Appliance Stores where new and used furniture, appliances, and electronic equipment are sold Miscellaneous Retail Includes, but is not limited to, stores that sell cigars, jewelry, beauty supplies, cell phones, and books; newsstands, photography studios; personal service businesses such as salons and cleaners; and vending machines Recreation Products Camera, music, and sporting goods stores Miscellaneous/Other Miscellaneous/Other Includes but not limited to health services, government, nonprofit organizations, non- store retailers, businesses with less than $20,000 in annual gross sales, auctioneer sales, and mortuary services and sales Transportation Auto Parts/Repair Auto parts stores, vehicle and parts manufacturing facilities, and vehicle repair shops Auto Sales - New New car dealerships Auto Sales - Used Used car dealerships Miscellaneous Vehicle Sales Sale and manufacture of airplanes and supplies, boats, motorcycles, all-terrain vehicles, trailers and supplies Service stations Gas stations, not including airport jet fuel Attachment C ECONOMIC NEWS & TRENDS Attachment D HIGHLIGHTS GDP: Increased at 0.7% in 1Q2017. In 4Q2016, increased 2.1%. Most economists expect growth to rebound to a rate of between 3% and 4% this quarter and then to settle back into its 2% trend in the months ahead. U.S. CPI for March 2017: Decreased 0.3%; gasoline index was the largest factor and wireless telephone services. Services Sector Total Revenue: 4Q2016 was $3,615.3 billion, an increase of 2.3% from 3Q2016 and up 6.0% from 4Q2015. Interest Rates: 10-year T-notes up to 2.7% at the end of 2017; expect two more hikes by the Federal Reserve in 2017; means higher rates for auto loans and home equity credit lines. California CPI: Increased by 2.7% and 3.0% in the U.S. and California (respectively) in February from a year ago, posting their biggest year-over-year increase in more than four years. California Retail Sales and Use Tax for April 2017: $696.7 million fell short of projections in the governor’s proposed 2017-18 budget by $106.7 million, or 13.3%. For the fiscal year to date, sales tax receipts of $18.99 billion are $453.5 million below the revised estimates released in January. Employment: California’s unemployment dropped to a ten-year low of 5.0% in February from a revised 5.2% in January. The nation’s unemployment rate dropped by 0.1% to 4.7% in February before falling again in March to a near ten-year low of 4.5%. California Median Home Prices: In February was $478,790, down 2.2% from January, but up 7.6% from February 2016. California’s Cannabis Economy: A projected $7 billion potential pot economy in California with an expected $1 billion in state and local annual taxes. (Fortune) Travel: California had the largest market share of domestic travel among all 50 states with a mark of 11% in 2016. State and Local Revenue in 2015 from Tourism: $10.3 billion (current figures per visitcalifornia.com). billion and $9.2 billion in direct income for California in 2017 and 2018 respectively. E-commerce sales for 4Q2016: For the U.S. $102.7 billion, an increase of 1.9% from 3Q2016. Total retail sales for the 4Q2016 were estimated at $1,235.5 billion, an increase of 1.9% from 3Q2016 and were outpaced by e-commerce sales. The 4Q2016 e-commerce estimate increased 14.3% from the 4Q2015 while total retail sales increased 4.1% in the same period. E-commerce sales in 4Q 2016 accounted for 8.3% of total sales. California E-commerce: Would be approximately 13-14% the total sales, based on California’s portion of the national economy. Context: E-commerce today accounts for 9% of total sales, 25% of electronics and 20% of apparel. By 2022, 30% of clothing sales will take place online, for instance, as shoppers keep shifting to the internet. Marketplace Fairness Act: Allowing states to collect taxes from residents on goods purchased online introduced. Grocery / Amazon: Expanding home delivery. Gasoline Prices: AAA shows (May 10, 2017) the national average price of self-serve regular at $2.35 per gallon which is four cents less than one week and one month ago, and 14 cents more than the same date las year. MuniServices’ February 17, 2017 report noted $2.26 per gallon and in December 16, 2016 $2.15. California Average: $2.94 (May 10, 2017); $2.79 (May 10, 2016) Restaurant Sales Eclipsed Grocery Store Sales: Occurred for the first time ever in 2016, a signal of the growing popularity of foodservice. Europe is tracking in