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HomeMy WebLinkAbout2018-11-26 City Council Agenda PacketCity Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL , 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Monday, November 26, 2018 Special Meeting Council Chambers 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. Public comment may be addressed to the full City Council via email at City.Council@cityofpaloalto.org. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Special Orders of the Day 5:00-5:15 PM 1.Proclamation Honoring Sikh Awareness Month Study Session 5:15-6:15 PM 2.Study Session With Assemblymember Marc Berman Closed Session 6:15-6:45 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 3.CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION Subject: James Judge Luckey v. City of Palo Alto Santa Clara County Superior Court Case No. 16CV303728 Authority: Government Code Section 54956.9(d) (1) REVISED 2 November 26, 2018 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 6:45-6:55 PM Oral Communications 6:55-7:10 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar 7:10-7:15 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4.Adoption of a Resolution Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission(FPPC) and Repealing Resolution Number 9648 5.Approval of Amendment Number 2 to Contract Number C15159248 With Geodesy in the Amount of $810,000 to: 1) Correct the Dates of the Extension Term in Amendment Number 1; 2) add a Renewal Term of September 19, 2018-June 30, 2021; and 3) add Department- specific Data Work, for a Total Not-to-Exceed Amount of $1,395,000 6.Approval of Amendment Number 1 to Contract Number C15156644 With Concern:EAP for the City of Palo Alto's Employee Assistance Plan to add $57,000 for a Total Not-to-Exceed Amount of $223,036 7.Approval of the Appointment of Bradley L Eggleston as Director of Public Works/City Engineer 8.Policy and Services Committee Recommends the City Council Accept the Auditor’s Office Quarterly Report as of June 30, 2018 9.Policy and Services Committee Recommends the City Council Accept the Fiscal Year 2019 Audit Work Plan 10.Adoption of a Resolution Declaring Weeds to be a Public Nuisance and Setting January 14, 2019 for a Public Hearing for Objections to Proposed Weed Abatement 11.Adoption of an Ordinance Amending Chapter 4.42 (Taxicabs and Other For-Hire Vehicles) of Title 4 (Business Licenses and Regulations) of the Palo Alto Municipal Code as Mandated by State Law (AB 939) Q & A Q & A 3 November 26, 2018 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. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:15-8:15 PM 13. PUBLIC HEARING: Adoption of an Ordinance Amending Various Sections of Title 18 of the Palo Alto Municipal Code Related to Residential and Mixed-use Development Standards Including, but not Limited to; Minimum and Maximum Unit Density, Unit Size, Floor Area Ratio, Height, and Open Space Including Rooftop Gardens; Parking Requirements Including, but not Limited to; Regulations Related to In-lieu Parking for Downtown Commercial Uses and Retail Parking for Mixed Use Projects; Exclusively Residential Projects in Certain Commercial Zoning Districts; Ground-floor Retail and Retail Preservation Provisions; the Entitlement Approval Process; and Other Regulations Governing Residential, Multi- family Residential and Commercial Zoning Districts, all to Promote Housing Development Opportunities in These Zoning Districts in Furtherance of Implementation of the Comprehensive Plan. California Environmental Equality Act (CEQA): Determination of Consistency With the Comprehensive Plan Environmental Impact Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution No. 9720. The Planning and Transportation Commission Recommended Approval of the Proposed Ordinance on October 10, 2018 8:15-10:30 PM 12. Approval of an Operating Agreement With Pets In Need, Interim Improvements for the Palo Alto Animal Shelter, and Approval of Budget Amendments in the General Fund and the Capital Improvement Fund 14. Approval of a Five-year Operating and Revenue Sharing Agreement With Team Sheeper for Operations of the Rinconada Pool STAFF REQUEST THIS ITEM BE CONTINUED TO DECEMBER 10, 2018 State/Federal Legislation Update/Action 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. MEMO 4 November 26, 2018 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Sp. City Council Meeting- November 27, 2018 Board and Commission Interviews Sp. Finance Committee Meeting November 28, 2018 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Fiscal Year (FY) 2018 Annual Evaluation Report for the Santa Clara County Multi-jurisdictional Program for Public Information on Flood Preparedness Awareness and Resulting Community Rating System Flood Insurance Discounts City of Palo Alto Sales Tax Digest Summary First Quarter Sales (January-March 2018) Public Letters to Council Set 1 Sp. Rail Commmitte Meeting November 27, 2018 City of Palo Alto (ID # 9856) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Sikh Awareness Month Proclamation Title: Proclamation Honoring Sikh Awareness Month From: City Manager Lead Department: City Clerk Attachments: • Attachment A: Sikh Awareness Month Proclamation Honoring Sikh Awareness Month WHEREAS, California and our nation are at once blessed and enriched by the unparalleled diversity of our residents; and WHEREAS, Sikhism is the fifth largest religion in the world and today, there are more than 23 million Sikhs worldwide and an estimated 500;000 Americans of Sikh origin, comprising about half of the nation's estimated Sikh population, residing in California alone; and WHEREAS, Sikhs, who originated in Punjab, India, first entered California in 1899 through the Angel Island Immigration Station in San Francisco, California; and WHEREAS, Sikhs are a grass roots community of more than 100 years, and during the early 20th century, thousands of Sikh Americans worked on farms, in lumber mills and mines, and on the Oregon, Pacific & Eastern Railroad; and WHEREAS, Sikh Americans come from many walks of life and pursue diverse professions, making rich contributions to the social, cultural, and economic vibrancy of the United States, including service as members of the United States Armed Forces; they have made significant contributions to our great nation in agriculture, trucking, medicine and technology, and have distinguished themselves by fostering greater respect among all people through faith and service; and WHEREAS, Sikh history and culture is represented in the Asian Art Museum in San Francisco, in the Smithsonian Museum in Washington, D.C., in the Community Memorial Museum of Sutter County, and in the museum at the Stockton Sikh Temple; and WHEREAS, due to ignorance and hate, Sikhs have been the subject of hate crimes because of their articles of faith, including a turban and beard, which represent the Sikh religious commitment to justice, equality, and dignity for all; and continue to peacefully overcome attacks on its identity and practices, whether in the form of school harassment, employment discrimination, or hate crimes. NOW, THEREFORE, I, Liz Kniss, Mayor of the City of Palo Alto on behalf of the City Council proclaim November to be Sikh Awareness Month; and do hereby call upon all citizens to seek to further the diversity of its community and afford all residents the opportunity to better understand, recognize, and appreciate the rich history and shared experiences of Sikh American Presented: November 1, 2018 s CITY OF PALO ALTO OFFICE OF THE CITY CLERK November 26, 2018 The Honorable City Council Palo Alto, California Adoption of a Resolution Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution Number 9648 Recommendation It is recommended that Council adopt the attached resolution. Recommended Motion Staff recommends the Council adopt a Resolution: A. Amending the Conflict of Interest Code; and B. Repealing Resolution Number 9648. Discussion The Political Reform Act requires the City to review its Conflict of Interest Code every two years. Chapter 2.09 of the Palo Alto Municipal Code and the Political Reform Act require the City to adopt a list of designated positions and disclosure responsibilities for each position subject to the Conflict of Interest Code for Designated Employees. Disclosure statements from designated positions are due annually each April and within 30 days of a person either assuming or leaving a designated position. The attached Resolution amends the City’s Conflict of Interest Code to update the list of designated positions to reflect administrative changes, including title changes and positions added or deleted from the Table of Organization. The attached Resolution adds a Definition section to Appendix B and a new Appendix, Appendix C, providing resources for Statement of Economic Interests filers. Background The attached update to the Conflict of Interest Code was distributed to all City employees on August 21, 2018 and circulated for a written comment period commencing on September 10, 2018 and terminating on November 19, 2018 (see Staff Report ID# 9449). Page 2 During the written comment period, the following additional edits to the Public Works Department, Environmental Services Division were proposed. These additional edits are reflected in the attached draft Resolution. 1. Assign Disclosure Category 4 to the Manager Solid Waste Position; and 2. Add the Project Manager, Environmental Services Division position at the Disclosure Category 4 level. PUBLIC WORKS DEPARTMENT Environmental Services Division Assistant Director Public Works ..................................................................................................... 1 Assistant Manager Water Quality Control Plant ........................................................................... 3 Coordinator Public Works Projects ................................................................................................ 5 Management Analyst ..................................................................................................................... 3 Manager Environmental Control Program .................................................................................... 4 Manager Laboratory Services ........................................................................................................ 5 Manager Solid Waste ..................................................................................................................... 4 Manager Water Quality Control Plant ........................................................................................... 4 Manager Watershed Protection .................................................................................................... 4 Project Manager ............................................................................................................................. 4 Senior Engineer .............................................................................................................................. 4 ATTACHMENTS: • Attachment A: 2018 Conflict of Interest Code Resolution (DOCX) Department Head: Beth Minor, City Clerk Page 3 Not Yet Adopted 180904 016/Ethics Resolution No. Resolution of the Council of the City of Palo Alto Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution No. 9648 RECITALS A. The Political Reform Act requires certain City officials, specified in section 87200 of the California Government Code, to file economic disclosure forms (“Form 700”) and abstain from making or participating in making governmental decisions which have a reasonably foreseeable material effect on an economic interest. B. The Political Reform Act also requires the City to adopt a local conflict of interest code that enumerates specific City positions other than those specified in Government Code section 87200 which involve making or participating in making decisions which have a reasonably foreseeable material effect on an economic interest, and to designate for each position the specific types of investments, business posit ions, interests in real property and sources of income which are reportable based on the scope of the decision-making authority of the position. C. Consistent with Chapter 2.09 of the Palo Alto Municipal Code and the biennial schedule established by the Fair Political Practices Commission for amending local conflict of interest codes, the City reviews and amends its local conflict of interest code by resolution every two years. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Resolution No. 9648 is hereby repealed. SECTION 2. The Conflict of Interest Code for the City of Palo Alto is hereby amended to read as follows: CONFLICT OF INTEREST CODE FOR THE CITY OF PALO ALTO The Political Reform Act, Government Code section 81000, et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission (FPPC) has adopted a regulation (2 Cal. Code of Regs. section 18730), which contains the terms of a standard conflict of interest code. After public notice and hearing the regulation may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by referen ce. FPPC Regulation 18730 and Appendices A, B, and C, attached to this resolution and a part of it, designating officials and employees and establishing disclosure categories, shall constitute the conflict of interest code of the City of Palo Alto. Not Yet Adopted 180904 016/Ethics Designated employees shall file statements of economic interests with the City Clerk who will make the statements available for public inspection and reproduction. (Gov. Code, § 81008.) Statements for all designated employees will be retained by the City Clerk. SECTION 3. The Conflict of Interest Code for the City of Palo Alto will be effective thirty (30) days from the date the City Council approves this resolution. SECTION 4. The City Council finds that there is no possibility that this resolution will have a significant effect on the environment and upon that basis determines that this resolution is exempt from the California Environmental Quality Act. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: _________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: _________________________ ____________________________ City Attorney City Manager APPENDIX A DESIGNATED POSITIONS Title Assigned Disclosure Category ADMINISTRATIVE SERVICES DEPARTMENT Finance Division Accountant ..................................................................................................................................... 4 Assistant Director, Administrative Services ................................................................................... 1 Chief Financial Officer / Director, Administrative Services ............................................. G.C. 87200 Chief Procurement Officer ............................................................................................................. 3 Contracts Administrator ................................................................................................................. 3 Manager, Accounting Finance ....................................................................................................... 1 Manager Revenue Collections ....................................................................................................... 1 Manager, Treasury, Debt and Investment ..................................................................................... 1 Manager Revenue Collections ....................................................................................................... 1 Principal Business Analyst .............................................................................................................. 4 Senior Accountant .......................................................................................................................... 4 Senior Business Analyst .................................................................................................................. 4 Senior Buyer ................................................................................................................................... 4 Senior Management Analyst (Senior Financial Analyst) ................................................................ 4 Senior Management Analyst .......................................................................................................... 4 Warehouse Supervisor ................................................................................................................... 5 Real Estate Division Manager, Real Property ................................................................................................................. 4 Senior Management Analyst .......................................................................................................... 4 Senior Management Analyst (Senior Principal Analyst) ................................................................ 4 Manager, Real Property ................................................................................................................. 4 Budget & Management Analysis Division Director, Office of Management and Budget ................................................................................ 1 Management Analyst ..................................................................................................................... 4 Manager, Budget ........................................................................................................................... 4 Senior Management Analyst .......................................................................................................... 4 Senior Management Analyst (Senior Principal Analyst) ................................................................ 4 APPOINTED/ELECTED OFFICIALS Emergency Standby Council Member ............................................................................................ 1 Architectural Review Board ........................................................................................................... 1 City Council ...................................................................................................................... G.C. 87200 Emergency Standby Council Member ............................................................................................ 1 Historic Resources Board ............................................................................................................... 1 Human Relations Commission ....................................................................................................... 1 Library Advisory Commission ......................................................................................................... 1 Parks and Recreation Commission ................................................................................................. 1 Title Assigned Disclosure Category Appendix A: Page 2 of 814 Planning and Transportation Commission ...................................................................... G.C. 87200 Public Art Commission ................................................................................................................... 1 Utilities Advisory Commission ........................................................................................................ 1 CITY ATTORNEY Assistant City Attorney ................................................................................................................... 1 Chief Assistant City Attorney ......................................................................................................... 1 City Attorney ................................................................................................................... G.C. 87200 Claims Investigator ......................................................................................................................... 3 Deputy City Attorney ..................................................................................................................... 1 Legal Fellow .................................................................................................................................... 1 Management Specialist (Attorney) ................................................................................................ 1 Principal Attorney .......................................................................................................................... 1 Secretary to City Attorney ............................................................................................................. 4 Senior Assistant City Attorney ....................................................................................................... 1 Senior Deputy City Attorney .......................................................................................................... 1 Senior Legal Secretary .................................................................................................................... 1 Senior Management Analyst .......................................................................................................... 1 Secretary to City Attorney ............................................................................................................. 4 CITY AUDITOR City Auditor .................................................................................................................................... 1 Performance Auditor I ................................................................................................................. 31 Performance Auditor II ................................................................................................................ 31 Senior Performance Auditor ........................................................................................................ 31 CITY CLERK City Clerk ........................................................................................................................................ 1 Assistant City Clerk ......................................................................................................................... 3 City Clerk ........................................................................................................................................ 1 Deputy City Clerk ............................................................................................................................ 3 CITY MANAGER Assistant City Manager .................................................................................................................. 1 Assistant to the City Manager ........................................................................................................ 1 Chief Communications Officer ....................................................................................................... 1 Chief Sustainability Officer ............................................................................................................. 1 City Manager .................................................................................................................. G.C. 87200 Deputy City Manager ..................................................................................................................... 1 Executive Assistant to the City Manager ....................................................................................... 3 Title Assigned Disclosure Category Appendix A: Page 3 of 814 Manager, Economic Development and Redevelopment ............................................................... 1 Manager, Communications ............................................................................................................ 4 Senior Management Analyst .......................................................................................................... 3 COMMUNITY SERVICES Administrative Assistant ................................................................................................................ 3 Assistant Director Community Services ......................................................................................... 1 Director Community Services ........................................................................................................ 1 Management Analyst ................................................................................................................... 53 Senior Management Analyst ........................................................................................................ 53 Arts & Sciences Division Manager, Community Services Sr. Program (Senior Community Services Manager) ................... 5 Producer Arts/Science Programs (Arts Producer) ......................................................................... 5 Recreation Division Coor Rec Prog (Coordinator, Recreation Programs) ...................................................................... 5 Manager Community Services ....................................................................................................... 5 Manager Community Services Senior Program ............................................................................. 5 Superintendent Community Services ............................................................................................ 5 Coor Rec Prog (Coordinator, Recreation Programs) ...................................................................... 5 Open Space, Parks and Golf Division Manager Community Services ....................................................................................................... 5 Division Manager Open Space Parks & Golf .................................................................................. 6 Manager Community Services ....................................................................................................... 5 Superintendent Community Services ............................................................................................ 5 DEVELOPMENT SERVICES Development Services Director 1 Manager Development Services 1 Administrative Assistant 4 Assistant Chief Building Official 4 Building Inspector Specialist 4 Chief Building Official 1 Development Project Coordinator II/III (Project Coordinator) 4 Development Services Director 1 Management Analyst 4 Manager Development ServicesCenter 1 Manager Planning 4 Development Project Coordinator II/III (Project Coordinator) 4 Senior Management Analyst 4 Title Assigned Disclosure Category Appendix A: Page 4 of 814 FIRE DEPARTMENT Fire Chief ........................................................................................................................................ 1 Battalion Chief ................................................................................................................................ 6 Deputy Chief/Fire Marshal ............................................................................................................. 1 Deputy Fire Chief ........................................................................................................................... 1 Emergency Medical Services (EMS) Director ................................................................................. 1 Emergency Medical Services Data Specialist ................................................................................. 7 Emergency Medical Services (EMS) Director ................................................................................. 1 Deputy Chief/Fire Marshal ............................................................................................................. 1 Fire Captain .................................................................................................................................... 6 Fire Chief ........................................................................................................................................ 1 Geographic Information System Specialist .................................................................................... 9 HUMAN RESOURCES Director, Human Resources/Chief People Officer ......................................................................... 1 Assistant Director, Human Resources ............................................................................................ 1 Director, Human Resources/Chief People Officer ......................................................................... 1 Manager, Employee Benefits ......................................................................................................... 3 Manager, Employee Relations ....................................................................................................... 3 Manager, Employee Benefits ......................................................................................................... 3 Senior Human Resources Administrator ........................................................................................ 3 Senior Management Analyst .......................................................................................................... 3 INFORMATION TECHNOLOGY DEPARTMENT Director, Information Technology/Chief Information Officer ....................................................... 1 Manager Information Technology Security ................................................................................... 2 Manager Information Technology Services ................................................................................... 2 Manager Information Technology ................................................................................................. 2 Principal Management Analyst ...................................................................................................... 3 Senior Management Analyst .......................................................................................................... 3 Senior Technologist ........................................................................................................................ 9 Technologist ................................................................................................................................... 9 LIBRARY DEPARTMENT Assistant Director, Libraries Services ............................................................................................. 3 Director, Libraries ........................................................................................................................... 1 Assistant Director, Libraries Services ............................................................................................. 3 Division Head Library Services (Information Technology & Collections) ..................................... 53 Management Analyst ..................................................................................................................... 5 Manager Library Services ............................................................................................................. 45 Title Assigned Disclosure Category Appendix A: Page 5 of 814 OFFICE OF EMERGENCY SERVICES Director of Emergency Services (OES) ........................................................................................... 1 Office of Emergency Services (OES) Coordinator .......................................................................... 1 PLANNING & COMMUNITY ENVIRONMENT DEPARTMENT Director, Planning and Community Environment .......................................................................... 1 Assistant Director, Planning and Community Environment .......................................................... 1 Associate Planner ........................................................................................................................... 4 Chief Planning Official .................................................................................................................... 1 Chief Transportation Official .......................................................................................................... 1 Division Manager, Planning ........................................................................................................... 1 Code Enforcement Officer Lead ..................................................................................................... 4 Code Enforcement Officer ............................................................................................................. 4 Code Enforcement Officer Lead ..................................................................................................... 4 Director, Planning and Community Environment .......................................................................... 1 Management Analyst ..................................................................................................................... 4 Manager Planning (Transportation Parking Manager) .................................................................. 4 Planner ........................................................................................................................................... 4 Manager Planning (Transportation Parking Manager) .................................................................. 4 Principal Planner ............................................................................................................................ 4 Senior Management Analyst ........................................................................................................ 14 Senior Planner ................................................................................................................................ 4 Traffic Engineering Lead ................................................................................................................. 4 POLICE DEPARTMENT Police Division Assistant Police Chief ..................................................................................................................... 1 Communications Manager ............................................................................................................. 1 Police Captain -Adv ........................................................................................................................ 1 Police Chief -Adv …………………………… .............................................................................................. 1 Assistant Police Chief ..................................................................................................................... 1 Police Captain -Adv ........................................................................................................................ 1 Police Lieutenant -Adv ................................................................................................................... 1 Public Safety Program Manager .................................................................................................... 3 Senior Management Analyst .......................................................................................................... 3 Animal Services Division Superintendent Animal Services .................................................................................................... 7 Veterinarian ................................................................................................................................... 7 Title Assigned Disclosure Category Appendix A: Page 6 of 814 Technical Services Division Deputy Director Technical Services Division .................................................................................. 9 Public Safety Communications Manager ....................................................................................... 3 Public Safety Program Manager .................................................................................................... 3 PUBLIC WORKS DEPARTMENT Administration Division Director, Public Works/City Engineer ............................................................................................ 1 Senior Management Analyst .......................................................................................................... 3 Airport Division Manager Airport 1 Management Analyst 3 Manager Airport 1 Manager, Maintenance Operations 5 Engineering Services Division Assistant Director Public Works ..................................................................................................... 1 Management Analyst ..................................................................................................................... 3 Project Manager ............................................................................................................................. 4 Senior Engineer .............................................................................................................................. 4 Senior Project Manager ................................................................................................................. 4 Supervisor Inspection & Surveying ................................................................................................ 4 Senior Project Manager ................................................................................................................. 4 Public Services Division Assistant Director Public Works ..................................................................................................... 1 Assistant Fleet Manager ................................................................................................................ 5 Coordinator Public Works Projects ................................................................................................ 3 Fleet Manager ................................................................................................................................ 5 Management Analyst ..................................................................................................................... 3 Manager Facilities .......................................................................................................................... 5 Manager Maintenance Operations ................................................................................................ 5 Manager Urban Forester ............................................................................................................... 5 Project Manager ............................................................................................................................. 5 Project Manager (Urban Forester) ................................................................................................. 5 Environmental Services Division Assistant Director Public Works ..................................................................................................... 1 Assistant Manager Water Quality Control Plant ........................................................................... 3 Coordinator Public Works Projects ................................................................................................ 5 Management Analyst ..................................................................................................................... 3 Manager Environmental Control Program .................................................................................... 4 Title Assigned Disclosure Category Appendix A: Page 7 of 814 Manager Laboratory Services ........................................................................................................ 5 Manager Solid Waste ................................................................................................................... 64 Manager Water Quality Control Plant ........................................................................................... 4 Manager Watershed Protection .................................................................................................... 4 Project Manager ............................................................................................................................. 4 Senior Engineer .............................................................................................................................. 4 UTILITIES DEPARTMENT Administration Assistant City Manager/Director Utilities General Manager ......................................................... 1 Manager Communications ............................................................................................................. 5 Principal Business Analyst - U ........................................................................................................ 4 Senior Business Analyst - U ............................................................................................................ 4 Senior Resource Planner ................................................................................................................ 3 Utilities Chief Operating Officer ..................................................................................................... 1 Utilities Compliance Manager ........................................................................................................ 5 Utilities Strategic Business Manager .............................................................................................. 1 Manager Communications ............................................................................................................. 5 Utilities Compliance Manager ........................................................................................................ 5 Customer Support Services Division Assistant Director Utilities Customer Support Services ................................................................. 1 Manager Customer Service ............................................................................................................ 1 Manager, Utilities Credit, & Collections ......................................................................................... 1 Manager Customer Service ............................................................................................................ 1 Resource Management Division Asst Dir Ut/Res Mgmt (Assistant Director, Resource Management) ............................................ 1 Manager Utilities Program Services ............................................................................................... 4 Resource Planner ........................................................................................................................... 3 Senior Resource Planner ................................................................................................................ 3 Engineering Division Assistant Director Utilities Engineering ......................................................................................... 1 Supervising Electric Project Engineer (Electric Supervisor Project Engineer) ............................... 4 Engineering Manager Electric ........................................................................................................ 4 Engineering Manager Water-Gas-Wastewater ............................................................................. 4 Mgr Util Telecomm (Manager, Utilities Telecommunications) ..................................................... 1 Senior Electrical Engineer .............................................................................................................. 4 Senior Engineer – U (Senior Project Engineer) .............................................................................. 4 Supervising Electric Project Engineer (Electric Supervisor Project Engineer) ............................... 4 Title Assigned Disclosure Category Appendix A: Page 8 of 814 Operations Division Assistant Director Utilities Operations .......................................................................................... 1 Manager Electric Operations ......................................................................................................... 4 Manager Utilities Operations W-G-W ............................................................................................ 4 Utility Safety Officer ………… .. ……………………………………………………………………………………………………. 4 Utilities Supervisor ......................................................................................................................... 4 OTHER REPORTING REQUIREMENTS Newly created positions between conflict code amendments…………………………………………….…1-9, As applicable, the City Clerk to work with Department to complete FPPC Form 804 at the time a new position is created. Consultants (Defined in FPPC Regulation 18701(a)(2)) .............................................................. 1-9, As applicable1, the City Clerk to work with Department to complete FPPC form 805 a t the time a consultant is hired. Members of Task Forces, Special Committees and Similar Advisory Bodies Created by the City Council…………………………………………………………………………………………………….……………………………... 1, As applicable2 1 Pursuant to Palo Alto Municipal Code section 2.09.060, the City Manager or his or her designee may determine in writing that a particular consultant, although a designated position, is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements. Any such written determination shall include a description of the consultant's duties and, based upon the description, a statement of the extent of disclosure requirements, if any. The City Manager or his or her designee may also determine whether a particular contract consultant constitutes a "consultant" as the term is defined in the Political Reform Act and regulations promulgated there under or whether the contract consultant is a registered professional engineer or licensed land surveyor exempted from the conflict of i nterest provisions under Government Code Section 87100.1. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. 