the same direction and Asia was the leader in this trend. The increasing popularity of dining out is revitalizing retail real estate around the globe by creating a true sense of community where people can go out to dinner, take in a movie and shop, all in one place. Attachment D SECTION 1 - U.S. ECONOMY U.S. Economy and Indicators / CPI http://www.census.gov; https://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm (April 28, 2017); https://bea.gov/newsreleases/industry/gdpindustry/2017/gdpind416.htm (April 21, 2017); https://www.bls.gov/news.release/pdf/cpi.pdf (April 14, 2017); https://www.bls.gov/ (May 5, 2017); https://bea.gov/newsreleases/national/gdp/2017/gdp1q17_adv.htm (April 28, 2017) https://www.wsj.com/articles/u-s-gdp-rose-0-7-in-first-quarter-1493382900 Real GDP increased at 0.7% in 1Q2017. In 4Q2016, real GDP increased 2.1%. Most economists expect growth to rebound to a rate of between 3% and 4% this quarter and then to settle back into its 2% trend in the months ahead. With confidence and stock prices high, gasoline prices modest and jobs and wages increasing, spending ought to be picking up. Most economists expect growth to rebound to a rate of between 3% and 4% this quarter and then to settle back into its 2% trend in the months ahead. Sluggish consumer spending drove the first-quarter slowdown, presenting the biggest puzzle of the economy this year. With confidence and stock prices high, gasoline prices modest and jobs and wages increasing, spending ought to be picking up. Disposable Personal Income: Disposable personal income increased $121.0 billion, or 3.4% in 1Q2017, compared with an increase of $141.6 billion, or 4.1%, in 4Q2016. Finance and Insurance: Increased 6.3% in 4Q2016, after increasing 9% in 3Q2016. Professional, Scientific, and Technical Services: Increased 3.6%, after increasing 2.6%. This was the eleventh consecutive quarter of growth. Energy for March: Energy fell 3.2% following a 1.0% decline in February. Over the last year this index increased 1.6%. Gasoline for March: Gasoline fell 6.2%. Natural gas fell 0.8% after rising in each of the last 8 months, and the electricity index declined 0.1% after rising in February. Over the last year, the gasoline index increased 19.9%, Retail Trade: Up 5.7% in 4Q2016 after increasing 2.6% in the previous quarter. The fourth quarter growth primarily reflected an increase in other retail, which includes gasoline stations, as well as building material and garden equipment and supplies stores. Consumer Price Index (CPI) Year for March 2017 https://www.bls.gov/news.release/cpi.nr0.htm Note: Refer to MuniServices February 2017 economic report for 2016 results U.S. CPI for March 2017: decreased 0.3%; gasoline index was the largest factor and wireless telephone services contributing. Gasoline (from proceeding month): For January 2017 (7.8); February 2017 (-3.0); March 2017 (-6.2) Shelter: (from proceeding month): For January 2017 (.2); February 2017 (.3); March 2017 (.1) Apparel: (from proceeding month): For January 2017 (1.4); February 2017 (.6); March 2017 (-.7) Rent: Increased 0.3% Lodging Away From Home: -2.4% Medical Care: Rose 0.1% in March Tobacco and Alcohol: +.5% in March; alcoholic beverages index + 0.2%. New Vehicles: (from proceeding month): For January 2017 (.9); February 2017 (-.2); March 2017 (-.3) Used Cars and Trucks: (from proceeding month): For January 2017 (-.4); February 2017 (-.6); March 2017 (-.9) Attachment D Services Sector for 4Q2016 https://www.census.gov/services/qss/qss-current.pdf Services Sector Total Revenue: 4Q2016 was $3,615.3 billion, an increase of 2.3% from 3Q2016 and up 6.0% from 4Q2015 Utilities: $140.9 billion, a decrease of 9.2% from 3Q2016 and up 5.0% from the 4Q2015. Transportation and Warehousing: $223.1 billion, an increase of 1.2% from the 3Q2016 and down 1.6% from 4Q2015. Real Estate and Rental and Leasing: $168.6 billion, an increase of 0.9% from 3Q2016 and up 7.6% from 4Q2015. Educational Services: $16.1 billion, a decrease of 0.3% from 3Q2016 and up 4.3% from 4Q2015. Health Care and Social Assistance: $630 billion, an increase of 4.2% from 3Q2016 and up 6.9% from 4Q2015. Arts, Entertainment, and Recreation: $67.5 billion, an increase of 0.9% from 3Q2016 and up 9.7% from 4Q2015. Accommodation: $58.2 billion, a decrease of 9.8% from 3Q2016 and up 4.8% from 4Q2015. Economic Forecasts Under the New U.S. Administration http://blogs.anderson.ucla.edu/anderson/2017/03/tweetonomics-ucla-anderson-forecasts-second-look-economic-policy- changes-new-us-presidential-administration.html GDP Growth: The forecast calls for GDP growth of 2.4 percent, 3 percent and 2.2 percent in 2017, 2018 and 2019, respectively. (UCLA) Dollar: Appreciating 3% late in 2017 reversing 3% fall from January through April (May 5, 2017, Kiplinger) Interest Rates: 10-year T-notes up to 2.7% at the end of 2017 (May 5, 2017, Kiplinger) Interest Rates: Expect two more hikes by the Federal Reserve in 2017. Means higher rates for auto loans and home equity credit lines. (May 5, 2017, Kiplinger) Job Growth: Though job growth appears robust with 170,000 jobs a month expected in 2017 and 2018, the figures will trail off to about 110,000 a month in 2019 and become even slower if the administration embarks on a large-scale deportation program of unauthorized immigrants. Concurrently, the unemployment rate could bottom out at 4.1 percent in late 2018, before gradually rising. (UCLA) Housing and Interest Rates: Housing starts may plateau at the 1.2 million to 1.3 million range and 30-year fixed mortgage rates could exceed 6 percent in 2019, up from the current 4.25 percent and the recent low of 3.5 percent. Crude Oil: Trading from $47.50 to $52.50 / bbl. in August (May 5, 2017, Kiplinger) Employment Data https://www.bloomberg.com/news/articles/2017-05-05/payrolls-in-u-s-rise-by-211-000-jobless-rate-falls-to-4-4 https://www.bls.gov/news.release/pdf/jolts.pdf https://www.bls.gov/careeroutlook/2016/article/what-is-the-gig-economy.htm Unemployment 4.4; Lowest Since May 2007: America added a 211,000 jobs in April, surpassing 79,000 jobs gained in March. The low unemployment rate captures how far the US economy has come since the Great Recession ended in 2009, when unemployment hit 10%. It's a state, where employers have to pay up to hire, because it becomes hard to find workers. That's why wage growth is expected to pick up. Job Openings: On the last business day of March, there were 5.7 million job openings, little changed from February. Attachment D Measuring the Gig Economy: Gig workers could be in contingent or alternative employment arrangements, or both, as measured by BLS. Contingent workers are those who don’t have an implicit or explicit contract for long-term employment. Alternative employment arrangements include independent contractors (also called freelancers or independent consultants), on-call workers, and workers provided by temporary help agencies or contract firms. The data BLS has for these types of workers are about a decade old. In 2005, contingent workers accounted for roughly 2 to 4 percent of all workers. About 7 percent of workers were independent contractors, the most common alternative employment arrangement, in that year. BLS plans to collect these data again in May 2017. Other, more recent, data from BLS likely reflect a lot of gig work, but these workers are not broken out separately. For example, gig workers may be included in counts of workers who are part-time, self-employed, or hold multiple jobs. But these counts also include workers who are not part of the gig workforce. SECTION 2 - CALIFORNIA ECONOMY / FISCAL FOCUS http://sco.ca.gov/Files-EO/05-17summary.pdf (May 2017) http://dof.ca.gov/Forecasting/Economics/Economic_and_Revenue_Updates/documents/2017/Apr-17.pdf (April 2017) California CPI: Increased by 2.7% and 3.0% in the U.S. and California (respectively) in February from a year ago, posting their biggest year-over-year increase in more than four years. (DOF) Economic Update: California’s total personal income rose 4.5% in 2016 after rising 6.3% in 2015. U.S. real GDP grew by 1.6% in 2016, after expanding 2.6% in 2015. (DOF) April Revenues: $15.98 billion which fell short of projections in the governor’s proposed 2017-18 budget by $1.05 billion, or 6.2% (Controller) Retail Sales and Use Tax for April 2017: $696.7 million fell short of projections in the governor’s proposed 2017- 18 budget by $106.7 million, or 13.3%. For the fiscal year to date, sales tax receipts of $18.99 billion are $453.5 million below the revised estimates released in January. Personal Income Tax for April: $12.76 billion lagged by $707.6 million, or 5.3%. Last year nearly 17% of PIT receipts arrived in April. (Controller) Corporation Tax for April: $1.97 billion were 13.8% lower than assumptions in the proposed 2017-18 budget. Fiscal year-to-date corporation tax receipts of $7.17 billion are 1.6 