2 The City Attorney and City Clerk shall coordinate to determine whether a newly created body provides that committees, boards, or commissions possesses decision making authority pursuant to Fair Political Practices Regulation 18701 and make a recommendation to the Council on whether the body should be subject to the disclosure requirements. Factors to be considered include but are not limited to whether the body will perform a role that compels or prevents a governmental decision, or make substantive recommendations that may be regularly approved without significant modification by another public official or governmental agency over an extended period of time. Appendix AB: Page 1 of 314 APPENDIX B DISCLOSURE CATEGORIES AND DEFINITIONS CATEGORIES 1. FULL DISCLOSURE What to report? All investments, and business positions in business entities, sources of income (including gifts, loans, and travel payments), and interests in real property. What Form 700 schedules? All Schedules (A through E) 2. ALL INCOME What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments). What Form 700 schedules? A, C, D, E 3. CITY-RELATED INCOME What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments) if the source is of a type which provides, manufactures, or supplies goods or services, supplies, materials, machinery or equipment of the type utilized by or subject to the review or approval of the City. What Form 700 schedules? A, C, D, E 4. CITY-RELATED INCOME, REAL PROPERTY What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments) if the source is of a type which provides, manufactures, or supplies goods or services, supplies, materials, machinery or equipment of the type utilized by or subject to the review or approval of the City and all interests in real property. What Form 700 schedules? All Schedules (A through E) 5. DEPARTMENT-RELATED INCOME What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments) if the source is of a type if the source is of a type which provides , manufactures or supplies equipment, supplies, material, goods or services or machinery of the type utilized by or subject to the review or approval of the department in which that person is employed. What Form 700 schedules? A, C, D, E 6. DEPARTMENT-RELATED INCOME, REAL PROPERTY What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments) if the source is of a type if the source is of a type which provides, manufactures or supplies equipment, supplies, material, goods or services or machinery of the type utilized by or subject to the review Appendix AB: Page 2 of 314 or approval of the department in which that person is employed and all interests in real property. What Form 700 schedules? All Schedules (A through E) 7. DIVISION- RELATED INCOME What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments), if the source which provides manufacture or supply supplies, equipment, machinery, goods or services or material of the type utilized by or subject to the review or approval of the division in which that person is employed. What Form 700 schedules? A, C, D, E 8. DIVISION-RELATED INCOME, REAL PROPERTY What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments), if the source which provides manufacture or supply supplies, equipment, machinery, goods or services oor material of the type utilized by or subject to the review or approval of the division in which that person is employed and all interests in real property. What Form 700 schedules? All Schedules (A through E) 9. CITY-RELATED COMPUTER HARDWARE & SOFTWARE What to report? All investments, and business positions, in business entities, and sources of income (including gifts, loans, and travel payments), if the source which provides supply, manufacture goods or services relating to computer hardware or software of the type utilized by the City. What Form 700 schedules? A, C, D, E DEFINITIONS (summary from California Government Code as of 8/21/2018) For the purposes of these disclosure categories, the definitions and regulations contained in the Political Reform Act apply, including but not limited to: “Business entity” means any organization or enterprise operated for profit, including but not limited to a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association (Gov. Code 82005). A position in a business entity includes a position as “a director, officer, partner, trustee, employee, or holds any position of management” (Gov. Code 87103(d)). “Income” means a payment received, including but not limited to any salary or wage received by the filer (Gov. Code 82030). However, income does not need to be disclosed if the source is a state, local, or federal government agency (Gov. Code 82030(b)(2)). “Interests in real property” means leasehold or ownership interests or options worth $2,000 or more within two miles of the jurisdictional boundaries of the City of Palo Alto Appendix AB: Page 3 of 314 (Gov. Code 82033). However, a real estate interest does not need to be disclosed if it is used solely as your primary residence (Gov. Code 87206(f)). “Investment” means any financial interest in or security issued by a business entity owned directly, indirectly, or beneficially by filer, or his or her immediate family. An asset shall not be deemed an investment unless its fair market value equals or exceeds two thousand dollars ($2,000) (Gov. Code 82034). Appendix C: Page 1 of 1 APPENDIX C RESOURCES FAIR POLITICAL PRACTICES COMMISSION Statements of Economic Interests - Form 700 webpage http://www.fppc.ca.gov/Form700.html Includes the latest: Reference Pamphlet (Explains Reporting Requirements) Form 700 Disclosure FAQs Informal Advice http://www.fppc.ca.gov/advice/get-advice.html • advice@fppc.ca.gov or; • 866-275-3772 | Monday through Thursday from 9:00 a.m. to 11:30 a.m. Formal Advice http://www.fppc.ca.gov/advice/formal-advice.html OFFICE OF THE CITY CLERK • File Form 700 electronically at https://netfile.com/Filer/ • Questions about accessing the NetFile electronic filing system? Contact the City Clerk’s Office: (650) 329-2571 • View previously filed Form 700’s at http://public.netfile.com/pub/?aid=CPA City of Palo Alto (ID # 9285) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Approval of Contract Amendment #2 with Geodesy Title: Approval of Amendment Number 2 to Contract Number C15159248 With Geodesy in the Amount of $810,000 to: 1) Correct the Dates of the Extension Term in Amendment Number 1; 2) add a Renewal Term (Sept. 19, 2018-June 30, 2021); and 3) add Department -specific Data Work, for a Total Not-To-Exceed Amount of $1,395,000 From: City Manager Lead Department: IT Department Recommendation Staff recommends that Council approve and authorize the City M anager or his designee to execute Contract Amendment No. 2 to Contract No. C15159248 with Geodesy, (Attachment B: Geodesy C15159248 – Amendment No. 2 Final) to correct the dates of the extension term from Amendment No.1, to add a renewal term (Sept. 19, 20 18–June 30, 2021), to add department-specific data support services, and to increase the compensation by $810,000 for a total contact amount not-to-exceed $1,395,000. Cost for additional years will be predicated on actual scope of services required and wil l not exceed $270,000 annually. Executive Summary The citywide geographic information system (GIS) solution consists of a framework of geographic information, software applications, an information network, and a management structure providing GIS information to all users. The GIS solution supports all departments and mission critical departmental business processes which includes Utilities, Police, Fire, and the Office of Emergency Services. The current system was assessed in Fiscal Year 2017 to see how it aligns with the future GIS needs of the City. Through that assessment it was recommended to move to a new system to better fit with the City’s growing need of GIS capabilities. In Fiscal Year 2018, a new system was chosen, Environmental Systems Research Institute, Inc. City of Palo Alto Page 2 (ESRI). With the new ESRI based GIS system the city will have a comprehensive and an industry dominant solution, which will have an ecosystem of tools that will be used to alleviate functional gaps in the current system. Both systems will be running in parallel until ESRI is fully implemented. The transition to the new system would require at least two years and could terminate this recommended 3-year contract extension prior to its expiration. A solicitation would be impractical and unavailing at this time as the existing GIS will be retired in two to three years while the new ESRI GIS system is being implemented. Not only is Geodesy uniquely experienced with the city’s GIS, a solicitation at this time, where any resulting award to other than the incumbent (Geodesy), would risk substantial disruption to city systems and delay in the transition to a new GIS. Ref. PAMC 2.30.360(b)(2). For these reasons, Staff is requesting an exemption from competitive solicitation as being impractical and unavailing under PAMC 2.30.360(b)(2). Background Geodesy is a GIS consulting company that has been instrumental in the development of Palo Alto’s GIS and related applications for over 20 years. Council previously approved a three-year contract with Geodesy for maintenance and support, and professional services (C15159248, CMR 5645 on June 29th, 2015) which expired on June 30, 2018. The contract was amended by Amendment No. 1 (Attachment A: Geodesy C15159248 – Amendment No. 1 - Final, dated June 29, 2018, to extend the term of the contract from July 1, 2018 through December 31, 2018 (the “Extension Term”) at no additional cost to the City because $42,425 in funding remained from contract Year 3. In so doing, the Parties made a mutual mistake, miscalculating that the remaining $42,425 would cover the cost of a six-month Extension Term, as was provided in Amendment No.1. The Parties have since realized that the $42,42 5 covered an extension of 2.6 months, from July 1, 2018 through September 18, 2018. The Parties now wish to amend the contract to correct the dates of the Extension Term from Amendment No.1; to add a Renewal Term (September 19, 2018 through June 30, 2021); to add department-specific data support services; and to increase the compensation by Eight Hundred and Ten Thousand Dollars ($810,000) to a total not -to- exceed amount of the Agreement of One Million Three Hundred Ninety Five Thousand dollars ($1,395,000); as detailed in this Amendment. The GIS is an integral part of the city’s day-to-day operations, combining digital maps with linked databases to support the inventory, management, analysis, and display of geographic information important to the many departments at the City of Palo Alto. It allows the access to and maintenance of all the departments’ GIS infrastructure data City of Palo Alto Page 3 through PC’s, Tablets, and phones over the web or through specific applications. Departments and divisions are responsible for maintaining information they originate or are mandated to oversee; however, information that is common to all users, referred to as the foundation basemap, is maintained only by the City’s GIS Program Manager with specialized support by Geodesy consultants. The accuracy and currency of the foundation basemap is essential to all other elements of the system and requires specialized geospatial knowledge and skill to maintain. For these reasons, the Information Technology department is requesting continued support be provided by Geodesy to help meet the specialized software enhancement needs and basemap data needs of the GIS. Discussion The following tasks will be performed by Geodesy in support of the City’s GIS needs for fiscal years 2019 – 2021 1. Task 1: Standard software maintenance and support: $45,000 per fiscal year 2. Task 2: Consulting Services on projects as directed by City’s GIS Program Manager with approval by the GIS Steering Committee, including software enhancements and data support: not to exceed $150,000 per fiscal year (except in Contract Year 4, for which the not-to-exceed is $159,752). As directed, Consultant will: o Make feature enhancements to the existing GIS as warranted. o Assist City staff with the City’s migration to the new Esri based GIS system and help port legacy systems to the new platform as warranted. o Assist City staff with key GIS Integrations with other enterprise systems. o Analyze and design GIS data exchange with surrounding jurisdictions, including cities, counties, public utilities, and Stanford University. Update foundation basemap as appropriate with this information. o Analyze and design GIS data exchange with surrounding jurisdictions, including cities, counties, public utilities, and Stanford University. Update foundation basemap as appropriate with this information. o Analyze and update foundation basemap data to meet new requirements from City staff, other public agencies, and the public. City of Palo Alto Page 4 o Conceive, create and update GIS training exercises, using both PowerPoint and Video-based (Camtasia) software for exercises linked to GIS applications. o Assist GIS staff in teaching in-house training classes on GIS applications, demonstrating all functionality of Encompass software in the context of Palo Alto’s operations. 3. Task 3: Department-specific data support work: not to exceed $75,000 per fiscal year. This work will be funded by the department requesting the work, and will be managed by IT. As directed by City’s GIS Program Manager, Consultant will: o Acquire and analyze quarterly updates of Santa Clara County (SCC) Recorder’s office map documents. Tasks include: identifying areas affecting Palo Alto’s foundation basemap, editing all cadastral data impacted by information on these documents (i.e. parcel lines, subdivisions, parcel maps, certificates of compliance, easements, etc.) by using distance and bearing methods within the Encompass Traverse tool set and linking all relevant documents to appropriate features in the foundation basemap by using GIS-based document management functionality. o Acquire and analyze annual updates of the Santa Clara County Assessor’s office parcel rolls for Palo Alto. Tasks include: comparing these listings with the GIS data to identify changes in cadastral data affecting the foundation basemap and reconciling these changes and making edits as necessary by using the tools and techniques described previously. o Work with City’s Real Property staff to review archives of consummated transaction files. Identify cadastral data changes made by those transactions (i.e. easement deeds, right-of-way transfers, etc.) edit the GIS foundation basemap to reflect these changes and link a digital copy of the file together with other relevant documents to the affected parcels in the GIS. Resource Impact $195,000 for the payment of this contract for Fiscal Year 2019 was budgeted within the Information Technology Fund as part of the Fiscal Year 2019 Adopted Operating Budget. The remaining annual amount not-to-exceed $75,000 for department-specific data support work will be expensed to the department or departments requesting the City of Palo Alto Page 5 work. For Fiscal Year 2020 and Fiscal Year 2021, the cost for the contract will be subject to the City Council annual appropriation of funds. Environmental Review Approval of this agreement does not constitute a project under the California Environmental Quality Act (CEQA), therefore, no environmental assessment is required. Attachments: • Attachment A: Geodesy C15159248 - Amendment No.1-Final • Attachment B: Geodesy C15159248 - Amendment No.2 Final 1 Revision July 20, 2016 AMENDMENT NO. 1 TO CONTRACT NO. C15159248 BETWEEN THE CITY OF PALO ALTO AND GEODESY This Amendment No. 1 (this “Amendment”) to contract no. C15159248 is entered into as of June 29, 2018 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and GEODESY, a Partnership, located at 55 New Montgomery Street, Suite 601, San Francisco, CA 941045 (“CONSULTANT”). CITY and CONSULTANT are also referred to herein collectively as the “Parties.” R E C I T A L S A. The Contract (as defined below) was entered into between the Parties on July 1, 2015, for professional software development, data support, maintenance and support of the Encompass GIS software applications project. B. The parties wish to amend the Contract to extend the term for six months through December 31, 2018. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree as follows: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean contract no. C15159248 between CONSULTANT and CITY. b. Other Terms. Terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, “TERM”, of the Contract is hereby amended to read as follows: The term of this Agreement shall be from the date of its full execution through December 31, 2018 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. Exhibit “B” to the Contract is hereby deleted and replaced in its entirety, to read as set forth in the attachment to this Amendment, which is hereby incorporated into this Amendment and into the Contract in full by this reference: a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE” (AMENDED – REPLACES PREVIOUS) DocuSign Envelope ID: 91B507CB-B35A-4190-80EC-C9585F70067C 2 Revision July 20, 2016 SECTION 4. Legal Effect. Except as herein modified, all other provisions of the Contract, including any exhibits, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are hereby fully incorporated herein by this reference. SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Agreement effective as of the date first above written above. CITY OF PALO ALTO City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) GEODESY By:__________________________ Name:_______________________ Title:________________________ Attachment: EXHIBIT "B" entitled “SCHEDULE OF PERFORMANCE” (AMENDED – REPLACES PREVIOUS) DocuSign Envelope ID: 91B507CB-B35A-4190-80EC-C9585F70067C Charels Eitzel Partner 3 Revision July 20, 2016 EXHIBIT “B” SCHEDULE OF PERFORMANCE (AMENDED – REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete within the peri od specified below. CONSULTANT shall provide a detailed schedule of work consistent with the time period below within 2 weeks of receipt of the notice to proceed. Milestones Completion from NTP 1. On-going Services 42 Months DocuSign Envelope ID: 91B507CB-B35A-4190-80EC-C9585F70067C Page 1 of 10 AMENDMENT NO. 2 TO CONTRACT NO. C15159248 BETWEEN THE CITY OF PALO ALTO AND GEODESY This Amendment No. 2 (this “Amendment”) to contract no. C15159248 is entered into as of November 26, 2018 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and GEODESY, a Partnership, located at 55 New Montgomery Street, Suite 601, San Francisco, CA 941045 (“CONSULTANT”). CITY and CONSULTANT are also referred to herein collectively as the “Parties.” R E C I T A L S A. The Contract (as defined below) was entered into between the Parties on July 1, 2015, for professional software development, data support, maintenance and support of the Encompass GIS software applications project. B. The Contract was amended by Amendment No. 1, dated June 29, 2018, to extend the term of the Contract from July 1, 2018 through December 31, 2018 (the “Extension Term”) at no additional cost to the City because $42,425 in funding remained from Contract Year 3. In so doing, the Parties made a mutual mistake, miscalculating that the remaining $42,425 would cover the cost of a six-month Extension Term, as was provided in Amendment No.1. The Parties have since realized that the $42,425 covered an extension of 2.6 months, from July 1, 2018 through September 18, 2018. C. The Parties now wish to amend the Contract to correct the dates of the Extension Term from Amendment No.1; to add a Renewal Term (September 19, 2018 through June 30, 2021); to add department-specific data support services; and to increase the compensation by Eight Hundred and Ten Thousand Dollars ($810,000) to a total not-to-exceed amount of the Agreement of One Million Three Hundred Ninety Five Thousand dollars ($1,395,000); as detailed in this Amendment. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree as follows: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a.Contract. The term “Contract” shall mean contract no. C15159248 between CONSULTANT and CITY, as amended by Amendment No.1, dated June 29, 2018. b.Other Terms. Terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 2 of 10 SECTION 2. Section 1, “SCOPE OF SERVICES”, of the Contract is hereby amended to read as follows: “CONSULTANT shall perform the Services described at Exhibit “A” and Exhibit “A -1” 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 3. The first sentence of Exhibit “A”, entitled “SCOPE OF SERVICES”, of the Contract is hereby amended in its entirety to read as follows: “The following tasks will be performed by CONTRACTOR pursuant to this Agreement.” SECTION 4. Section 2, “TERM”, of the Contract is hereby amended to read as follows: “The term of this Agreement consists of the following: the Original Term of this Agreement shall be from the date of its full execution through June 30, 2018; the Extension Term of this Agreement (Amendment No.1) shall be from July 1, 2018 through September 18, 2018; and the Renewal Term of this Agreement (Amendment No.2) shall be from September 19, 2018 through June 30, 2021; unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 5. Section 4, “NOT TO EXCEED COMPENSATION”, of the Contract is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” and Exhibit “A-1”, including payment for professional services and any reimbursable expenses, shall not exceed One Million Three Hundred Ninety Five Thousand Dollars($1,395,000.00), as detailed in Exhibit “C”. The applicable hourly rates are set out at Exhibit “C-1”. 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” and/or Exhibit “A-1”.” SECTION 6. Subsection 25.12 is hereby added to Section 25, “MISCELLANEOUS PROVISIONS”, of the Contract to read as follows: “25.12 CONSULTANT understands and agrees that, in connection with this Agreement, the CONSULTANT may have access to proprietary and/or confidential information which may be owned or controlled by the CITY, the disclosure of which to third parties may be damaging to the CITY, its employees or customers/residents. CONSULTANT also understands and agrees that the disclosure of such information may violate state and/or federal law and may subject the CONSULTANT to civil liability. Consequently, CONSULTANT agrees that all information disclosed by DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 3 of 10 the CITY to the CONSULTANT shall be held in strict confidence and used only in performance of the Agreement, unless disclosure is required by law or court order. CONSULTANT shall exercise the same standard of care to protect such information as is used to protect its own proprietary and/or confidential information and in no case less than a reasonable standard of care. The provisions of this paragraph shall survive the termination or expiration of this Agreement. CONSULTANT shall perform all services under this Agreement in conformity with Exhibit “E”, entitled “INFORMATION PRIVACY POLICY”, attached hereto.” SECTION 7. The following exhibits to the Contract are hereby added, or deleted and replaced in the entirety, as indicated below, to read as set forth in the attachments to this Amendment, all of which are hereby incorporated into this Amendment as though fully set forth herein, and into the Contract as though fully set forth therein, respectively, by this reference. a.Exhibit “A-1”, entitled “SCOPE OF SERVICES, AMENDMENT No. 2”, attached to this Amendment, is hereby added to the Contract. (ADDED) b.Exhibit “B”, entitled “SCHEDULE OF PERFORMANCE”, of the Contract is hereby deleted and replaced in its entirety to read as provided in Exhibit “B”, entitled “SCHEDULE OF PERFORMANCE, AMENDMENT No. 2”, attached to this Amendment. (REPLACED) c.Exhibit “C” entitled “COMPENSATION”, of the Contract is hereby deleted and replaced in its entirety to read as provided in Exhibit “C”, entitled “COMPENSATION, AMENDMENT No. 2”, attached to this Amendment. (REPLACED) d.Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE”, of the Contract is hereby deleted and replaced in its entirety to read as provided in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE, AMENDMENT No. 2”, attached to this Amendment. (REPLACED) e.EXHIBIT "E" entitled “INFORMATION PRIVACY POLICY”, attached to this Amendment, is hereby added to the Contract. (ADDED) SECTION 8. Legal Effect. Except as herein modified, all other provisions of the Contract, including any exhibits, shall remain in full force and effect. SECTION 9. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are hereby fully incorporated herein by this reference. (Continued on the next page.) DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 4 of 10 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written above. CITY OF PALO ALTO City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) GEODESY By:__________________________ Name:_______________________ Title:________________________ Attachments: EXHIBIT "A-1" entitled “SCOPE OF SERVICES, AMENDMENT NO. 2” (ADDED) EXHIBIT "B" entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2” (REPLACES PREVIOUS) EXHIBIT "C” entitled “COMPENSATION, AMENDMENT NO.2” (REPLACES PREVIOUS) EXHIBIT "C-1" entitled “HOURLY RATE SCHEDULE, AMENDMENT NO.2” (REPLACES PREVIOUS) EXHIBIT "E" entitled “INFORMATION PRIVACY POLICY” (ADDED) DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Charles Eitzel Partner Page 5 of 10 EXHIBIT “A-1” SCOPE OF SERVICES, AMENDMENT NO. 2 (ADDED) Consultant will provide the following services detailed in this Exhibit “A -1” (“Scope of Services, Amendment No.2”), in addition to Task 1 and Task 2 detailed in Exhibit “A” (“Scope of Services”). The Parties understand and agree that Tasks 1 and Task 2 of Exhibit “A” (“Scope of Services”) will be performed throughout the term of the Agreement, through June 30, 2021. Task 3 work, detailed below, shall be performed as assigned commencing with Contract Year 4, as detailed in Exhibit “C”. Task 3. Consultant shall perform department-specific data support work at the direction of the City’s Information Technology Department. As directed by the City’s GIS Program Manager, the Consultant will: a.Acquire and analyze quarterly updates of Santa Clara County (SCC) Recorder’s office map documents. Tasks include: identifying areas affecting Palo Alto’s foundation basemap, editing all cadastral data impacted by information on these documents (i.e. parcel lines, subdivisions, parcel maps, certificates of compliance, easements, etc.) by using distance and bearing methods within the Encompass Traverse tool set, and linking all relevant documents to appropriate features in the foundation basemap by using GIS-based document management functionality. b.Acquire and analyze annual updates of the Santa Clara County Assessor’s office parcel rolls for Palo Alto. Tasks include: comparing these listings with the GIS data to identify changes in cadastral data affecting the foundation basemap and reconciling these changes and making edits as necessary by using the tools and techniques described previously. c.Work with City’s Real Property staff to review archives of consummated transaction files. Identify cadastral data changes made by those transactions (i.e. easement deeds, right-of-way transfers, etc.) edit the GIS foundation basemap to reflect these changes and link a digital copy of the file together with other relevant documents to the affected parcels in the GIS. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 6 of 10 EXHIBIT “B” SCHEDULE OF PERFORMANCE, AMENDMENT NO.2 (REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete within the period specified below. CONSULTANT shall provide a detailed schedule of work consistent with the time period below within 2 weeks of receipt of the notice to proceed (“NTP”). Milestones Completion from NTP 1.On-going Services 72 months DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 7 of 10 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 2 (REPLACES PREVIOUS) 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 for Task Item #1 shall be a lump sum payment per fiscal year, and compensation for work under Task Item #2 and Task Item #3, as assigned, 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” and Exhibit “A-1”, including expenses, shall not exceed the amounts specified in this Exhibit “C”. CONSULTANT agrees to complete all services, including expenses, within the specified amounts. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed the amount specified herein. 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 all services, including reimbursable expenses, and the total compensation for any Additional Services, as applicable, do not exceed the amounts set forth in Section 4 of this Agree ment. 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. 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. Additional Services budgeted pursuant to this Agreement: None. (Continued on the next page.) DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 8 of 10 BUDGET SCHEDULE Not-To-Exceed Amount Per Fiscal Year for Task 1 (Exhibit “A”) (Encompass Maintenance and Support) Not-To-Exceed Amount Per Fiscal Year for Task 2 (Exhibit “A”) (Consulting, Software Dev’t, Data Support, Training, & Staff Support Services) Not-To-Exceed Amount Per Fiscal Year for Task 3 (Exhibit “A-1”) (Dept.-Specific Data Support Work) Not-To-Exceed Amount Per Fiscal Year for All Tasks (1-3) (Exhibit “A” and Exhibit “A-1”) ORIGINAL TERM Contract Year 1 July 1, 2015 – June 30, 2016 $45,000 $150,000 n/a $195,000 Contract Year 2 July 1, 2016 – June 30, 2017 $45,000 $150,000 n/a $195,000 Contract Year 3 July 1, 2017 – June 30, 2018 $45,000 $150,000 n/a $195,000 Sub-total Original Term $135,000 $450,000 n/a $585,000 Extension Term* (2.6 mos.) (Amdt. No.1) July 1, 2018 – Sept. 18, 2018** $9,792* $32,633* n/a $42,425* RENEWAL TERM (Amdt. No.2) Contract Year 4 (9.4 mos.) Sept. 19, 2018 – June 30, 2019 $35,208 $159,792*** $75,000 $270,000 Contract Year 5 July 1, 2019 – June 30, 2020 $45,000 $150,000 $75,000 $270,000 Contract Year 6 July 1, 2020 – June 30, 2021 $45,000 $150,000 $75,000 $270,000 Sub-total Renewal Term $125,772 $459,228 $225,000 $810,000* TOTAL NOT-TO-EXCEED AMOUNT OF THE AGREEMENT ORIGINAL TERM AND RENEWAL TERM $1,395,000* *The Extension Term was at no added cost to the City because $42,425 remained left over from Contract Year 3. Therefore, the dollar amounts shown in the table above for the Extension Term are not added to the totals in the above table (including but not limited to total not-to-exceed amount of the Agreement). **The dates of the Extension Term provided in the table above reflect the corrected Extension Term pursuant to Section 2 (“Term”) of the Agreement as amended by Amendment No.2. ***City’s IT department anticipates a need for increased GIS consulting services (Task 2 of Exhibit “A”) in Contract Year 4 in relation to the City’s conversion from its existing GIS to a new GIS system. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 9 of 10 EXHIBIT “C-1” HOURLY RATE SCHEDULE, AMENDMENT NO. 2 (REPLACES PREVIOUS) Time will be billed on an hourly basis (and invoiced on a monthly basis) for Task Item #2 and Task Item #3, as detailed in Exhibit “A” and Exhibit “A-1”, at the following rates, not to exceed the amounts provided for in Exhibit “C”: Consultant Staff Rate 1.Chip Eitzel:$150/hour 2.Jean-Paul Lavoie:$150/hour 3.Dave Matson:$100/hour DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Page 10 of 10 EXHIBIT “E” INFORMATION PRIVACY POLICY (ADDED) DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 Information Privacy Policy Release and Version: 1st Release, Version 2.2 Release Date: 31 January, 2013 Document Classification: Need to Know EXHIBIT “E” INFORMATION PRIVACY POLICY (ADDED) DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 1 of 8 Version 2.2 31 January, 2013 CONTENTS DOCUMENT CONTROLS........................................................................................................................................... 2 CHANGE RECORD .................................................................................................................................................. 2 APPROVAL ............................................................................................................................................................. 2 DISTRIBUTION ........................................................................................................................................................ 2 1.OBJECTIVE ................................................................................................................................................... 3 A)INTENT .......................................................................................................................................................... 3 B)SCOPE .......................................................................................................................................................... 3 C)CONSEQUENCES............................................................................................................................................ 3 D)EXCEPTIONS.................................................................................................................................................. 3 E)MUNICIPAL ORDINANCE .................................................................................................................................. 4 2.RESPONSIBILITIES OF CITY STAFF ................................................................................................................. 4 A)RESPONSIBILITY OF CIO AND ISM .................................................................................................................. 4 B)RESPONSIBILITY OF INFORMATION SECURITY STEERING COMMITTEE ............................................................... 4 C)RESPONSIBILITY OF USERS ............................................................................................................................ 4 D)RESPONSIBILITY OF INFORMATION TECHNOLOGY (IT) MANAGERS .................................................................... 5 E)RESPONSIBILITY OF AUTHORIZATION COORDINATION ...................................................................................... 5 3.PRIVACY POLICY .......................................................................................................................................... 5 A)OVERVIEW..................................................................................................................................................... 5 B)PERSONAL INFORMATION AND CHOICE ............................................................................................................ 5 C)METHODS OF COLLECTION OF PERSONAL INFORMATION .................................................................................. 5 D)UTILITIES SERVICE ......................................................................................................................................... 6 E)PUBLIC DISCLOSURE ...................................................................................................................................... 6 F)ACCESS TO PERSONAL INFORMATION ............................................................................................................. 6 G)SECURITY, CONFIDENTIALITY AND NON-DISCLOSURE ...................................................................................... 6 H)DATA RETENTION / INFORMATION RETENTION ................................................................................................. 7 I)SOFTWARE AS A SERVICE (SAAS) OVERSIGHT ................................................................................................ 7 J)FAIR AND ACCURATE CREDIT TRANSACTION ACT OF 2003 (FACT) .................................................................. 7 4.CONTACTS ................................................................................................................................................... 8 DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 2 of 8 Version 2.2 31 January, 2013 DOCUMENT CONTROLS Document Title Information Privacy Policy Location City of Palo Alto Website and SharePoint Document Author Raj Patel Document Manager Raj Patel Contributors Jonathan Reichental, Shiva Swaminathan, Tom Auzenne, Joe Blackwell, Grant Kolling CHANGE RECORD Date Author Version Change Reference 12-Jul-12 Raj Patel 0.01 First draft developed 26-Sep-12 Raj Patel 1.0 First draft released for review 09-Nov-12 Raj Patel 1.5 Updated first draft for review 19-Nov-12 Raj Patel 1.6 Additional updates as identified 22-Nov-12 Raj Patel 1.7 Revised table of content 26-Nov-12 Raj Patel 1.8 Revised followed by review from Jonathan Reichental and Tom Auzenne 6-Dec-12 Raj Patel 1.92 Revised according to comments from Jonathan Reichental 14-Jan-13 Raj Patel 2.0 Revised according to comments from Grant Kolling 31-Jan-13 Raj Patel 2.2 Revised according to recommendations from Information Security Steering Committee APPROVAL Date Name Role Comments 06-Dec-12 Raj Patel Information Security Manager; Information Technology Department Approved 06-Dec-12 Jonathan Reichental CIO; Information Technology Department Approved 06-Dec-12 Tom Auzenne Assistant Director, Utilities Department Approved 14-Jan-13 Grant Kolling Senior Assistant City Attorney; City Attorney’s Office Approved 14-Jan-13 Information Security Steering Committee Sponsor Approved DISTRIBUTION Name Location City of Palo Alto Employees, Service Providers, Residents and Businesses City of Palo Alto Website and SharePoint DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 3 of 8 Version 2.2 31 January, 2013 1. Objective The City of Palo Alto (the “City”) strives to promote and sustain a superior quality of life for persons in Palo Alto. In promoting the quality of life of these persons, it is the policy of the City, consistent with the provisions of the California Public Records Act, California Government Code §§ 6250 – 6270, to take appropriate measures to safeguard the security and privacy of the personal (including, without limitation, financial) information of persons, collected in the ordinary course and scope of conducting the City’s business as a local government agency. These measures are generally observed by federal, state and local authorities and reflected in federal and California laws, the City’s rules and regulations, and industry best practices, including, without limitation, the provisions of California Civil Code §§ 1798.3(a), 1798.24, 1798.79.8(b), 1798.80(e), 1798.81.5, 1798.82(e), 1798.83(e)(7), and 1798.92(c). Though some of these provisions do not apply to local government agencies like the City, the City will conduct business in a manner which promotes the privacy of personal information, as reflected in federal and California laws. The objective of this Policy is to describe the City’s data security goals and objectives, to ensure the ongoing protection of the Personal Information, Personally Identifiable Information, Protected Critical Infrastructure Informationand Personally Identifying Information of persons doing business with the City and receiving services from the City or a third party under contract to the City to provide services. The terms “Personal Information,” “Protected Critical Infrastructure Information”, “Personally Identifiable Information” and “Personally Identifying Information ” (collectively, the “Information”) are defined in the California Civil Code sections, referred to above, and are incorporated in this Policy by reference. A) INTENT The City, acting in its governmental and proprietary capacities, collects the Information pertaining to persons who do business with or receive services from the City. The Information is collected by a variety of means, including, without limitation, from persons applying to receive services provided by the City, persons accessing the City’s website, and persons who access other information portals maintained by the City’s staff and/or authorized third-party contractors. The City is committed to protecting the privacy and security of the Information collected by the City. The City acknowledges federal and California laws, policies, rules, regulations and procedures, and industry best practices are dedicated to ensuring the Information is collected, stored and utilized in compliance with applicable laws. The goals and objectives of the Policy are: (a) a safe, productive, and inoffensive work environment for all users having access to the City’s applications and databases; (b) the appropriate maintenance and security of database information assets owned by, or entrusted to, the City; (c) the controlled access and security of the Information provided to the City’s staff and third party contractors; and (d) faithful compliance with legal and regulatory requirements. B) SCOPE The Policy will guide the City’s staff and, indirectly, third party contractors, which are by contract required to protect the confidentiality and privacy of the Information of the persons whose personal information data are intended to be covered by the Policy and which will be advised by City staff to conform their performances to the Policy should they enjoy conditional access to that information. C) CONSEQUENCES The City’s employees shall comply with the Policy in the execution of their official duties to the extent their work implicates access to the Information referred to in this Policy. A f ailure to comply may result in DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 4 of 8 Version 2.2 31 January, 2013 employment and/or legal consequences. D)EXCEPTIONS In the event that a City employee cannot fully comply with one or more element(s) described in this Policy, the employee may request an exception by submitting Security Exception Request.The exception request will be reviewed and administered by the City’s Information Security Manager (the “ISM”). The employee, with the approval of his or her supervisor, will provide any additional information as may be requested by the ISM. The ISM will conduct a risk assessment of the requested exception in accordance with guidelines approved by the City’s Chief Information Officer (“CIO”) and approved as to form by the City Attorney. The Policy’s guidelines will include at a minimum: purpose, source, collection, storage, access, retention, usage, and protection of the Information identified in the request. The ISM will consult with the CIO to approve or deny the exception request. After due consideration is given to the request, the exception request disposition will be communicated, in writing, to the City employee and his or her supervisor. The approval of any request may be subject to countermeasures established by the CIO, acting by the ISM. E)MUNICIPAL ORDINANCE This Policy will supersede any City policy, rule, regulation or procedure regarding information privacy. 2.RESPONSIBILITIES OF CITY STAFF A)RESPONSIBILITY OF CIO AND ISM The CIO, acting by the ISM, will establish an information security management framework to initiate and coordinate the implementation of information security measures by the City’s government. The City’s employees, in particular, software application users and database users, and, indirectly, third party contractors under contract to the City to provide services, shall by guided by this Policy in the performance of their job responsibilities. The ISM will be responsible for: (a) developing and updating the Policy, (b) enforcing compliance with and the effectiveness of the Policy; (c) the development of privacy standards that will manifest the Policy in detailed, auditable technical requirements, which will be designed and maintained by the persons responsible for the City’s IT environments; (d) assisting the City’s staff in evaluating security and privacy incidents that arise in regard to potential violations of the Policy; (e) reviewing and approving department-specific policies and procedures which fall under the purview of this Policy; and (f ) reviewing Non-Disclosure Agreements (NDAs) signed by third party contractors, which will provide services, including, without limitation, local or ‘cloud-based’ software services to the City. B)RESPONSIBILITY OF INFORMATION SECURITY STEERING COMMITTEE The Information Security Steering Committee (the “ISSC”), which is comprised of the City’s employees, drawn from the various City departments, will provide the primary direction, prioritization and approval for all information security efforts, including key information security and privacy risks, programs, initiatives and activities. The ISSC will provide input to the information security and privacy strategic planning processes to ensure that information security risks are adequately considered, assessed and addressed at the appropriate City department level. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 5 of 8 Version 2.2 31 January, 2013 C)RESPONSIBILITY OF USERS All authorized users of the Information will be responsible for complying with information privacy processes and technologies within the scope of responsibility of each user. D)RESPONSIBILITY OF INFORMATION TECHNOLOGY (IT) MANAGERS The City’s IT Managers, who are responsible for internal, external, direct and indirect connections to the City’s networks, will be responsible for configuring, maintaining and securing the City’s IT networks in compliance with the City’s information security and privacy policies. They are also responsible for timely internal reporting of events that may have compromised network, system or data security. E)RESPONSIBILITY OF AUTHORIZATION COORDINATION The ISM will ensure that the City’s employees secure the execution of Non-Disclosure Agreements (NDA), whenever access to the Information will be granted to third party contractors, in conjunction with the Software as a Service (SaaS) Security and Privacy Terms and Conditions. An NDA must be executed prior to the sharing of the Information of persons covered by this Policy with third party contractors. The City’s approach to managing information security and its implementation (i.e. objectives, policies, processes, and procedures for information security) will be reviewed independently by the ISM at planned intervals, or whenever significant changes to security implementation have occurred. The CIO, acting by the ISM, will review and recommend changes to the Policy annually, or as appropriate, commencing from the date of its adoption. 3.PRIVACY POLICY A)OVERVIEW The Policy applies to activities that involve the use of the City’s information assets, namely, the Information of persons doing business with the City or receiving services from the City, which are owned by, or entrusted to, the City and will be made available to the City’s employees and third party contractors under contract to the City to provide Software as a Service consulting services. These activities include, without limitation, accessing the Internet, using e-mail, accessing the City’s intranet or other networks, systems, or devices. The term “information assets” also includes the personal information of the City’s employees and any other related organizations while those assets are under the City’s control. Security measures will be designed, implemented, and maintained to ensure that only authorized persons will enjoy access to the information assets. The City’s staff will act to protect its information assets from theft, damage, loss, compromise, and inappropriate disclosure or alteration. The City will plan, design, implement and maintain information management systems, networks and processes in order to assure the appropriate confidentiality, integrity, and availability of its information assets to the City’s employees and authorized third parties. B)PERSONAL INFORMATION AND CHOICE Except as permitted or provided by applicable laws, the City will not share the Information of any person doing business with the City, or receiving services from the City, in violation of this Policy, unless that person has consented to the City’s sharing of such information during the conduct of the City’s business as a local government agency with third parties under contract to the City to provide services. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 6 of 8 Version 2.2 31 January, 2013 C)METHODS OF COLLECTION OF PERSONAL INFORMATION The City may gather the Information from a variety of sources and resources, provided that the collection of such information is both necessary and appropriate in order for the City to conduct business as a local government agency in its governmental and proprietary capacities . That information may be gathered at service windows and contact centers as well as at web sites, by mobile applications, and with other technologies, wherever the City may interact with persons who need to share such formation in order to secure the City’s services. The City’s staff will inform the persons whose Information are covered by this Policy that the City’s web site may use “cookies” to customize the browsing experience with the City of Palo Alto web site. The City will note that a cookie contains unique information that a web site can use to track, among others, the Internet Protocol address of the computer used to access the City’s web sites, the identification of the browser software and operating system s used, the date and time a user accessed the site, and the Internet address of the website from which the user linked to the City’s web sites. Cookies created on the user’s computer by using the City’s web site do not contain the Information, and thus do not compromise the user’s privacy or security. Users can refuse the cookies or delete the cookie files from their computers by using any of the widely available methods. If the user chooses not to accept a cookie on his or her computer, it will not prevent or prohibit the user from gaining access to or using the City’s sites. D)UTILITIES SERVICE In the provision of utility services to persons located within Palo Alto, the City of Palo Alto Utilities Department (“CPAU”) will collect the Information in order to initiate and manage utility services to customers. To the extent the management of that information is not specifically addressed in the Utilities Rules and Regulations or other ordinances, rules, regulations or procedures, this Policy will apply; provided, however, any such Rules and Regulations must conform to this Policy, unless otherwise directed or approved by the Council. This includes the sharing of CPAU-collected Information with other City departments except as may be required by law. Businesses and residents with standard utility meters and/or having non-metered monthly services will have secure access through a CPAU website to their Information, including, without limitation, their monthly utility usage and billing data. In addition to their regular monthly utilities billing, businesses and residents with non-standard or experimental electric, water or natural gas meters may have their usage and/or billing data provided to them through non-City electronic portals at different intervals than with the standard monthly billing. Businesses and residents with such non-standard or experimental metering will have their Information covered by the same privacy protections and personal information exchange rules applicable to Information under applicable federal and California laws. E)PUBLIC DISCLOSURE The Information that is collected by the City in the ordinary course and scope of conducting its business could be incorporated in a public record that may be subject to inspection and copying by the public, unless such information is exempt from disclosure to the public by California law. F)ACCESS TO PERSONAL INFORMATION The City will take reasonable steps to verify a person’s identity before the City will grant anyone online access to that person’s Information. Each City department that collects Information will afford access to affected persons who can review and update that information at reasonable times. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 7 of 8 Version 2.2 31 January, 2013 G) SECURITY, CONFIDENTIALITY AND NON-DISCLOSURE Except as otherwise provided by applicable law or this Policy, the City will treat the Information of persons covered by this Policy as confidential and will not disclose it, or permit it to be disclosed, to third parties without the express written consent of the person affected. The City will develop and maintain reasonable controls that are designed to protect the confidentiality and security of the Information of persons covered by this Policy. The City may authorize the City’s employee and or third party contractors to access and/or use the Information of persons who do business with the City or receive services from the City. In those instances, the City will require the City’s employee and/or the third party contractors to agree to use such Information only in furtherance of City-related business and in accordance with the Policy. If the City becomes aware of a breach, or has reasonable grounds to believe that a security breach has occurred, with respect to the Information of a person, the City will notify the affected person of such breach in accordance with applicable laws. The notice of breach will include the date(s) or estimated date(s) of the known or suspected breach, the nature of the Information that is the subject of the breach, and the proposed action to be taken or the responsive action taken by the City. H) DATA RETENTION / INFORMATION RETENTION The City will store and secure all Information for a period of time as may be required by law, or if no period is established by law, for seven (7) years, and thereafter such information will be scheduled for destruction. I) SOFTWARE AS A SERVICE (SAAS) OVERSIGHT The City may engage third party contractors and vendors to provide software application and database services, commonly known as Software-as-a-Service (SaaS). In order to assure the privacy and security of the Information of those who do business with the City and those who received services from the City, as a condition of selling goods and/or services to the City, the SaaS services provider and its subcontractors, if any, including any IT infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, while it performs such services and/or furnishes goods to the City, to the extent any scope of work or services implicates the confidentiality and privacy of the Information. These requirements include information security directives pertaining to: (a) the IT infrastructure, by which the services are provided to the City, including connection to the City's IT systems; (b) the SaaS services provider’s operations and maintenance processes needed to support the IT environment, including disaster recovery and business continuity planning; and (c) the IT infrast ructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. The term “IT infrastructure” refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate. Prior to entering into an agreement to provide services to the City, the City’s staff will require the SaaS services provider to complete and submit an Information Security and Privacy Questionnaire. In the event that the SaaS services provider reasonably determines that it cannot fulfill the information security requirements during the course of providing services, the City will require the SaaS services provider to promptly inform the ISM. J) FAIR AND ACCURATE CREDIT TRANSACTION ACT OF 2003 CPAU will require utility customers to provide their Information in order for the City to initiate and manage utility services to them. DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto Information Technology Information Security Services Information Privacy Policy Page 8 of 8 Version 2.2 31 January, 2013 Federal regulations, implementing the Fair and Accurate Credit Transactions Act of 2003 (Public Law 108-159), including the Red Flag Rules, require that CPAU, as a “covered financial institution or creditor” which provides services in advance of payment and which can affect consumer credit, develop and implement procedures for an identity theft program for new and existing accounts to detect, prevent, respond and mitigate potential identity theft of its customers’ Information. CPAU procedures for potential identity theft will be reviewed independently by the ISM annually or whenever significant changes to security implementation have occurred. The ISM will recommend changes to CPAU identity theft procedures, or as appropriate, so as to conform to this Policy. There are California laws which are applicable to identity theft; they are set forth in California Civil Code § 1798.92. 