percent above projections in the proposed budget, the only one of the “big three” General Fund revenue sources to exceed expectations. (Controller) California Economic Outlook http://californiaforecast.com/monthly-newsletter/ http://dof.ca.gov/Forecasting/Economics/Economic_and_Revenue_Updates/documents/2017/Apr-17.pdf http://www.anderson.ucla.edu/Documents/areas/ctr/forecast/reports/March2017_CAForecast_Nickelsburg.pdf Employment: California’s unemployment rate dropped to a ten-year low of 5.0% in February from a revised 5.2% in January. The nation’s unemployment rate dropped by 0.1% to 4.7% in February before falling again in March to a near ten-year low of 4.5%. Labor Force: California’s labor force participation rate fell 0.1% to 62.1% while the nation’s rose 0.1% percentage point to 63%. Major Industry Gains: Seven of the state's major industry sectors added jobs in February. Trade, transportation, and utilities led the way followed by leisure and hospitality; construction; professional and business services; educational and health services; other services; and information. Major Industry Losses: Manufacturing, financial activities; government; and mining and logging. Residential Building Permits: Fell for a second consecutive month in February 2017, following an end-of- the-year surge to beat new green building code standards that took effect January 2017. Attachment D Home Sales: Volume totaled 400,500 in February, down 4.7% from January and up 4.9% from February 2016. Median Home Prices: In February was $478,790, down 2.2% from January, but up 7.6% from February 2016. Unemployment Rate: To have its normal differential to the U.S. rate at 4.6% by the end of the forecast period (2019). Our forecast for 2017, 2018 and 2019 total employment growth is 2.1%, 1.2% and 0.9% respectively. (UCLA) Personal Income Growth: Forecast to be 3.4%, 3.7% and 3.2% in 2017, 2018, and 2019, respectively. Homebuilding: Will continue in California at about 118,000 units per year through the forecast horizon. Tourism in California/ Impact on the Economy http://www.anderson.ucla.edu/Documents/areas/ctr/forecast/reports/March2017_CAForecast_Nickelsburg.pdf http://industry.visitcalifornia.com/Why-Travel-Matters/Fast-Facts/ Economic Growth: California had the largest market share of domestic travel among all 50 states with a mark of 11% in 2016. Travel / Tourism Spending: Generated $126.3 billion in spending 2016; directly supported 1,096,000 jobs with $45.4 billion in job earnings; approximately $30.3 billion on food and beverages in 2016; visitors spent $25 billion on accommodations in 2016. State and Local Revenue in 2015: $10.3 billion (current figures per visitcalifornia.com). International Trips: 17 million international trips to California in 2015 including .58 million from India and the Middle East, 1.1 million from China and 7.8 million from Mexico. Tourism Environment and Economic Impact: After the January 27 travel ban was announced by the President, bookings searches were down by 6 to 17 percent on aggregator websites; this translates into a loss of $7.5 billion and $9.2 billion in direct income for California in 2017 and 2018 respectively. Go-Biz – Governor’s Office of Business and Economic Development. Small Business in California / Jump Start http://www.business.ca.gov/Newsroom/ArticleId/23/state-officials-kick-off-small-business-month-at-the-state-capitol California has over 3.8 million small businesses operating in the state – most of any state in the union. The State launched the new Jump Start program which makes direct loans to business owners officially launches on May 9 and is administered by the California Infrastructure and Economic Development Bank (IBank) within GO-Biz. SECTION 3 – AUTO SALES Annual Contributions of California’s New Car Dealers in 2016 (CNCDA’s 2017 Economic Impact Report) Source: California New Car Dealers Association New vehicles sold: 1,927,640 (2016); 2,052,750 (2015); 1,848,254 (2014) Used retail vehicles sold: 777,796 (2016); 769,500 (2015); 691,189 (2014) Total new and used vehicles sold: 2,705, 436 (2016); 2,822,250 (2015); 2,539,443 (2014) Total sales: $121.21 billion (2016); $105.12 billion (2014) Average sales per dealership: $89.92 (2016); $77.42 million (2014) Percent of total Statewide sales tax collected: 13% (2016); 12.5% (2014) Number of new car dealerships: 1,346 (2016); 1,358 (2014) Total taxes collected or paid: $9.93 billion (2016); $8.82 billion (2014) Total spent for products and services from other California businesses: $2.68 billion (2016); $2.4 billion (2014) Attachment D California Car Sale Trends / California New Car Dealers Association Covering 4Q2016 http://www.cncda.org/CMS/Pubs/CA%20Auto%20Outlook%204Q%202016.pdf California New Car Market: California new vehicle market leveled off in 2016. Quarterly new light vehicle registrations increased by less than 2 percent during the final three quarters of last year. It’s becoming evident that the robust growth that occurred between 2010 and 2016 is coming to an end. Between 2010 and 2016, the state’s new vehicle market improved for seven consecutive years and doubled in size, with new vehicle registrations increasing from 1.04 million units in 2009, to 2.09 million in 2016. New Retail Light Vehicle Registrations: Increased 1.8% from 2015 to 2016. Retail Car Registrations: Declined 7%, while light trucks (consisting of pickups, SUVs, and vans) surged 13.9%. Used Vehicle Market: Basically flat last year, with regis- trations declining by less than 1 percent. Registrations for vehicles in the four to six-year-old category increased 8.1% in 2016. The seven to ten-year-old market fell 15.1 percent. Vehicle Trends Recreational vehicles: Shipments of RVs surpassed 430,000 units in 2016, a 15% increase over 2015. Auto sales will be down from last year, given the largely saturated market: Sales of new vehicles will hit 17.2 million, versus 17.5 million in 2016. Favor SUVs and pickup trucks over smaller cars: Eases the sting for automakers and dealers because they fetch higher prices. SUVs on average cost $8,500 more than the typical passenger sedan sells for. Leased vehicles: Adding to the drag on new-car sales and profits are once-leased vehicles; car buyers see them as an attractive alternative to buying new vehicles over the next several years. Leasing is growing in popularity, rising from 22% of the vehicle market to 31% over the past four years. SECTION 4 - GASOLINE Gas Prices http://gasprices.aaa.com/ Gasoline Prices: AAA shows (May 10, 2017) the national average price of self-serve regular at $2.35 per gallon which is four cents less than one week and one month ago, and 14 cents more than the same date las year. MuniServices’ February 17, 2017 report noted $2.26 per gallon and in December 16, 2016 $2.15. California Average: $2.94 (May 10, 2017); $2.79 (May 10, 2016) National Average: On April 17 national average price for a gallon of regular unleaded gasoline was at a 2017 high at $2.41 which is 30 cents more than one year ago. Oil Market Dynamics: At the time of print, U.S. petroleum futures were below $50 per barrel, but they have gained slightly after encouraging remarks from the Russian and Saudi Arabian energy ministers who stated that there is budding consensus to extend production cuts beyond the June 30 deadline and into 2018, signaling that OPEC and non-OPEC producers are willing to take necessary steps to rebalance the market. Since the cuts were enacted, U.S. oil production has increased more than 10 percent since mid-2016 to a total of 9.3 million barrels per day and close to levels of the world’s top producers, Russia and Saudi Arabia. Attachment D President Is Willing to Consider Raising Gas Tax http://www.sacbee.com/news/business/article147858579.html The President is reported to saying he will explore the possibility of higher gasoline and diesel fuel taxes to pay for his infrastructure plan. The U.S. trucking industry which shoulders roughly half the cost of the fuel taxes would welcome an increase if it's dedicated to fixing infrastructure. The industry benefits because better roads reduce travel times, curb the frequency of vehicle repairs and improve roadway safety. By increasing fuel taxes by 35 cents a gallon and indexing them to inflation, the federal government would raise an additional $473.6 billion over the next decade, according to the staff of the congressional Joint Committee on Taxation. California’s Transportation Package California’s Gas Taxes with Enacted 2017 Legislation (Average Revenue $2.4 Billion): The base excise tax is 18 cents a gallon. A price-based excise tax is currently set at 9.8 cents a gallon, for a total rate of 27.8 cents a gallon. On November 1, 2017 the base excise tax will increase to 30 cents a gallon. On July 1, 2019 the price-based excise tax will reset to 17.3 cents a gallon, about half-a-cent more than the rate the Brown administration projects will be in effect by then anyway. The 47.3-cent combined excise tax in effect July 1, 2019 will be adjusted for inflation beginning July 1, 2020. Diesel Taxes with Enacted 2017 Legislation (Average Revenue $1.08 Billion): The base excise tax is 16 cents a gallon. The state also collects two categories of sales taxes on diesel fuel: the regular state and local sales tax, which averages 8.44 percent, and an additional 1.75 percent sales tax. On November 1, 2017 the base diesel fuel excise tax will increase to 36 cents a gallon. The 36-cent excise tax will be adjusted for inflation beginning July 1, 2020. On November 1, 2017 the 1.75 percent diesel fuel sales tax will increase to 5.75 percent. Initiative Filed to Repeal 2017 California Gas Tax Increase: Travis Allen, a Republican assemblyman from Orange County, filed the proposed 2018 ballot measure to eliminate the $5.2 billion annual package to fund road improvements; 365,880 signatures from registered voters are needed to place the repeal before voters. SECTION 5 - RETAIL AND E-COMMERCE TRENDS Sales for 4Q2016 https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf (February 17, 2017) (next release is scheduled for May 16, 2017) E-commerce sales for 4Q2016: For the U.S. $102.7 billion, an increase of 1.9% from 3Q2016. Total retail sales for the 4Q2016 were estimated at $1,235.5 billion, an increase of 1.9% from 3Q2016 and were outpaced by e-commerce sales. The 4Q2016 e-commerce estimate increased 14.3% from the 4Q2015 while total retail sales increased 4.1% in the same period. E-commerce sales in 4Q 2016 accounted for 8.3% of total sales. California: Would be approximately 13-14% the total sales, based on California’s portion of the national economy. Context: E-commerce today accounts for 9% of total sales, 25% of electronics and 20% of apparel. By 2022, 30% of clothing sales will take place online, for instance, as shoppers keep shifting to the internet. Harness the Internet: An edge for retailers with physical stores versus online sellers is that those stores can be turned into distribution centers for shipping products ordered online. Some chains are seeing better sales by offering in-store pickup of online orders (shoppers spend more if they walk in the door). Deep Value Stores: Will have 30% of apparel sales, from 20% now, eating into traditional stores’ revenue. Echo Look by Amazon: A $200 device to further penetrate the clothing market; via invitation only will enable consumers to take videos and photos of their outfits and compare them via algorithms. Attachment D Marketplace Fairness Act – Allowing States to Collect Taxes from Residents on Goods Purchased Online The U.S. House and Senate reintroduced bipartisan bills that would allow states to collect taxes from residents on goods purchased online regardless of where the seller of the goods is based. S.976, The Marketplace Fairness Act (MFA), has a small-seller exemption for annual sales of less than one million. H.R. 2193, The Remote Transactions Parity Act (RTPA), also has a small seller exemption, but sets the threshold at $10 million per year. Sen. Mike Enzi (R-Wyo.), a lead sponsor of the Senate bill, said the measure "is about supporting jobs and services we have in our towns, while ensuring states have the ability to collect taxes they are owed, if they choose to.” The previous Marketplace Fairness Act passed in the Senate in 2013 by a vote of 69 to 27, with strong bipartisan support. Based on research by ICSC and the National Conference of State Legislatures, states lost an estimated $26 billion to the online sales tax loophole in 2015. Retail Trends Aging Americans: Impact on the Economy: The aging American population will weigh on the economy in coming years. With more and more folks approaching retirement, they’ll opt to spend less on dining out, household furnishings, etc., as they move to bolster savings accounts. Spending Trends by Age: The highest levels of spending occur between ages 45 and 54 (about $70,000 per average household) before dropping by around $10,000 each decade thereafter. When people reach 75, annual spending declines to about $38,000 per household; spending more on health care in their later years. Impact on GDP – Seniors and Millennials: Less spending by seniors will cut GDP growth by a fifth of a percentage point by 2020 as the percentage of the population age 54 and older expands to 38%. Eventually, millennials will