4.CONTACTS Information Security Manager: Patel, Raj <Raj.Patel@CityofPaloAlto.org> Chief Information Officer: Reichental, Jonathan <Jonathan.Reichental@CityofPaloAlto.org> Utilities Department: Auzenne, Tom <Tom.Auzenne@CityofPaloAlto.org City Attorney’s Office: Coleman, Cassie <Cassie.Coleman@CityofPaloAlto.org DocuSign Envelope ID: 42AC1D5E-1D10-47D3-A954-32F5AB870497 City of Palo Alto (ID # 9643) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Employee Assistance Program Contract Amendment Title: Approval of Amendment Number 1 to Contract Number C15156644 With Concern: EAP for the City of Palo Alto's Employee Assistance Plan to add $57,000 for a Total not-to-exceed $223,036 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that City Council approve an amendment to the contract with Concern:EAP, for the City’s Employee Assistance Plan, for an additional $57,000 for a new total amount not to exceed $223,036. Background The City has provided employees and their dependents with Employee Assistance Plan (EAP) benefit since 1982. The EAP provides employees with confidential personal counseling regarding work and family related issues, stress, childcare issues, eldercare, substance abuse, etc. In addition EAP programs provide a valuable tool for supervisor and employee relations when professional outside support is necessary for successful resolution. The EAP is designed to promote the well-being and welfare of City employees and their families, as well as to support on-the-job productivity. Discussion During the term of this contract the City has requested specialized services to facilitate employee relations matters between supervisors and employees. These specialized services are outside of the standard contract service fees. Although our contract scope allows for these services, funding for these services were not considered on the front- end of this contract request. These specialized services are requested on an as-needed basis and vary from year to year. The current contract amount is 5 years from 2014 to 2019, at approximately $33,600 per year. Annual expenses for this contract have been $31,000 per year for regular services plus variable costs for department specific coaching and conflict resolution services. Due to the additional variable costs, we will have exhausted the authorized City of Palo Alto Page 2 funds for this contract by October 2018. Staff is requesting additional funds to complete the term of the contract through December 2019. Resource Impact Funding for EAP services is budgeted in the General Benefits Fund. There is sufficient funding in the Fiscal Year 2019 budget. The funding for this contract for subsequent fiscal years is subject to annual appropriation of funds. Attachments: x Attacment A - EAP Contract Amendment No 1. 1 Revision July 20, 2016 AMENDMENT NO. 1 TO CONTRACT NO. C15156644 BETWEEN THE CITY OF PALO ALTO AND CONCERN: EMPLOYEE ASSISTANCE PROGRAM This Amendment No. 1 to Contract No. C15156644 (“Contract”) is entered into November 5, 2018, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CONCERN: EMPLOYEE ASSISTANCE PROGRAM, a California corporation, located at 1503 Grant Road, Suite #120, Mountain View, CA 94040 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of an employee assistance services plan. B. CITY intends to increase the compensation by $57,000.00 from $168,036.00 to $225,036.00 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 4 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 Two Hundred Twenty Five Thousand Thirty Six Dollars ($225,036.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “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 2. 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 refer- ence: a. Exhibit “C” entitled “COMPENSATION”. DocuSign Envelope ID: 8A731ADF-0C9E-4335-9C90-90D734D5C843 2 Revision July 20, 2016 SECTION 3. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: CONCERN: EMPLOYEE ASSISTANCE PROGRAM Attachments: EXHIBIT "C": COMPENSATION DocuSign Envelope ID: 8A731ADF-0C9E-4335-9C90-90D734D5C843       3 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 hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: 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 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: 8A731ADF-0C9E-4335-9C90-90D734D5C843 City of Palo Alto (ID # 9725) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Appointment of Director of Public Works/City Engineer Title: Approval of the Appointment of Bradley L Eggleston as Director of Public Works/City Engineer From: City Manager Lead Department: Human Resources Recommendation The City Manager recommends that Council approve the appointment of Bradley L. Eggleston as Director of Public Works/City Engineer. Background The City Manager makes appointments to the position of Director of Public Works/City Engineer with the approval of City Council (Municipal Code section 2.08.020.) In accordance with the Municipal Code, the main responsibilities of the Director of Public Works include planning, design, construction, maintenance, repair and improvement of all city facilities and property owned or operated by the city; assist with the preparation of the capital improvement program and assist the city manager, as directed, in reviewing capital project budget requests; provide engineering services as required including development and implementation of capital improvement program projects; provide permitting and inspection services relating to private construction of public facilities and private construction affecting city property - to name a few. Additional responsibilities of the Director of Public Works can be found in the Municipal Code Section 2.08.190 (a) and (b). Discussion The City Manager requests approval of the appointment of Bradley L. Eggleston to the position of Director of Public Works/City Engineer. The Director of Public Works/City E ngineer position became vacant when James Sartor retired from the City of Palo Alto in July 2018. Bradley Eggleston was selected as a result of an extensive search conducted by the executive recruitment firm of Teri Black Recruiting and competitive selection process. Mr. Eggleston has been with the City of Palo Alto for 20 years in the Public Works Department, most recently serving as the Assistant Director of Public Works Engineering Services Division for City of Palo Alto Page 2 the past six years. He is a graduate in Conservation and Resource Studies from the University of California at Berkeley and also holds a Master’s Degree in Civil and Environmental Engineering from San Jose State University. As the Director of Public Works, Mr. Eggleston will be an “At-Will” employee, which means he will serve at the pleasure of the City Manager. His annual salary will be $215,009, which is within the Council-approved salary range for the Director of Public Works/City Engineer position. Mr. Eggleston’s benefits and terms of employment are consistent with the City’s Management and Professional Compensation Plan as adopted by Council and there are no special or additional terms included in this appointment. Resource Impact Sufficient funding is available in the Public Works Department F iscal Year2019 Adopted Operating Budget for the appointment. Policy Implications This recommendation is consistent with existing City policies. Environmental Review This appointment is not a project for purposes of the California Environmental Qualit y Act and therefore no environmental review is required. CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR November 26, 2018 The Honorable City Council Palo Alto, California Policy and Services Committee Recommends the City Council Accept the Auditor’s Office Quarterly Report as of June 30, 2018 The Office of the City Auditor recommends acceptance of the Auditor’s Office Quarterly Report as of June 30, 2018. At its meeting on September 11, 2018, the Policy and Services Committee unanimously recommended that the City Council accept the report. The City Auditor’s report to the Policy and Services Committee and the transcript minutes are available on the City’s Policy and Services Committee website. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: • Attachment A: Auditor's Office Quarterly Report as of June 30, 2018 (PDF) Department Head: Harriet Richardson, City Auditor Page 2      Quarterly Report as of June 30, 2018    Office of the City Auditor  “Promoting honest, efficient, effective, economical, and fully  accountable and transparent city government.”      Attachment A PAGE 2  Fiscal Year (FY) 2018 Fourth Quarter Update (April – June 2018)  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   Senior Performance Auditor Mimi Nguyen presented a brown bag session to Utilities staff on the annual  performance report and key performance indicators.   City Auditor Harriet Richardson was nominated for and received the David M. Walker award for Excellence in  Government Performance and Accountability at the Biennial Intergovernmental Audit Forum in May 2018.   City Auditor Harriet Richardson, at the request of the Government Accounting Standards Board (GASB),  attended a GASB Board meeting to present the Association of Local Government’s position on the GASB’s  invitation to comment on major issues related to revenue and expense recognition.   City Auditor Harriet Richardson accepted an invitation and went to Keys School, along with other City staff, to  discuss activities and responsibilities and respond to students’ questions about how City government works.  Audit and Project Work  Below is a summary of our audit and project work for the fourth quarter of FY 2018:  Title Objective(s) Start  Date  End  Date  Status Results/Comments  Enterprise  Resource  Planning (ERP)  Planning Audit:  Data and System  Governance and  Security  Evaluate the adequacy of data and  system governance and security in the  current SAP system and make  recommendations to ensure that  identified deficiencies are corrected for  the new ERP system.  05/17 06/18 Complete This audit is complete and was  presented at the June 2018  Policy and Services Committee  meeting.  ERP Planning  Audit: Data  Reliability and  Integrity – Data  Standardization  This is the first in a series of audits that  focus on evaluating the integrity and  reliability of data in SAP and making  recommendations to ensure that  identified deficiencies are corrected  prior to transferring data to the new  ERP system. This audit focuses on  identifying where standardizing data  would be beneficial when  implementing the new ERP system  05/17 08/18 In Process This audit is in the report  writing phase, and we expect  to complete it in August 2018.  Attachment A PAGE 3  Title Objective(s) Start  Date  End  Date  Status Results/Comments  Code  Enforcement  Audit  Evaluate the timeliness and  effectiveness of code enforcement  actions, the effectiveness of  communication with the public, and the  accuracy and completeness of code  enforcement case tracking for decision  making purposes. We conducted a  resident survey to help inform our audit  recommendations, as described below.  05/17 08/18 In Process The audit is in the report  writing phase, and we expect  to complete it in August 2018.  ERP Planning  Audit: Separation  of Duties  Evaluate the adequacy of separation of  duties for various activities in the  current SAP system and make  recommendations to ensure that  identified deficiencies are corrected for  the new ERP system.  05/17 08/18 In Process This audit is in the report  writing phase, and we expect  to complete it in August 2018.  ERP Planning  Audit: Data  Reliability and  Integrity – Data  Standardization‐  Human  Resources/  Payroll Data  This is the second in a series of audits  that focus on evaluating the integrity  and reliability of data in SAP and  making recommendations to ensure  that identified deficiencies are  corrected prior to transferring data to  the new ERP system. This audit focuses  on assessing the accuracy of employee  master data, such as name, address,  birthdate, and social security number.  09/17 08/18 In Process This audit is in the report  writing phase, and we expect  to complete it in August 2018.  Business Registry Evaluate the rules and processes used  to establish the business registry and  make recommendations to help clean  up the data and ensure accuracy in the  future.  02/18 08/18 In Process This audit is in the report  writing phase, and we expect  to complete it in August 2018.  Mobile Device  Inventory and  Security  Determine if the City accurately  inventories and securely manages city‐ owned mobile devices, including  laptops, tablets, cell/smart phones, and  radios.  03/18 10/18 In Process This audit is in the planning  phase. We expect to complete  the audit in late 2018.  Transferable  Development  Rights  Determine if the City maintains an  accurate and complete record of the  transferable development rights (both  City‐owned and non‐City‐owned) that  have been certified, transferred, and  used to date.  06/18 02/19 In Process This audit is in the planning  phase. We expect to complete  the audit in early 2019.  Nonprofit  Organizations  Audit  Evaluate whether nonprofit  organizations that receive City funding  are achieving the outcomes we expect  from the funding we provide.  06/18 02/19 In Process This audit is in the planning  phase. We expect to complete  the audit in early 2019.  Attachment A PAGE 4  Title Objective(s) Start  Date  End  Date  Status Results/Comments  Contract  Oversight  Select a sample of contracts to evaluate  the contract oversight process by  determining if the City has adequate  processes to ensure that the City  receives the goods and services it paid  for, that contracts did not result in  unnecessary overlaps in services, and  that contract extensions and change  orders were appropriate.  06/18 02/19 In Process This audit is in the planning  phase. We expect to complete  the audit in early 2019.  ERP Nonaudit  Service  Provide advisory services to the  Department of Information Technology  regarding its planning of a new ERP  system.  09/16 N/A Ongoing We attended 10 tactical team  meetings during the fourth  quarter of FY 2018 and  provided verbal advice based  on our technical expertise and  best practice information  readily available to us. Our  interaction with the tactical  team was limited because the  team was focused on  evaluating the responses  received to the Request for  Proposals for the new ERP  system. Once the City has  made a decision regarding  how to move forward with a  new ERP system, we will  resume our involvement in  this nonaudit service, with a  focus on assisting the City with  addressing the issues we  identified during the ERP  planning phase and prior  audits.  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.  06/18 01/19 In Process Surveyed City departments  and Councilmembers to  identify questions that could  be eliminated to reduce the  length of the survey and  potentially increase the  response rate. Coordinated  the changes with the National  Research Center to finalize the  survey document. Survey is  expected to be distributed to  4,500 residents, an increase of  1,500 residents over previous  years, in early August 2018.    Attachment A PAGE 5  Other Monitoring and Administrative Assignments  Below is a summary of other assignments as of June 30, 2018:  Title Objective(s) Status Results/Comments  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 and Information Security Steering  Committee. We are also serving as an advisor for the  strategic and technical planning groups for planning the  new ERP system (see comment in the Audit and Project  Work section above).  Sales and Use  Tax Allocation  Reviews  1) Identify businesses that do  business in Palo Alto that may  have underreported or misallo‐ cated 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 fourth quarter  of FY 2018 were $56,810 from our inquiries and $100,333  from the vendor’s inquiries, for a total of $157,143 for the  quarter and $470,263 for the fiscal year‐to‐date. Due to  processing delays at the State Board of Equalization, 36  potential misallocations are waiting to be researched and  processed: 15 from our office and 21 from the vendor.  2) The City of Palo Alto received $784,802 as a result of  the Stanford Medicine development project for calendar  year 2017. The amount included $785,687 for calendar  year 2017 and reduction of $885 for prior year  adjustments. The City has received $3,681,743 for  calendar years 2011 through 2017 as a result of the  development agreement for this project.  3) Quarterly sales tax reports are published on the Office  of the City Auditor website at  www.cityofpaloalto.org/gov/depts/aud/reports/default.asp.    Status of Audit Recommendations  Fifty‐three recommendations were open at the beginning of the fourth quarter of FY 2018, and six were closed. We  added four recommendations during the quarter, which resulted in 51 recommendations open at the end of the quarter.  Five status reports were presented during the quarter, and two are past due. Those two, plus four others will be  scheduled for updates during the first quarter of FY 2019. Below is a summary of the open audit recommendations as of  June 30, 2018:  Audit Title and  Report Date  Due Date and  Prior Status  Report Dates  Total  Recommendations/  Number Open Summary of Open Recommendations  Citywide Cash  Handling and Travel  Expense  Issued 09/15/10  Due – 09/18  03/21/18  08/22/17  11/10/15  09/23/14  09/10/13  10/22/12  04/19/11  Recommendations: 11  Open: 1  Implemented during  quarter: 0   Review practice of reimbursing employee meals  when not in a travel status and report the amounts as  income to employees to conform to Internal Revenue  Service requirements (ASD)  Attachment A PAGE 6  Audit Title and  Report Date  Due Date and  Prior Status  Report Dates  Total  Recommendations/  Number Open Summary of Open Recommendations  Inventory  Management  Issued 02/18/14  Past Due  11/02/17  09/23/14  Recommendations: 14  Open: 4  Implemented during  quarter: 0   Implement City’s inventory management policies and  procedures (ASD/UTL/PWD/IT)   Update and enforce inventory count policies and  procedures to ensure consistent and accurate  inventory records (ASD)   Identify, formalize, and communicate inventory  management goals and objectives to City  departments (ASD)   Ensure staff identify and use key SAP inventory  management reports and appropriately configure and  update SAP parameters that affect inventory levels  (ASD/IT)  Utility Meters:  Procurement,  Inventory, and  Retirement  Issued 03/10/15  Past Due  11/02/17  Recommendations: 15  Open: 1  Implemented during  quarter: 0   Correct purchase order documents to accurately  reflect engineering specifications (ASD)  NOTE: Two recommendations were closed because they  were deemed to be no longer relevant.  Parking Funds  Issued 12/15/15  Due – 12/18  06/21/18  11/14/17  Recommendations: 8  Open: 1  Implemented during  quarter: 2   Develop policies and procedures to clarify roles and  responsibilities and ensure accurate calculation and  reporting of parking‐in‐lieu fees (PCE, ASD, PWD, CLK)  Disability Rates and  Workers’  Compensation  Issued 05/10/16  Due – 08/18  02/13/18  Recommendations: 15  Open: 8  Implemented during  quarter: 0   Update the safety manual/supplemental tools (HR)   Review departmental procedures and safety  requirements to ensure they align with citywide  policies and procedures (HR)   Identify and provide industry‐specific ergonomics and  general wellness training opportunities (HR)   Address the disability leave benefits incorrectly  reported as compensation to CalPERS (HR)   Review claims that had differences in additional city  benefits and correct any errors identified (HR)   Determine optimal structure, update tools and  procedures, and allocate sufficient and skilled  resources to ensure accuracy of benefit eligibility and  work status of injured employees (HR)   Ensure that data for managing disability leave is  accurately captured through SAP time reporting (HR)   Identify useful performance measures and establish  procedures to ensure reliable reporting (HR)  Attachment A PAGE 7  Audit Title and  Report Date  Due Date and  Prior Status  Report Dates  Total  Recommendations/  Number Open Summary of Open Recommendations  Cable Franchise and  Public, Education,  and Government  (PEG) Fees  Issued 06/14/16  Due – 09/18  03/21/18  08/22/17  Recommendations: 9  Open: 6  Implemented during  quarter: 0   Assess ongoing need for PEG fees; place fees in  restricted account until decisions are made about use  of fees (CMO/ATTY/ASD/IT)   Determine whether to allocate unrestricted funds,  instead of PEG fees, to subsidize the Media Center’s  operations. (CMO/ATTY/ASD/IT)   Send letters to cable companies to demand payment  of underpaid franchise and PEG fees  (CMO/ATTY/ASD/IT)   Develop criteria for assessing the accuracy of future  cable franchise and PEG fee payments and require  more detail with payment remittances (ASD)   Assign responsibility for the cable communications  program and provide effective oversight of the  program (CMO/CLK)   Draft an ordinance to update the Palo Alto Municipal  Code based on clarified assignment of responsibility  (CMO/ASD/ATTY/CLK)  Community Services  Department (CSD):  Fee Schedule Audit  Issued 02/14/17  Due – 12/18  06/21/18  11/14/17  Recommendations: 3  Open: 2  Implemented during  quarter: 0   Revise City’s cost recovery policy to align with  relevant laws and reconfigure the Questica budget  system to support fees that recover more than  100 percent of costs (ASD)   Configure SAP or the new ERP system to align cost  centers with CSD programs (CSD)  Continuous  Monitoring:  Payments  Issued 04/13/17  Due – 09/18  03/21/18  Recommendations: 7  Open: 5  Implemented during  quarter: 0   Build a continuous monitoring process into the new  ERP system to identify potential duplicate invoices  and seek recovery of duplicate payments (ASD)   Update invoice processing policies and procedures to  facilitate identification of duplicate payments (ASD)   Update policies and procedures to clarify guidance for  creation of vendor master records and develop  standardized coding vendor records (ASD)   Build a continuous monitoring process into the new  ERP system to identify duplicate, incomplete, or  unused vendor records (ASD)   Clean vendor master file before merging data into  new ERP system (ASD)  Attachment A PAGE 8  Audit Title and  Report Date  Due Date and  Prior Status  Report Dates  Total  Recommendations/  Number Open Summary of Open Recommendations  Green Purchasing  Practices  Issued 04/13/17  Due – 12/18  06/21/18  Recommendations: 8  Open: 6  Implemented during  quarter: 0   Clearly define department(s) responsible for  implementing green purchasing policies and  determine if additional staffing and funding are  needed to implement the policies (ASD/CMO)   Develop consolidated procedures to implement green  purchasing policies (CMO/ASD/PWD)   Educate City staff on green purchasing policies (ASD)   Evaluate potential for use of 40 percent post‐ consumer fiber paper towels/other green janitorial  products and monitor janitorial contractor’s  compliance with green purchasing requirements  (PWD)   Evaluate if new e‐procurement system or other  technology solution can help with tracking and  reporting green purchases and establish appropriate  green purchasing performance measures (ASD/PWD)   Require vendors to provide data on amounts of green  products and services that City purchases from them  (ASD/PWD)  Utilities  Department: Cross  Bore Inspection  Contract  Issued 06/01/17  Due – 12/18  06/21/18  Recommendations: 4  Open: 4  Implemented during  quarter: 0   Prioritize uninspected sewer pipelines for inspection  and disclose potential inspection challenges in future  contract solicitations (UTL)   Identify and update missing data in laterals database  (UTL)   Incorporate relevant provisions from National  Association of Sewer Service Companies’ contract  template in future sewer inspection contracts (UTL)   Identify gaps in staff expertise and develop a training  and certification plan for field staff who will monitor  field inspections (UTL)  Accuracy of Water  Meter Billing  Issued 08/16/17  Due – 12/18  06/21/18  Recommendations: 11  Open: 7  Implemented during  quarter: 4   Review and correct meter records for meters larger  than 2 inches (UTL)   Explore options for addressing equity in meter size  rates (UTL)   Develop a policy and procedures to report significant,  systemic infrastructure changes to Council and  update City of Palo Alto Utilities’ (CPAU) Rules and  Regulations as needed (UTL)   Seek direction from Council before proceeding with  installing additional electronic meters (UTL)   Determine if installed eMeters should be replaced  and if billing adjustments are required (UTL)   Clarify purchasing policy and procedures for product  standardization and sole source (ASD)   Retrain staff on purchasing policies and procedures  and completion of required forms (ASD)  Attachment A PAGE 9  Audit Title and  Report Date  Due Date and  Prior Status  Report Dates  Total  Recommendations/  Number Open Summary of Open Recommendations  Continuous  Monitoring:  Overtime  Issued 09/06/17  Due – 10/18  None  Recommendations: 2  Open: 2  Implemented during  quarter: 0   Explore potential of developing a continuous  monitoring process for overtime (ASD)   Form a work group to design standardized overtime  management processes in the new ERP environment  (ASD)  Information  Technology and  Data Governance  Due – 2/19  None  Recommendations: 4  Open: 4  Implemented during  quarter: 0   Assign roles and responsibilities for IT governance to  ensure that governance coveralls all key aspects of  the City’s information systems (IT)   Adopt an industry standard IT governance framework  and create a plan to achieve a process capability  model of “established” or higher (IT)   Assign roles and responsibilities for data governance  to ensure that governance coveralls all key aspects of  the City’s information systems (IT)   Adopt an industry standard data governance  framework and create a plan to achieve a process  capability model of “established” or higher (IT)            9 1 11 6 0 2 4 6 8 10 12 Q1 Q2 Q3 Q4 Number of Implemented  Recommendations by Quarter 21 17 13 0 20 40 60 80 100 Number of Open Recommendations FY 18 FY 17 Prior Fiscal Years Attachment A PAGE 10  Open Recommendations by Audit Issuance Date  Fiscal  Year  Audit Title Number of Open  Recommendations  2011 Citywide Cash Handling and Travel Expense 1 of 11  2014 Inventory Management 4 of 14  2015 Utility Meters: Procurement, Inventory, and Retirement 1 of 15  2016 Parking Funds 1 of 8  Cable Franchise and Public, Education, and Government (PEG) Fees 6 of 9  Disability Rates and Workers’ Compensation 8 of 15  2017 Community Services Department: Fee Schedule 2 of 3  Continuous Monitoring: Payments 5 of 7  Green Purchasing Practices 6 of 8  Utilities Department: Cross Bore Inspection Contract 4 of 4  2018 Accuracy of Water Meter Billing 7 of 11  Continuous Monitoring: Overtime 2 of 2  Information Technology and Data Governance 4 of 4    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. No complaints were received during the fourth quarter  of FY 2018. All prior‐year complaints have been closed. The chart below summarizes the status of complaints received in  each fiscal year since the hotline was implemented.    7 3 2 13 9 0 0 2 4 6 8 10 12 14 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Status of Complaints Received by Fiscal Year Closed Complaints Open Complaints Attachment A CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR November 26, 2018 The Honorable City Council Palo Alto, California Policy and Services Committee Recommends the City Council Accept the Fiscal Year 2019 Audit Work Plan The Office of the City Auditor recommends acceptance of the Fiscal Year 2019 Audit Work Plan. At its meeting on September 11, 2018, the Policy and Services Committee unanimously recommended that the City Council accept the audit work plan. The City Auditor’s report to the Policy and Services Committee and the transcript minutes are available on the City’s Policy and Services Committee website. We subsequently corrected the preliminary audit objective for the last item on page 5 of the work plan, ERP Planning: Data Integrity and Reliability – Inventory Materials Data. We also added the departments for the last five audits on page 6 of the work plan. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: • Attachment A: Fiscal Year 2019 Audit Work Plan (PDF) Department Head: Harriet Richardson, City Auditor Page 2 Attachment A Fiscal Year 2019 Audit Work Plan Office of the City Auditor “Promoting honest, efficient, effective, economical, and fully accountable and transparent city government” Attachment A Fiscal Year 2019 Audit Work Plan 2 Overview The Palo Alto Municipal Code requires the City Auditor to submit an annual audit work plan to the City Council for approval. This proposed audit work plan represents ongoing administrative responsibilities of the Office of the City Auditor, as well as required audit and nonaudit service responsibilities. It estimates approximately 8,900 hours of direct time 1 for six full-time staff. The hours allotted to each audit and nonaudit service reflect our efforts to continue to increase our efficiency in conducting performance audits. The proposed audit work plan considers risk factors that, if addressed, will provide opportunities to mitigate those risks and improve operations: • Operational – Are City programs/activities performed and City services delivered in the most efficient, effective, and economical manner possible, and do they represent sound business decisions, including appropriate responses to changes in the business environment? • Financial – Is there an opportunity to improve how the City manages, invests, spends, and accounts for its financial resources? • Regulatory – Do City programs and activities comply with applicable laws and regulations? • Health and Safety – Are City services delivered in a manner that protects our residents and employees from injury or unnecessary exposure to factors that can affect an individual’s health? • Information Security – Is City, resident, and employee information (electronic or physical) protected against unauthorized access, use, disclosure, disruption, modification, inspection, recording, or destruction? In addition, the proposed audit work plan considers several factors: • Relevance – Does the audit have the potential to affect Council or City management decision- making or impact City residents? • Best Practices – Does the audit provide the opportunity to compare current performance to best practices? • Return on Investment – Does the audit have the potential for cost savings, cost avoidance, or revenue generation? • Improvement – Does the audit have the potential to result in meaningful improvement in how the City does its business? • Actionable – Is it likely that the audit will produce actionable recommendations that are feasible and practical? • Manageable – Is the audit scope narrow enough to ensure it is completed in a timely manner? The audit work plan also considers risks related to major functions within the Utilities Department, as identified through a 2011 Utilities Risk Assessment, a 2013 Utilities Organizational Assessment conducted by external consultants, and prior audits, as well as potential risks related to the planned implementation of a new Enterprise Resource Planning (ERP) system.2 1 The estimated hours consider available time after accounting for holidays, vacation, required training, and administrative time. 2 An ERP System is the software and technology used to manage core business processes, such as accounting, payroll, and human resources in an integrated manner. Attachment A Fiscal Year 2019 Audit Work Plan 3 Nonaudit Services and Special Projects The following table lists nonaudit services and special projects for the FY 2019 audit work plan: Project Scope Planned Hours Annual Performance Report Annual. The annual performance report provides the City Council, City staff, Palo Alto residents, and other stakeholders with relevant information and data regarding the performance of City programs, functions, and activities. 275 Annual Performance Report Transition One Time. Provide training and assistance to departments on how to develop relevant and meaningful performance measures and work with the City Manager’s Office to develop a reporting process in preparation for transitioning performance reporting to the City Manager’s Office. 125 Annual Citizen Centric Report Annual. The four-page report highlights key financial data and data from the annual Performance Report, and provides an overview of our City's economic outlook. The Citizen Centric Report follows the Association of Government Accountants' recommended format, which is designed to provide information to the public about Palo Alto’s financial condition and performance in an easy- to-understand and visually appealing format. 12 National Citizen Survey Annual. The National Research Center (NRC) conducts The National Citizen Survey™ on behalf of the City of Palo Alto. The survey contains a series of standardized questions that the NRC uses to benchmark Palo Alto residents’ opinions of City services against other jurisdictions, as well as several custom questions. In addition to the NRC’s report, we analyze the results of key quality of living indicators and tabulate the survey results in Tableau software to allow users of the Palo Alto Open Data website to perform an interactive analysis of the results (e.g., how people within different demographic categories answered a question). 150 Sales Tax Allocation Reviews Ongoing. We identify misallocations and underreporting of local sales and use tax through in-house monitoring and a contract with an outside vendor (currently MuniServices, LLC). We also look for opportunities to receive direct allocation of sales and use tax on large commercial construction projects. We report sales and use tax recoveries in quarterly reports to Council, and also provide a quarterly sales and use tax information report which includes information from MuniServices, LLC. 230 Fraud, Waste, and Abuse Hotline Administration and Training Ongoing. We receive notification of complaints filed through the hotline, reply to the complainant, route and monitor cases for investigation, and convene the Hotline Review Committee (City Manager, City Attorney, and City Auditor) to determine the routing of cases and their closing upon completion of an investigation. The hours include time to develop marketing materials that will encourage employees to report fraud, waste, or abuse when they see it. 40 Annual External Financial Audit Annual. The Palo Alto Municipal Code requires the Office of the City Auditor to contract with an independent certified public accounting firm (currently Macias, Gini, & O’Connell, LLP) to conduct the annual external audit of the City’s financial statements. The firm also conducts the federally required Single Audit. We coordinate those efforts between the Administrative Services Department and Macias, Gini, & O’Connell, LLP. 30 Enterprise Resource Planning (ERP) Advisory Project Ongoing. Provide advisory services to the Department of Information Technology regarding its planning of a new ERP system. 70 Attachment A Fiscal Year 2019 Audit Work Plan 4 Project Scope Planned Hours Review and Monitor the Implementation Status of Prior Audit Recommendations Ongoing. Review and provide feedback to departments on their reports of the implementation status of prior audit recommendations. We include a summary of the status in our Quarterly Reports. 220 Office of the City Auditor Quarterly Reports Quarterly. Prepare and issue quarterly reports to the City Council to provide the status and progress toward completion of our annual work plan, as required by the Palo Alto Municipal Code. 60 Advisory Roles Ongoing. The City Auditor is a nonvoting, advisory member of the Utilities Risk Oversight Committee, the Information Technology Governance Review Board, the Information Security Steering Committee, and ERP Strategic and Technical Planning Committees. 15 Grant Management/ Internal Control Training One-time. Provide grant management and internal control training to department staff who manage federal grants. 25 Total Hours for Special and Ongoing Projects 1,252 Performance Audits The following audits from our FY 2018 audit work plan are in progress and will continue into the FY 2019 audit work plan. The hours shown represent the remaining hours expected for FY 2019. Audit Department Audit Objective(s) Planned Hours Code Enforcement Planning and Community Environment Evaluate code enforcement policies and practices for responsiveness, consistency, and follow-up, particularly for repeat offenders and complex cases. 160 ERP Planning: Separation of Duties Information Technology Evaluate the adequacy of separation of duties for various activities in the current SAP system and make recommendations to ensure that any identified deficiencies are corrected for the new ERP system. 50 ERP Planning: Data Integrity and Reliability – Data Standardization Information Technology and Citywide Determine if the city has procedures that govern the standardization of master data in SAP and to give examples for types of standardization that would be beneficial when implementing the new ERP system. 70 ERP Planning: Data Integrity and Reliability – Human Resources Data Information Technology, Human Resources, and Administrative Services Assess the reliability of employee data that Human Resources maintains in the City’s SAP system and make recommendations to help ensure that deficiencies are corrected prior to transferring data to the new ERP system. 50 ERP Planning: Data Integrity and Reliability – Utility Customer Data Information Technology and Utilities Assess the reliability of Utilities’ customer data in the City’s SAP system and make recommendations to help ensure that deficiencies are corrected prior to transferring data to the new ERP system. 580 Business Registry (limited scope) City Manager Evaluate the rules and processes used to establish the business registry and make recommendations to help clean up the data and ensure accuracy in the future. 85 Attachment A Fiscal Year 2019 Audit Work Plan 5 Audit Department Audit Objective(s) Planned Hours Mobile Device Inventory and Security Information Technology and Citywide Determine if the City accurately inventories and securely manages city-owned mobile devices. 610 Transferrable Development Rights Planning and Community Environment Determine if the City maintains an accurate and complete record of the transferable development rights (both City‐ owned and non-City-owned) that have been certified, transferred, and used to date. 575 Nonprofit Services Agreements Community Services, Transportation, Public Works, and Development Services Evaluate whether nonprofit organizations that receive City funding are achieving the outcomes we expect from the funding we provide. The audit focuses primarily on nonprofit organizations that provide senior services. 575 Contract Risk and Oversight Administrative Services Department Develop a systematic, data-driven process to identify high- risk expenditures and revenues that occur under formal contracts. Select a sample of high-risk contracts to determine if the City has received the goods and/or services it paid for and/or the revenues to which it is entitled, that the contracts are needed and do not result in unnecessary overlaps in services, and that potential contract extensions are appropriately disclosed in the original contract documents. 700 Total Hours for In-Progress Performance Audits 3,455 The following audits are proposed for the FY 2019 audit work plan; some of these may not be completed until FY 2020: Audit Department Preliminary Audit Objective(s)3 Planned Hours ERP Planning: Data Integrity and Reliability – Utilities Bill/Price Class and Rate Schedule Data Information Technology and Utilities Assess the reliability of utilities bill/price class and rate schedule data in the City’s SAP system and make recommendations to help ensure that deficiencies are corrected prior to transferring data to the new ERP system. 380 ERP Planning: Data Integrity and Reliability – Payroll Rates and Deductions Data Information Technology, Human Resources, and Administrative Services Assess the reliability of payroll rates and deductions data in the City’s SAP system and make recommendations to help ensure that deficiencies are corrected prior to transferring data to the new ERP system. 380 ERP Planning: Data Integrity and Reliability – Inventory Materials Data Information Technology and Administrative Services Assess the reliability of inventory data in the City’s SAP system and make recommendations to help ensure that deficiencies are corrected prior to transferring data to the new ERP system. 380 3 The preliminary scope and planned hours may change after completing the planning phase of the audit. Attachment A Fiscal Year 2019 Audit Work Plan 6 Audit Department Preliminary Audit Objective(s)3 Planned Hours ERP Planning: Data Integrity and Reliability – Accounting General Ledger Data Information Technology and Administrative Services Assess the reliability of accounting general ledger data in the City’s SAP system and make recommendations to help ensure that deficiencies are corrected prior to transferring data to the new ERP system. 350 Parking Assessment Districts Planning and Community Environment; Transportation Examine the City’s parking assessment districts to assess the equity of costs and benefits to the City and property owners in the districts. 345 Residential Parking Permit Program and City Parking Facilities Transportation Evaluate the effectiveness of how the residential parking permit programs were implemented to identify where efficiencies can be gained in how the program is managed, both financially and operationally, by looking at the program citywide rather than by neighborhoods (or sections thereof). Audit would also evaluate whether the number of employer parking permits is appropriate based on proximity of available parking garages and their usage in an RPP area. 720 Construction Audit Public Works and Utilities Departments Assess the effectiveness of the City’s construction management practices as they relate to the bidding and change order processes. 700 SCADA System and Security Audit Utilities and Information Technology Departments Evaluate the effectiveness of processes related to installing, maintaining, and securing SCADA operations. 340 Procurement/Request for Proposals (RFP) Bidding Process Administrative Services Department Assess the effectiveness of the procurement process, with a focus on consistency in application of processes, compliance with City regulations and policies, and cost estimating practices. 460 Total Hours for New Performance Audits 4,055 Other Suggested Topics Not Included Above The following lists other suggested topics for which we do not expect to have capacity to do during FY 2019. However, we will start audits from this list if time allows. Citywide Audits: • Asset Management • Direct (FV 60) Payments • Facilities Management • Facilities Rental Fees and Usage • Financial Condition Report • Impact Fees • Long-term Liabilities, Including Infrastructure • Permitting Processes • Planning Codes • Public Benefits • Succession Planning Attachment A Fiscal Year 2019 Audit Work Plan 7 Utilities Audits: • Accuracy of Gas Utility Billings • Accuracy of Electric Utility Billings • Utility Meter Routes • Net Metering Program City of Palo Alto (ID # 9789) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Declaration of Weeds a Nuisance Title: Adoption of a Resolution Declaring Weeds to be a Public Nuisance and Setting January 14, 2019 for a Public Hearing for Objections to Proposed Weed Abatement From: City Manager Lead Department: Developme nt Services Department Recommendation Staff recommends that Council adopt the attached resolution: 1) Declaring weeds to be a public nuisance; 2) Setting January 14, 2019 for a public hearing on objections to proposed weed abatement; and 3) Directing staff to publish a notice of hearing in accordance with the provisions of the Palo Alto Municipal Code. Background On April 18, 1977, the City Council approved an agreement with Santa Clara County for the administration of weed abatement within the City of Palo Alto . This agreement has reduced the City’s costs and staff time required for administration of weed abatement. F or the past 40 seasons, the weed abatement program has been expeditiously carried out by the County Department of Agriculture and Resource Management with results satisfactory to Palo Alto residents. Discussion Palo Alto Municipal Code Chapter 8.08 specifies weed abatement procedures. The chapter requires property owners or occupants to remove certain weeds, as defined in Section 8.08.010 that exist upon their premises, public sidewalks, streets or alleys. It also specifies the procedures to be followed to abate weeds, in the event owners do not remove them. The procedures: - Resolution of the City Council declaring weeds to be a public nuisance . This resolution sets the time and place for hearing any objections to the proposed weed abatement. City of Palo Alto Page 2 - Public Notice. This notice informs property owners of the passage of the resolution and provides that property owners shall remove weeds from their property, or the abatement will be carried out by Santa Clara County (County). The City then publishes a legal advertisement in the local newspaper announcing the date of the public hearing. - Public Hearing. The Council must conduct a public hearing, at which time any property owner may appear and object to the proposed weed destruction or removal. After the City Council hearing and considering any objections the Council may allow or overrule any or all objections. If objections are overruled, the County will be asked to perform the work of destruction and removal of weeds. The action taken by the Council at the November 26, 2018 meeting will set this public hearing date for January 14, 2019. Resource Impact There is no direct fiscal impact of this action to the City. The City of Palo Alto administers the weed abatement program with the County Department of Agriculture and Resource Management with a minimal amount of staff time. All charges for the weed abatement services are included as a special assessment on bills for taxes levied against the respective lots and parcels of land. Such charges are considered liens on these properties. The Weed Abatement Program is a cost recovery program and does not receive funding from City or County general funds. Policy Implications This procedure is consistent with existing City policies. Environmental Review The Santa Clara County Counsel has determined the Weed Abatement Program to be Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308. Attachments: • Resolution - Step 1 - Declaring Weeds to be Nuisance Setting Public Hearing (2) NOT YET APPROVED {date] sh ________ 1 Resolution No. _____ Resolution of Intention of the Council of the City of Palo Alto Declaring Weeds to be a Nuisance and Setting January 14th, 2019 for a Public Hearing for Objections to Proposed Weed Abatement R E C I T A L S A. Weeds, as defined in Section 8.08.010(b) of the Palo Alto Municipal Code, are anticipated to develop during calendar year 2019 upon streets, alleys, sidewalks, and parcels of private property within the City of Palo Alto sufficient to constitute a public nuisance as a fire menace when dry or are otherwise combustible, or otherwise to constitute a menace to the public health as noxious or dangerous. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Weeds, as defined in Section 8.08.010(b) of the Palo Alto Municipal Code, which are anticipated to develop during calendar year 2019 upon streets, alleys, sidewalks, and parcels of private property within the City of Palo Alto, are hereby found and determined to constitute a public nuisance. Such nuisance is anticipated to exist upon some of the streets, alleys, sidewalks, and parcels of private property within the City, which are shown, described, and delineated on the several maps of the properties in said City which are recorded in the Office of the County Recorder of the County of Santa Clara, reference in each instance for the description of any particular street, alley, or parcel of private property being hereby made to the several maps aforesaid, and, in the event of there being several subdivision maps on which the same lots are shown, reference is hereby made to the latest subdivision map. SECTION 2. THEREFORE, IT IS ORDERED that the said public nuisance be abated in the manner provided by Chapter 8.08 of the Palo Alto Municipal Code: IT IS FURTHER ORDERED that a public hearing shall be held on the 14th day of January, 2019, at the hour of 6:00 pm, or as soon thereafter as the matter may be heard, at the Council Chambers of the Civic Center of said City, at which the Council shall hear objections to the proposed weed abatement of such weeds and give any objections due consideration; IT IS FURTHER ORDERED that the Fire Chief of the City of Palo Alto is directed to give notice of the public hearing in the time, manner and form provided in Chapter 8.08 of the Palo Alto Municipal Code. SECTION 3. Unless the nuisance is abated without delay by the destruction and removal of such weeds, the work of abating such nuisance will be done by the County of Santa Clara Department of Agriculture and Resource Management Office on behalf of the City of Palo Alto, and the expenses thereof assessed upon the lots and lands from which, and/or in the front and rear of which, such weeds shall have been destroyed and removed. NOT YET APPROVED {date] sh ________ 2 SECTION 4. The Santa Clara County, County Counsel has determined the Weed Abatement Program to be categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15308. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Assistant City Attorney City Manager _____________________________ Fire Chief _____________________________ Director of Administrative Services CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY November 26, 2018 The Honorable City Council Palo Alto, California Adoption of an Ordinance Amending Chapter 4.42 (Taxicabs and Other For-Hire Vehicles) of Title 4 (Business Licenses and Regulations) of the Palo Alto Municipal Code as Mandated by State Law (AB 939) Staff recommends that the City Council: Adopt the Ordinance to Amend Chapter 4.42 (Taxicabs and Other For -Hire Vehicles) of Title 4 (Business Licenses and Regulations) of the Palo Alto Municipal Code to Conform with State Law Amendments and Update Insurance and Vehicle Color Requirements. Summary: The State sets minimum regulations for operators of taxicabs, which local jurisdictions must adopt into their local ordinances. In Palo Alto, the Municipal Code regulates taxicabs in Chapter 4.42 (Taxicabs and Other For-Hire Vehicles), and the Police Department conducts licensing and enforcement. State law changed in September 2018 with the approval of AB 939, which requires cities to modify their requirements so that taxicab operators register only in the local jur isdiction in which they originate the most rides. Previously, taxicab operators usually had to register in each city they operated in. In addition, AB 939 also imposes updated requirements for safety, drug and alcohol testing and increased penalties for noncompliance. The attached ordinance conforms the City’s taxicab laws to those required by AB 939. In addition, the ordinance also includes two changes recommended by staff: it increases the minimum insurance requirement to one-million dollars, in line with neighboring cities, and it removes the requirement that each taxicab company adopt a different color scheme. Discussion The City’s taxicab ordinance will be amended as required by AB 939 as follows: 1. Under current law, all taxicab operators operating within the City had to apply for and receive a certificate of public convenience from the City. This amendment will change that to require only those operators who are “substantially located” within the City to apply for and receive a certificate of public convenience. Operators are substantially located within Palo Alto if a plurality of the operator’s fares originate within Palo Alto (with some minor exceptions). 2. Operators must now create and maintain training and safety programs, including for disabled access. 3. Periodic Drug and alcohol test results from other jurisdictions will be accepted by the City in specific circumstances defined by law. Test results also now have more explicit confidentiality protections. Page 2 In addition, staff recommends the following amendments to Chapter 4.42 that are contained in the attached ordinance: 1. Raise the minimum liability insurance from six-hundred thousand to one-million dollars to match neighboring jurisdictions, including San Jose. 2. Remove the restriction that each taxicab operator have a different vehicle color scheme, also in line with neighboring jurisdictions. Lastly, AB 939 requires that the City increase specific penalties for noncompliance with the taxicab ordinance, and the Administrative Penalty Schedule resolution will be amended at a later date with other penalty updates. Resource Impact The impact on the City is minimal and will actually reduce staff time as taxi companies will only be required to obtain one permit in Santa Clara County; either the city where they do a majority of their business or the city where the company is based. There are no taxi companies that do a majority of their business in Palo Alto nor is any taxi company headquartered in Palo Alto. Environmental Review This Ordinance is not a “project” within the meaning of section 15378 of the California Environmental Quality Act (CEQA) Guidelines because it has no potential for resulting in physical change in the environment. ATTACHMENTS: • Attachment A - Ordinance to Amend Chapter 4.42 (Taxicabs and Other For-Hire Vehicles) (PDF) Department Head: Molly Stump, City Attorney Page 3 NOT YET PASSED  Ordinance No. ______  Ordinance of the Council of the City of Palo Alto Amending Chapter 4.42  (Taxicabs and Other For‐Hire Vehicles) of Title 4 (Business Licenses and  Regulations) of the Palo Alto Municipal Code      The Council of the City of Palo Alto does ORDAIN as follows:    SECTION 1:   The Council of the City of Palo Alto finds and declares as follows:    A. The State of California requires cities and counties to regulate taxicabs by  ordinance, subject to requirements in state law.        B. The State of California approved AB 939 in September 2018, which creates new  standards for taxicab companies and taxicab drivers that cities and counties must adopt into  their local ordinances regulating taxicab operators.        C. The City Council desires to amend Chapter 4.42 of Title 4 of the Palo Alto  Municipal Code in order to comply with the new state law mandates, to increase the minimum  liability insurance required, and remove the requirement that each taxi operator adopt a  different color scheme.            SECTION 2.   Chapter 4.42 (Taxicabs and Other For‐Hire Vehicles) of Title 4 (Business  Licenses and Regulations) of the Palo Alto Municipal Code is hereby restated and amended as  follows (new text is in underline; deleted text is in strikethrough):      Chapter 4.42  Taxicabs and Other For‐Hire Vehicles    4.42.010   Definitions.     For the purpose of this chapter, unless it is plainly evident from the context that a different  meaning is intended, certain terms used herein are defined as follows:     (a)   "ADA paratransit provider" means a taxicab or public transportation vehicle operator that  provides paratransit services to eligible individuals with disabilities in order to effectuate the  Americans with Disabilities Act of 1990 under contract with any government agency or under  contract with a broker designated by any government agency.  An ADA paratransit provider,  while in the performance of providing paratransit services under such government contract  controls shall be exempt from the regulatory requirements of this Chapter 4.42.     (b)   "Certificate holder" means any person, partnership, firm, association or corporation to  whom a certificate of public convenience and necessity is issued.     (c)   "Driver" means a person in direct and immediate possession or charge of driving or  operating a taxicab, or public transportation vehicle.     (d)   "Owner" means any person, firm, association or corporation having proprietary control of  or right to proprietary control of any vehicle as herein defined.     (e)   "Public transportation vehicle" means every for‐hire, unmetered automobile or motor‐ NOT YET PASSED  propelled vehicle having a seating capacity of no more than five persons, excluding driver, used  in the business of transporting passengers over the streets of this city, irrespective of whether  such operations extend beyond the city, and which is not regulated by the public utilities  commission.     (f)   "Street" or "highway" means a way or place of whatever nature publicly maintained and  opened to the use of vehicular traffic.   (g)   “Substantially located” shall have the same meaning as defined in Government Code  section 53075.5, as amended from time to time.     (gh)   "Taxicab" means a motor‐propelled vehicle available on a twenty‐four hour a day basis  used for the transportation of passengers who direct the route to be traveled over the streets,  and not operated over a fixed route, for compensation fixed by a taxi meter in accordance with  the distance traveled and/or the time elapsed.     (hi)   "Taximeter" means any instrument or device approved for use under the applicable laws  of the state of California, which mechanically or electronically calculates the charge for the use  of a taxicab. The taximeter registers such charge by means of figures, including dollars and  cents, calculated by an initial charge and thereafter a charge for distance traveled, and/or  waiting time.    4.42.020   Certificate of public convenience and necessity.     (a)   It is unlawful for any person, partnership, firm, association or corporation, or the like, that  is substantially located within the city to provide taxicab or public transportation vehicle service  in this city without a certificate of public convenience and necessity issued pursuant to this  chapter by the city manager or his/her designee.    4.42.030   Hearing after filing of application.     Applicants shall furnish such information as may be required by the hearing officer upon  forms to be furnished by the police department. A public hearing on the question of issuance of  a certificate of public convenience and necessity shall be held within sixty days after filing of a  completed application with the police department. Said hearing shall be held before the city  manager or his/her designee. Notice of said hearing shall be included in two consecutive  council packets and shall be advertised in a newspaper of general circulation.    4.42.040   Proof of public convenience and necessity.     (a)   Applicant shall have the burden of proving:     (1)   That there is a public demand for additional service or that service to the public will be  improved by the issuance of a certificate to the applicant;     (2)   That applicant has sufficient experience and assets to properly conduct such a business;     (3)   That traffic conditions or hazards will not be appreciably increased or parking problems  made worse.     (b)   The decision of the hearing officer shall be final and nonappealable. If denied, the  applicant shall not file for a certificate of public convenience and necessity for six months from  date of denial.    4.42.050   Certificate not transferable ‐ Change in ownership.  NOT YET PASSED     No certificate shall be assignable or transferable. If ownership in excess of thirty‐three  percent of the business, whether corporate stock, partnership interest, or otherwise, changes, a  new certificate must be obtained.    4.42.060   Revocation of certificates.     Certificates of public convenience and necessity may be revoked for any cause which would  have warranted denial thereof in the first instance, for a failure to comply with any of the  provisions of this chapter, a failure to comply with any conditions imposed upon the certificate  or in any instance where operations have ceased for ten consecutive days. If a certificate of  public convenience and necessity is granted, and operation of the service for which the  certificate is granted does not commence within four months of the date of the approval  thereof, the certificate shall be automatically null and void. Any revocation herein shall be held  before the city manager or a representative of such person; ten days' written notice shall be  provided to the certificate holder and the certificate holder shall have the opportunity to  present at the hearing any evidence deemed relevant by the hearing officer. The decision of the  hearing officer shall be final and nonappealable. If revoked, the applicant shall not file for a  certificate of public convenience and necessity for six months from date of revocation.    4.42.070   Duties of certificate holder ‐ Annual renewal.     (a)   Certificate holders shall render a service to the public desiring to use taxicabs and public  transportation vehicles. Taxicab companies shall keep their place of business open twenty‐four  hours a day for the purpose of receiving calls and dispatching vehicles.     (b)   Certificate holders shall answer all requests received by them for services inside the  corporate limits as soon as practicable; and, if the service cannot be rendered within a  reasonable time, the certificate holder shall inform the prospective passenger how long it will  be before the call can be answered and give the reason therefor. Any certificate may be  revoked after hearing when a certificate holder refuses to accept a request for service  anywhere within the corporate limits of the city, having vehicles and drivers available for  service.     (c)   Certificate holders shall be responsible for the business authorized by the certificate,  including dispatch services. A certificate holder shall assure that the vehicles operated by the  certificate holder are operable and in safe condition. A certificate holder shall be responsible to  provide sufficient, permitted drivers to operate the business in accordance with the  requirements of the certificate and this chapter.     (d)   Notice of change of business or dispatch address or of telephone number shall be  provided the police department at least seventy‐two hours before said change is effected.     (e)   Each certificate holder must renew the certificate annually. Upon payment of the  nonrefundable administrative fees provided in the municipal fee schedule, the police  department shall issue an annual renewal.   (f) Each certificate holder shall comply with the requirements for permitted taxicab companies  as found in California Government Code section 53075.5(h), as amended.    4.42.080   Liability insurance ‐ Indemnity.     (a)   No certificate of public convenience and necessity shall be issued or continued in  NOT YET PASSED  operation unless there is in full force and effect a policy of comprehensive automobile liability  insurance in a form prescribed by the risk manager, executed by an insurance company  approved by the risk manager with a Best's Key Rating of not less than "A VII," unless otherwise  approved by the risk manager, whereby the owner and driver of each of the vehicles operating  pursuant to the certificate as well as the holder of the certificate of public convenience and  necessity are insured against liability for damage to property and for injury to or death of any  person as a result of the ownership operation or other use thereof. The minimum liability limits  shall not be less than six hundred thousandone‐million dollars combined single limit per  occurrence applicable to all owned, non‐owned and hired vehicles; provided, however, that a  different higher amount and/or broader coverage may be required by the risk managercity if  deemed necessary.     (b)   Such policy of insurance shall contain an endorsement providing that the policy will not  be cancelled until notice in writing has been given to the city, addressed in care of the Chief of  Police, P.O. Box 10250, Palo Alto, California 94303, at least thirty days immediately prior to the  time such cancellation becomes effective.     (c)   Such policy of insurance shall name the city, its officers, agents and employees as  additional insureds.     (d)   Certificate holders, vehicle owners and drivers shall indemnify, defend and hold harmless  the city, its officers, agents and employees, from any loss, liability, claim, injury or damage  arising or alleged to arise from the willful or negligent acts or omissions of the certificate  holder, vehicle owner or driver in connection with the provision of transportation service  pursuant to the certificate.    4.42.085   Testing of drivers for controlled substances and alcohol.     (a)   Each holder of a certificate of public convenience and necessity shall maintain a  mandatory controlled substance and alcohol testing certification program that:  (1)  conformsing to Part 40 (commencing with Section 40.1) of Title 49 of the Code of  Federal Regulations, except that the driver shall show a valid California driver’s  license at the time and place of testing, for all drivers of vehicles operated under the  certificate. ; and  (2) Under the program and the requirements of this section, a negative test for alcohol  means an alcohol screening test showing a breath alcohol concentration of less than  0.02 percent. The program shall ccontains requirements for rehabilitation and for  return‐to‐duty and follow‐up testing and other requirements conforming  substantially to Part 382 of Title 49 of the Code of Federal Regulations.;  (1)(3) Under the program and the requirements of this section 4.42.085, a negative  test for alcohol means an alcohol screening test showing a breath alcohol  concentration of less than 0.02 percent.     (b)   No certificate of public convenience and necessity shall be issued or renewed unless the  holder at the time of certificate issuance or renewal:  (1)  files with the police department a certification that the holder maintains a  mandatory controlled substance and alcohol testing certification program  conforming to Part 40 of Title 49 of the Code of Federal Regulations for all drivers of  vehicles operated under the certificate. The program shall contain requirements for  NOT YET PASSED  rehabilitation and for return‐to‐duty and follow‐up testing and other requirements  conforming substantially to Part 382 of Title 49 of the Code of Federal  Regulations.that complies with the requirements of section 4.42.085(a); and    (1)   (2)    (c)   No certificate of public convenience and necessity shall be issued or renewed  unless the holder at the time of certificate issuance or renewal files with the police  department a certification that, prior to employment with the holder of a certificate  of public convenience and necessity, each driver of vehicles operated under the  certificate has tested negatively for controlled substances under a mandatory  controlled substance testing certification program conforming to Part 40  (commencing with Section 40.1) of Title 49 of the Code of Federal Regulations.; and  (2)   (3)    (d)   No certificate of public convenience and necessity shall be issued or renewed  unless the holder at the time of certificate issuance or renewal shall files with the  police department a certification that each driver of vehicles operated under the  certificate has tested negatively for controlled substances and alcohol under a  mandatory controlled substance and alcohol testing certification program  conforming to Part 40 (commencing with Section 40.1) of Title 49 of the Code of  Federal Regulations.           (ec)   No driver's permit shall be issued or renewed unless the applicant and the certificate  holder for which the driver is authorized to operate a vehicle both certify that the driver is in  compliance with a mandatory controlled substance and alcohol testing certification program  conforming to Part 40 of Title 49 of the Code of Federal Regulations.     (d) Any negative test result from another jurisdiction shall be accepted for one year as  meeting the requirement for certificate renewal subsection (b) of this section if the driver has  not tested positive subsequent to a negative result.     (e) All test results are confidential and shall not be released without consent of the driver,  except as authorized or required by law.     (f) No evidence derived from a positive test result pursuant to this section shall be admissible  in a criminal prosecution concerning unlawful possession, sale, or distribution of controlled  substances.     (g) Self‐employed independent drivers shall be responsible for compliance with, and shall pay  all costs of this program with regard to themselves.   Employing certificate holders shall be  responsible for compliance with, and shall pay all costs of, this program with respect to their  employees and potential employees, except that a certificate holder may require employees  who test positive to pay the costs of rehabilitation and return‐to‐duty and follow up testing.     (h) Upon request, the city shall give certificate holders and potential certificate holders a list  of the consortia certified pursuant to Part 382 (commencing with Section 382.101) of Title 49 of  the Code of Federal Regulations that the city knows offers tests in or near the city.    4.42.090   Vehicle permits.     (a)   No vehicle may legally be operated under any certificate of public convenience and  necessity unless such vehicle has been duly permitted in accordance with this section. It shall  NOT YET PASSED  be unlawful for any person to operate any vehicle described in Section 4.42.010, or for any  certificate holder or any person who owns or controls any such vehicle to allow such vehicle to  be driven which has not been duly permitted in accordance with this section.     (b)   The certificate holder shall apply for an annual permit for each vehicle proposed to be  operated, up to the maximum number permitted by the certificate. Upon payment of the  nonrefundable fee provided in the municipal fee schedule, and upon submitting proof that each  vehicle has passed the annual inspection provided for in Section 4.42.210, the police  department shall issue a permit for each vehicle.     (c)   Each vehicle permit shall be valid for one year, so long as the certificate under which the  vehicles are permitted is in force and effect, and the vehicle continues to be insured according  to the requirements of Section 4.42.080.     (d)   A copy of the permit shall be posted in the vehicle in a place designated by the police  department that is visible to passengers.    4.42.100   Driver's permit required.     No person shall operate any vehicle described in Section 4.42.010 upon the streets of the city  and no person who owns or controls any such vehicle shall permit it to be so driven and no such  vehicle licensed by the city shall be so driven unless the driver of the vehicle has first obtained  and has then in force a driver's permit issued under the provisions of this chapter.    4.42.110   Application for driver's permit.     (a)   Any person may apply to the city for a permit to operate a vehicle defined in Section  4.42.010 by filing with the police department, upon forms supplied by the city, an application  containing the following information:     (1)   Name, address and age of applicant;     (2)   Convictions, if any, in the courts of any state of the United States or in any United States  court within five years prior to application;     (3)   The endorsement of the certificate holder by whom the applicant is to be employed as a  driver;     (4)   Number and expiration date of state of California driver's license;     (5)   Such other information regarding the health, mentality and experience of the applicant as  may be necessary or desirable to enable the police department to ascertain applicant's  qualification for a driver's permit.    4.42.120   Eligibility of driver's permit.     (a)   Upon receipt of an application for a driver's permit the police department shall conduct  an investigation of the applicant and, on the basis of such investigation, shall either approve or  deny the application. No permit shall be issued to any of the following persons:     (1)   Any person under the age of eighteen years;     (2)   Any person convicted of any felony or misdemeanor offense which is reasonably and  directly related to the functions involved in the operation of motor vehicles for hire and  indicates potential risk to the public. This restriction shall apply only to felony or misdemeanor  convictions occurring within five years of the date of application;     (3)   Any person convicted of hit‐and‐run driving, of reckless driving, or of driving a vehicle  NOT YET PASSED  while under the influence of intoxicating liquor and/or any drug within six months of the  application, or upon conviction of any two or more of these offenses within five years of the  date of application. However, no permit shall be issued to any person convicted of any offense  described herein if such person was driving a motor vehicle for hire at the time the offense was  committed;     (4)   Any person not possessing a valid state of California driver's license of the class required  by state law for the type of motor vehicle for hire the applicant intends to drive;     (5)   The provisions of Section 4.04.140 of this title shall be applicable to any person applying  for a permit hereunder.     (b)   The restrictions in Section 4.42.120(a) shall apply to persons possessing driver's permits  and persons seeking renewal of such permits. Driver's permits shall be subject at all times to  revocation or suspension as set forth in this chapter.    4.42.130   Driver's permit, form, display, use.     (a)   Upon approval of an application for a driver's permit and upon payment of the  nonrefundable fee provided for in the municipal fee schedule, the police department shall issue  a permit to the applicant. It shall bear the name and photograph of the applicant, date of  expiration of the permit, and the name of the certificate holder for which the driver is  authorized to operate a vehicle. Such permit shall be mailed to the certificate holder named  therein and shall be valid only so long as said driver continues in the employ of such certificate  holder.     (b)   Such permit shall be displayed in the vehicle being driven by the permittee in such a place  as to be in full view of all passengers in such vehicle.     (c)   Upon the termination of any driver's employment, the certificate holder by whom such  driver has been employed shall immediately give the police department written notice of such  termination, and the reasons therefor. Upon termination, and the permittee shall immediately  forthwith surrender said driver's permit to the chief of police for cancellation.    4.42.140   Revocation or suspension of permits.     (a)   Any person issued a driver's permit who subsequently is convicted of any felony or  misdemeanor offense or who ceases to possess a valid state of California driver's license of the  class required by state law for the type of motor vehicle for hire such person drives shall  immediately so inform his or her employer and the chief of police.     (b)   The chief of police may revoke any driver's permit if such driver becomes ineligible for  the permit. The permit holder may request a hearing as provided in Section 4.42.150.     (c)   The chief of police may revoke or suspend any driver's permit if the driver's State of  California Department of Motor Vehicles record includes four or more moving violations within  the preceding twelve‐month period or if the chief of police determines that the driver is a  danger to the public safety. The permit holder may request a hearing as provided in Section  4.42.150; however, the driver may be suspended pending said hearing.    4.42.150   Hearing.     (a)   Every driver whose application has been denied or whose permit has been revoked shall  have the right to a hearing before the chief of police or his/her designee prior to final denial  NOT YET PASSED  and prior to revocation.     (b)   The chief of police shall give the applicant or permit holder written notice of intent to  deny the application or to revoke the driver's permit. The notice shall set forth the ground or  grounds for the chief of police's intention to deny or revoke, and shall inform the applicant or  permit holder that he or she has ten days from the date of receipt of the notice to file a written  request for a hearing. The application may be denied or the permit may be revoked if a hearing  request is not received within the ten‐day period.     (c)   If the applicant or permit holder files a timely hearing request, the chief of police shall set  a time and place for the hearing. All parties involved shall have the right to offer testimonial,  documentary and tangible evidence bearing on the issues and to be represented by counsel.  The decision of the chief of police whether to deny the application or revoke or suspend the  permit is final and nonappealable.    4.42.160   Reserved.   Vehicle color design.     The vehicles of every certificate holder operating in the city shall be of a color scheme and  bear the certificate holder's trade name, monogram or insignia which are distinguishable from  the color scheme, owner's trademark, monogram or insignia used on the vehicles of any other  certificate holders already operating pursuant to this chapter. No change in the color scheme or  distinguishing characteristics of any vehicle shall be made without written permission from the  chief of police. It is unlawful for any person soliciting patronage from any vehicle described in  this chapter to represent by word, sign or insignia that the vehicle for which said person is  soliciting such patronage is a vehicle operated by other than the actual certificate holder.    4.42.170   Identification of taxicabs.     Every taxicab operated in the city shall bear the following identification:     The certificate holder's trade name, monogram or insignia, as approved by the police  department, together with a cab number and the certificate holder's telephone number or  numbers painted upon the metal portion of the outside of each side of the taxicab and the cab  number and certificate holder's telephone number or numbers painted upon the outside rear  panel of the taxicabs. All lettering mentioned in this section shall be not less than two and one‐ fourth inches in height.    4.42.180   Signs or advertisements on taxicabs.     (a)   In addition to the identification required by Section 4.42.170, taxicabs may bear the  following signs or advertisements:     (1)   A metal sign bearing the words "FOR HIRE" and being no longer than six inches by nine  inches;     (2)   A sign attached to the top of the cab bearing the word "VACANT" and being no longer  than two and one‐half inches by nine inches;     (3)   Advertisements not exceeding twelve square feet in total area subject to the rules and  regulations of the chief of police.    4.42.190   Taximeters.     (a)   All taxicabs operated under the authority of this chapter, except as provided in  NOT YET PASSED  subsection (c), shall be equipped with taximeters of the type and or design technology  approved by the California Division of Measurement Standards and that complies with  California Business and Professions Code section 12500.5 and with all regulations established  pursuant to Business and Professions Code section 12107police department, located in the  vehicle so as to render the figures visible to to the passengers at all times, day and night. After  sundown, the face of the taximeter shall be illuminated. Such taximeter shall be subject to  inspection from time to time by the police department and the police department shall require  the certificate holder to discontinue the operation of any taxicab in which the taximeter is  found to calculate inaccurately until such taximeter is replaced by one approved by the police  department or is adjusted accurately.     (b)   It is unlawful for a taxicab driver, while carrying passengers, to display the flag or the  device attached to the taximeter in such position as to denote that the vehicle is for hire, to  cause the taximeter to record when the vehicle is not actually employed, to fail to cause the  device on the taximeter to be placed into a nonrecording position at the termination of each  and every service, or to charge any fare other than that recorded on the taximeter.     (c)   Taxicab service may be prearranged with the use of a mobile device application or  internet online service.  The fare charged shall not exceed the scheduled rate filed by the  certificate holder under Section 4.42.200.  The application or internet online service shall  display the fare to the customer prior to booking in lieu of the posting as required under  Section 4.42.200.  An “application” shall mean a self‐ contained program or piece of software  application designed to fulfill requests for dispatch services that is downloadable by a user to a  computer or mobile device.  Taxicabs providing prearranged service under this subsection are  exempt from the taximeter requirements stated in subsections (a) and (b), but must calculate  fares using a type of device or technology approved by the California Division of Measurement  Standards that complies with California Business and Professions Code section 12500.5 and  with all regulations established pursuant to Business and Professions Code section 12107..    4.42.200   Schedule of rates, display.     The certificate holder shall file, with the application for a certificate, a true and correct  schedule of rates to be charged for the transportation of passengers in any and all vehicles  operated by said certificate holder. Except for prearranged services as provided in Section  4.42.190(c), a schedule of such charges shall be posted conspicuously in each vehicle operated  by said certificate holder. The rates shall not be changed or modified in any manner without  first filing the changed or modified rates with the chief of police thirty days prior to the  effective date of such change or modification.    4.42.210   Interference with inspection ‐ Inspection of vehicles.     (a)   It is unlawful for a certificate holder, owner or driver of any vehicle defined in this chapter  and operated in the city to interfere with or prohibit any police officer of the city or any person  designated by the chief of police from at any time inspecting or thoroughly examining any such  vehicle or any taximeter used upon any taxicab.     (b)   The certificate holder of each vehicle for which a permit has been issued in accordance  with this chapter shall cause to have each such vehicle inspected annually by the police  department at times to be determined by the chief of police at a facility that is certified by the  NOT YET PASSED  National Institute for Automotive Service Excellence or a facility registered with the California  Bureau of Automotive Repair. The cost of such inspections shall be included in the permit fee  described in Section 4.42.090.    4.42.220   Operating regulations.     (a)   Direct Route. Any driver employed to carry any passenger to a definite point shall take  the most direct route which will carry the passenger safely and expeditiously to the point of  destination.     (b)   Receipt. Every driver shall, if requested, give a correct receipt upon payment of the  correct fare.     (c)   Interference with Vehicular Traffic Prohibited. Vehicles shall not be operated over public  streets in search of or soliciting prospective passengers for hire in such a manner as to interfere  with vehicular traffic.     (d)   Capacity. No driver shall accept, take into the vehicle or transport any larger number of  passengers than the rated seating capacity of the vehicle.     (e)   Refusal to Carry Passengers. It is unlawful for any driver operating under a permit issued  pursuant to the terms of this chapter to refuse, when the vehicle is in service, to transport any  person who represents himself or herself for carriage in a sober and orderly manner and for a  lawful purpose.     (f)   Solicitation of Passengers. It is unlawful for any driver to leave the side of the vehicle to  solicit passengers or to solicit passengers in a louder tone of voice than that used in ordinary  conversation.    4.42.230   Maintenance of vehicles.     (a)   It shall be the responsibility of the certificate holder to assure that every vehicle  operating under its certificate is in safe working order.     (b)   The interior and exterior of each vehicle shall be clean and well maintained and meet  California Vehicle Code requirements at all times when in operation.    4.42.240   Permits not transferable.     Except as otherwise provided in this chapter no permit issued under the provisions of this  chapter may be sold, assigned, or otherwise transferred without the approval of the chief of  police.    4.42.250   Duties of city.     No duty described in this chapter shall be considered a mandatory duty for purposes of the  California Torts Claim Act, Government Code Sections 815 et seq. Specifically, the failure of the  city to inspect any vehicle authorized as a taxicab or other vehicle for hire pursuant to this  chapter or the negligent inspection of any such vehicle by the city shall not create liability under  this chapter upon city.  SECTION 6.     Severability.   If any provision, clause, sentence or paragraph of this ordinance,  or the application to any person or circumstances, shall be held invalid, such invalidity shall not  NOT YET PASSED  affect the other provisions of this ordinance which can be given effect without the invalid  provision or application and, to this end, the provisions of this ordinance are hereby declared to  be severable.      SECTION 3.     CEQA.   The City Council finds and determines that this Ordinance is not  a “project” within the meaning of section 15378 of the California Environmental Quality Act  (CEQA) Guidelines because it has no potential for resulting in physical change in the  environment, either directly or ultimately.   In the event that this Ordinance is found to be a  project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section  15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on  the environment.    SECTION 4.   Effective Date.   This ordinance shall be effective on the thirty‐first date  after the date of its adoption.    INTRODUCED:   November 26, 2018    PASSED:      AYES:      NOES:    ABSTENTIONS:    ABSENT:      ATTEST:           APPROVED:    ______________________________    ____________________________  City Clerk           Mayor      APPROVED AS TO FORM:       ____________________________   City Manager  ______________________________  Deputy City Attorney     City of Palo Alto (ID # 9409) City Council Staff Report Report Type: Action Items Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: 2018 Comp Plan Implementation/Housing Ordinance (First Reading) Title: PUBLIC HEARING: Adoption of an Ordinance Amending Various Sections of Title 18 of the Palo Alto Municipal Code Related to Residential and Mixed - use Development Standards Including, but not Limited to, Minimum and Maximum Unit Density, Unit Size, Floor Area Ratio, Height, and Open Space Including Rooftop Gardens; Parking Requirements Including, but not Limited to, Regulations Related to In -lieu Parking for Downtown Commerci al Uses and Retail Parking for Mixed Use Projects; Exclusively Residential Projects in Certain Commercial Zoning Districts; Ground -floor Retail and Retail Preservation Provisions; the Entitlement Approval Process; and Other Regulations Governing Residentia l, Multi-family Residential and Commercial Zoning Districts, all to Promote Housing Development Opportunities in These Zoning Districts in Furtherance of Implementation of the Comprehensive Plan. CEQA: Determination of Consistency with the Comprehensive Pl an Environmental Impact Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution No. 9720. The Planning and Transportation Commission Recommended Approval of the Proposed Ordinance on October 10, 2018 From: City Manager Lead Department : Planning and Community Environment Recommendation Staff recommends that the City Council: 1. Find the proposed ordinance is consistent with the Comprehensive Plan Update Final Environmental Impact Report. 2. Adopt the attached ordinance (Attachment A) City of Palo Alto Page 2 Executive Summary The draft ordinance is intended to create additional opportunities for new housing production to complement other policy initiatives approved by the City Council this year. While significant changes are proposed to advance housing goals, this set of policy changes alone is not expected to create the number of annual housing units anticipated from the Comprehensive Plan update. Existing policies and market conditions continue to favor commercial development over housing particularly downtown and in the California Avenue area. Additional gains in housing development can be achieved with additional changes to parking, floor area and height standards. However, such modifications would benefit from additional public comment. The value of the proposed ordinance is that it streamlines project review, increases unit density, adjusts parking requirements to be more aligned with industry standards and modifies other development regulations that constrain housing development. It increases floor area fo r housing projects (on par with existing floor area standards for commercial development) and preserves local control of the design review process. The building volume that exists in the code today with respect to setbacks, height, and daylight plane are generally preserved. In short, the proposed ordinance makes gains toward increased housing production while balancing interests to preserve neighborhood character. This report summarizes work completed over the past year to develop the 2018 Comprehensive Plan Implementation/ Housing Ordinance. 1. The Background section of this report summarizes the following items: a. The purpose of the Housing Work Plan b. Work completed by the Architectural Review Board and Planning & Transportation Commission on drafting the 2 018 Comprehensive Plan Implementation/Housing Ordinance c. Findings and outcomes from advisory meetings with developers and architects, and with the community at-large d. Findings from an evaluation of parking demand and supply in multifamily developments in Palo Alto. 2. The Discussion section presents zoning revisions identified in the ordinance in Attachment A that meet the intent of the Housing Work Plan and describes the rationale for each zoning change. 3. The Analysis section analyzes potential impacts of the draft zoning revisions, including how the revisions would increase housing production and affordability, and implications City of Palo Alto Page 3 under State Density Bonus Law and SB35 streamlining provisions. Additionally, massing models of how hypothetical sites could buildout under existing and proposed standards are provided in Attachments B and C. The ordinance proposes a variety of changes to the multifamily zoning districts and certain commercial zoning districts in Palo Alto as well as some broader citywide changes, all to encourage housing production. Due, in part, to the scope of the ordinance, potential conflicts of interest are implicated for several members of the Council with respect to different portions of the ordinance. This necessitates the structuring of the Council’s consideration of the ordinance as follows: after the staff presentation of the entire ordinance and public comment, the Council’s discussion, deliberation and vote on the ordinance will be segmented to allow Councilmembers to participate in those portions for which they do not have a conflict; specifically, the Council will be asked to segment the matter into four parts: (a) proposed changes specific to the Downtown CD-C zoning district, (b) proposed changes specific to the California Avenue CC(2) zoning district and sites on El Camino Real zoned Neighborhood Commercial CN and Service Commercial CS, (c) proposed changes specific to the Multi -family Residential RM zoning district, and (d) proposed citywide changes. During each of the first three portions, the conflicted Councilmember(s) will leave the public hearing. Thereafter, the Council as a whole will consider the fourth part, the proposed citywide changes. While this may appear cumbersome, this is necessitated by the conflict of interest rul es while maximizing Councilmember participation as allowed and feasible. Background On February 12, 2018, the City Council approved a Housing Work Plan, which outlined steps to implement the City’s vision and adopted policies and programs for housing pr oduction, affordability, and preservation. The Work Plan included select policies and programs from the adopted Comprehensive Plan, adopted Housing Element, and a City Council colleagues’ memo issued on November 6, 2017. February 5, 2018 City Council Staff Report and City Council Colleagues’ Memo https://www.cityofpaloalto.org/civicax/filebank/documents/63054 Draft Housing Work Plan (February 2018) https://www.cityofpaloalto.org/civicax/filebank/documents/63027 February 12, 2018 (as continued) City Council Action Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/63659 The Work Plan describes the City’s progress towards the housing production goals at various income levels (i.e. Regional Housing Needs Assessment, or RHNA). The Work Plan also explains the City’s progress towards the housing projections developed during preparation of the updated Comprehensive Plan (i.e., 3,545-4,420 new units between 2015 and 2030). In both City of Palo Alto Page 4 cases, the City is behind in its effort to meet these goals. The approved Housing Work Plan indicates what action is needed to spur housing production. This report and the draft ordinance attached for the Council’s consideration represents one aspect of the Work Plan. PTC and ARB Referral The City Council referred specific Work Plan items to the PTC that would be included in the subject ordinance. The PTC held seven meetings to analyze various aspects of the Work Plan and to consider possible zoning changes to facilitate implementation of both the Work Plan and (by extension) the Comprehensive Plan housing production targets. The Architectural Review Board (ARB) also reviewed draft open space standards. A summary of previous study sessions is provided with links to the staff reports and attachments: 1. March 14th: The PTC discussed the Work Plan goals, timeline, and the PTC’s role in implementation. Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/63859 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/64589 2. April 25th: The PTC discussed key issues in the zoning code as they relate to the Council referral, including issues regarding development standards and the entitlement process. Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/64680 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/65784 3. May 30th: The PTC discussed parking topics as they relate to housing production, including a new study of parking occupancy in multi-family residential developments in Palo Alto. Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/65225 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/66124 4. August 29th: The PTC discussed a conceptual framework for the ordinance, including ideas for zoning changes to development and parking standards, use regulations, and the public review process. Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/66513 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/67075 5. September 20th: The ARB reviewed draft standards and guidelines for rooftop open spaces. Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/66725 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/67283 City of Palo Alto Page 5 6. September 26th: The PTC reviewed refinements to the conceptual framework for the ordinance. Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/66826 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/67266 7. October 10th (continued): The PTC recommended that the City Council adopt a draft ordinance. The ordinance provided to the Council in Exhibit A represents this ordinance with the PTC’s recommended modifications. (See details in the Discussion section below.) Staff report and attachments: https://www.cityofpaloalto.org/civicax/filebank/documents/67132 Minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/67665 The PTC endorsed the subject ordinance by a 5-1 vote (Commissioner Summa dissenting and Commissioner Riggs absent). This outcome was the result of several focused meetings that facilitated broad discussion and opportunities to focus on areas of shared support and disagreement. Throughout the process, Commissioners addressed the clear mandate from the Council and deliberated thoughtfully and at times compromising to advance the policy objectives. There are aspects of the ordinance that each Commissioner individually objected to and supported. The attached ordinance reflects the Commission’s final recommendation . This report also includes site massing models requested by the Commission to illustrate how actual sites could build out under the revised zoning regulations. Community Outreach Staff conducted two complementary community outreach efforts, as directed by the City Council as part of Work Plan implementation: (1) meetings with individuals who regularly use the City’s zoning code; and (2) a community meeting with the public at-large. Findings from these efforts are described below. (1) Advisory Meetings. City consultants conducted 16 meetings with 22 individuals (primarily architects and developers) in April and May 2018. Key findings were as follows: • Generally, developers and architects agreed with the direction of the Council referral, including streamlining the review process and reducing zoning constraints. • Density and parking were cited as the major constraints to configuring a site in terms of site planning, massing, and the number of units attainable. • There was a general sense that the current zoning does not support the City’s stated goals of multi-family housing, and a recommendation that the City instead allow the City of Palo Alto Page 6 types of developments that it wants “by right” and/or through modifications to density, parking, and related standards. • Developers and architects expressed frustration about the length of time the entitlement process takes due to multiple reviewing bodies and instead recommended having one review body conduct design review based on a clear set of standards. A more detailed summary and list of advisory groups can be found in the September 29 th PTC report, linked above. (2) Community Open House. On June 28, 2018, the City held a community open house on housing topics to describe the Housing Work Plan, present ideas for its implementation, and solicit feedback from community members on proposed ideas. Over 30 community members attended the meeting, which included a presentation, an open house of “idea stations” that allowed participants to interact with staff and other participants one -on-one or in small groups, and a debrief to share community members’ comments. The presentation, idea station boards, and detailed feedback (in the form of notes taken by staff and individual feedback forms) may be reviewed on the project website: https://www.cityofpaloalto.org/gov/depts/pln/long_range_planning/housing_programs_and_p olicies/housing_work_plan.asp Key findings are summarized below: • Participants expressed a range of perspective on housing needs and ideas to spur housing production. There was little consensus about how to implement the adopted goals of the Comprehensive Plan, Housing Element and direction proposed in the Housing Work Plan. • While some participants supported revisions to development standards and review processes to streamline housing production, others were concerned about impacts of new development on existing neighborhoods, traffic, and services. • Ideas for revisions to parking regulations had the greatest range in perspectives: some participants were concerned that reductions in parking requirements would lead to spillover parking in neighborhoods; others supported requirements that more closely matched demand, especially for populations with lower parking demand such as seniors, homeless, and low income households. A more detailed summary can be found in the September 29th PTC report, linked above. Evaluation of Parking Supply and Demand in Multifamily Housing Developments The City engaged Fehr & Peers to study parking demand in multi-family developments in Palo Alto, including market rate, affordable, and senior housing projects located at varying distances to City of Palo Alto Page 7 transit. The purpose of the study was to provide another data point in the ongoing discussion regarding the relationship between parking demand and parking supply (i.e., is the amount of parking that the City is requiring and/or that developers are building too much, about right, or too little). Fehr & Peers, in coordination with City staff, selected nine sites/developments to observe. They counted occupied spaces at three time periods (midday, evening, and late night) on weekdays and at two time periods (midday and late night) on weekends. The report also reviews six other recent South Bay and statewide studies of parking demand and supply, including studies that made observations at other Palo Alto housing developments, and describes standard parking ratios issued by the Institute of Transportation Engineers. The PTC expressed two concerns about the first draft of the report. First, that it did not su rvey on-street parking spaces adjacent to each development. Second, that it did not consider residents behaviors to understand where residents park and why. In response, Fehr & Peers revised the study and conducted new surveys at eight of the nine apartment complexes to measure peak parking demand for both off-street and on-street spaces.1 Most of the complexes demonstrated similar or slightly lower on-site parking demand between the previous surveys and the new surveys. In addition, Fehr & Peers conducted intercept surveys at one of the complexes, the Marc, to determine residents’ perspectives on parking conditions.2 Residents at this complex generally parked in the on-site garage since they have assigned spaces, feel safe, and can avoid the hassle of on-street parking. However, the sample size of one complex is too small to draw conclusions. Although anecdotally interesting, the supplemental parking information it fell short of the PTC’s expectations to better understand tenants’ perspectives. In conclusion, the study observed the following trends: 1 One apartment complex had been sold since Fehr & Peers conducted the original survey; the new owners did not want to participate in the updated survey. 