partially offset the spending declines by seniors, but it will be 2022 or so before their annual spending levels start to make a difference. (Kiplinger) Rewards of Using Credit Cards: About 60% of American consumers are enrolled in a credit card rewards program. Consumers who do not use credit cards help foot the bill; households that do not use a card lose an average of $50 each year while those that use a card gain an average of $240. It is unclear how much these costs are passed on to the consumer, but some large retailers have said the fees affect their prices and acknowledge some customers absorb the costs. (Wall Street Journal, April 29, 2017) Mall Space: Call Centers: While retail look to back traditional brick-and mortar retail space, some landlords are looking to repurpose struggling centers by offering portions of them for back-office facilities to support orders placed on line. The move shows how internet retailing and changing shopping preferences are beginning to reshape real estate and local labor markets. 15% of malls nationwide are expected to close during the next decade. Rethinking Traditional Anchors: Smaller-format stores and restaurants are increasing traffic at centers and attracting a wide range of merchants. As tenant mixes are revamped and customer traffic rises, owners are generating more revenue through higher rents. (ICSH) Attachment D SECTION 6 - FOOD SERVICE INDUSTRY / RESTAURANT TRENDS Food: Rose 0.3% in March following a 0.2% increase in February. Food at Home: The food at home index declined 0.9% over the past year. The indexes for meats, poultry, fish, and eggs, for fruits and vegetables, and for cereals and bakery products declined over the past 12 months, while the other 3 major grocery store food group indexes increased slightly over the span. The index for food away from home rose 0.2% in March, the same increase as in February, and rose 2.4% over the last 12 months. Food Service Industry: Expanding at an exponential rate with the amount of space dedicated to food growing from five percent a decade ago to 15 percent today. This trend is expected to increase to 20 percent by 2025. Restaurant Sales Eclipsed Grocery Store Sales: Occurred for the first time ever in 2016, a signal of the growing popularity of foodservice. Europe is tracking in the same direction and Asia was the leader in this trend. The increasing popularity of dining out is revitalizing retail real estate around the globe by creating a true sense of community where people can go out to dinner, take in a movie and shop, all in one place. (thecenterofshopping.com) Grocery Store http://www.theshelbyreport.com/2017/05/08/grocery-stores-best-price/ Best Prices: Aldi, Costco, Fareway Stores, Market Basket, Military Commissary, Trader Joes, WinCo, Woodmans (Consumer Reports, May 8, 2017) Shopping and Chopping: The task of chopping is time-consuming. Supermarkets to win back shoppers who increasingly turn to takeout, restaurants and meal kits, are trying services that sell chopped vegetables and other short cuts. Eliminating Less-Frequented Aisles: For example dog food and diapers. Amazon: Expanding grocery home delivery encouraging consumers to do more of their shopping for groceries and other goods with the online retailer rather than local stores. eCart Online Services: Raleys and Nob Hills Foods banner expands program in Bay Area. Safeway Community Markets: Open in Berkeley, Los Altos and San Anselmo. CLIENT SERVICE TEAM Larry.Bergkamp@MuniServicse.com (Senior Advisor / Cannabis) Patricia.Dunn@MuniServices.com (Contracts) Julia.Erdkamp@MuniServices.com (Client Service Manager, Southern California) Mary.Flynn@MuniServices.com (Client Service Manager) Robert.Hamud@MuniServices.com (Client Service Manager) Doug.Jensen@MuniServices.com (Senior Vice President, Client Services) Jeff.Kolin@MuniServices.com (Senior Advisor) Fran.Mancia@MuniServices.com (Vice President, Government Relations) Brenda.Narayan@MuniServices.com (Economic News & Trends / Policy Research & Reports) Marina.Sloan@MuniServices.com (Client Service Manager) Attachment D http://bit.ly/bcapplications Influence the Future of Your Community We are currently recruiting for: Architectural Review Board 2 terms ending December 15, 2020 Historic Resources Board 4 terms ending December 15, 2020 Planning & Transportation Commission 2 terms ending December 15, 2021 Deadline: September 19, 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