2 For this in-person survey, Fehr & Peers intercepted residents in and near the project garage to ask questions about their perspectives on parking inside the project versus outside on the street. Only one property manager/owner allowed Fehr & Peers to conduct the intercept survey; the other eight declined to participate. The Marc, located 0.7 miles from the Downtown Caltrain station. The project provides 0.92 parking spaces per bedroom, but has peak demand of 0.58 spaces per bedroom, suggesting an oversupply of parking. City of Palo Alto Page 8 • On a per bedroom basis, the affordable and senior housing sites had comparable demand rates while market rate units had the highest rates. • Resident experiences at The Marc indicated that residents prefer to park at the apartment complex instead of on the street and that residents view having available parking/empty spaces any time of day as the “right amount of parking.” • Parking supply exceeded peak parking demand in the developments surveyed. The study helped inform the revised parking regulations presented in the draft ordinance, including reductions for senior housing based on evidence of lower demand. Coincidently, the revised parking requirements generally equate to those standards allowed under State Density Bonus Law. The complete parking report was presented to the PTC on September 29th and is directly available online: https://www.cityofpaloalto.org/civicax/filebank/documents/67711. Discussion These zoning revisions are proposed in parallel with several other zoning and policy changes to achieve Housing Work Plan, Comprehensive Plan, and Housing Element goals. Specifically, changes to local implementation of State Density Bonus Law, an updated Accessory Dwelling Unit Ordinance, an Affordable Housing Overlay, and a Workforce Housing Overlay are intended to facilitate affordable housing at varying income levels and market rate housing opportunities, consistent with the City’s adopted policy. As these zoning changes are implemented through individual development projects, the City will continue to evaluate the effects of the code change, and make additional revisions over time, as necessary. Overview of Ordinance Organization and Purpose The ordinance proposes zoning changes by location and/or zoning district for: • Citywide – all districts where multifamily uses are permitted • Multi-family Residential districts - RM districts • Downtown – CD(C) • California Avenue – CC(2) • El Camino Real – CS and CN Revisions aim to increase housing production and shift redevelopment interests toward housing. The recommendations represent a modest step in that direction. However, City policy on commercial development, high property values, commercial rents, construction costs and other market influences may restrict efforts to expand housing opportunities without significant concessions on housing density and parking. The proposed suite of amendments is City of Palo Alto Page 9 intended to be considered as a complete package. Each concept is interrelated to site planning and housing production objectives, and eliminating one concept could limit the ordinance’s effectiveness. The passage of SB 35 and other housing reforms requires careful examination of how changes in local housing policy may result in development that is larger than anticipated and permitted by-right. The recommendations below are intended to support State and regional housing policy interests, while ensuring Palo Alto retains local control of development with opportunities for analysis of project related impacts. Consistent with the 2018 Work Plan, the recommendations promote market rate and affordable housing unit production. Commercial floor area is not decreased, but residential uses may apply unused commercial floor area toward housing. Future policy direction may consider further incentives for housing by reducing the amount of commercial floor area that can be achieved. For example, on California Avenue, commercial land uses today can reac h a 2.0 FAR. Raising the residential FAR from 0.6 to 2.0 FAR (as proposed) is helpful but is not likely to persuade a land owner redeveloping their property to build residential housing instead of commercial. Decreasing office floor area or significantly increasing residential FAR and likely height limits are standards that could be adjusted further in the future if the proposed changes and market conditions do not result in new housing projects. Summary of Proposed Zoning Code Amendments3 Proposed zoning changes are described below. Detailed analysis of these concepts, including the rationale behind the changes, is provided in the Analysis section of the report. 1. CITYWIDE REVISIONS a. Open Space. Establish a consistent open space requirement for multi-family housing units in multi-family residential and commercial districts of 150 square feet (current code ranges from 100 to 200 square feet depending on the number of units provided). Micro units, defined herein as units with less than 450 square feet, are proposed to have a commensurate requirement of 40 square feet/unit. (See Table 4 in Analysis section.) 3 Detailed analysis of these concepts provided in the Analysis section of the report. City of Palo Alto Page 10 b. Review Process. Eliminate Site & Design Review, which currently applies to residential and residential mixed-use projects with 10 more units in commercial zones. Site & Design applications are reviewed by the PTC, ARB and City Council. By contrast, commercial-only development projects and housing projects in multi-family zones are reviewed only by the ARB. The amendment makes the review of housing projects (including mixed-use development) no more burdensome than the review process for commercial projects and retains options for appeals to Council. c. Retail Preservation. Exempt 100% affordable housing projects (120% AMI and below) from the retail preservation requirement except in the Ground Floor (GF) and Retail (R) combining districts, and on El Camino Real. d. Parking. Adjust multifamily parking requirements based on maximum anticipated demand. Coincidentally, the changes generally reflect the standards permitted by State Density Bonus Law. Other changes are proposed to incentivize affordable housing and reflect lower parking demand near transit. (See Table 2 in Analysis section.) 2. MULTI-FAMILY ZONES (RM-15, RM-30, RM-40) a. Unit Density. Replace RM-15 zoning designation, which allows 15 units per acre with a RM-20 designation that allows 20 units per acre, to align with Housing Element density allowance. b. Minimum Density. Establish a minimum unit density as provided below. Allow fewer units when determined by the Planning Director, after review by the ARB, that existing site improvements or parcel constraints preclude meeting this minimum standard: • RM-20: 11 units/acre • RM-30: 16 units/acre • RM-40: 21 units/acre c. Non-complying Unit Density. Allow redevelopment and replacement of legally established residential housing units that exceed the maximum unit density allowed for the parcel, subject to the following criteria: i. Other than unit density, the project complies with all applicable development standards. ii. The project is a residential rental project. iii. The development shall not be eligible for a density bonus pursuant to PAMC Chapter 18.15. The applicant must elect whether to utilize state density bonus law or the exception described herein as an alternative to state density bonus law. City of Palo Alto Page 11 d. Administrative Code Clean Up. Modify PAMC Section 18.13.040(g) regarding below market rate (BMR) housing units to reflect regulatory requirements of Chapter 16.65 of Title 16. 3. DOWNTOWN CD-C ZONING DISTRICT a. Unit Density. Eliminate the unit density requirement restricting the maximum density to 40 units per acre. With the proposed amendment, unit density would be controlled by other existing development standards, such as height, floor area, parking requirements, etc. (See Table 3 in Analysis section.) b. Unit Size. Establish a maximum average housing unit size of 1,500 square feet, (weighted average by the number of bedrooms).4 c. Retail Parking. Exempt the first 1,500 sq. ft. of ground-floor retail from parking requirements within residential mixed-use buildings. d. Driveway Approach. Reinforce existing city policy and guidelines to preclude curb cuts on University Avenue, except for City-owned parcels or City-sponsored projects. e. Residential Only Development. Allow housing-only projects to be constructed downtown, except in the ground floor (GF) combining district. Retail preservation ordinance standards apply for market rate housing projects. Note, current zoning standards permit housing only when part of a commercial, mixed - use development or on housing opportunity sites (i.e., in the Housing Element). f. Open Space. Allow rooftops to qualify for up to 75% of the usable open space requirement for the multi-family residential portion of a project, subject to objective performance standards (see draft ordinance for details). g. Housing Incentive Program (HIP). Establish a process that would allow property owners to apply to receive greater floor area than otherwise allowed under the zoning code and under State Density Bonus Law through waivers granted by the Director of Planning after review by the ARB. This program would be an alternative to the State Density Bonus Law and SB 35 streamlining, since it allows for more density. Components of the HIP include the following: i. FAR waiver to increase residential FAR from 1.0 up to 3.0, except for portion of FAR required to remain commercial by the requirements of the retail preservation ordinance or GF combining district. (See Table 4 in Analysis section for detailed standards and discussion of how this FAR value puts residential development potential on par with non-residential development.) ii. No TDRs may be used in conjunction with a qualifying HIP project. 4 For example, a project with ten 800-square foot 1-bedroom units, eight 1,200 square-foot 2-bedroom units, and two 1,800-square foot 3-bedroom units would have a weighted (by # of bedrooms/unit size) of 1,060 square feet [((10x800)+(8x1,200)+(2x1,800))/(10+8+2)]. This weighted average more accurately represents the average unit size across all units in a development. City of Palo Alto Page 12 iii. Require discretionary architectural review consistent with PAMC 18.76.020 (Architectural Review) 4. CALIFORNIA AVENUE CC(2) ZONING DISTRICT a. Unit Density. Eliminate the unit density requirement restricting the maximum density, which currently ranges from 30 to 50 dwelling units per acre. With the proposed amendment, unit density would be controlled by other existing development standards, such as height, floor area, parking requirements, etc. (See Table 3 in Analysis section.) b. Residential Only Development. Allow housing only projects to be constructed, except on properties in the retail shopping (R) combining district. Current zoning standards permit housing only when part of a commercial, mixed-use development. c. Retail Parking. Exempt the first 1,500 sq. ft. of ground-floor retail from parking requirements within residential mixed-use buildings to facilitate ground-floor retail. d. Driveway Approach. Reinforce existing City policy and guidelines to preclude curb cuts on California Avenue, except for City-owned parcels or City-sponsored projects. e. Open Space. Allow rooftops to qualify for up to 60% of the usable open space requirement for the multi-family residential portion of a project, subject to objective performance standards. f. Housing Incentive Program (HIP). Establish a process that would allow property owners to apply to receive greater floor area than otherwise al lowed under the zoning code through waivers granted by the Director of Planning after review by the ARB. This program would be an alternative to the State Density Bonus Law and SB 35 streamlining, since it allows for more density. Components of the HIP include the following: i. FAR waiver to increase residential FAR from 0.6 up to 2.0, except for that portion of the commercial FAR required to remain commercial by the requirements of the retail preservation ordinance or R combining district. (See Table 4 in Analysis section for detailed standards and discussion of how this FAR value puts residential development potential on par with non-residential development.) ii. Require discretionary architectural review consistent with PAMC 18.76.020 (Architectural Review) 5. PROPERTIES ADJACENT TO EL CAMINO REAL IN THE CN AND CS ZONING DISTRICTS City of Palo Alto Page 13 a. Unit Density. Eliminate the unit density requirement restricting the maximum density, which currently ranges from 30 to 50 dwelling units per acre. With the proposed amendment, unit density would be controlled by other existing development standards, such as height, floor area, parking requirements, etc. (See Table 3 in Analysis section.) b. Open Space. Allow rooftops to qualify for up to 60% of the usable open space requirement for the multi-family residential portion of a project, subject to objective performance standards. c. Retail Parking. Exempt the first 1,500 sq. ft. of ground-floor retail from parking requirements within new residential mixed-use buildings that are subject to the d. Ground Floor Residential Design Standards. Adopt objective design standards to create an attractive active appearance for residential development on the ground-floor, while also maintaining privacy for residents: i. Individual dwelling units shall not be permitted on the ground-floor fronting El Camino Real. Instead, the ground-floor frontage on El Camino Real may include common areas, such as lobbies, stoops, community rooms, and work-out spaces with windows and architectural detail to create visualize interest. Ground floor residential would be permitted beyond the common areas or if set back away from El Camino Real. ii. Parking shall be located behind buildings or below grade, or, where those options are not feasible, screened by landscaping, low walls, or structured garages with architectural detail. e. Housing Incentive Program (HIP). Establish a process that would allow property owners to apply to receive greater floor area than otherwise allowed under the zoning code through waivers granted by the Director of Planning after review by the ARB. This program would be an alternative to the State Density Bonus Law and SB 35 streamlining, since it allows for more density. Components of the HIP include the following (see Table 4 in Analysis section for detailed standards.): i. FAR waiver to increase residential FAR from .5 (CN) and .6 (CS) up to 1.5, except for that portion of FAR required to remain commercial by the requirements of the retail preservation ordinance or other district requirements. (See Table 4 in Analysis section for detailed standards and discussion of how this FAR value puts residential development potential on par with non-residential development.) ii. Waiver to eliminate or reduce the 50% lot coverage requirement and instead rely on site planning, landscape and setback requirements. iii. Require discretionary architectural review consistent with PAMC 18.76.020 (Architectural Review) City of Palo Alto Page 14 PTC Modifications at October 10th Hearing The PTC made the following changes to the ordinance and/or staff recommendation at the October 10th hearing. These changes have been integrated into the draft ordinance herein, except as noted below where Council input is requested: 1. Increase the maximum average unit size Downtown from 1,350 to 1,500 sq. ft. 2. Remove 100% affordable housing projects on El Camino Real from the proposed exemption from the Retail Preservation Ordinance. 3. Through the proposed Housing Incentive Program, allow 100% affordable housing projects to utilize the development standards established in the Affordable Housing Combining District when the project qualifies for federal tax credits. Qualifying projects would be processed through a discretionary review and would not require the legislative approval for a combining district. 4. Disallow in-lieu parking for commercial land uses above the ground floor. Ground-floor commercial could still take advantage of the program. 5. Consider retaining a separate guest parking requirement; discuss with Council (not included in draft ordinance; see discussion in Analysis section). Analysis Floor area, density allowance and parking are three of the greatest drivers influencing unit yield. According to feedback from developer advisors, these standards—in addition to the project review process—affect a property owner’s decision to redevelop a property. The proposed amendments do not fundamentally change the buildable envelope of projects in the affected zoning districts. There are no recommended changes to height 5, setbacks, and transitional height limits (daylight plane)6. The revisions propose increases to floor area and changes to open space requirements, which may result in bigger buildings, but the development envelope is not proposed to change. Moreover, the proposed FAR thresholds are maximums and not guaranteed to be achieved on every prop erty being redeveloped. Changes in market conditions, state-mandated regulations, or other external factors will also influence housing production in the future. Other factors, many of which are addressed in the proposed amendments, support land use decisions that can spur housing development. Lot 5 This report asks the Council to explore whether increased height for 100% affordable housing projects is appropriate Downtown and around California Avenue. 6 Along El Camino Real, changes are recommended to lot coverage. City of Palo Alto Page 15 consolidation, not addressed in the proposed amendments, is another area that requires further exploration and should be considered in phase 2 of this multi-year housing work plan. State Density Bonus Law and SB 35 (Housing) Streamlining A key consideration of the recommendations is the inter-relatedness between the City’s existing and proposed standards; bonuses, waivers and incentives authorized by the State Density Bonus program; and application of State law, notably SB 35, which is described in the text box below. The City’s existing density, height, and other development standards represent the “base” or “floor” standards for a project proposed under SB 35 and State Density Bonus Law. Under State Density Bonus Law, an applicant can achieve up to 35% additional density bonus (i.e., increased FAR from 1.0 to 1.35 or 2.0 to 2.7) in exchange for providing affordable housing on site. The provision of 11% of units at Very-Low Income levels or 20% of units at Low Income levels qualify a project for the 35% density bonus. Many residential projects in Palo Alto—which are subject to the City’s 15% inclusionary housing ordinance—could automatically qualify for such a bonus. The State Density Bonus Law and the City’s density bonus ordinance provide developers an opportunity to seek development incentives or concessions that support the construction of the affordable housing units. The staff proposed Housing Incentive Program (HIP) aims to create a local alternative to the State Density Bonus that allows for more floor area, while also retaining an opportunity for architectural review. Electing to participate in the HIP means that an applicant is not eligible for State Density Bonus law and no additional waivers or incentives. The developer could opt not to apply for the HIP and use the base zoning standards in conjunction with State law, but those standards and incentives yield less floor area and therefore would be a less attractive alternative. City of Palo Alto Page 16 By right housing development in accordance with SB 35 has occurred in some jurisdictions in the Bay Area. Some of the provisions included in the City’s proposed ordinance are intended to introduce objective standards that would apply to by-right housing development, such as clarification of curb cuts on California and University Avenues. As directed by the Council through its adopted Housing Work Plan, staff is concurrently working on other changes to the zoning code. This will introduce more objective standards into the code that can be applied to future housing projects, including SB 35 development. None of the recommendations in this report preclude SB 35 or State Density Bonus development. Analysis of Specific Zoning Changes The balance of this report provides information analyzing the key zoning changes in the proposed ordinance. Parking The parking demand and supply study described in the Background section of this report found that parking supply exceeds demand across each product type studied: market rate, senior, and affordable multifamily housing. This suggests that there are opportunities to reduce parking requirements without creating spillover impacts or an undersupply of available parking. Existing regulations and proposed changes are shown in Table 1. The current code provides an opportunity to reduce parking for affordable housing projects up to 40%. This represents a discretionary request, which complicates application processing for affordable housing providers. The ordinance recommends removing discretion and applying the City’s existing standard by right, based on deed restricted household income levels. SB 35 Streamlining Effective January 1, 2018, SB 35, the “by right” housing bill, allows residential or res idential mixed use projects that meet certain criteria to secure a streamlined review process (90 to 180 days depending on the project size). No CEQA review is required and no discretionary review (e.g., ARB, PTC or Council review) is permitted beyond advisory comments. Projects near transit may take advantage of zero parking requirements. Projects must be at least two - thirds residential, meet certain affordability requirements, and consistent with the City’s zoning and other “objective standards.” Currently, in Palo Alto, housing projects with 50% or more housing units affordable at low-income levels (up to 80% AMI) may be eligible for SB 35 streamlining. Other criteria apply in order to qualify for a SB 35 project. State Density Bonus Law California’s Density Bonus Law gives developers the right to build additional dwelling units and obtain flexibility in local development requirements, in exchange for building affordable or senior housing. State Density Bonus Law may be used in combination with SB35. City of Palo Alto Page 17 Similarly, the zoning code also allows for a 20% parking reduction for housing units located near fixed rail. Staff recommends applying that standard by right, eliminating the controversy that often surrounds requests for parking reductions. In exchange for using this proposed standard, property owners would be required to provide a (Caltrain) transit pass with each dwelling unit or implement a demonstrably equivalent measure. Additionally, the zoning changes include an exemption for the first 1,500 sq. ft. of ground -floor retail from parking requirements. According to the developers and architects interviewed, the provision of parking for the commercial portion of mixed use residential buildings can be a challenge to making a project viable. This exemption would help to relieve physical and financial constraints, and provide an incentive for including retail uses in a project. The 1,500- square foot number in particular reflects the current trend toward smaller retail spaces. Aligning parking supply and demand sets the right amount of parking based on use and location, and frees up space to be used for additional housing units, community space, or other amenities. However, developers have told staff that the proposed parking standards are still challenging to accommodate new housing development , particularly given the small lots Downtown. At this time, staff is not prepared to make further reductions, based on the available data. Exploring options for small lot consolidation in the future may help address this perceived constraint. Table 1: Existing and Proposed Parking Standards Use/Unit Type Existing Proposed Citywide Within ½-Mile of Fixed Rail Station* Micro Unit (<450 sq. ft.) No current standard 1 0.5 Studio 1.25 1 0.8 1 Bedroom 1.5 1 0.8 2+ Bedroom 2 2 1.6 Guest 1+10% of total units included above Senior Housing up to 50% reduction from existing standard 0.75 per unit No additional parking reduction. Affordable Housing Potential reduction by income level: 40% for extremely low 30% for very low 20% for low income Allow existing reductions by right * Projects that qualify for this standard must provide annual transit passes (ie; Go Passes) to each tenant. City of Palo Alto Page 18 Project Review Process/Application Processing Time The public review process provides opportunities for community input and feedback from decision-makers, but also adds time, expense, and uncertainty from the perspective of applicants. Streamlining the review process by maintaining Architectural Review and eliminating Site & Design Review would maintain the following processes, but eliminate the burden placed on projects to undergo review by three separate bodies: 1. Staff review of zoning compliance 2. Public noticing and public comment at ARB hearings 3. Project review of context-based design criteria by the ARB 4. Opportunity for appeal to the City Council Notably, the proposed revision represents the same process that currently exists for most project types in the city, including commercial development, multi-family residential projects in the RM districts, and residential or mixed-use projects with fewer than 10 units. Site & Design Review was originally created to address environmental issues, such as in the Baylands or Foothills and was later applied to review mixed-use projects when that concept was relatively new. This change makes the review of housing projects no more burdensome than the review process for commercial office buildings. Density and Intensity Standards Current density/intensity maximums are one of the major items restricting housing production, according to architects and developers interviewed, and to the quantitative analysis of housing opportunity sites completed for Downtown.7 Unit Density Eliminating residential density standards in commercial mixed -use districts would allow more flexibility for developers to increase the overall unit count without affecting the massing or design of a project. (See Table 2.) A density standard would still be retained in the form of FAR. As shown in Figure 1, residential density can be an imperfect metric on which to consider a project’s potential impact. FAR values can be more easily illustrated and compared between projects to demonstrate the relationship between total floor area and the site area, and the resulting massing. This change could modestly increase the number of units proposed and the affordability of those units without impacting the massing and bulk of a project. 7 Dyett & Bhatia and EPS. “Downtown Development Evaluation: Residential Capacity and Feasibility Analysis” October 30, 2017. <https://www.cityofpaloalto.org/civicax/filebank/documents/64477 > City of Palo Alto Page 19 Figure 1: Residential Density vs. FAR Residential Density Floor Area Ratio (FAR) Hypothetical 1-Acre Project Senior Housing Student Housing • 50 units • Studios and 1-bedrooms • 50 bedrooms = 50 units/acre • 10 units • 5-bedroom suites • 50 bedrooms = 10 units/acre (Sou rce: City of Seattle Land Use Code) Residential density values vary based on the number of units and do not reflect the unit size or number of bedrooms in each unit. Equal FAR values can appear as very different massing and height configurations, but are independent of unit count and bedroom sizes. Existing regulations and proposed changes are shown in Table 2. Table 2: Existing and Proposed Residential Density Standards, by Commercial Zoning District Maximum Residential Density (du/acre) CD-C (Downtown) CC(2) (Cal Ave.) CN District (El Camino) CS District (El Camino) Existing 40 40 (50 w/BMR units) 15 (20 for Housing Element sites) 30 Proposed -- -- -- -- Residential Density in the RM Districts Size Setting reasonable minimum densities on conforming lots ensures that sites will not be underutilized, while not creating a burden on property owners and developers. This change could incrementally increase the number of units proposed and the affordability of those units, without impacting the building envelope already permitted pursuant to current regulations. Increasing the residential density maximum in RM-15 district from 15 to 20 (and renaming the district accordingly) would make the allowed densities in the Housing Element and district regulations consistent and provide an opportunity for some increased density. The proposed zoning change contemplates circumstances where a property owner is not able to meet the City of Palo Alto Page 20 minimum density standards and establishes a review and approval process to permit fewer units if warranted due to site constraints. Commercial Floor Area May be Used for Residential Projects The proposed amendments generally seek to allow residential development to achieve the total FAR that is currently allowed for non-residential projects through the Housing Incentive Program, or HIP, waiver. Existing regulations and proposed changes are shown in Table 3. The examples below describe how sites could build out, based on the draft proposed regulations (also see the site massing models in Attachment B and C): • In the Downtown CD(C) district, a 100% residential project (e.g., on a Housing Element opportunity site) could develop at up to the proposed maximum FAR allowance of 3.0. However, most CD(C) sites also contain the GF overlay and/or would be subject to the Retail Preservation Ordinance requirements. As a result, a residential mixed use project with ground-floor retail is a more likely scneario. For example, a mixed use project could be developed at 0.5 retail FAR and 2.5 residential FAR--not to exceed 3.0. • Similarly, on California Avenue and El Camino Real, 100% residential projects could achieve 2.0 and 1.5 FAR in the CC(2) or CN/CS districts, respectively. However, given district requirements for ground-floor residential, R overlay standards, and Retail Preservation Ordinance requirements, mixed use projects are still often required in these districts. A more likely scenario is for a residential mixed use project to develop with ground-floor retail. For example, a mixed use project could be developed at 0.25 retail FAR and up to 1.75 residential FAR (not to exceed 2.0 total) on California Ave. and 0.15 retail FAR and up to 1.35 residential FAR (not to exceed 1.5 total) on El Camino Real. Allowing residential FAR to compose the entire mixed-use FAR allowance (where retail is not required) would remove some of the disincentive that currently exists for residential development compared with commercial development, due to construction costs, lease rates, and development standards. This specific change would not increase the total amount of development currently allowed by the code, but may incrementally increase the amount of future residential development, and potentially decrease new commercial development. In the CS District, hotels are permitted 2.0 FAR, while residential uses are permitted only 0.6 FAR. This discrepancy has provided an incentive for hotel development in the district. City of Palo Alto Page 21 Table 3: Existing and Proposed FAR Standards, by Commercial Zoning District Maximum Intensity (FAR) CD-C (Downtown) CC(2) (Cal Ave.) CN District (El Camino) CS District (El Camino) EXISTING Residential Mixed Use Residential 1.0 1.0 0.5 0.6 Commercial (Max.) 1.0 0.25-0.35 0.5 0.4 Ground Floor Commercial (Min.) n/a (except GF overlay) 0.15 or 0.25 (dep. on location) 0.15 0.15 Subtotal Mixed Use 2.0 1.25 1.0 1.0 Non-Residential Commercial FAR 1.0 2.0 0.4 0.4 Hotel FAR 2.0 2.0 2.0 2.0 Bonus and/or TDR 1.0 0.5 N/A N/A Total Maximum FAR 3.0 2.0 2.0 (hotel) 1.0 (other) 2.0 (hotel) 1.0 (other) PROPOSED Residential Mixed Use Residential (Max.) 3.0 2.0 1.5 1.5 Commercial (Max.) No Change (see above) Ground Floor Commercial (Min.) n/a (except GF overlay) n/a (except R overlay) 0.0-0.15 (dep. on location) 0.0-0.15 (dep. on location) Subtotal Mixed Use 3.0 2.0 1.5 1.5 Non-Residential Hotel FAR No Change Commercial FAR No Change Bonus and/or TDR No Change Total Maximum FAR 3.0 2.0 2.0 (hotel) 1.5 (other) 2.0 (hotel) 1.5 (other) In its review of the proposed changes, the City Council may want to consider whether the floor area dedicated to housing projects in the CN and CS districts ought to be consistent with the floor area granted to hotel development as there may be policy reasons to support this change. However, not all properties may be able to achieve the 2.0 floor area maximum due to other development constraints. The PTC supported increasing the FAR by .5 to achieve a 1.5 FAR, but it did not consider an increase to 2.0 during its review. Maximum Average Unit Size The City has seen several large penthouse dwelling units constructed in Downtown in recent years as a result of parking requirements and high rental rates. When a developer has a 12,000 City of Palo Alto Page 22 square foot floor plate, they could choose to develop 12 units at 1,000 square feet . This would require 26 parking spaces or 3 units at 4,000 square feet each that requires only 6 parking spaces. Without the benefit of an in-lieu parking fee, residential parking spaces must be provided on site. Developers say they cannot fit many parking spaces on site without going underground, which is expensive. As a result, the developer builds a few luxury units rather than 12 moderately - sized units. This new standard of a maximum average unit size of 1,500 square feet is intended to eliminate the former option Downtown. Combined with reduced parking requirements (including for micro units), this standard would provide an incentive for small and moderate- sized units in the City’s most walkable transit-oriented core. Open Space On-site open space is an important factor in supporting livability in higher density residential areas, but current standards are applied inconsistently across districts and housing types. Standardization can clarify what is expected of developers, while flexibility in the location of open space can provide opportunities to develop sites with the allowable massing and unit density. Using Building Rooftops as Open Space The zoning code requires open space for residential uses in the City’s commercial districts. In areas of the city designated for higher density multi-family housing, options to configure the massing and site plan for a project can help maximize the number of appropriate units for a site. Rooftop decks in a climate such as Palo Alto can offer an amenity for residents to take advantage of views and community outdoor space. The ordinance includes a range of standards and guidelines to address issues of privacy, noise, visibility, odors, and safety. Standardized Requirements A single standard for each district—regardless of how many units are on the site—simplifies the code and eliminates any bias for projects that are choosing between proposing five or six units. No changes are proposed to required landscaping areas (i.e., green space) or dimensional requirements. The proposed ordinance also contemplates micro-units with a maximum floor area of 450 square feet. While open space is an important component for any dw elling unit, the 150 square foot approach is excessive for these units; the ordinance instead proposes 40 square feet. Existing regulations and proposed changes are shown in Table 4. City of Palo Alto Page 23 Table 4: Existing and Proposed Open Space Standards, by Commercial Zoning District CD-C (Downtown) CC(2)/PTOD (Cal Ave.) CN District (El Camino) CS District (El Camino) Existing <5 units: 200 sq. ft./du 6+ units: 150 sq. ft./du <5 units: 200 sq. ft./du 6+ units: 100 sq. ft./du or less w/BMR units <5 units: 20 sq. ft./du 6+ units: 150 sq. ft./du <5 units: 20 sq. ft./du 6+ units: 150 sq. ft./du Proposed (Dwelling Units) 150 sq. ft./du 150 sq. ft./du 150 sq. ft./du 150 sq. ft./du Proposed (Micro Units) 40 sq. ft./du 40 sq. ft./du 40 sq. ft./du 40 sq. ft./du Retail Incentives and Preservation The Retail Preservation Ordinance has the benefit of preventing the conversion of retail uses and precluding office uses from occupying these spaces. However, the ordinance may also frustrate City efforts to enhance housing production by retaining retail in areas that do not have a strong retail environment and where a housing provider is unable or unwilling to include new retail floor area in their project due to financing, constructions costs (more required parking) or other market considerations. Staff recommends a narrow exemption to the Retail Preservation Ordinance for 100% affordable housing developments on sites outside of the GF and R overlays in Downtown and California Avenue, respectively. This change seeks to balance the tradeoff between housing production and retail preservation. The PTC recommended retaining El Camino Real as a location where the Retail Preservation Ordinance for affordable housing developments would continue to apply and this change is reflected in the ordinance. Ground Floor Retail Parking Reduction To support continued retention of ground floor retail uses while recognizing the challenges developers have making a mixed-use housing project viable, staff recommends exempting the first 1,500 square feet of a retail or retail-like use within a residential mixed-use development from vehicle parking requirements. This change would reduce a retail use’s requirement by 801 Alma was originally conceived to include ground-floor retail. However, the financing and logistics proved too complicated; ultimately, a 100% residential project was approved and constructed. City of Palo Alto Page 24 approximately 8 parking spaces and a restaurant use’s requirement by 18 spaces (6 spaces within the parking district). In Lieu Parking Non-residential uses have the option of paying into the Parking In-Lieu Fund in-lieu of providing parking on site (at a rate of $70,094/space), subject to certain findings. Given the high cost of land and the value of office lease rates, developers often choose to pay this fee and maximize their leasable area. Residential uses do not have this option; moreover, they likely cannot afford the per space rate, as it is currently set. At one point over the course of the Commission’s discussion of possible zoning code changes, staff presented the concept of allowing residential properties to participate at a subsidized rate in the in-lieu parking program. This was not supported by a majority of the Commission and there was some discussion about the program as it relates to commercial development. When testing some of the zoning ordinance concepts with developers, it became clear to staff that the in-lieu parking program did create a significant incentive that supported commercial development over housing. This presented a challenge that touched on varied community interests to promote housing while also allowing for moderate commercial growth against the backdrop of parking complaints downtown and related traffic congestion. Staff explored these issues with the Commission, which ultimately supported a motion to restrict commercial uses from participating in the in-lieu parking program above the first floor. The PTC minority view on this motion expressed opposition to this action, noting the lack of outreach to the business community and property owners, and that this fell outside of the Commission’s scope or review for the Council-directed housing workplan. Staff acknowledges that there is no reference to the in-lieu parking program in the housing workplan, but also notes the significance of this program as it relates to choices property owners make on how to redevelop property. While modification of this program may not be ripe for action at this time, staff supports a future community conversation that engages downtown property owners and businesses to explore whether modification to the program is warranted. Since the ordinance reflects the Commission’s recommendation, changes to the in-lieu parking program have been incorporated into Attachment A. If Council supports the Commission recommendation, no change is needed. If Council does not support action at this time, a motion can be made to strike Sections 8 from the attached ordinance (related to changes in to PAMC section 18.18.090(d). This would effectively retain the existing in-lieu parking program unchanged. Remove Legislative Requirement for the Affordable Housing Overlay City of Palo Alto Page 25 The PTC motion included a request to eliminate the legislative requirement for 100% affordable housing projects seeking to take advantage of the recently adopted Affordable Housing Combining District. The PTC would apply this to housing projects that qualify for federal income tax credits and not affordable housing projects up to 120% of the area median income, which is the current provision in the combining district. Staff supports this request and has included as a waiver that could be requested through the proposed Housing Incentive Program. The Affordable Housing Combining District still has applicability in other parts of the city not affected by the proposed ordinance. Additional Considerations Consider Reinstating Guest Parking – PTC Request As noted in the draft ordinance and parking discussion above, the revised parking standards are inclusive of guest parking. This change is based on findings from the empirical parking study and related literature review. The PTC recommended that the Council consider reinstating a requirement for guest parking stalls. The City’s current guest parking requirement is 1 space, plus 10% of the required parking spaces for the residential development. Staff does not support this PTC recommendation as parking is a key driver in decisions to not only establish housing but also the size of the units and unit density. To achieve more housing, the zoning standards need to more accurately reflect the relationship between demand and supply, which is lower than what the current ordinance requires. Increase Affordable Housing Density and Height Downtown – PTC – No Consensus The PTC also discussed but did not make a motion to support additional incentives for 100% affordable housing development in high-amenity transit-oriented locations (i.e., Downtown and California Avenue). Staff explored a concept to increase FAR and allow an additional 10-feet in height to allow for an additional floor of residential. This included the following: • In Downtown, allow 100% affordable housing projects at a specified area median income (AMI) percentage to achieve a 4.0 FAR and 10 additional feet in height (up to 60 feet) when located within .5 miles of the Caltrain station. • Around California Avenue, allow 100% affordable housing projects at a specified AMI percentage to achieve a 2.5 FAR (whereas 1.5 FAR is allowed for BMR today) and extend to 50 feet in height when located within .5 miles of the Caltrain station. The current pedestrian and transit overlay district (PTOD) standard allows up to 50 feet in height when applied to below-market rate projects within the PTOD boundary. The PTC, while conceptually interested in additional incentives, requested massing models to better understand how increases in height and FAR would fit in with the downtown. The PTC City of Palo Alto Page 26 also requested that massing models be presented to the Council that showed what construction would look like with the proposed standards on El Camino Real and near California Avenue. Staff was able to have these illustrations prepared for Downtown and El Camino Real at the time this report was prepared; see Attachment B and C. These massing models are illustrative and accurate relative to existing and proposed development standards. If the Council is not interested in pursuing these additional incentives at this time, no further action is required. If, however, the Council would like to introduce these standards, then incorporating this direction in a motion supporting the attached ordinance would be necessary. Staff would adjust the ordinance and the language would be provided to Council on the second reading of the ordinance. Policy Implications Relationship to Housing Work Plan/Council Referral Table 5 analyzes how each of the ordinance provisions fits into the Housing Work Plan. Table 5: Relationship between Work Plan Items and Proposed Ordinance Work Plan Items Key Ordinance Provisions 2.1 Identify By Right Project Procedures (SB 35) Ongoing – not included in this ordinance 2.2 Strengthen objective standards Ongoing – not included in this ordinance 2.3 Comp Plan and SOFA plan changes to strengthen objective standards Ongoing – not included in this ordinance. 2.4 Provide incentives and remove constraints for multifamily housing in the Downtown (CD-C), Cal Ave (CC(2)/PTOC), and El Camino Real (CN and CS) districts, including: 2.4.1 Review and revise development standards (e.g. landscaping, open space) • Allow rooftop gardens to qualify as usable open space • Simplify open space standards • Eliminate the 50% lot coverage requirement on El Camino Real 2.4.2. Consider eliminating dwelling unit densities and relying on FAR and average unit sizes • Eliminate residential density standards in the CD-C, CC(2), and CN, CS districts • Establish a maximum average unit size Downtown 2.4.3 Review and revise permitted uses • Provide exemptions from the Retail City of Palo Alto Page 27 Work Plan Items Key Ordinance Provisions and use mix (e.g. allow 100% residential w/ground floor retail) Preservation Ordinance for 100% affordable projects • Allow 100% residential projects in the CD, CC2, and on El Camino Real in the CN and CS districts, except in all cases, where precluded by ground floor retail protections. 2.4.4 Review and revise level of permitting and plan review required • Eliminate Site & Design Review • Provide Housing Incentive Program as an alternative to State Density Bonus Law 2.4.5 Allow parking reductions based on TDM plans and on payment of parking in lieu fees for housing (Downtown and Cal Ave). Update the TDM Ordinance to the extent that it does not already include metrics of measurements, accomplishments, and enforcement, include these metrics.1 • The Office of Transportation is currently updating guidelines for administering, monitoring and enforcing TDM programs (not part of draft ordinance) 2.4.6 Convert some non-residential FAR to residential FAR • Allow residential development to utilize all existing FAR allowance, except where precluded by ground floor retail requirements. 2.4.7 Remove constraints to special needs housing2 • Special needs housing is a defined term in the housing element and more work is needed to address certain housing populations. However, the ordinance includes the following provisions that may address other housing needs: o Removes the legislative requirement to establish the Affordable Housing Combining District, adjusting the % AMI levels to match federal tax credit standards o Creates an incentive for micro units near fixed rail transit. o Reduces by-right parking standards for affordable and senior housing 2.4.8 Increase Floor Area Ratio (FAR) in • FAR increases through the Housing City of Palo Alto Page 28 Work Plan Items Key Ordinance Provisions the Downtown, California Avenue, and El Camino Real areas Incentive Program 2.5 Support multifamily housing in the multifamily (RM) zoning districts by: i. Consider establishment of minimum densities in all RM zones ii. Allow redevelopment (replacement) of existing residential units on sites that are nonconforming because of the number of units or FAR • Minimum residential density standards proposed in the RM districts • Opportunity to rebuild legally established housing units that presently exceed permitted density allowances. 2.6 Provide incentives and remove constraints in all zoning districts, including: 2.6.1 Adjustment to parking requirements to reduce costs (based on an ongoing study of parking demand by housing type and location); identify the appropriate amount of parking for various housing types and locations, taking into account parking mitigations • Adjust parking requirements based on parking demand/supply analysis • Exempt 1,500 s.f. of ground floor retail from parking requirements 1 A provision to allow residential uses to pay a fee in lieu of providing parking on site in Downtown and around California Avenue was considered and rejected by the PTC. Instead, the PTC action supported eliminated the in-lieu parking payment Downtown for commercial uses above the ground floor. 2 Staff were not able to develop a strategy for teacher housing opportunities within Fair Housing Laws, but has considered possible changes to the Workforce Housing Overlay to support a possible housing project on Santa Clara County owned land near the courthouse. The PTC considered and rejected fee waivers for special needs housing. Source: Palo Alto Planning & Community Environment, November 2018 Resource Impact Most of the recommendations in this report do not have significant budget or fiscal impacts. If the in-lieu parking program is modified to preclude commercial development from participating in the program above the ground floor, the City would likely see a reduction in in-lieu parking fees over time. Timeline A timeline for development of the ordinance is provided in Table 6. Table 6: Project Timeline Meeting Type Topic Date City of Palo Alto Page 29 Meeting Type Topic Date PTC Study Session Review objectives for housing work plan and city council direction March 14 PTC Study Session Overview of issues, including key findings from an analysis of residential capacity in Downtown April 25 PTC Study Session Parking, including key findings from an analysis of residential parking demand May 30 Community Meeting Present and receive feedback on ordinance framework ideas June 28 PTC Study Session Framework for ordinance August 29 ARB Hearing Review of rooftop open space design standards September 20 PTC Hearing Revised framework for ordinance September 26 PTC Hearing Recommendation on Draft Ordinance October 10 City Council Hearing Draft Ordinance (First Reading) November 26 Environmental Review The City Council certified a Final EIR (http://www.paloaltocompplan.org/wp- content/uploads/2017/08/PaloAltoCompPlanFEIR_Aug2017.pdf ) on November 13, 2017 to analyze potential impacts associated with the updated Comprehensive Plan. The 2018 Comprehensive Plan Implementation and Housing Ordinance is consistent with the Comprehensive Plan and its Final EIR. At this time, no substantially greater or more severe impacts are anticipated and no development is proposed, beyond what is allowed by the Comprehensive Plan. Report Author & Contact Information PTC8 Liaison & Contact Information Jean Eisberg, Consultant Planner Jonathan Lait, AICP, Interim Director (415) 841-3539 (650) 329-2679 jean@lexingtonplanning.com jonathan.lait@cityofpaloalto.org Attachments: Attachment A: 2018111402 ORD Draft 2018 Housing Work Plan Ordinance for CC v 11-13-18 (PDF) Attachment B: CD-C Downtown Massing Model_11-09-18 (PDF) Attachment C: CN ECR Massing Model_11-09-18 (PDF) 8 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org Not Yet Approved 1 2018111402 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of the Palo Alto Municipal Code, Including Chapters 18.04 (Definitions), 18.13 (Multiple Family Residential RM-15, RM-30 and RM-40) Districts), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, and CS) Districts), 18.18 (Downtown Commercial (CD) District), 18.40 (General Standards and Exceptions), and 18.52 (Parking and Loading Requirements), to Establish or Modify Development Standards for Residential and Mixed-Use Projects Including, But Not Limited to, Minimum and Maximum Unit Density, Unit Size, Floor Area Ratio, Height, and Open Space Including Rooftop Gardens, to Modify Parking Requirements and Adjustments, to Limit In-Lieu Parking for Downtown Commercial Uses Above the Ground Floor, to Allow Exclusively Residential Projects in Certain Commercial Zoning Districts, to Exempt Certain Affordable Housing Projects from Retail Preservation, to Simplify the Entitlement Process Removing Site and Design Review for Residential and Mixed-Use Projects, and to Make Other Technical Corrections and Clarifications, All to Promote Housing Development Opportunities in the Multi-Family Residential Zoning Districts and Commercial Zoning Districts in Furtherance of Implementation of the Comprehensive Plan The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A.California is in the midst of a housing crisis due to a severe shortage of housing that is affordable to large segments of the population, including above-moderate and moderate income households and, most acutely, lower-income households. According to the California Department of Housing and Community Development (HCD), throughout the State, housing production averaged less than 80,000 new homes over the last 10 years, and ongoing production continues to fall far below the projected need of 180,000 additional homes annually. The lack of supply, with a deficit that deepens each year, has been a key driver of the lack of affordability for millions of households throughout the State. The majority of Californian renters pay more than 30 percent of their income toward rent, and nearly one-third pay more than 50 percent of their income toward rent. B.In the nine-county Bay Area, which contains job centers that have produced a substantial number of new jobs, the lack of housing affordability is even more severe. The Bay Area continues to produce housing units in insufficient numbers to adequately house both existing and projected populations. Between 2011 and 2015, the Bay Area added 500,000 jobs but built only 65,000 new homes. Limited housing, with increasing demand and constraints on Attachment A Not Yet Approved 2 2018111402 production, have resulted in high housing cost burdens that fall most heavily on lower income households who are more likely to be renters. Between 2000 and 2016, rents increased 24 percent while renter incomes rose just 9 percent. Six of every 10 economically insecure residents are renters and 75 percent of them pay more than 30 percent of their income for housing. C. For Palo Alto, as a job center with among the highest housing prices and greatest jobs to housing imbalances in the Bay Area, the housing shortage threatens the city’s prosperity, diversity, stability, environment, quality of life, and community character. D. The cost pressures associated with substantially increased housing prices and rents have resulted in displacement and contributed to homelessness, separated families, and loss of diversity. Residents in search of affordability are driven to move to far outlying areas, requiring longer commutes to job centers in the Bay Area, including Palo Alto. According to a recent report by the Bay Area Economic Council, more than 100,000 Bay Area mega-commuters travel 90 minutes or more to reach their jobs, contributing to a 78 percent increase since 1990 in the number of mega-commuters crossing county and regional boundaries to get to work. Of the nearly 200,000 commuters crossing regional boundaries in 2013, 69 percent were commuting into the Bay Area for work. This results in health and quality of life impacts to individuals, as well as community-wide and region-wide impacts in terms of increased traffic congestion, air pollution and greenhouse gas emissions. Without the construction of more housing near urban centers and jobs, the State’s ability to achieve its climate change goals is in jeopardy. E. In November 2017, the City adopted an updated Comprehensive Plan that projected 3,545 to 4,420 new housing units between 2015 and 2030, and included policies to encourage housing production. The Council subsequently approved a Housing Work Plan with a recognition that if Palo Alto remains on its current course, the City will fall short of meeting its Regional Housing Needs Assessment (RHNA) allocation of 1,988 units at varying levels of affordability and the goals inherent in the Comprehensive Plan policies. The Housing Work Plan detailed the actions needed to spur the production of housing, and included the proposed zoning changes reflected in this Ordinance to remove barriers and disincentives to housing development at higher densities where appropriate near transit, jobs and services, and that is affordable for a range of income levels. Not Yet Approved 3 2018111402 SECTION 2. Subsection (a)(142) of Section 18.04.030 of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) is amended to read as follows: 18.04.030 Definitions . . . (142) “Usable open space” means outdoor or unenclosed area on the ground, or on a roof, balcony, deck, porch, patio or terrace, designed and accessible for outdoor living, recreation, pedestrian access, or landscaping, but excluding parking facilities, driveways, utility or service areas, or areas with mechanical equipment. Usable open space may be covered if at least 50% open on the sides. Usable open space shall be sited and designed to accommodate all groups including children, seniors, and other adults, different activities, groups, including active and passive recreation and uses, and should be located convenient to the intended users (e.g., residents, employees, or public). Any usable open space that is not landscaped shall be developed to encourage outdoor recreational use and shall include elements such as decks, seating, decorative paved areas and walkways which do not serve as an entrance walkway. Usable open space shall be screened from utility or service areas, and areas with mechanical equipment. Parking, driveways and required parking lot landscaping shall not be counted as usable open space. SECTION 3. The title of Chapter 18.13 of Title 18 (Zoning) of the PAMC is amended to read as follows: Chapter 18.13 MULTIPLE-FAMILY RESIDENTIAL (RM-2015, RM-30 AND RM-40) DISTRICTS SECTION 4. Section 18.13.010 (Purposes) and Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family Residential RM-15, RM-30 and RM-40) Districts) of Title 18 (Zoning) of the PAMC are amended as follows: 18.13.010 Purposes This section specifies regulations for three multiple family residential districts. (a) RM-2015 Low Density Multiple-Family Residence District [RM-2015] The RM-2015 low-density multiple-family residence district is intended to create, preserve and enhance areas for a mixture of single-family and multiple-family housing which is compatible with lower density and residential districts nearby, including single- family residence districts. The RM-2015 residence district also serves as a transition to moderate density multiple-family districts or districts with nonresidential uses. Permitted densities in the RM-2015 residence district range from eight to fifteen twenty dwelling units per acre, with no required minimum density. Commented [LS1]: These amendments clarify the generally applicable attributes of “usable open space,” consistent with the purpose and requirements included in the discussion of rooftop usable open space. 3.f, 4.e, 5.b Commented [LS2]: The amendments to this Section, together with those to Table 2 of Section 18.13.040 that immediately follows, would establish a minimum density for each of the multi- family residential subdistricts and increase the maximum density in RM-15 (re-named RM-20) from 15 to 20 dwelling units/acre. The latter change and the proposed 8 units/acre minimum for RM-15 are a Housing Element program. 2.a, 2.b Not Yet Approved 4 2018111402 (b) RM-30 Medium Density Multiple-Family Residence District [RM-30] The RM-30 medium density multiple-family residence district is intended to create, preserve and enhance neighborhoods for multiple-family housing with site development standards and visual characteristics intended to mitigate impacts on nearby lower density residential districts. Projects at this density are intended for larger parcels that will enable developments to provide their own parking spaces and to meet their open space needs in the form of garden apartments or cluster developments. Permitted densities in the RM-30 residence district range from sixteen to thirty dwelling units per acre, with no required minimum density. (c) RM-40 High Density Multiple-Family Residence District [RM-40] The RM-40 high density multiple-family residence district is intended to create, preserve and enhance locations for apartment living at the highest density deemed appropriate for Palo Alto. The most suitable locations for this district are in the downtown area, in select sites in the California Avenue area and along major transportation corridors which are close to mass transportation facilities and major employment and service centers. Permitted densities in the RM-40 residence district range from thirty-one to forty dwelling units per acre, with no required minimum density. Section 18.13.040 Development Standards (a) Site Specifications, Building Size and Bulk, and Residential Density The site development regulations in Table 2 shall apply in the multiple-family residence districts, provided that more restrictive regulations may be recommended by the Architectural Review Board and approved by the Director of Planning and Community Environment, pursuant to the regulations set forth in Chapter 18.76, performance criteria set forth in Chapter 18.23, and the context-based design criteria set forth in Section 18.13.060. Table 2 Multiple Family Residential Development Table RM-2015 RM-30 RM-40 Subject to regulations in: Minimum Site Specifications Site Area (ft2) 8,500 Site Width (ft) 70 Site Depth (ft) 100 Not Yet Approved 5 2018111402 RM-2015 RM-30 RM-40 Subject to regulations in: Substandard Lot Specifications Site Area (ft2) Less than 8,500 square feet and/or less than 70 feet in width Site Width (ft) Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply Front Yard (ft) 20 20 0-25 (1) 18.13.040(b) On arterial roadways(1) 0-20 (1) 0-20 (1) 0-25 (1) Interior Side Yards (ft) For lots with width of 70 feet or greater 10 10 10 For lots with width of less than 70 feet 6 feet Interior Rear Yards (ft)3 10 10 10 Street Side and Street Rear Yards (ft) 16 16 0-16(2) Maximum Height (ft) 30 35 40 Maximum height for those portions of a site within 50 feet of a more restrictive residential district or a site containing a residential use in a nonresidential district 35 Daylight Planes(7) • Daylight Plane for side and rear lot lines for sites abutting any R-1, R-2, RMD, or RM-2015 district or abutting a site containing a single- family or two-family residential use in a nonresidential district: Initial Height (ft) 10 Angle (degrees) 45 • Daylight Plane for side and rear lot lines for sites abutting a RM-30, RM-40, Planned Community, or nonresidential district that does Commented [LS3]: This reflects the existing code, but is not reflected in the web version and requires an update. Not Yet Approved 6 2018111402 RM-2015 RM-30 RM-40 Subject to regulations in: not contain a single-family or two-family residential use: For lots with width of 70 feet or greater None For lots with width of less than 70 feet, limited to the first 10 feet from the property line (no daylight plane beyond 10 feet): Initial Height (ft) 10 Angle (degrees) 45 Maximum Site Coverage: Base 35% 40% 45% Additional area permitted to be covered by covered patios or overhangs otherwise in compliance with all applicable laws 5% 5% 5% Maximum Floor Area Ratio (FAR)(4) 0.5:1 0.6:1 1.0:1 Maximum Residential Density (units) Maximum number of units per acre(3) 2015 30 40 18.13.040(g) Minimum Residential Density (units) Minimum number of units per acre(8) 11 16 21 Minimum Site Open Space(5) (percent) 35 30 20 18.13.040(e) Minimum Usable Open Space (sf per unit)(5) 150200 150 150100 Minimum common open space (sf per unit) 75100 75 7550 18.13.040(e) Minimum private open space (sf per unit) 50 50 50 Performance Criteria See provisions of Chapter 18.23 Ch. 18.23 Landscape Requirements 18.40.130 Parking(6) See provisions of Chapter 18.52 Ch. 18.52 (1) Minimum front setbacks shall be determined by the Architectural Review Board upon review pursuant to criteria set forth in Chapter 18.76 and the context-based criteria outlined Commented [LS4]: This amendment, together with the same change to other Chapters, would establish a consistent open space standards for multi-family and residential mixed-use projects in multi-family residential and commercial zoning districts. 1.a Not Yet Approved 7 2018111402 in Section 18.13.060. Arterial roadways do not include residential arterials. (2) Minimum street side setbacks in the RM-40 zone may be from 0 to 16 feet and shall be determined by the Architectural Review Board upon review pursuant to criteria set forth in Chapter 18.76 and the context-based criteria outlined in Section 18.13.060. (3) Provided that, for any lot of 5,000 square feet or greater, two units are allowed, subject to compliance with all other development regulations. (4) Covered parking is not included as floor area in multi-family development, up to a maximum of 230 square feet per required parking space that is covered. Covered parking spaces in excess of required parking spaces count as floor area. (5) Subject to the limitations of Section 18.13.040(e). Usable open space is included as part of the minimum site open space; required usable open space in excess of the minimum required for common and private open space may be used as either common or private usable open space; landscaping may count towards total site open space after usable open space requirements are met. (6) Tandem parking is allowed for any unit requiring two parking spaces, provided that both spaces in tandem are intended for use by the same residential unit. For projects with more than four (4) units, not more than 25% of the required parking spaces shall be in a tandem configuration. (7) Each daylight plane applies specifically and separately to each property line according to the adjacent use. (8) The minimum density for a site may be reduced by the Director if, after the proposal is reviewed by the Architectural Review Board, the Director finds that existing site improvements or other parcel constraints, preclude the development from meeting the minimum density. (b) Setbacks, Daylight Planes and Height - Additional Requirements and Exceptions (1) Setbacks (A) Setbacks for lot lines adjacent to an arterial street, expressway or freeway, as designated in the Palo Alto Comprehensive Plan, shall be a minimum of twenty-five feet (25'), except that lesser setbacks may be allowed or required by the Planning Director, upon recommendation by the Architectural Review Board, where prescribed by the context-based criteria outlined in Section 18.13.060. Special setbacks of greater than 25 feet may not be reduced except upon approval of a design enhancement exception or variance. Not Yet Approved 8 2018111402 (B) Required parking spaces shall not be located in a required front yard, nor in the first ten feet (10') adjoining the street property line of a required street side yard. (C) Projections into yards are permitted only to the extent allowed by Section 18.40.070 of this code. (2) Height and Daylight Planes (A) Exceptions to maximum height limitations are permitted only to the extent allowed by Section 18.40.090 of this code. (B) The following features may extend beyond the daylight plane established by the applicable district, provided that such features do not exceed the height limit for the district unless permitted to by Section 18.40.090 of this code: i. Television and radio antennas; ii. Chimneys and flues that do not exceed 5 feet in width, provided that chimneys do not extend past the required daylight plane a distance exceeding the minimum allowed pursuant to Chapter 16.04 of this code. iii. Cornices and eaves, excluding flat or continuous walls or enclosures of usable interior space, provided such features do not extend past the daylight plane more than 4 feet, and so long as they do not encroach into the side setback greater than 2 feet. . . . (e) Usable Open Space The following usable open space regulations shall apply: (1) Required Minimum Site Open Space. Each site shall, at a minimum, have a portion of the site, as prescribed in Table 2, developed into permanently maintained open space. Site open space includes all usable open space plus landscape or other uncovered areas not used for driveways, parking, or walkways. (2) Usable Open Space (Private and Common). Each project shall, at a minimum, have a portion of the site, as prescribed in Table 2, developed into permanently maintained usable open space, including private and common usable open space areas. Usable open space shall be located protected from the activities of commercial areas and adjacent public streets and shall provide noise buffering from surrounding uses Not Yet Approved 9 2018111402 where feasible. Parking, driveways and required parking lot landscaping shall not be counted as usable open space. (A) Private Usable Open Space. Each dwelling unit shall have at least one private usable open space area contiguous to the unit that allows the occupants of the unit the personal use of the outdoor space. The minimum size of such areas shall be as follows: (i) Balconies (above ground level): 50 square feet, the least dimension of which shall is 6 feet. (ii) Patios or yards in the RM-2015 and RM-30 districts: 100 square feet, the least dimension of which is 8 feet for at least 75% of the area. (iii) Patios or yards in the RM-40 district: 80 square feet, the least dimension of which is 6 feet for at least 75% of the area. (B) Common Usable Open Space. The minimum designated common open space area on the site shall be 10 feet wide and each such designated area shall comprise a minimum of 200 square feet. In the RM-30 and RM-40 districts, part or all of the required private usable open space areas may be added to the required common usable open space in a development, for purposes of improved design, privacy, protection and increased play area for children, upon a recommendation of the Architectural Review Board and approval of the Director. (f) Personal Services, Retail Services, and Eating and Drinking Services in the RM-30 and RM-40 Districts Within a single residential development containing not less than 40 dwelling units, personal services, retail services, and eating and drinking services solely of a neighborhood-serving nature to residents in the development or in the general vicinity of the project may be allowed upon approval of a conditional use permit, subject to the following limitations and to such additional conditions as may be established by the conditional use permit: (1) Total gross floor area of all such uses shall not exceed 5,000 square feet or three percent of the gross residential floor area within the development, whichever is smaller, and may not occupy any level other than the ground level or below grade levels. (2) A maximum of 2,500 square feet of retail and/or service and/or eating and drinking uses shall be allowed per establishment. Commented [LS5]: This was added to the usable open space definition. Not Yet Approved 10 2018111402 (3) Personal services, retail services, and eating and drinking services provided in accordance with this section shall not be included in the gross floor area for the site. (4) The conditional use permit for the project may preclude certain uses and shall include conditions that are appropriate to limit impacts of noise, lighting, odors, parking and trash disposal from the operation of the commercial establishment. The hours of operation shall be limited to assure compatibility with the residential use and surrounding residential uses. (5) Allowable Neighborhood-Serving Uses. A neighborhood-serving use primarily serves individual consumers and households, not businesses, is generally pedestrian oriented in design, and does not generate noise, fumes or truck traffic greater than that typically expected for uses with a local customer base. A neighborhood-serving use is also one to which a significant number of local customers and clients can walk, bicycle or travel short distances, rather than relying primarily on automobile access or the provider of the goods or services traveling off-site. Allowable neighborhood-serving personal services, retail services and eating and drinking services may include, but are not limited to, "agent" dry cleaners, flower shops, convenience grocery stores (excluding liquor stores), delicatessens, cafes, fitness facilities, day care facilities, and similar uses found by the Planning Director to be compatible with the intent of this provision. (6) Sign programs, including size, number, color, placement, etc. shall be permitted only as specified in the conditional use permit and by the Planning Director upon recommendation of the Architectural Review Board (7) Off-street parking and bicycle facilities, in addition to facilities required for residential uses, shall be provided as may be specified by the conditional use permit. However, there shall not be less than one parking space for each employee working or expected to be working at the same time. (8) For any project, other than a 100% affordable housing project, containing forty (40) or greater units and located more than 500 feet from neighborhood commercial services, as determined by the Director, a minimum of 1,500 square feet of neighborhood serving retail, personal service, and/or eating or drinking uses shall be provided, subject to the above limitations. No conditional use permit is required, but the commercial use shall be reviewed by the Architectural Review Board as part of the architectural review approval. A minimum of one parking space for each employee working or expected to be working at the same time shall be provided. A “100% affordable housing project” as used herein means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of Commented [LS6]: These revisions would exempt 100% affordable housing projects from the retail requirement in the RM district. Not Yet Approved 11 2018111402 this code, available only to households with income levels at or below 120% of the area median income for Santa Clara County, as defined in Chapter 16.65, except for a building manager’s unit. (g) Below Market Rate Units and Rental Housing Protection (1) In developments of five or more units on sites of less than five acres, not less than fifteen percent (15%) of the units shall be provided at below-market rates (BMR) to very-low, low and moderate income households in accordance with Program H-36 of the Palo Alto Comprehensive Plan Housing Element. In developments of five or more units on sites of five acres or more, not less than twenty percent (20%) of the units shall be provided at below-market rates (BMR). Specified percentages are applied to all proposed units in a project, including those designated as BMR units. (2) Further details of the BMR program requirements, including their applicability to subdivisions and for density bonus purposes, are found in the discussion of Programs H-36 and H-38 of the Palo Alto Comprehensive Plan Housing Element. (3) Below market rate units shall be fully integrated into the development unless good cause is shown for an exception. (g) Redevelopment of Sites with Non-complying Density For a parcel with a residential use that exceeds the maximum unit density of the applicable zoning district, the Director may grant an exception to the maximum unit density standard and allow the parcel to be redeveloped to replace the legally established residential units at the existing density, subject to all of the following: (1) The applicant must make the request for exception under this provision at the time of project application; (2) The project is a residential rental project; (3) The project complies with all other applicable development standards; and (4) The project shall not be eligible for a density bonus under Chapter 18.15 (Density Bonus). The applicant must elect whether to utilize state density bonus law or the exception described herein as an alternative to state density bonus law. (h) Performance Criteria Commented [LS7]: This deletion is an administrative clean-up, as the BMR program is now addressed in Chapter 16.65 of the code. 2.d Commented [LS8]: This new subsection would authorize the Director to grant a zoning exception to allow residentially used sites in the multi-family zoning district that exceed the density standard to be redeveloped as a residential rental project with the same number of units. This option would be an alternative to state density bonus law. 2.c Not Yet Approved 12 2018111402 In addition to all other provisions of this chapter, all multi-family development shall comply with applicable provisions of Chapter 18.23 (Performance Criteria for Multiple Family, Commercial, Industrial and Planned Community Districts). SECTION 5. The Residential Uses portion of Table 1 of subsection (a) of Section 18.16.040 (Land Uses) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, and CS) Districts) of Title 18 (Zoning) of the PAMC is amended as follows: Section 18.16.040 Land Uses The uses of land allowed by this Chapter in each commercial zoning district are identified in the following tables. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables (“Subject to Regulations in”) includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. (a) Commercial Zones and Land Uses Permitted and conditionally permitted land uses for each commercial zone are shown in Table 1: TABLE 1 CD PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required LAND USE CN(4) CC, CC(2) CS(4) Subject to Regulations In: . . . RESIDENTIAL USES Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c) Home Occupations P P P Residential Care Homes P P P . . . (1) Residential is only permitted: (i) as part of a mixed use development, pursuant to the provisions of Section 18.16.060(b), or (ii) on sites designated as Housing Opportunity Siteshousing inventory sites in the Housing Element of the Comprehensive Plan, (iii) on CN or CS sites on El Camino Real, or (iv) on CC(2) sites outside of the retail shopping (R) combining district, all pursuant to the provisions of Section 18.16.060(b) and (c). . . . Commented [LS9]: These amendments, together with other changes to the commercial zoning chapter 18.16, would allow residential only development in certain parts of the commercial zoning district, specifically in the CC(2) subdistrict and on CN or CS sites on El Camino Real. 4.b; 5.d Not Yet Approved 13 2018111402 SECTION 6. Subsections (b) and (c) of Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, and CS) Districts) of Title 18 (Zoning) of the PAMC are amended as follows: Section 18.16.060 Development Standards . . . (b) Mixed Uses and Residential Table 4 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and community environment, pursuant to Section 18.76.020. Table 4 Mixed Use and Residential Development Standards CN CC CC(2) CS Subject to regulations in: Minimum Site Specifications Site Area (ft2) None required Site Width (ft) Site Depth (ft) Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply Front Yard (ft) 0' - 10' to create an 8' - 12' effective sidewalk width (8) None Required (8) 0' - 10' to create an 8' - 12' effective sidewalk width (8) 0' - 10' to create an 8' - 12' effective sidewalk width (8) Rear Yard (ft) 10' for residential portion; no requirement for commercial portion Rear Yard abutting residential zone district (ft) 10' Interior Side Yard if abutting residential zone district (ft) 10' Street Side Yard (ft) 5' Not Yet Approved 14 2018111402 CN CC CC(2) CS Subject to regulations in: Build-to-Lines 50% of frontage built to setback (1) 33% of side street built to setback (1) Permitted Setback Encroachments Balconies, awnings, porches, stairways, and similar elements may extend up to 6' into the setback. Cornices, eaves, fireplaces, and similar architectural features (excluding flat or continuous walls or enclosures of interior space) may extend up to 4' into the front and rear setbacks and up to 3' into interior side setbacks Maximum Site Coverage 50% 50% 100% 50% Landscape/Open Space Coverage 35% 30% 20% 30% Usable Open Space 20 sq ft per unit for 5 or fewer units (2) , 150 sq ft per unit for 6 units or more (2) Maximum Height (ft) Standard 35' (4) 50' 37' 50' Within 150 ft. of a residential zone district (other than an RM-40 or PC zone) abutting or located within 50 feet of the side 35' 35' (5) 35' (5) 35' (5) Daylight Plane for lot lines abutting one or more residential zoning districts Daylight plane height and slope shall be identical to those of the most restrictive residential zoning district abutting the lot line Residential Density (net) (3) 15 or 20 (9) See sub- section (e) below No maximum 30 30 18.16.060(i) Sites on El Camino Real No maximum No maximum Maximum Residential Floor Area Ratio (FAR) 0.5:1 (4) 0.6:1 0.6:1 Maximum Nonresidential Floor Area Ratio (FAR) 0.4:1 2.0:1 0.4:1 Total Mixed Use Floor Area Ratio (FAR) 0.9:1 (4) 2.0:1 1.0:1 Minimum Mixed Use Ground Floor Commercial FAR (6) 0.15:1(10) 0.15:1(10) 0.25:1 (7) (10) 0.15:1 (10) Commented [LS10]: This change implements in this commercial zoning district the citywide modification to provide for a single open space requirement regardless of the number of multi- family units. 1.a Commented [LS11]: This amendment would eliminate residential unit density maximums in the CC(2) subdistrict and on CS and CN sites on El Camino Real. 4.a; 5.a Not Yet Approved 15 2018111402 CN CC CC(2) CS Subject to regulations in: Parking See Chapters 18.52 and 18.54 (Parking) 18.52, 18.54 (1) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district. (2) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension six feet; and (4) minimum common open space dimension twelve feet. For CN and CS sites on El Camino Real and CC(2) sites that do not abut a single- or two-family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 60% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.190. (3) Residential density shall be computed based upon the total site area, irrespective of the percent of the site devoted to commercial use. (4) For CN sites on El Camino Real, height may increase to a maximum of 40 feet and the FAR may increase to a maximum of 1.0:1 (0.5:1 for nonresidential, 0.5:1 for residential). (5) For sites abutting an RM-40 zoned residential district or a residential Planned Community (PC) district, maximum height may be increased to 50 feet. (6) Ground floor commercial uses generally include retail, personal services, hotels and eating and drinking establishments. Office uses may be included only to the extent they are permitted in ground floor regulations. (7) If located in the California Avenue Parking Assessment District. (8) A 12-foot sidewalk width is required along El Camino Real frontage. (9) Residential densities up to 20 units/acre only are allowed on CN zoned housing inventory sites identified in the Housing Element. Other CN zoned sites are subject to a maximum residential density of up to 15 units/acre. (10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies. Commented [LS12]: Changes to this footnote would allow rooftop open space to qualify as usable open space for multifamily residential or residential mixed-use projects in the CC(2) subdistrict and on CN and CS zoned sites on El Camino Real, subject to standards specified in new Section 18.40.190 (below) of this ordinance. 4.e; 5.b Not Yet Approved 16 2018111402 (1) Residential and nonresidential mixed use projects shall be subject to site and design review in accord with Chapter 18.30(G), except that mixed use projects with nine or fewer residential units shall only require review by the architectural review board. (12) Nonresidential uses that involve the use or storage of hazardous materials in excess of the exempt quantities prescribed in Title 15 of the Municipal Code, including but not limited to dry cleaning plants and auto repair, are prohibited in a mixed use development with residential uses. (23) Residential mixed use development is prohibited on any site designated with an Automobile Dealership (AD) Combining District overlay. (c) Exclusively Residential Uses Exclusively residential uses are generally prohibited in the CN, CS, and CC, and CC(2) zone districts, except on housing inventory sites identified in the Housing Element, subject to the standards in Section 18.16.060(b), and on CS and CN sites on El Camino Real, subject to the following. (1) On CS and CN sites on El Camino Real and on CC(2) sites, where the retail shopping (R) combining district and the retail preservation provisions of Section 18.40.180 do not apply, exclusively residential uses are allowed subject to the standards in Section 18.16.060(b) and the following additional requirements:. (A) Residential units shall not be permitted on the ground-floor of development fronting on El Camino Real unless set back a minimum of 15 feet from the property line or the 12-foot effective sidewalk setback along the El Camino Real frontage, whichever is greater. Common areas, such as lobbies, stoops, community rooms, and work-out spaces with windows and architectural detail are permitted on the ground-floor El Camino Real frontage. (B) Parking shall be located behind buildings or below grade, or, if infeasible, screened by landscaping, low walls, or garage structures with architectural detail. . . . (j) Housing Incentive Program (1) For an exclusively residential or residential mixed-use project in the CC(2) zone or on CN or CS zoned sites on El Camino Real, the Director may waive the Commented [LS13]: This change would eliminate site & design review for residential and residential mixed use projects in the commercial zoning district, and only apply the architectural review process like all other projects in this zoning district. 1.b Commented [LS14]: These changes allow for exclusively residential uses in the CC(2) zone and CN or CS zoned sites on El Camino Real, except where the retail preservation ordinance or the retail shopping (R) combining distrct applies. The changes also require that for frontages on El Camino Real, an exclusively residential project be designed to maintain ground-floor interest. 4.b, 5.d Commented [LS15]: This new subsection would authorize the Director to grant zoning waivers to allow increased FAR for the residential portion of a project, and to waive other development standards for a 100%affordable housing project, in the CC(2) subdistrict and on CN or CS zoned sites on El Camino Real, subject to architectural review. 4.f; 5.e Not Yet Approved 17 2018111402 residential floor area ratio (FAR) limit and the maximum site coverage requirement after the project with the proposed waiver or waivers is reviewed by the Architectural Review Board, if the Director finds that a project exceeding these standards is consistent with the required architectural review findings. In no event shall the Director approve a commercial FAR that exceeds the standard in Table 4 of Section 18.16.060(b) or a total FAR (including both residential and commercial FAR) in excess of 2.0 in the CC(2) zone or 1.5 in the CN or CS zone. (2) For a 100% affordable housing project in the CC(2) zone or on CN or CS zoned sites on El Camino Real, the Director may waive any development standard including parking after the project with the proposed waiver or waivers is reviewed by the Architectural Review Board, if the Director finds that a project with such waiver or waivers is consistent with the required architectural review findings. In no event shall the Director approve development standards more liberal than the standards applicable to the Affordable Housing (AH) Combining District in Chapter 18.30(J). A “100% affordable housing project” as used herein means a multiple-family housing or mixed-use project in which the residential component consists entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Section 16.65.020, with an average not to exceed 60% of the area median income, except for a building manager’s unit. (3) This program is a local alternative to the state density bonus law, and therefore, a project utilizing this program shall not be eligible for a density bonus under Chapter 18.15 (Density Bonus). (j) Parking and Vehicular Access on California Avenue Restricted Vehicular access to CC(2) zoned sites on California Avenue which requires vehicular movement across the sidewalk on California Avenue shall be prohibited, except where required by law and as applied to parcels owned, leased or controlled by the City. SECTION 7. Subsections (b) and (c) of Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the PAMC are amended as follows: Section 18.18.060 Development Standards . . . (b) Mixed Use and Residential Table 3 specifies the development standards for new residential mixed use developments and Commented [LS16]: This new subsection would preclude curb cuts on California Avenue, except for City parcels. 4.d Not Yet Approved 18 2018111402 residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlines in Section 18.18.110, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and community environment, pursuant to Section 18.76.020: TABLE 3 MIXED USE AND RESIDENTIAL DEVELOPMENT STANDARDS CD-C CD-S CD-N Subject to regulations in Section: Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply Front Yard (ft) None required 10' Rear Yard (ft) 10' for residential portion; no requirement for commercial portion Interior Side Yard (ft) No requirement 10' if abutting residential zone 10' if abutting residential zone Street Side Yard (ft) No requirement 5' 5' Permitted Setback Encroachments Balconies, awnings, porches, stairways, and similar elements may extend up to 6' into the setback. Cornices, eaves, fireplaces, and similar architectural features (excluding flat or continuous walls or enclosures of interior space) may extend up to 4' into the front and rear setbacks and up to 3' into interior side setbacks Maximum Site Coverage No requirement 50% 50% Landscape Open Space Coverage 20% 30% 35% Usable Open Space 200 sq ft per unit for 5 or fewer units(1); 150 sq ft per unit for 6 units or more(1) Maximum Height (ft) Commented [LS17]: This change implements in the downtown commercial zoning district the citywide modification to provide for a single open space requirement regardless of the number of multi- family units. 1.a Not Yet Approved 19 2018111402 CD-C CD-S CD-N Subject to regulations in Section: Standard 50' 50' 35' Within 150 ft. of an abutting residential zone 40'(4) 40'(4) 35'(4) Daylight Plane for lot lines abutting one or more residential zoning districts or a residential PC district Daylight plane height and slope identical to those of the most restrictive residential zone abutting the lot line Residential Density (net)(2) 40 No maximum 30 30 Maximum Weighted Average Residential Unit Size(5) 1,500 sq ft per unit No maximum No maximum Maximum Residential Floor Area Ratio (FAR) 1.0:1(3) 0.6:1(3) 0.5:1(3) Maximum Nonresidential Floor Area Ratio (FAR) 1.0:1(3) 0.4:1 0.4:1 Total Floor Area Ratio (FAR)(3) 2.0:1(3) 1.0:1(3) 0.9:1(3) 18.18.070 Parking Requirement See Chapters 18.52 and 18.54 Chs. 18.52, 18.54 (1) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension 6'; and (4) minimum common open space dimension 12'. For CD-C sites that do not abut a single- or two-family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 75% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.190. (2) Residential density shall be computed based upon the total site area, irrespective of the percent of the site devoted to commercial use. There shall be no deduction for that portion of the site area in nonresidential use. Commented [LS18]: This change implements a maximum average unit size for residential units in a project. 3.b Commented [LS19]: Changes to this footnote would allow rooftop open space to qualify as usable open space for multifamily residential or residential mixed-use projects in the CD-C zone subject to standards specified in new Section 18.40.190 (below) of this ordinance. 1.a Not Yet Approved 20 2018111402 (3) FAR may be increased with transfers of development and/or bonuses for seismic and historic rehabilitation upgrades, not to exceed a total site FAR of 3.0:1 in the CD-C subdistrict or 2.0:1 in the CD-S or CD-N subdistrict. (4) For sites abutting an RM-40 zoned residential district or a residential Planned Community (PC) district, maximum height may be increased to 50 feet. (5) The weighted average residential unit size shall be calculated by dividing the sum of the square footage of all units by the number of units. For example, a project with ten 800-square foot 1-bedroom units, eight 1,200-square foot 2- bedroom units, and two 1,800-square foot 3-bedroom units would have a weighted average residential unit size of ((10x800)+(8x1200)+(2x1800)) ÷ (10+8+2) = 1,060 square feet. (1) Residential and nonresidential mixed use projects shall be subject to site and design review in accord with Chapter 18.30(G), except that mixed use projects with nine or fewer units shall only require review and approval by the architectural review board. (12) Nonresidential uses that involve the use or storage of hazardous materials in excess of the exempt quantities prescribed in Title 15 of the Municipal Code, including but not limited to dry cleaning plants and auto repair, are prohibited in a mixed use development with residential uses. (c) Exclusively Residential Uses (1) Exclusively residential uses are allowed in the CD-C subdistrict, except in the ground floor (GF) combining district. (2) Exclusively residential uses are generally prohibited in the CD district and CD-N and CD-S subdistricts. Such uses are allowed, however, where a site is designated as a Housing Opportunity Sitehousing inventory site in the Housing Element of the Comprehensive Plan. Such sites shall be developed pursuant to the regulations for the multi-family zone designation (RM-2015, RM-30, or RM- 40) identified for the site in the Housing Element. . . . (l) Housing Incentive Program (1) For an exclusively residential or residential mixed-use project in the CD-C zone, the Director may waive the residential floor area ratio (FAR) limit after the project with the proposed waiver is reviewed by the Architectural Review Board, if the Director finds that the project exceeding the FAR standard is consistent with the required architectural review findings. In no event shall the Director approve a commercial FAR in excess of 1.0 or a total FAR (including both Commented [LS20]: This change would eliminate site & design review for residential and residential mixed use projects in the downtown commercial zoning district, and only apply the architectural review process like all other projects in this zoning district. 1.b Commented [LS21]: This change would allow residential-only development in the downtown, except in the ground floor (GF) combining district. 3.e Commented [LS22]: This new subsection would authorize the Director to grant zoning waivers to allow increased FAR for the residential portion of a project, and to waive other development standards for a 100%affordable housing project, in the CD-C subdistrict, subject to architectural review. 3.h Not Yet Approved 21 2018111402 residential and commercial FAR) in excess of 3.0. Nor shall the use of transferable development rights under Section 18.18.080 be allowed to cause the site to exceed a FAR of 3.0. (2) For a 100% affordable housing project in the CD-C zone, the Director may waive any development standard including parking after the project with the proposed waiver or waivers is reviewed by the Architectural Review Board, if the Director finds that a project with such waiver or waivers is consistent with the required architectural review findings. In no event shall the Director approve a FAR in excess of 3.0 or approve other development standards more liberal than the standards applicable to the Affordable Housing (AH) Combining District in Chapter 18.30(J). A “100% affordable housing project” as used herein means a multiple-family housing or mixed-use project in which the residential component consists entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Section 16.65.020, with an average not to exceed 60% of the area median income, except for a building manager’s unit. (3) This program is a local alternative to the state density bonus law, and therefore, a project utilizing this program shall not be eligible for a density bonus under Chapter 18.15 (Density Bonus). (m) Parking and Vehicular Access on University Avenue Restricted Vehicular access to CD-C zoned sites on University Avenue which requires vehicular movement across the sidewalk on University Avenue shall be prohibited, except where required by law and as applied to parcels owned, leased or controlled by the City. SECTION 8. Subsection (d) of Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the PAMC is amended as follows: Section 18.18.090 Parking and Loading . . . (d) In-lieu Parking Provisions In connection with any expansion of the supply of public parking spaces within the CD commercial downtown district, the city shall allocate a number of spaces for use as "in- lieu parking” spaces to allow development to occur on sites which would otherwise be precluded from development due to parking constraints imposed by monetary contribution to the city to defray the cost of providing such parking. Contributions for each required parking space shall equal the incremental cost of providing a net new Commented [LS23]: This new subsection would preclude curb cuts on University Avenue, except for City parcels. 3.d Not Yet Approved 22 2018111402 parking space in an assessment district project plus cost for the administration of the program, all as determined pursuant to Chapter 16.57 of Title 16 of this code, by the director of planning and community environment, whose decision shall be final. Only sites satisfying one or more of the following criteria, as determined by the director of planning and community environment, shall be eligible to participate in the in-lieu parking program: (1) Construction of on-site parking would necessitate destruction or substantial demolition of a designated historic structure; (2) The site area is less than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on- site parking; (3) The site is greater than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on- site parking; (4) The site is located in an area where city policy precludes curb cuts or otherwise prevents use of the site for on-site parking; or (5) The site has other physical constraints, such as a high groundwater table, which preclude provision of on-site parking without extraordinary expense. Commercial uses above the ground floor shall not be eligible to participate in the in-lieu parking program. SECTION 9. Section 18.40.180 (Retail Preservation) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the PAMC is amended as follows: Section 18.40.180 Retail Preservation (a) Conversion of Retail and Retail-Like Uses Prohibited. (1) Any ground floor Retail or Retail-Like use permitted or operating as of March 2, 2015 may be replaced only by another Retail or Retail-Like use, as permitted in the applicable district. (A) A ground floor Retail or Retail-Like use in the RT-35 district on properties with frontage on Alma Street between Channing Avenue and Lincoln Avenue may additionally be replaced by a Private Educational Facility use, provided that such use shall not be thereafter replaced by an Office use. (2) The phrase 'use permitted or operating' as used in this section means: Commented [LS24]: This change would restrict the use of in- lieu parking for commercial uses above the ground floor to further incentivize housing development. Not Yet Approved 23 2018111402 (A) A lawfully established use conducting business, including legal non- conforming uses. (B) An established use conducting business without required city approvals, but is a permitted or conditionally permitted use in district. (C) For parcels vacant on March 2, 2015, the last use that was lawfully established, or established without required permits, and permitted or conditionally permitted in the district. (b) Non-conforming Uses. (1) The requirements imposed by subsection (a) shall not apply to Retail or Retail- like uses that are no longer permitted or conditionally permitted in the applicable district. (2) Nothing in this section shall modify the provisions of Chapter 18.70 regarding the expansion, change, discontinuance, or termination of a non-conforming use. (c) Waivers and Adjustments; and Exemptions. (1) Grounds. The following shall be grounds for a request for waiver or adjustment of the requirements contained in this section: (A) Economic Hardship. An applicant may request that the requirements of this section be adjusted or waived based on a showing that applying the requirements of this section would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property; or (B) Alternative Viable Active Use. Except in the GF or R combining districts, an applicant may request that the requirements of this Section 18.40.160 be adjusted or waived based on a showing that: the permitted retail or retail- like use is not viable; the proposed use will support the purposes of the zoning district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections. (2) Documentation. The applicant shall bear the burden of presenting substantial evidence to support a waiver or modification request under this Section and shall set forth in detail the factual and legal basis for the claim, including all supporting technical documentation. Evidence in support of a waiver under subsection (c)(1)(B) must demonstrate the viability of existing and future uses on the site, based on both the site characteristics and the surrounding uses; specifically whether a substitute use could be designed and/or conditioned to Commented [LS25]: The changes to this subsection would exempt 100% affordable projects (excluding manager’s unit) from the Retail Preservation Ordinance, except in the GF and R combining districts. 1.c Not Yet Approved 24 2018111402 contribute to the goals and purposes of the zoning district. Examples of such evidence include: (A) A 10-year history of the site's occupancy and reasons for respective tenants vacating the site; (B) A map that indicates all the existing surrounding uses, both residential and non-residential, within one City-block; include the corresponding zone district on the map; (3) Any request under this section shall be submitted to the Director together with supporting documentation. The Director, in his or her sole discretion, may act on a request for waiver or refer the matter to the City Council. (A) A decision by the Director shall be placed on the City Council's consent calendar within 45 days. (B) Removal of the recommendation from the consent calendar shall require three votes, and shall result in a new public hearing before the City Council, following which the City Council shall take action on the waiver request. (C) The decision of the Council is final. (4) Exemptions. The provisions of this Chapter shall not apply to: (A) A 100% affordable housing project not within the Ground Floor (GF) and/or Retail (R) combining districts or on a site abutting El Camino Real . A “100% affordable housing project” as used herein means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, except for a building manager’s unit. . . . SECTION 10. Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the PAMC is amended to add a new Section 18.40.190 (Rooftop Gardens) as follows: Section 18.40.190 Rooftop Gardens Where allowed under this Title, in order to qualify as usable open space, a rooftop garden shall meet the following standards: (a) Permanent fixtures on the rooftop shall be placed so as not to exceed height limit for the applicable zoning district, except: Not Yet Approved 25 2018111402 (i) Elevators, stairs and guardrails may exceed the height limit to allow for access to the rooftop useable open space as and to the extent required to comply with the Americans With Disabilities Act (ADA). These fixtures shall be designed to the lowest height and size feasible. (ii) Permanent fixtures associated with the useable open space, such as trellises, shade structures, furniture, and furnishings such as planters, lighting and heaters, may exceed the height limit by up to 12 feet. (iii) For the height limit exceptions in (i) and (ii) above, all fixtures shall not intersect a plane measured at a forty-five degree angle from the edge of the building starting at the rooftop garden surface sloping upward and inward toward the center of the property. (b) The rooftop garden may be located on the second or higher story or on a roof deck. (c) The rooftop garden shall be accessible to all residents of dwelling units on the parcel, but not to commercial tenants of a residential mixed-use development. (d) Structures or fixtures providing a means of access or egress (i.e., stairway, elevator) shall be located away from the building edge to the extent feasible or screened to minimize visibility from the public right-of-way and adjacent buildings and privacy impacts. These access structures or fixtures, when exceeding the height limit, shall be subject to the provisions of subsection (a)(iii) above. (e) Any lighting shall have cutoff fixtures that cast downward-facing light or consist of low- level string lights. Lights shall be dimmable to control glare and placed on timers to turn off after 10:00 PM. Photometric diagrams must be submitted by the applicant to ensure there are no spillover impacts into windows or openings of adjacent properties. (f) At least 15% but no more than 25% of the rooftop shall be landscaped with raised beds for gardening, C.3 stormwater planters, or other landscaping. All required landscaped areas shall be equipped with automatic irrigation systems and be properly drained. (g) Rooftop equipment that emit noise and/or exhaust, including but not limited to vents, flues, generators, pumps, air conditioning compressors, and other protrusions through the roof, shall be directed away and screened from the useable open space areas. (h) Rooftop open space noise levels shall not exceed exterior residential noise level as defined by Section 9.10.030(a) of this code. (i) The use of sound amplifying equipment shall be prohibited. Signs shall be affixed adjacent to access elevators and stairs within the rooftop garden providing notice of this prohibition. Not Yet Approved 26 2018111402 SECTION 11. Table 1 (Minimum Off-Street Parking Requirements) and Table 2 (Minimum Off- Street Parking Requirements for Parking Assessment Districts) of subsection (c) of Section 18.52.040 (Off- Street Parking, Loading and Bicycle Facility Requirements) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the PAMC are amended as follows: Section 18.52.040 Off- Street Parking, Loading and Bicycle Facility Requirements . . . (c) Tables 1, 2 and 3: Parking, Bicycle, and Loading Requirements Tables 1 and 2 below outline vehicle and bicycle parking requirements in general and for Parking Assessment Districts, respectively. Table 3 outlines loading requirements for each land use. For mixed-use projects, the requirements for each land use shall be applied and required for the overall project. Table 1 Minimum Off-Street Parking Requirements Use Vehicle Parking Requirement (# of spaces) Bicycle Parking Requirement Spaces Class 1 Long Term (LT) and Short Term (ST) RESIDENTIAL USES Multiple-Family Residential 1 per micro unit (2) 1.25 per studio unit 1.5 per 1-bedroom unit 2 per 2-bedroom or larger unit At least one space per unit must be covered Tandem parking allowed for any unit requiring two spaces (one tandem space per unit, associated directly with another parking space for the same unit, up to a maximum of 25% of total required spaces for any project with more than four (4) units) 1 per unit 100% - LT Multiple-Family Residential Near Fixed Rail Station (3) 0.5 per micro unit (2) 0.8 per studio unit Commented [LS26]: The changes to the Residential Uses in this Section implement reduced parking requirements for multifamily residential projects generally, and convert the parking adjustments available for senior housing, housing near transit, and affordable housing into by-right reduced standards for senior housing, housing near a major fixed rail station and 100% affordable housing projects. 1.d Not Yet Approved 27 2018111402 (7) 0.8 per 1-bedroom unit 1.6 per 2-bedroom or larger unit (a) Guest Parking No additional guest parking required For projects exceeding 3 units; 1 space plus 10% of total number of units, provided that if more than one space per unit is assigned or secured parking, then guest spaces equal to 33% of all units is required. 1 space for each 10 units 100%-ST 100% Affordable Housing (4) (7) a. 40% reduction in the applicable parking requirement for Extremely Low Income units b. 30% reduction for Very Low Income units c. 20% reduction for Low Income units 1 per unit 100% - LT Senior Housing (5) (7) 0.75 per unit . . . RETAIL USES (6) Retail: (a) Intensive (retail not defined as extensive) 1 per 200 sq. ft. of gross floor area 1 per 2,000 sf 20% - LT 80%-ST (b) Extensive (retail with more than 75% of gross floor area used for display, sales and related storage, with demonstrably low parking demand 1 per 350 sq. ft. of gross floor area 1 per 3,500 sf 20% - LT 4080% - ST Commented [LS27]: Alternative option: 0.75 per unit consistent with the residential parking standard for the Affordable Housing (AH) combining district Not Yet Approved 28 2018111402 generation per square foot of gross floor area) (c) Open lot 1 space for each 500 square feet of sales, display, or storage site area 1 per 5,000 sf 100%-ST Drive-up windows providing services to occupants in vehicles Queue line for 5 cars, not blocking any parking spaces, in addition to other applicable requirements None additional Eating and Drinking Services: (a) With drive-in or take-out facilities 3 per 100 sq. ft. of gross floor area 3 per 400 sf 40% - LT 60% - ST (b) All others 1 space for each 60 gross sq. ft. of public service area, plus 1 space for each 200 gross sq. ft. for all other areas. 1 per 600 sf of public service area, plus 1 per 2,000 sf for other areas . . . (1) Long Term (LT) and Short Term (ST) bicycle spaces as described in Section 18.54.060. (2) A “micro-unit” as used herein means a residential unit of 450 square feet or less. (3) These standards apply to housing projects, other than 100% affordable housing projects, on parcels located within one-half mile radius of a major fixed rail transit station (as measured from the platform). Projects that qualify for and utilize this reduced parking requirement shall provide at least one annual transit pass (i.e., Caltrain go-pass) per unit to the unit occupant on an ongoing basis or implement an equally effective measure approved by the Director for the life of the project. (4) Applies to 100% affordable housing projects and the residential component of 100% affordable housing mixed-use projects. “100% affordable housing” as used herein means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, except for a building manager’s unit. Not Yet Approved 29 2018111402 (5) Senior housing for purposes of this provision means an independent living facility, not a convalescent or residential care facility. (6) For residential mixed-use developments in the CD-C zone, CC(2) zone, and on CN and CS zoned sites abutting El Camino Real, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement. (7) Because these parking standards are reduced from the standards otherwise applicable to multiple-family residential development, projects that utilize these reduced parking standards shall not be eligible for further parking reductions through adjustments under Section 18.52.050, Table 4. Table 2 Minimum Off-Street Parking Requirements for Parking Assessment Districts (IF USE IS NOT LISTED, REFER TO TABLE 1 FOR REQUIREMENTS) Use Vehicle Parking Requirement (# of spaces) Bicycle Parking Requirement Class 1 Spaces For Downtown University Avenue Parking Assessment District: All uses (except residential)2 1 per 250 square feet 1 per 2,500 square feet 40% - LT 60% - ST For California Avenue Parking Assessment District: . . . Retail:2 (a) Intensive 1 per 240 sf of gross floor area 1 per 2,400 sf 20% - LT 80% - ST (b) Extensive 1 per 350 sf of gross floor area 1 per 3,500 sf (c) Open Lot 1 for each 500 square feet of sales, display, or storage site area. 1 per 5,000 sf 100% - LT . . . 1. Long Term (LT) and Short Term (ST) bicycle spaces as described in Section 18.54.060. 2. For residential mixed-use developments in the CD-C zone, CC(2) zone, and on CN and CS zoned sites abutting El Camino Real, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement. Commented [LS28]: The changes to the Retail Uses in this Section would exempt the first 1500 sf of ground-floor retail from parking requirements citywide to relieve physical and financial constraints of providing retail. 3.c, 4.c, 5.c Not Yet Approved 30 2018111402 SECTION 12. Table 4 (Allowable Parking Adjustments) of Section 18.52.050 (Adjustments by the Director) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the PAMC is amended as follows: Section 18.52.050 Parking and Loading Requirements Automobile parking requirements prescribed by this chapter may be adjusted by the director in the following instances and in accord with the prescribed limitations in Table 4, when in his/her opinion such adjustment will be consistent with the purposes of this chapter, will not create undue impact on existing or potential uses adjoining the site or in the general vicinity, and will be commensurate with the reduced parking demand created by the development, including for visitors and accessory facilities where appropriate. No reductions may be granted that would result in provision of less than ten (10) spaces on a site. The following are adjustments that apply to developments not located within a parking assessment district. Adjustments within the parking assessment districts are contained in Section 18.52.080. The decision of the regarding parking adjustments may be appealed as set forth in Chapter 18.78 (Appeals). Table 4 Allowable Parking Adjustments Purpose of Adjustment Amount of Adjustment Maximum Reduction 2a On-Site Employee Amenities Square footage of commercial or industrial uses to be used for an on-site cafeteria, recreational facility, and/or day care facility, to be provided to employees or their children and not open to the general public, may be exempted from the parking requirements 100% of requirement for on-site employee amenities Joint Use (Shared) Parking Facilities For any site or sites with multiple uses where the application of this chapter requires a total of or more than ten (10) spaces, the total number of spaces otherwise required by application of Table 1 may be reduced when the joint facility will serve all existing, proposed, and potential uses as effectively and conveniently as would separate parking facilities for each use or site. In making such a determination, the director shall consider a parking analysis using criteria developed by the Urban Land Institute (ULI) or similar methodology to estimate 20% of total spaces required for the site Commented [LS29]: These changes remove parking reductions available because these reductions will become by-right parking standards for the specific types of developments referenced. 1.d Not Yet Approved 31 2018111402 Purpose of Adjustment Amount of Adjustment Maximum Reduction 2a the shared parking characteristics of the proposed land uses. The analysis shall employ the city's parking ratios as the basis for the calculation of the base parking requirement and for the determination of parking requirements for individual land uses. The director may also require submittal and approval of a TDM program 1 to further assure parking reductions are achieved. Housing for Seniors The total number of spaces required may be reduced for housing facilities for seniors, commensurate with the reduced parking demand created by the housing facility, including for visitors and accessory facilities, and subject to submittal and approval of a parking analysis justifying the reduction proposed. 50% of the total spaces required for the site Affordable Housing Units and Single Room Occupancy (SRO) Units (3) The total number of spaces required may be reduced for affordable housing and single room occupancy (SRO) units, commensurate with the reduced parking demand created by the housing facility, including for visitors and accessory facilities. The reduction shall consider proximity to transit and support services and the director may require traffic demand management measures1 in conjunction with any approval. a. 40% for Extremely Low Income and SRO Units b. 30% for Very Low Income Units c. 20% for Low Income Units Housing Near Transit Facilities (3) The total number of spaces required may be reduced for housing located within a designated Pedestrian/Transit Oriented area or elsewhere in immediate proximity to public transportation facilities serving a significant portion of residents, employees, or customers, when such reduction will be commensurate with the reduced parking demand created by the housing facility, including for visitors and accessory facilities, and subject to 20% of the total spaces required for the site. Not Yet Approved 32 2018111402 Purpose of Adjustment Amount of Adjustment Maximum Reduction 2a submittal and approval of a TDM program.1 Transportation and Parking Alternatives Where effective alternatives to automobile access are provided, other than those listed above, parking requirements may be reduced to an extent commensurate with the permanence, effectiveness, and the demonstrated reduction of off-street parking demand effectuated by such alternative programs. Examples of such programs may include, but are not limited to, transportation demand management (TDM) programs or innovative parking pricing or design solutions.1 (note: landscape reserve requirement is deleted). 20% of the total spaces required for the site Combined Parking Adjustments Parking reductions may be granted for any combination of the above circumstances as prescribed by this chapter, subject to limitations on the combined total reduction allowed. a. 30% reduction of the total parking demand otherwise required b. 40% reduction for affordable housing projects c. 50% reduction for senior housing projects Modification to Off- Street Loading Requirements The director may modify the quantity or dimensions of off-street loading requirements for non-residential development based on existing or proposed site conditions; availability of alternative means to address loading and unloading activity; and, upon finding that: 1) the off-street loading requirement may conflict with Comprehensive Plan goals and policies related to site design planning, circulation and access, or urban design principles; and 2) the use of shared on- street loading would not conflict with Comprehensive Plan goals and policies related to site design planning, circulation and access or urban design One loading space may be waived Not Yet Approved 33 2018111402 Purpose of Adjustment Amount of Adjustment Maximum Reduction 2a principles; maximum reduction in one loading space. 1. See Section 18.52.050(d) below regarding requirements for TDM programs. 2. No parking reductions may be granted that would result in provision of less than ten (10) parking spaces on site. 3. No parking reductions may be granted for projects that are entitled to the reduced parking standards in Table 1 of Section 18.52.040 for multiple-family residential near a major fixed rail station, 100% affordable housing and senior housing. (a) Combining Parking Adjustments Parking reductions may be granted for any combination of circumstances, prescribed by this chapter, so long as in total no more than a 30% reduction of the total parking demand otherwise required occurs, or no less than a 40% reduction for affordable housing projects (including Single Room Occupancy (SRO) units), or no less than 50% reduction for senior housing projects. . . . SECTION 13. Subsection (c) of Section 18.52.070 (Parking Regulations for CD Assessment District) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the PAMC is amended as follows: Section 18.52.070 Parking Regulations for CD Assessment District . . . (c) In-lieu Parking Provisions Within the CD commercial downtown district, the provisions of Section 18.18.090(d) shall apply. In connection with any expansion of the supply of public parking spaces within the CD commercial downtown district, the city shall allocate a number of spaces for use as "in- lieu parking” spaces to allow development to occur on sites which would otherwise be precluded from development due to parking constraints imposed by monetary contribution to the city to defray the cost of providing such parking. Contributions for each required parking space shall equal the incremental cost of providing a net new parking space in an assessment district project plus cost for the administration of the program, all as determined pursuant to Chapter 16.57 of Title 16 of this code, by the Commented [LS30]: The changes to this subsection would incorporate the new restriction on the use of in-lieu parking for commercial uses above the ground floor in Chapter 18.18 above, and would remove the repetition of the in-lieu parking provisions in Chapter 18.52, instead simply referencing the provisions as previously stated in Chapter 18.18. Even if the substantive change to Section 18.18.090(d) is not approved, staff recommends approval of the proposed change here as an administrative clean-up to remove unnecessary repetition of the in-lieu parking provisions. Not Yet Approved 34 2018111402 director of planning and community environment, whose decision shall be final. Only sites satisfying one or more of the following criteria, as determined by the director of planning and community environment, shall be eligible to participate in the in-lieu parking program: (1) Construction of on-site parking would necessitate destruction or substantial demolition of a designated historic structure; (2) The site area is less than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on- site parking; (3) The site is greater than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on- site parking; (4) The site is located in an area where city policy precludes curb cuts or otherwise prevents use of the site for on-site parking; or (5) The site has other physical constraints, such as a high groundwater table, which preclude provision of on-site parking without extraordinary expense. SECTION 14. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 15. This Ordinance shall not apply to any project for which the application has been deemed complete as of the effective date of the Ordinance, for the last required discretionary approval for the project. However, the project applicant may elect to be subject to this Ordinance in which case the Ordinance in its entirety shall apply to the project. SECTION 16. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 17. The Council finds that the potential environmental impacts related to this Ordinance were analyzed in the Final EIR for the Comprehensive Plan Update, which was certified and adopted by the Council by Resolution No. 9720 on November 13, 2017. The Ordinance is consistent with and implements the program evaluated in the EIR. Not Yet Approved 35 2018111402 SECTION 18. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Community Environment Palo Alto Zoning Analysis | 11.09.2018 pg 1 CD-C Downtown Zoning Analysis High/Hamilton Parking Lot Parcel Size: 150' x 100'15,000 sf 0.34 acres Zoning Analysis Study 1) Existing Mixed-Use Zoning 2) Proposed 100% Residential, 50' Height, 3.0 FAR Max 3) Proposed 100% Affordable Residential, 60' Height, 4.0 FAR Max 150'100' High St University Ave Emerson St Hamilton Ave Site Diagram Palo Alto Zoning Analysis | 11.09.2018 pg 2 High St University Ave Emerson St Hamilton Ave Existing Standards: Height:50 ft Res FAR:1.0 Com FAR:1.0 FAR:2.0 max Statistics: Height:50 ft, 4 stories Res FAR:1.0 Comm. FAR:1.0 Parking FAR:0.34 (not counted in total FAR) FAR:2.0 Retail:4,300 sf Office:10,700 sf Residential:10 units Avg Unit:1,116 sf Density:29 du/a Res. Parking:20 sp Comm. Parking:35 sp * *55 required, 20 located offsite, $70,000 in-lieu fee would be required per space Massing Diagram Building Section Basement Levels (B1 + B2) 1st Floor 2nd Floor Floor Plans CD-C Downtown Zoning Analysis Existing Mixed-Use Zoning 3rd Floor 4th Floor Alley Alley Office Space Retail Palo Alto Zoning Analysis | 11.09.2018 pg 3 CD-C Downtown Zoning Analysis Existing Mixed-Use Zoning Statistics: Massing in Context: High St University Ave Emerson St Hamilton Ave Palo Alto Zoning Analysis | 11.09.2018 pg 4 High St University Ave Emerson St Hamilton Ave Proposed Standards: Height:50 ft Res FAR:3.0 Tot FAR:3.0 max Statistics: Height:50 ft, 4.5 stories Res FAR:2.82 Parking FAR:0.10 (not included in Total FAR) FAR:2.82 Residential:36 units Avg Unit:881 sf Density:104 du/a Parking:39 sp (1.08:1) *includes puzzle lifts Project Qualifies for reduced parking standards due to proximity to fixed rail transit. Caltrain Go Passes required for each unit. ($285/user or $23,940, whichever is greater) Massing Diagram Building Section Basement Ground Floor 2nd Floor Floor Plans CD-C Downtown Zoning Analysis Proposed: 50' Height - 3.0 FAR - 100% Residential 3rd/4th Floors Roof Alley Alley Palo Alto Zoning Analysis | 11.09.2018 pg 5 Statistics: CD-C Downtown Zoning Analysis Proposed: 50' Height - 3.0 FAR - 100% Residential Massing in Context: High St University Ave Emerson St Hamilton Ave Palo Alto Zoning Analysis | 11.09.2018 pg 6 High St University Ave Emerson St Hamilton Ave Massing Diagram Building Section Basement (B1 + B2) Ground Floor 2nd Floor Floor Plans CD-C Downtown Zoning Analysis Proposed: 60' Height - 4.0 FAR - 100% Affordable Residential 3rd/4th/5th Floors Roof Proposed Standards: Height:60 ft Res FAR:4.0 Tot FAR:4.0 max Statistics: Height:60 ft, 5.5 stories Res FAR:3.41 Parking FAR:0.10 (not included in Total FAR) FAR:3.41 Residential:41 units (affordable) Avg Unit:971 sf Density:119 du/a Parking:52 sp (1.27:1) Project Qualifies for reduced parking standards due to proximity to fixed rail transit. A further reduction in parking standards is possible with a 100% affordable project. Alley Alley Palo Alto Zoning Analysis | 11.09.2018 pg 7 Statistics: CD-C Downtown Zoning Analysis Proposed: 60' Height - 4.0 FAR - 100% Affordable Residential Massing in Context: High St University Ave Emerson St Hamilton Ave Palo Alto Zoning Analysis | 11.09.2018 pg 1 CN ECR Zoning Analysis 3720 El Camino Real, Palo Alto CA Parcel Size: 150' x 106'15,775.8 sf 0.362 acres ~3,100 sf Retail 0.2 FAR Zoning Analysis Study 1) Existing Mixed-Use Zoning, 35' Height, 1.0 FAR (0.5 Res. Max) 2) Proposed Mixed-Use Zoning, 40' Height, 1.5 FAR (1.5 Res. Max) Barron Ave El Camino Real Site Diagram 150'106'Alley (20' wide) La Selva Dr Curtner Ave Palo Alto Zoning Analysis | 11.09.2018 pg 2 El Camino Real Alley (20' wide) La Selva Dr Barron Ave Existing Standards: Height:35 ft Res FAR:0.5 Com FAR:0.15-0.5 FAR:1.0 max Statistics: Height:35 ft, 3 stories Res FAR:0.5 Com FAR:0.2 (retail) FAR:0.7 Retail:3,000 sf Residential:3 units Avg Unit:1722 sf Density:8.3 du/a Res. Parking:6 sp (2.0:1) +2 sp (guest) Comm. Parking:15 (1:200sf) Massing Diagram Building Section Ground Floor 1st Floor 2nd Floor Floor Plans CN ECR Zoning Analysis Existing Mixed-Use Zoning (3720 ECR) 60 deg daylight plane Roof Palo Alto Zoning Analysis | 11.09.2018 pg 3 CN ECR Zoning Analysis Existing Mixed-Use Zoning (3720 ECR) Statistics: Massing in Context: Palo Alto Zoning Analysis | 11.09.2018 pg 4 Proposed Standards: Height:40 ft Res FAR:1.5 Tot FAR:1.5 max Statistics: Height:40 ft, 3 stories Res FAR:1.25 Comm. FAR:0.25 Parking FAR:0.36 (Commercial Parking) FAR:1.5 Retail:4,000 sf Residential:14 units Avg Unit:1,065 sf Density:39 du/a Res. Parking:22 sp (1.6:1) Comm. Parking:13 (1:200sf, first 1,500 sf exempt) Massing Diagram Building Section Ground Floor 2nd Floor CN ECR Zoning Analysis Proposed: 40' Height - 1.5 FAR (3720 ECR) El Camino Real Alley (20' wide) La Selva Dr Barron Ave 3rd Floor Roof Basement Floor Plans 60 deg daylight plane Palo Alto Zoning Analysis | 11.09.2018 pg 5 Statistics: CN ECR Zoning Analysis Proposed: 40' Height - 1.5 FAR (3720 ECR) Massing in Context: City of Palo Alto (ID # 9822) City Council Staff Report Report Type: Action Items Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Animal Shelter Operating Agreement with Pets In Need Title: Authorize the City Manager to Execute an Operating Agreement With Pets In Need, for the Not-to-Exceed Amount of $3,700,626; Approve Interim Improvements for the Palo Alto Animal She lter; and Approve Budget Amendments in the General Fund and the Capital Improvement Funds From: City Manager Lead Department: Community Services Recommendation Staff recommends that the City Council: 1. Authorize the City Manager to execute an Operating and Management Agreement between Pets In Need and the City of Palo Alto for the City’s Animal Shelter with a not to exceed amount of $3,700,626.10, a term of Five Years, a Commitment to Build Approximately $3.4 Million in Capital Improvements, and other contract terms substantially similar to those found in the draft agreement in Attachment D, and 2. Amend the Fiscal Year 2019 Budget Appropriation Ordinance for: a. The General Fund by: i. Increasing the Community Services Department expense appropriation by $355,000, and ii. Reducing the Police Department expense appropriation by $355,000 b. The Capital Improvement Fund by: i. Increasing the Animal Shelter Renovation Project PE-19002 appropriation in the amount of $800,000, and ii. Decreasing the Infrastructure Reserve in the amount of $800,000. Background California requires that cities and counties provide animal control and sheltering services for the purpose of ensuring the safety of people and animals, providing for the proper care and sheltering of abandoned or neglected domestic animals, licensing domestic animals and providing humane disposal of animals when necessary. There are several ways local jurisdictions meet these requirements; some agencies manage their own animal shelters and animal control services, while others do not provide services within their city limits and instead partner with other agencies to take advantage of economies of scale and to reduce costs. City of Palo Alto Page 2 Historically, Palo Alto has maintained its own shelter. Palo Alto currently provides animal control and sheltering services for Palo Alto and two partner cities, Los Altos and Los Altos Hills. In May 2012, following the loss of the City of Mountain View as an animal shelter partner agency, the financial sustainability of the City’s Animal Shelter was discussed at City Council, and at the Policy and Services Committee and the Finance Committee. The Council directed staff to reduce costs and increase revenues to ensure the Animal Shelter remain financially sustainable absent the revenue that had previously been re ceived from the City of Mountain View, which was approximately $500,000 annually. Despite making a variety of service level changes over the following two years, the Animal Shelter was not able to regain financial sustainability. In fact, the cost impact on the City grew. In June 2014, the Palo Alto Humane Society (PAHS) expressed interest in partnering with the City to operate the Animal Shelter, and in April 2015 the City Auditor presented an audit concluding that Animal Services could not become revenue neutral under its current financial model. Further, the Audit noted that the Animal Shelter faced challenges that were unlikely to be resolved if the City continued to operate the shelter as a city-managed function without a significant increase in general fund subsidy, donations, and/or revenue generating contracts. In approving the Fiscal Year 2016 budget, the City Council directed staff to pursue an alternative service model and allocated $250,000 to assist with possible transition costs with an alternate provider. To date, the City has drawn on some of the $250,000 fund to pay for a facility improvement study and a capital campaign feasibility study. During Fiscal Year 2016, the City Manager’s Office continued outreach and engagement with various community and City department stakeholders, including the Friends of the Palo Alto Animal Shelter (FoPAAS) and PAHS. Staff conducted two Requests for Proposals (RFP) in search of alternative services providers. The first RFP received only one response, which was from Pets in Need (PIN). Due to the low response rate, staff conducted debriefing sessions with local animal care providers who did not submit a response to understand why they did not respond. These included Peninsula Humane Society, Silicon Valley Animal Control Authority, Humane Society of Silicon Valley and the County of Santa Clara. The consistent feedback was that the initial RFP was too prescriptive and limited the provider’s ability to apply existing business models and best practices. City staff met with community stakeholders and the SEIU about the feedback. In collaboration with the stakeholders, the City re-issued a revised RFP with a less prescriptive scope of services. The second RFP received two proposals: one from Pets In Need and one from the County of Santa Clara as well as a letter from the Humane Society of Silicon Valley which recommended that the City close the Shelter and partner with other nearby sh eltering agencies. Staff conducted an evaluation of the three responses and concluded that the most advantageous responder to the City was from Pets In Need; the response from the County of Santa Clara was City of Palo Alto Page 3 costlier and less comprehensive. PIN’s bid anticipated total expenses of about $1.25 million annually (half of which would be covered through donations) while the County’s proposal anticipated costs of approximately $1.53 million. In September 2016, Council directed staff to proceed with exclusive negotiations with Pets in Need. Since that time, the City has been in negotiations with PIN on terms for a public-private partnership to operate the Palo Alto Animal Shelter. Because the City Auditor found that the existing Animal Shelter is outdated and inadequate to meet modern animal -care standards, the City and PIN have concurrently negotiated an Operations and Management Agreement for the existing shelter, a Capital Improvement Plan for the City to fund needed improvements at the current facility, and an evaluation of the potential for PIN to launch a successful capital campaign to fundraise for a new shelter facility. Discussion The attached draft agreement provides a positive path forward for the Palo Alto Animal Shelter. As we ask for Council’s approval of the agreement, Pets In Need is concurrently reviewing the agreement for approval from their board of directors. City staff believe that the attached draft agreement addresses Pets in Need’s outstanding concerns regarding the terms and conditions of the Agreement. Therefore, City staff believe that any changes from the attached draft will be minor in nature and will not alter the substantive terms contained in the attached draft. If significant changes are needed, staff will return to Council. Negotiating the contract has been a long process caused in part by the complicated nature of the business and also by the number of unique contract terms. These terms have been extensively negotiated and include: 1) deviation from the City’s standard terms to provide a cap of PIN’s liability; 2) extensive renovations paid exclusively by the City totaling $3.4 million over the first two years of the contract, 3) contract terms related to risks if animal intake volumes change significantly over time; and 4) contingencies in the case that the Animal Shelter building becomes unusable, including Pets in Need’s wind down costs. Highlights of the contract terms between the City and PIN Pets In Need was selected through the RFP process to manage the Palo Alto Animal Shelter for a variety of reasons including their commitment to: • Provide a high quality, full-service shelter operation in Palo Alto • Lead a fundraising campaign to build a new shelter • Work closely with Friends of the Palo Alto Animal Shelter (FoPAAS) and Palo Alto Humane Society (PAHS) • Provide services in a cost-effective manner • Maintain partnership agreements with Los Altos and Los Altos Hills City of Palo Alto Page 4 Notable elements of the contract include the following: 1. Facility Improvements As recommended in the City Auditor’s report, the facility is in need of substantial remodeling or possibly rebuilding. The current facility does not sufficiently keep incompatible animals apart nor meet modern kennel size standards, among other issues. In order to move forward with this contract, the City, together with PIN, has identified $3.4 million of shelter improvements over the next two years. The City has already set aside $831,000 in CIP PE-19002 in FY 19 and needs to add an additional $800,000 in this fiscal year to fund the following immediate improvements: 1) Remodel and expand the medical suite, abate hazardous materials in the medical suite area 2) Install a modular office/classroom at the front of the site 3) Minor improvements to the existing dog kennels A timeline and more information about these upgrades can be found in Attachment A. The above improvements will allow PIN to offer reliable services at the Shelter. The medical suite upgrades will allow PIN to offer a separate entrance and lobby area for veterinary customers, as well as expand storage areas and offer additional privacy during procedures. In addition to the above-named upgrades, this contract requires that the City fund 16 new dog kennels in FY 2020, which will necessitate an additional $1.77 million CIP request in FY 2020. In addition to the improvements above, the City has signed a Letter of Intent (LOI) to rebuild the Animal Shelter in partnership with Pets In Need. In the LOI, the City committed to explore the feasibility of public financing; potentially covering up to 50 perce nt of design and construction of a new shelter, offset by PIN’s private fundraising. The probable fundraising success for a new shelter, as seen in the BuildingBlox Fundraising Feasibility Study (Attachment B), is between $6 million to $8.8 million. This is less than 50 percent of what it would cost to build a new shelter. 2. Shelter Operations Changes The City’s contract with Pets In Need mandates that PIN continue to provide the same services that have been provided by the City’s current Animal Shelter ope ration and that Shelter access remain at least as extensive as it has been under City operation. Staff expects that customer service and access will be enhanced under PIN’s operation, as they increase operating hours and volunteer opportunities. Pets In Need will continue to maintain Palo Alto’s “We Care Alliance” membership with other local shelters, and has a “no kill” philosophy, which staff believes will be a philosophy that has broad community appeal. See attached Frequently Asked Questions prepared by Pets In Need for more information (Attachment E). Only one current shelter service would not be provided if PIN operates the City Shelter: owner requested euthanasia for their pets. This service is typically provided as requested by pet City of Palo Alto Page 5 owners for pets with untreatable illnesses. PIN will only euthanize animals at their discretion and in keeping with the principles of their no-kill mission. There are numerous other nearby private and public clinics and shelters that provide owner requested euthanasia. 3. Site Usage The Animal Shelter is located in the Baylands Conservation Area adjacent to the Municipal Service Center on Bayshore Road. For several years, the City has leased an adjacent portion of the site to Honda for their excess auto inventory storage. Thi s lease has provided approximately $100,000 per year in general fund revenues. PIN is requesting use of the area currently leased to Honda for Animal Shelter use, specifically for an office/classroom modular unit and an expanded pet exercise area. The City has an alternative site available for Anderson Honda at Geng Road. The Animal Shelter site map can be seen at the end of this report as Attachment C. Contract Duration This contract has a five-year term, expiring on January 15, 2024. This term is long enough to provide assurance that the intention is to establish a long -term public-private partnership and ideally, will expire around the time that PIN and the City are ready to develop plans for a more substantial renovation or rebuilding of the facility, which can then be included in the next contract. Impact on City Staff and Ongoing Staffing with a Pets In Need Agreement The City’s current Fiscal Year 2019 budget includes staffing for 10.56 Full -Time Equivalent (FTE) positions in the Animal Services program. Of the budgeted positions, four FTE are dedicated to Animal Control (including one Lead Animal Control Officer and three Animal Control Officers). As planned under the PIN partnership, the four Animal Control positions will remain as City staff housed within the Police Department and will not be included in the transition to Pets In Need. Animal Control Officers will share the Animal Shelter facility with PIN and have been working closely together to ensure a smooth transition. Relationship and facility-sharing terms are also described clearly in the Operating Agreement between the City and PIN. City representatives have negotiated an agreement with SEIU, Local 521 for the five impacted employees at the Palo Alto Animal Shelter who will be given layoff notices once this contract is adopted. SEIU 521 and the City have negotiated a severance package beyond that which is currently outlined in the SEIU 521 contract. The severance package is expected to cost approximately $75,000 which staff proposes to fund out of the $250,000 transition cost funds. This agreement with SEIU, Local 521 will come before Council for approval in the coming weeks. This public-private partnership with Pets in Need will be managed by the Community Services Department. This partnership will require oversight as City staff will need to oversee short -term facility improvements and assist in PIN’s onboarding success. Staff also anticipates that the capital campaign and major facility improvements will require City staff assistance and guidance to ensure the new facility meets both the City’s and PIN’s needs. City of Palo Alto Page 6 Staff recommends that part-time non-benefitted resources be added to the Community Services Department’s Administrative Division to assist with this contract should this partnership move forward. It is anticipated that the additional capacity to manage this contract will add approximately $30,000 in costs in FY 2019 with ongoing costs of $60,000. Resource Impact This contract will require amendments to the Fiscal Year 2019 Budget Appropriation Ordinance for the General Fund and the Capital Improvement Fund. Expenses in the Police Department will be reduced by $355,000 to recognize the staffing realignment and expenses in the Community Services Department will be increased by that $355,000 to budget the funding necessary for the PIN’s contractual operations and temporary resources in CSD to help manage the contract. Additionally, an increase of $800,000 to the Animal Shelter Renovation Project (PE-19002) in the Capital Improvement Fund is recommended for the first year of the Capital Costs, with a corresponding decrease to the Infrastructure reserve. To date, the City has spent $108,000 of the $250,000 which was assigned for the transition to a non-profit partnership. The $108,000 was used for a conceptual design for remodeling or rebuilding the animal shelter and for a fundraising study by BuildingBlox. Approximately $75,000 is needed of the remaining $142,000 to pay for negotiated severance packages for laid - off employees and an additional $58,000 is necessary for transitionary start-up costs for PIN. This contract will also require an additional $2 million be added to CIP PE-19002 in FY 2020 for the additional kennels which staff will include in the FY 2020 Budget process for Council approval. City of Palo Alto Page 7 The ongoing operating impact of contracting with PIN is outlined in the table below: Financial Impact Status Quo Pets in Need FY2020 FY2020 Revenues to the City Revenue from Los Altos and L.A. Hills 244,000 244,000 Revenue from Operations 409,000 22,000 Total Revenue 653,000 266,000 Shelter Expenses Staffing 1,224,000 103,000 Utilities and other City expenses 203,000 82,000 Contracts 44,000 787,000 Contract Contingencies 100,000 Shelter Expense Total 1,471,000 1,072,000 Animal Control Expenses Staffing 481,000 536,000 Utilities and other City expenses 90,000 90,000 Animal Control Expense Total 571,000 626,000 Net General Fund Impact -1,389,000 -1,432,000 43,000Net General Fund Impact vs. Status Quo Operations Budget Only Note: Net General Fund Impact - does not include Capital Improvement Costs At PIN’s request the contract also caps PIN’s maximum liability under the agreement to $5 million, which is a deviation from the City’s standard terms which do not include a limit. This liability cap limits the amount that PIN is liable for as to damage to the Animal Shelter property, the amount that PIN must indemnify the City for as to third-party claims, and breaches of the Agreement. In the case that PIN is held liable for damages above $5 million, the City may be liable for the excess with this limit in place Policy Implications and Environmental Review Comprehensive Plan Policy C-3.2 - Reinvest in aging facilities to improve their usefulness and appearance. Avoid deferred maintenance of City infrastructure. Environmental review of the capital improvements will occur as each goes forward. Attachments: • Attachment A: Short Term Shelter Improvements • Attachment B: BuildingBlox Fundraising Projections • Attachment C: Palo Alto Animal Services Site • Attachment D: Animal Shelter-PIN Agreement for Services 11-20-18 Clean • Attachment E: FAQs_Pets In Need_Palo Alto_Final Attachment A - Page 1 Attachment A: Details on Animal Shelter Facility Improvements in FYs 2019 and 2020 As recommended in the City Auditor’s report, the facility is in need of remodeling in order to be more functional and safer. The contract between the City and Pets In Need commits the City to make facility improvements in the current fiscal year as well as FY 2020 totaling approximately $3.4 million. The improvements are as follows: 1) Remodel and expand the medical suite 2) Install a modular office / classroom at the front of the site 3) Make minor improvements to the existing dog kennels 4) Install approximately 16 new dog kennels 1) Remodel and expand the medical suite To accommodate more animals, expand the work space and surgery areas, expand quarantine and holding areas, improve efficiency of the medical operation, and offer more privacy to customers and medical staff. • Separate entrance for pet owners and their pets • Dedicated lobby for visitors to the medical area • Separate treatment, preparation, recovery areas, and work station for the medical staff • Abate hazardous materials including asbestos within medical suite area • Anticipated completion: October 2019 with an anticipated cost of $800,000 2) Install a modular office / classroom at the front of the site The installation of the modular office / classroom at the front of the site is to provide a space to be used by the PIN staff for educational programming and other community-focused programming. Such a space will enhance PIN’s ability to share education to the community in addition to having additional space for their staff. • Approximately 1,000 square feet in size with plumbing and electrical • Anticipated completion: June 2019 with an anticipated cost of $500,000 3) Make minor improvements to the existing dog kennels Improvements to the existing dog kennels are intended to make the current dog kennels safer for both dogs and shelter attendants. • Repairs and improvements include: chain link fence repair, replacing or repairing kennel mechanisms, providing shade for the outdoor sections of the kennels, and improvement of drainage system • Anticipated completion: early 2019 with an anticipated cost of less than $100,000 Attachment A - Page 2 4) Install approximately 16 new dog kennels In order to accommodate more dogs at the Shelter, the City will construct 16 new dog kennels. Located as close as practicable to the existing dog kennels and medical area. Kennels will be air-conditioned and heated Anticipated completion: June 2020 with an anticipated cost of $2.1 million. FEASIBLITY CALCULATIONS 43 85% Confidence 65% Confidence Identified Probable Major Donors # Projected $ Ask Projected Low %Projected Low $ Projected High %Projected High $ Tier 0 & 1 26 $9,725,000 25%$2,431,250 38%$3,646,875 Tier 2 66 $6,375,000 34%$2,167,500 45%$2,868,750 Tier 3 74 $2,575,000 25%$643,750 45%$1,158,750 Sub Total 166 $18,675,000 28%$5,242,500 41%$7,674,375 Probable Donors to Be Added 20 -30 $2,500,000 20%$500,000 30%$750,000 Community Campaign Many NA NA $250,000 NA $400,000 Total $5,992,500 $8,824,375 Bayshore Freeway Bayshore Freeway West Bayshore Road East Bayshore Road ane Almanor Lane This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Project Site 0' 150' Palo Alto Animal Services CITY OF PALO ALTOINCORPORATED CAL I F ORN I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto rrivera, 2018-07-09 11:15:35 PaloAltoAnimalServices PetsInNeed (\\cc-maps\Encompass\Admin\Personal\rrivera.mdb) Page 1 of 34 pa-1776805 CITY OF PALO ALTO CONTRACT NO. XXX AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PETS IN NEED FOR PROFESSIONAL SERVICES This Professional Services Agreement (“Agreement”) is entered into on this XX day of XXX, 2018 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY” or “City of Palo Alto”), and PETS IN NEED, a California non- profit public benefit corporation, located at 871 Fifth Ave, Redwood City, CA 94063 ("CONSULTANT" or “Pets In Need”). RECITALS The following recitals are a substantive portion of this Agreement and are hereby incorporated herein by this reference. A. CITY intends to provide animal sheltering and veterinary care, as more fully described in Exhibit “A” (Scope of Services), attached to and made a part of this Agreement, for the City of Palo Alto, and for the City of Los Altos and the Town of Los Altos Hills (the “Contract Cities”), at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA 94303 (the “Palo Alto Animal Shelter” or the “Premises”). B. CITY and CONSULTANT desire for CONSULTANT to perform the Services (as defined below) at the Palo Alto Animal Shelter pursuant to the terms and conditions set forth in this Agreement. C. CITY acknowledges that CONSULTANT is entering into this Agreement in furtherance of its no-kill mission, and that, to the extent permitted by law, CONSULTANT will operate the Palo Alto Animal Shelter as a no-kill shelter. D. CITY and CONSULTANT are entering into this Agreement with the intention of establishing a long -term partnership to offer exceptional shelter services for Palo Alto and its partner cities of Los Altos and Los Altos Hills, while working together towards building a new Pets in Need Palo Alto animal shelter facility. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the services described at Exhibit “A” (“Services”) in accordance with the terms and conditions contained in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution (the “Effective Date”) through <<insert date at end of fiscal year 5 years from start of term>> unless terminated earlier pursuant to Section 19 of this Agreement. The term of this Agreement may be Page 2 of 34 pa-1776805 renewed or extended upon the mutual written agreement of the parties. One year prior to the expiration of the term (or other such timeline as may be mutually agreed upon by the parties), either party may request the parties to begin negotiating in good faith a renewal or extension of this Agreement. SECTION 3. USE OF PREMISES. CONSULTANT’s use of the premises shall be subject to the additional terms set forth on Exhibit “D” (Use of Premises) attached hereto. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be in the amount of, and shall not exceed three-million, four-hundred forty thousand six-hundred twenty six dollars and ten cents ($3,440,626.10) as detailed in Exhibit “B” (Compensation). CONSULTANT agrees to complete all Services within this amount. 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. Notwithstanding the foregoing, a contingency fund of two-hundred thousand dollars ($200,000) (the “Contingency Fund”) shall be available; as well as a fund for the compensation of renovation delays (“Compensation of Renovation Delays Fund”) of sixty thousand dollars ($60,000) shall be available, as detailed in Exhibit “B” (Compensation). In the event the Contingency Fund and the Compensation of Renovations Delays Fund are utilized as provided for herein, the total compensation for Services, reimbursable expenses and the costs payable by CITY to CONSULTANT under this Agreement, shall be and shall not exceed three million, seven-hundred thousand, six- hundred twenty-six dollars and ten cents ($3,700,626.10) as detailed in Exhibit “B” (Compensation), subject to Section 19 (“TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES”). SECTION 5. INVOICES. In order to request payment, CONSULTANT shall invoice the CITY for payment on a monthly basis. Invoices shall describe the services performed and any charges by subcontractors with supporting documentation. CONSULTANT’s invoice shall be submitted to the City’s project manager for payment at which point the CITY has 30 business days from the date of the submission to render payment to the CONSULTANT. Invoices must also include CONSULTANT name, address, contract number, description of services, date of services, and compensation amount. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform or supervise, as applicable, the Services required by this Agreement and that its personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, and its employees have and shall maintain (and that it shall require its subcontractors, if any, to have and maintain) during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. Notwithstanding anything to the contrary in this Agreement, the representations and warranties in this Section 6 are exclusive and are in lieu of all other warranties of any kind, whether express or implied (including, without limitation, the implied warranties of merchantability, fitness for a particular purpose and noninfringement, and all warranties that may arise from course of dealing, course of performance or usage of trade), all of which are hereby expressly disclaimed. Page 3 of 34 pa-1776805 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 are applicable to the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of correcting such errors and omissions, any change order markup costs, or costs arising from delay caused by such errors and omissions or unreasonable delay in correcting such errors and omissions. SECTION 9. [RESERVED]. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT (a subcontractor) to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations without the prior written consent of the City Manager. The City Manager shall have sixty (60) days from receipt of Consultant’s notice of proposed assignment to accept or decline the proposed assignment in writing. If the City Manager declines the proposed assignment, he or she shall state the basis for the decision in the written notice to CONSULTANT. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment not expressly contemplated under this Agreement, or made without the approval of the City Manager shall be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:1 CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning subcontractor compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subcontractor as more fully set forth in Section 16 of this Agreement. CONSULTANT shall change or add subcontractors only with the prior approval of the city manager or his designee. The City Manager shall have thirty (30) days from receipt of CONSULTANT’s request to approve or decline in writing CONSULTANT’s request to change or add subcontractors. 1 MoFo Note: PIN to provide proposed list. Page 4 of 34 pa-1776805 SECTION 13. PROJECT MANAGEMENT. CONSULTANT shall assign its executive director, who currently is Al Mollica, as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and as the project coordinator to represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the project manager (including if, at any time, Al Mollica no longer serves as executive director of CONSULTANT), CONSULTANT shall promptly notify the CITY’s project manager of such substitution and cons ider in good faith CITY’s requests with respect to such substitution. The parties agree that during the term of this Agreement and for all purposes of this Agreement, CONSULTANT’S project manager shall be authorized to act as the “Superintendent” of the City’s animal services division pursuant to Section 6.04.100 of the Palo Alto Municipal Code, for purposes of [Sections 6.12.010, 6.12.030, 6.12.050, 6.16.050, and 6.32.040 of the Palo Alto Municipal Code. CITY’s project manager is the Director of Community Services, Community Services Department, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone (650) 463-4900, who is currently Monique leConge Ziesenhenne. The project manager shall be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time with prompt written notice to CONSULTANT. SECTION 14. INTELLECTUAL PROPERTY RIGHTS. 14.1 Definition of Intellectual Property Rights. “Intellectual Property Rights” means patents of any type, design rights, utility models or other similar invention rights, copyrights, mask work rights, trade secret or confidentiality rights, trademarks, goodwill, trade names, logos and service marks and any other intangible property rights, including applications and registrations for any of the foregoing, in any country, arising under statutory or common law or by contract and whether or not perfected, now existing or hereafter filed, issued, or acquired. 14.2 “Pets In Need” Ownership. The parties acknowledge and agree that, as between the parties, Pets In Need owns all Intellectual Property Rights in its name (“Pets In Need”), logos and marks, as may be amended from time to time by Pets In Need. 14.3 “City of Palo Alto” Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in its name (“City of Palo Alto”), logos and marks, as may be amended from time to time by the City of Palo Alto, and in accordance with Palo Alto Municipal Code as may be amended from time to time. 14.4 “Palo Alto Animal Shelter” Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in the name “Palo Alto Animal Shelter”. 14.5 Grant of License by City of Palo Alto. The City of Palo Alto hereby grants to Pets In Need a royalty-free, non-transferable term license, for the term of this Agreement, to use, reproduce, make derivative works, display, and perform publicly the name “Palo Alto Animal Shelter” solely in conjunction with “Pets in Need”, for example, and without limitation, “Pets in Need Palo Alto Animal Shelter” and “Palo Alto Animal Shelter, Page 5 of 34 pa-1776805 operated by Pets in Need,” for purposes of the performance of this Agreement, as provided for herein. 14.6 Name Changes; Development of Logos or Marks. Any name changes, derivative works, or logos or marks as may be developed by Pets In Need with regard to such animal shelter are required to be approved in writing by the City of Palo Alto City Manager or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests in writing within 45 days of receipt of CONSULTANT’s complete written proposal, and shall set forth its basis for any denial in writing. During the term of this Agreement, the City of Palo Alto shall not change such name of such animal shelter, nor develop any derivative works, or logos or marks, with regard to such animal shelter, except as is mutually agreed in writing with the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests within 45 days of Consultant’s complete written proposal, and shall set forth its basis for any denial in writing. Notwithstanding anything to the contrary in this Agreement, CITY agrees that CONSULTANT may offer naming rights for any wing, room, kennel, or other area within the shelter in compliance with the City’s Naming Policy and Procedure. 14.7 Limitations on “Pets In Need Palo Alto Animal Shelter”. The City of Palo Alto agrees that its use of the name “Pets In Need Palo Alto Animal Shelter”, and as may be changed as provided for herein, with regard to the animal shelter that is the subject of this Agreement, as well as any logos or marks that may be developed and approved as provided for herein with regard to such shelter, are strictly limited to the term of this Agreement, and that, unless otherwise agreed by the parties in writing, upon expiration or termination of this Agreement, the City of Palo Alto shall cease and desist all use of such names, logos and marks with regard to such animal shelter in relation to the ongoing operation of such shelter as of the date of such termination or expiration. 14.8 Use of City of Palo Alto Seal or Logo. Any use by Pets In Need of any City of Palo Alto seal or logo is required to be approved in writing by the City of Palo Alto City Manager or designee prior to any publication or any other public use, in any form or media, and in accordance with Palo Alto Municipal Code as may be amended from time to time, provided that the City Manager or his designee shall approve or deny in writing a written request by Pets in Need within ten (10) days of the date of the request, and shall set forth his or her basis for any denial in writing.2 14.9 Use of Pets in Need Seal or Logo. Any use by the City of Palo Alto of any Pets In Need seal or logo is required to be approved in writing by the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media, provided that the Executive Director of PIN or designee shall approve or deny in writing a written request by CITY within twenty (20) days of the date of the request. 14.10 Reservation of Rights. All Pets In Need Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by Pets In Need. All City of Palo Alto Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by the City of Palo Alto. SECTION 15. AUDITS. CONSULTANT shall permit CITY to audit, at any reasonable time 2 MoFo Note: We have reduced the time frame in which City must deliver its decision to 20 days. If needed for any PR or media release, any longer would render the PR or media release obsolete. Page 6 of 34 pa-1776805 during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to CONSULTANT’S performance of the Services under this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY; LIMITATION OF LIABILITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each a “CITY Indemnified Party”) from and against any and all third party 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 reasonable attorneys’ fees, experts fees, court costs and disbursements (“Claims”) to the extent resulting from, or arising out of (i) any act or omission of CONSULTANT that is outside the scope of CONSULTANT’s authority under this Agreement and/or (ii) the negligence or willful misconduct of CONSULTANT or its officers, employees, agents or subcontractors in the performance of this Agreement. To the fullest extent permitted by law, CITY shall indemnify, defend and hold harmless CONSULTANT, its directors, officers, employees and agents (each a “CONSULTANT Indemnified Party”) from and against any and all third party Claims to the extent resulting from or arising out of (i) the negligence or willful misconduct of CITY or its officers, employees, agents or subcontractors in the performance of this Agreement , (ii) any condition in or about the Premises, except to the extent caused by the negligence or willful misconduct of CONSULTANT or a CONSULTANT Indemnified Party. or (iii) CITY’s decision to transition to a consultant-provided service delivery model and City’s decision, based on the information it had at the time, to contract with CONSULTANT to provide the Services.3 16.2. In the event of concurrent negligence of more than one party, its Council members (or directors), officers, employees, agents or subcontractors, the liability for any and all Claims shall be apportioned under the California theory of comparative negligence as presently established or as may hereafter be modified. Nothing in this Agreement shall constitute a waiver or limitation of any rights that a party may have under applicable law in the event of concurrent negligence of persons or entities other than the parties to this Agreement. 16.3. The parties agree to cooperate with each other in the investigation and disposition of third-party Claims hereunder. It is the intention of the parties to reasonably cooperate in the disposition of all such Claims. Such cooperation may include joint investigation, defense and disposition of claims of third parties hereunder. The parties agree to promptly inform one another whenever an incident report, claim or complaint is filed or when an investigation is initiated concerning this Agreement. Notwithstanding the foregoing, in the event of a conflict in interest, each party may conduct its own investigation and engage its own counsel. 16.4. Each party agrees to mitigate any loss or damage which it may suffer in consequence of any breach by the other party of the terms of this Agreement. or any fact, matter, event or circumstance giving rise to a Claim. 16.5. LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR ELSEWHERE, NEITHER Page 7 of 34 pa-1776805 PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS IN CONNECTION WITH THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH POTENTIAL CLAIM, LOSS OR DAMAGE. 16.6. LIMITATION OF LIABILITY OF CITY. EXCEPT WITH REGARD TO CITY'S OBLIGATIONS TO INDEMNIFY AND HOLD HARMLESS THE CONSULTANT PURSUANT TO THIS SECTION 16, CITY’S PAYMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT PROVIDED FOR IN SECTION 4 (NOT TO EXCEED COMPENSATION) OF THIS AGREEMENT. 16.7 LIMITATION OF LIABILITY OF CONSULTANT. EXCEPT AS PROVIDED IN THE IMMEDIATELY FOLLOWING SENTENCE, IN NO EVENT SHALL THE TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY EXCEED FIVE MILLION DOLLARS. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, shall not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. No waiver of a condition or nonperformance of an obligation hereunder is effective unless it is in writing signed by the authorized representatives of the parties hereto and, as applicable, approved as required under the Palo Alto Municipal Code or Charter. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain, as soon as practicable following the date of this Agreement, and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "C". CONSULTANT shall be responsible for ensuring that its subcontractors retained to perform Services under this Agreement, if any, shall obtain and maintain in full force and effect during the term of the subcontractor’s engagement, , the insurance coverage described in Exhibit “C,” as well as a policy endorsement naming CITY as an additional insured under any policies required in this Section 18. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-VII or higher which are licensed or authorized to transact insurance business in the State of California. 18.3. CONSULTANT shall file with CITY certificates evidencing such insurance as soon as practicable following the date of execution of this Agreement but in no event any later than 7 days prior to the first day of the term of this Agreement . The certificates shall be subject to the approval of CITY’s Risk Manager and shall contain an endorsement stating that the insurance is primary coverage and shall not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within five (5) business days of the CONSULTANT’s receipt of Page 8 of 34 pa-1776805 such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit either party’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may terminate this Agreement or suspend the performance of the Services, in whole or in part, in the event of a material breach of CONSULTANT’s obligations to CITY under this Agreement, which breach is not cured by CONSULTANT within (60) days of receipt of written notice from CITY to CONSULTANT detailing the nature of such failure. The City Manager may terminate this Agreement without cause by giving one-year prior written notice thereof to CONSULTANT. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services, in whole or in part, in the event of a material breach of CITY’s obligations to CONSULTANT under this Agreement, which breach is not cured by CITY (i) with respect to material breach of CITY’s payment obligations herein, within thirty (30) days of receipt of written notice from CONSULTANT to CITY, or (ii) with respect to material breach of all other CITY obligations hereunder, within sixty (60) days of receipt of written notice from CONSULTANT to CITY detailing the nature of such breach. CONSULTANT may terminate this Agreement without cause by giving one-year prior written notice thereof to CITY. 19.3. In the event of any suspension or termination hereunder, CITY shall pay CONSULTANT for the Services rendered and materials delivered to CITY (i) on or before the effective date of such suspension or termination and (ii) in accordance with this Agreement. CITY shall pay such amounts to CONSULTANT within thirty (30) days after receipt of CONSULTANT’s invoice. To the extent that CITY has prepaid any fees, CONSULTANT shall fund to CITY any prepaid fees on a pro-rata basis to the extent such fees are attributable to the period after the termination date, and CITY shall have no obligation to pay unpaid fees that would have become due during the remaining Term had this Agreement not been terminated. 19.4 The following Sections shall survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.3, this 19.4, 20, 25, and 27. SECTION 20. NOTICES. Any notice provided for in this Agreement shall be in writing and shall be either (i) personally delivered, (ii) received by certified mail, return receipt requested, or (iii) sent by reputable overnight courier service (charges prepaid) to the recipient at the address indicated below. To CITY: City of Palo Alto, City Manager’s Office 250 Hamilton Ave., Palo Alto, CA 94301 Page 9 of 34 pa-1776805 With a copy also to the CITY’s Project Manager. To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above. Notices will be deemed to have been given hereunder (i) when delivered personally to the recipient, (ii) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid) or (iii) five (5) business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid. SECTION 21. CONFLICT OF INTEREST 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it shall not employ subcontractors or other persons or entities 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 shall be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. CITY agrees and acknowledges that, as of the date of hereof, CONSULTANT is not a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, and that therefore CONSULTANT shall not be required to file the financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the perf ormance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department (and copies of which have been provided to CONSULTANT by CITY), incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, Page 10 of 34 pa-1776805 reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s project manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office, and a copy of the current policy has been provided to CONSULTANT by CITY. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the CITY, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.30 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION . 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 shall terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS The Services are not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance of the Services in accordance with applicable law including without limitation SB 7. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions. 27.2. In the event that an action is brought, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Santa Clara, State of California. Page 11 of 34 pa-1776805 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto shall remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and shall be deemed to be a part of this Agreement. 27.8. In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), this Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9. If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform CITY as soon as practicable, but no later than 24 hours after learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without CITY’s express written consent. 27.10. All unchecked boxes do not apply to this Agreement. 27.11. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12. This Agreement may be signed in multiple counterparts, which, when executed and delivered by the parties hereto, shall together constitute a single binding agreement. This Agreement may be signed using the City’s Docusign platform. [signature page follows] Page 12 of 34 pa-1776805 CONTRACT No. C17161146 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee PETS IN NEED Officer 1 By: ____________________________ Name: _________________________ Title: __________________________ Officer 2 By: ____________________________ Name: _________________________ Title: __________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: COMPENSATION EXHIBIT “C”: INSURANCE REQUIREMENTS EXHIBIT “D”: USE OF CITY PREMISES Page 13 of 34 pa-1776805 EXHIBIT “A” SCOPE OF SERVICES PETS IN NEED (“CONSULTANT”) agrees to provide Animal Shelter Services as described in Section II below at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA, for the City of Palo Alto (“CITY”) and the Contract Cities. CITY agrees to perform the obligations as described in Section III below. I. DEFINITIONS The following terms as used in this Exhibit “A” Scope of Services shall have the meaning provided below: A. “Diseased and crippled animal” means those animals which are known or believed to be infected with any dangerous or communicable disease, or which have an incurable, crippled condition or which are afflicted with any painful disease which is believed to be incurable. B. "Dangerous animal" means any dog or other animal which demonstrates a propensity to assault, bite, scratch or harass people or other animals without provocation. There shall be a rebuttable presumption that any animal that bites a person is a dangerous animal. Capitalized terms used but undefined herein shall have the meanings set forth in the Agreement for Professional Services (this “Agreement”) to which this Exhibit is attached and of which it forms a part. II. PETS IN NEED RESPONSIBILITIES: 1. Animal Shelter Services. CONSULTANT shall perform the following sheltering services and shall provide shelter supplies, animal attendants, supervisors and administrative personnel, and any other personnel, supplies and equipment, reasonably required to perform the following services (“Shelter Services”): a) Shelter of abandoned, surrendered, impounded, lost or stray domestic animals brought to the shelter by CITY or its Contract Cities, its residents, or personnel. b) CONSULTANT may shelter and provide services to animals outside the scope of paragraph (a) above (“non-City animals”) including moving animals between the Palo Alto Animal Shelter Pets In Need Redwood City facility on a space- available basis and at CONSULTANT’s sole expense for all costs, including labor, equipment, supplies, food, and medication. At no time shall animals within the scope of paragraph (a) above be denied services due to services provided to non-City animals. c) For the avoidance of doubt, to the maximum extent permissible by law, CONSULTANT shall have exclusive Page 14 of 34 pa-1776805 discretion over how long an animal is sheltered, including exclusive discretion to shelter an animal for a longer period than the statutory minimum number of days This section shall not be interpreted to authorize funds in addition to those specified in this Agreement, and CONSULTANT shall be responsible for managing the length of animal sheltering within the funds and resources authorized by this Agreement. d) Quarantine of biting animals. e) Rabies testing of suspect animals. f) Provision for reclaim of abandoned, lost or stray domestic animals during established business hours. g) Shelter staff shall make every effort to identify lost animals (through ID tags and microchips) and to contact owners. h) Be CITY’s and Contract Cities’ main point of contact (by phone, in-person, and electronic means) regarding animal shelter services, including inquiries regarding missing pets. i) Provide medical evaluation and treatment, if necessary, to all incoming animals. This includes vaccinations, and spay and neuter surgeries to domestic animals. j) Euthanasia and disposal of abandoned, lost, impounded, or stray domestic animals that are unclaimed by their owners and found to be diseased and crippled and/or dangerous as defined by Palo Alto Municipal Code and California State Law. k) For purposes of clarity, owner-requested euthanasia is not a service required under this Agreement, and CITY acknowledges that CONSULTANT has elected not to provide or subcontract this service. l) CONSULTANT shall maintain a public website, separate from the CITY’s website, with information including without limitation: shelter hours, volunteer opportunities, adoption information, medical services offered and information about those services and contact information. m) Consultant shall allow CITY Animal Control Officers access to the shelter at all times for purposes of dropping off animals and provide reasonable accommodation for Animal Control Officers to begin and end their shifts, and complete administrative work in the shelter. n) CONSULTANT shall maintain, repair and replace all surgical room equipment, cages, hoses, and other equipment at the facility. o) CONSULTANT shall comply with all federal, state, and local laws in effect applicable to the Services upon commencement of the provision of the Services, and shall be subject to inspection by the CITY and other duly authorized federal, state, and local authorities to insure Page 15 of 34 pa-1776805 such compliance. This includes the applicable provisions of Palo Alto Municipal Code Title 6, as amended from time to time. For the avoidance of doubt, this provision shall not be construed to expand the scope of the Services as expressly set forth in this Exhibit “A”. p) CONSULTANT shall use commercially reasonable efforts to offer comprehensive volunteer and educational programs which may include, without limitation: animal fostering programs, dog walker programs, and animal care trainings. q) When appropriate, in CONSULTANT’S sole discretion, CONSULTANT may partner and/or coordinate with adoption programs, rescue groups, and other no-kill shelters to maximize the shelter’s adoption rate and/or place animals in suitable foster care. CONSULTANT shall seek CITY’s approval for partnerships in which CONSULTANT pays or receives money or other financial consideration, solely to the extent that such partnership relates to CONSULTANT’s performance of the Services. CITY shall approve or deny in writing any such request within thirty (30) days after receipt of such request. r) Develop and maintain communication with CITY by: 1. Responding in a timely manner to emails and phone calls. 2. Communicating and resolving issues and concerns promptly. s) Develop, in cooperation with CITY, a feral cat plan. The plan shall include how PIN handles feral cats, spay/neuter provisions, and release of feral cats. CONSULTANT shall not release feral cats within the City of Palo Alto or any of its Partner Cites. t) Develop, in cooperation with CITY, a disaster preparedness plan. 2. Medical Services a) CONSULTANT shall provide supplies, and professional and trained personnel, employed or under subcontract or contract, necessary to perform the following services (“Medical Services”): Provision of veterinarian services twenty-four (24) hours per day to treat and provide veterinarian care for impounded animals, including for animals picked-up by Animal Control Officers. CONSULTANT may, in its sole discretion and at its sole expense, arrange after-hours emergency care through any veterinary subcontractor. b) Monitor quarantined animals. c) For a fee, conduct vaccination clinics and have available, free of charge to the public, rabies control information. d) Conduct microchipping. e) For a fee, which shall be posted on CONSULTANT’s website, Page 16 of 34 pa-1776805 at the same rate established for City residents and Contract Cities, provide access to the CONSULTANT’s low cost spay and neuter clinic. f) The City’s Animal Control Officers shall be licensed through CONSULTANT’S medical authority to administer euthanasia as necessary for animals that are unclaimed by their owners and found to be diseased and crippled and/or dangerous as defined by Palo Alto Municipal Code. g) Comply with all laws requiring reporting of animal-borne diseases, including rabies. This includes Municipal Code section 6.32.020, as amended from time to time. 3. Operating Schedules a) CONSULTANT shall provide Shelter Services for the animals twenty-four (24) hours a day, seven (7) days a week. b) CONSULTANT shall provide emergency veterinary services in accordance with Section 597(f) of the California Penal Code. c) CONSULTANT shall have shelter staff on site for care of shelter animals seven (7) days per week, 365 days per year. d) CONSULTANT shall have business offices and public access areas of shelter to be open to the public on a schedule designed to benefit the public and facilitate the services established in this Agreement, provided that the public hours and access be a minimum of six (6) days per week and forty (40) hours per week. CONSULTANT shall post the public hours on its website, and inform CITY and Contract Cities in writing of any change in hours. e) It is understood by both parties that PIN will require X days to be fully staffed and operational. f) CONSULTANT shall observe the following holiday closures for public hours: January 1 (New Year’s Day) Martin Luther King’s birthday Memorial Day July 4th (Independence Day) Labor Day Thanksgiving Day Day after Thanksgiving Christmas Eve (1/2 Day) Christmas Day 4. Dead Animal Services a) CONSULTANT shall provide storage facilities, disposal mechanisms, administrative personnel, and any other personnel, supplies and equipment reasonably required to perform the following services (“Dead Animal Services”): i. Identification of and notification to the owner of the dead Page 17 of 34 pa-1776805 animal, whenever possible; and ii. Disposal of the body of the dead animal. CONSULTANT shall offer animal owners the option to pay for cremation services, in which case, CONSULTANT shall arrange for cremation with the appropriate subcontractor. b) CONSULTANT shall subcontract with one or more subcontractors for the maintenance of a dead animal storage facility as well as collection of dead animals and maintenance of the facility and equipment, all at CONSULTANT’s sole expense. 5. Wildlife a) The impoundment of wildlife shall be managed by CONSULTANT staff. An assessment of wildlife shall be done by medical staff, if necessary. If the animal is severely injured or sick, a licensed veterinarian shall be consulted, and the case shall be fully documented in accordance with AVMA guidelines. This Agreement assumes that all wildlife animals will continue to be transferred to the Peninsula Humane Society at no cost to the CITY or to CONSULTANT, as set forth in the Memorandum of Understanding between CONSULTANT and Peninsula Humane Society dated November 17, 2017. Should Peninsula Humane Society request fees for wildlife intake, CONSULTANT and the CITY shall negotiate in good faith to amend this Agreement per Section 27.4 herein, to provide for the reimbursement by CITY to CONSULTANT of such fees (upon documentation of such fees by CONSULTANT reasonably satisfactory to CITY). 6. Records Management a) CONSULTANT and CITY’s Animal Control shall maintain joint access to the Chameleon database, as provided for in this section. CONSULTANT is responsible for keeping the Chameleon database updated in a timely fashion. Chameleon data is designated “For Official Use Only,” meaning, CONSULTANT may only use such data for the performance of this Agreement, and not for marketing or any other purposes without the prior written consent of the CITY’s City Manager or designee. Annual maintenance fees for the Chameleon software shall be paid by CITY. Repair and replacement cost of the server and supporting hardware, if any, shall also be paid by CITY. CONSULTANT shall not have access to certain areas of the database, such as saved criminal information (as required by law). CITY shall work with the database programmer/vendor to ensure that such areas of the database are not accessible by CONSULTANT. All data entered into the Chameleon database by any party shall be property of CITY. b) Monthly Report Page 18 of 34 pa-1776805 i. CONSULTANT shall deliver to CITY during the term of this AGREEMENT, and within thirty (30) days of the end of each month, a monthly Animal Shelter and Impound Report summarizing monthly and year-to-date services provided by CONSULTANT for CITY. This report shall include, but not be limited to, the following information: (1) Licensing statistics (2) Medical statistics including spay and neuter, microchips, and vaccinations (3) Volume of animals in and out of facility by type of animal and type of outcome. (4) For each animal, which city in which it was picked up (if known). c) Financial Reporting i. CONSULTANT shall deliver to CITY during the term of this Agreement, and within ninety (90) days of the end of each May, an audited financial report covering CONSULTANT’s operation of the Palo Alto Animal Shelter. d) Retention of Records, Right to Monitor and Audit i. CONSULTANT shall maintain records relating to CONSULTANT’s operation of the Palo Alto Animal Shelter for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later, and such records shall be subject to examination and/or audit of CITY, a Federal grantor agency, and the State of California for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later. ii. Records/accounts relating to CONSULTANT’s operation of the Palo Alto Animal Shelter shall be open and accessible to inspection upon reasonable notice during normal business hours throughout the term of this Agreement and for a period of four (4) years thereafter or until any audits or reviews are completed, whichever comes later. iii. Parties, upon request by either party to the other, shall meet on occasion to consider revisions which may be needed to the reporting forms created to document performance of the Services provided. 7. Fundraising, Marketing and Branding a) CONSULTANT shall create and manage fundraising, marketing, volunteer development and education programs. Local volunteer groups shall be integrated into fundraising and other activities and events when reasonably possible. The “Pets In Need Palo Alto Animal Shelter” shall be the initial brand name of the shelter to be Page 19 of 34 pa-1776805 operated by CONSULTANT pursuant to this Agreement, and any logo or name change shall be approved in writing by CONSULTANT and the CITY’s City Manager or designee prior to use. 8. Licensing and other fee collection a) CONSULTANT shall charge fees for services according to the CITY’s municipal fee schedule or according to state or local laws. Fees for any services not covered by CITY’s municipal fee schedule or state or local laws shall be set by CONSULTANT. CONSULTANT shall take CITY’s comments into consideration when setting such fees. CITY shall take CONSULTANT's comments into consideration when setting its municipal fee schedule. b) CONSULTANT shall manage dog licensing including processing, issuance, and renewals on behalf of CITY and Contract Cities. Licensing information shall be included on all Incident Reports and, additionally, provided to CITY on an as requested basis. CONSULTANT shall collect all associated license fees on behalf of CITY, at the fee amounts set by CITY. Licensing includes the licensing of dogs as defined in Municipal Code Chapter 6.16 as amended from time to time. c) CONSULTANT shall process citation fees, and shall remit 100% of these fees to the CITY on a quarterly basis. PETS IN NEED shall process and retain all other fees and revenues, including without limitation adoption fees, spay, neuter, impoundment, permit, license, and other fees as listed in the municipal fee schedule. d) 9. Contract Cities ; WeCare Alliance a) CITY and CONSULTANT shall provide services to the City of Los Altos and the Town of Los Altos Hills (the “Contract Cities”) pursuant to the CITY’s amended Regional Animal Care and Control contracts approved by City Council on June 2, 2014. These contracts are valid through June 30, 2019 with an option for an additional five-year extension. The Parties agree that this Agreement assumes that the Contract Cities’ contracts will be in effect during the entire term of this Agreement. b) CITY shall consult with CONSULTANT should the contracts with the Contract Cities be amended or terminated, provided that if any such amendment or termination is reasonably expected to result in increased costs to CONSULTANT, such amendment or termination (if initiated by CITY) shall be subject to CONSULTANT’s prior written consent. CONSULTANT shall notify CITY in writing of its consent or lack thereof within forty-five (45) Page 20 of 34 pa-1776805 days after receipt of CITY’s written request, which request shall include the precise language of such amendment or all relevant details of such termination (whichever applies). If CONSULTANT consents, the parties shall amend this Agreement (i) to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSULTANT. c) CITY may contract with additional cities, subject to CONSULTANT’s prior written consent. CONSULTANT shall notify CITY in writing of its consent or lack thereof within forty- five (45) days after receipt of CITY’s written request, which request shall include the text of such proposed contracts. If CONSULTANT consents, CONSULTANT and CITY shall amend this Agreement (i) to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSULTANT. d) CONSULTANT shall continue membership in the WeCare Alliance (www.sheltersfirst.org). 10. Cost Overruns or Changes a) If CITY or state laws are passed during the term of this Agreement that require a greater level of service, CITY and CONSULTANT agree to negotiate in good faith regarding the reimbursement of CONSULTANT for additional costs associated with implementing the new laws. If Parties are unable to agree on reimbursement costs, CONSULTANT shall document the increased costs and submit to the City Auditor. The City Auditor shall conduct an independent audit. Parties agree to accept the City Auditor’s determination of any increased costs. b) If current state laws are amended, repealed, otherwise changed or suspended during the term of this Agreement that reduce, alter, or remove existing relevant mandates, either party may require the other party to meet to discuss possible financial and operational impacts of levels of service per the change in law, including but not limited to any decrease in contract amounts paid to CONSULTANT, provided that no such decrease shall be effective unless agreed by CONSULTANT. III. CITY RESPONSIBILITIES. CITY shall: 1. Provide an adequate and safe facility for CONSULTANT to perform the Services. 2. Provide Animal Control Officers (ACOs) and their services for CITY and Contract Cities. This shall include maintenance of ACO vehicles and equipment. Establish fees for dog licensing and animal impounding. Page 21 of 34 pa-1776805 3. With regard to the shelter facility, provide and/or pay for utilities, taxes, electricity, water, gas, waste water, recycling, waste (not animal disposal), internet, Chameleon software/database and associated support, and Chameleon server hardware and support (if any), which collectively is estimated to cost approximately $55,000 per year. 4. Develop and maintain proactive and consistent communication and rapport with CONSULTANT a) Respond in a timely manner to emails and phone calls b) Communicate and resolve issues and concerns immediately c) Provide excellent customer service to CONSULTANT staff and customers 5. Develop, in cooperation with CONSULTANT, a disaster preparedness plan 6. Administer the agreements between the CITY and the Contract Cities regarding animal shelter services. Page 22 of 34 pa-1776805 EXHIBIT “B” COMPENSATION CITY agrees to compensate CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the schedule below. SCHEDULE TO EQUAL AND NOT TO EXCEED (SUBJECT TO SECTION 19 “TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES”) Year 1 $708,000.00 Year 2 $663,000.00 Year 3 $676,260.00 Year 4 $689,785.20 Year 5 $703,580.90 Sub-total Basic Services $3,440,626.10 Reimbursable Expenses $0.00 Total Basic Services and Reimbursable expenses $3,440,626.10 Contingency Funds $200,000.00 (not to exceed $40,000 per year) Additional Compensation for Renovation Delays $60,000.00 (not to exceed $5,000 per month; see Exhibit D, Section 16.7 ) Maximum Total Compensation $3,700,626.10 ONE-TIME ADVANCE Simultaneous with the execution of this Agreement, CITY shall pay to CONSULTANT One Hundred Seventy Eight Thousand dollars ($178,000) as an advance against the first three months of CONSULTANT’s fee. CONSULTANT shall not submit an invoice for the remainder of its fee for the third month until the end of such third month. CONTINGENCY FUNDS CITY shall provide contingency funds to CONSULTANT in the following circumstances, subject to written approval by the CITY’s project manager, and to equal and not to exceed the amount in this Exhibit C: 1. CITY shall provide contingency funds for after-hours and emergency veterinary care if: a. CONSULTANT has already spent at least $10,000 in the past 12 months on a rolling basis on after-hours or emergency veterinary care that was Page 23 of 34 pa-1776805 reasonable based on AVMA guidelines; and b. The emergency or after hours treatment being sought is reasonable based on AVMA guidelines. 2. CITY shall provide contingency funds for hoarding cases if: a. CONSULTANT has already served more than 600 animals from the CITY or the Contract Cities in the past 12 months; and b. The hoarding case involves a minimum of 12 animals brought at once that are expected to stay in the facility for at least 30 days each. 3. CITY shall provide contingency funds for the actual costs of wildlife intake at the Peninsula Humane Society if: a. The Peninsula Humane Society begins charging for the costs of wildlife services; and, b. This Agreement has not yet been amended to reflect the additional costs of such services. 4. CONSULTANT may also request contingency funds in other unforeseen circumstances. To request contingency funds, the CONSULTANT shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, for such services. In addition to the factors above, CITY may consider whether contingency funds are appropriate within existing funding and workload, and contingency funds shall not be released if CONSULTANT has not exhausted unused or unallocated funds. The CITY shall notify CONSULTANT in writing of its approval or lack thereof within ten (10) days after the date of CONSULTANT’s proposal. If CITY’s project manager does not approve CONSULTANT’s request, CONSULTANT may appeal that decision to the City Manager. If authorized by CITY, the contingency services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s project manager and CONSULTANT, and payment shall be made to CONSULTANT, no later than ten (10) days after the date of CITY’s authorization. Contingency funds are subject to all requirements and restrictions in this Agreement. ADDITIONAL COMPENSATION FOR RENOVATION DELAYS The City shall pay Consultant up to $5,000 monthly for up to twelve consecutive months pursuant to the terms of Exhibit D, Section 16.7 (“Additional Compensation for Renovation Delays”) of this Agreement. REIMBURSABLE EXPENSES No Reimbursable Expenses are authorized by CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein. ADDITIONAL SERVICES No Additional Services are authorized by the CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein. Page 24 of 34 pa-1776805 Page 25 of 34 pa-1776805 EXHIBIT “C” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A- :VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES WORKER’S COMPENSATION YES EMPLOYER’S LIABILITY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE $5,000,000 $5,000,000 $5,000,000 $5,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROPERTY INSURANCE ALL RISK, FULL REPLACEMENT INSURANCE VALUE YES BUSINESS INTERRUPTION INSURANCE PROFESSIONAL LIABILITY, YES INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $2,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONTRACTORS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. 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 Page 26 of 34 pa-1776805 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 CONSULTANT 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, CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. II. INSURANCE COVERAGE MUST INCLUDE: 1. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND 2. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. 3. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto at the following URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569 OR http://www.cityofpaloalto.org/go v/depts/asd/planet_bids_how_to.asp Page 27 of 34 pa-1776805 EXHIBIT D USE OF CITY PREMISES SECTION 1. USE OF PREMISES. 1.1 Use of Premises. Consultant and its employees, agents and subcontractors shall have the right to enter and use the Premises during the term of this Agreement for the sole purposes of performing the Services and fulfilling Consultant’s obligations under the Agreement, as detailed in this Section 3 (“Use of Premises”) of this Exhibit D. 1.2 Subject To City Uses. Notwithstanding the provisions of Section 3.1 above, City’s Animal Control Officers and their supervisors have the right to enter the Premises at any time. In addition, City has the right to enter Premises at any time for the purpose of inspection, emergency response and completion of special projects. Consultant shall, at City’s request, immediately remove any property or improvements on the Premises to allow City access to the utilities or other City owned facilities/property. In the event City deems it necessary, for purposes of health, safety or building code requirements, in City’s sole discretion, City shall have the right to move, alter or remove any such property or improvements and City shall be responsible for restoring or returning the same to its prior condition. For the avoidance of doubt, subject to the foregoing provisions of this Section 3.2, Consultant shall have exclusive control over the Pr emises during the term of this Agreement, and shall have the right to exclude third parties and trespassers onto the Premises. 1.3 Responsibility for Routine Interior Cleaning and Janitorial Activities. In connection with its use, Consultant shall maintain the Premises in a good, clean, safe, secure, sanitary, and slightly condition, so far as the Premises may be affected by Consultant’s activities under this Agreement. Specifically, Consultant shall undertake routine cleaning and janitorial activities as necessary to maintain the interior of the Premises in an orderly condition. Consultant shall maintain all of its own equipment, furnishings and trade fixtures upon the Premises which are required for the maintenance and operation of the Palo Alto Animal Shelter. 1.4 Responsibility for Maintenance and Utilities. Outside of Consultant’s responsibilities for routine interior cleaning and janitorial activities in Section 1.3 of this Exhibit, City shall be responsible for the maintenance of the interior and exterior of the Premises and the surrounding grounds, including (without limitation) the maintenance, repair, and replacement of the roof, building structure, improvements, and the HVAC, electrical, plumbing, and other building systems. City shall perform any alterations to the Premises (1) required by applicable l aws or laws of general application (i.e. ADA, seismic regulations, and building codes) and (2) to ensure that utilities (including, without limitation, water, gas, and electricity) are available to the Premises, in amounts sufficient for Consultant to perform the Services. City shall promptly perform its obligations under this Section 1.4 (“Responsibility for Maintenance and Utilities”). In the event of a maintenance issue that impacts the health and safety of the operations, the City shall respond within 24 hours of receipt of notice from Consultant to develop an action plan to address the issue in an expedited timeframe. SECTION 2. HAZARDOUS MATERIALS. 2.1 Environmental Laws. “Environmental Laws” means any applicable federal, state or local laws and regulations relating to Hazardous Material (including, without limitation, its use, handling, transportation, production, disposal, discharge or storage) or to human health and safety, industrial hygiene or environmental conditions in, on, under or about the Premises, including without Page 28 of 34 pa-1776805 limitation soil, air and groundwater conditions. 2.2 Hazardous Materials. “Hazardous Materials” means any substance, material, waste, pollutant or contaminant which is regulated by applicable law now or in the future as being hazardous, toxic, flammable, carcinogenic, explosive or radioactive, or is potentially injurious to the public health, safety or welfare or the environment. 2.3 Release. “Release,” when used with respect to Hazardous Materials, means any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, depositing, or disposing into or inside the Premises or in the area in the vicinity of the Premises (including any area adjacent to the Premise), or any improvements constructed hereunder by or, on behalf of the Consultant, or in, on, under or about the Premises or any portion thereof in violation of Environmental Laws. 2.4 Remediation. “Remediation” (and derivatives thereof such as an without limitation “remediate”), when used with reference to Hazardous Materials, means any activities undertaken to clean up, remove, contain, treat, stabilize, monitor or otherwise control Hazardous Materials located in, on or under or about the Premises, or which have been or are being, or threaten to be Released into the environment. Remediation includes, without limitation, those actions included within the definition of “remedy” or “remedial action” in California Health and Safety Code Section 25322 and "remove" or "removal" in California Health and Safety Code Section 25323, and as may be amended from time to time. 2.5 No Hazardous Materials. Consultant covenants and agrees that Consultant shall not, nor shall Consultant permit any of Consultant’s agents, employees, invitees, contractors or subcontractors, to cause or permit any Hazardous Material to be brought upon, kept, used, stored, generated, deposited or disposed of in, on or in any area in the vicinity of Premises in violation of Environmental Laws, provided that Consultant may store and use such substances in and on the Premises in such limited amounts as are customarily used in the operation of an animal shelter su ch as the Premises so long as such storage and use is at all times in full compliance with all applicable Environmental Laws and permits. Consultant shall notify the City as soon as possible within 24 hours if and when it learns or has reason to believe that there has been any Release of Hazardous Material in, on, under or about the Premises. The City may request Consultant to provide adequate information for City to determine that any Hazardous Material permitted hereunder is being handled in compliance with all applicable Environmental Laws, permits, manufacturer's application recommendations and consistent with any manufacturer's restrictions, and Consultant shall promptly provide all such information. In the event that any Hazardous Material is Released in, on or about the Premises by Consultant or any of Consultant’s agents, employees, invitees, contractors, or subcontractors, Consultant shall promptly undertake all necessary actions to Remediate the contaminating Hazardous Material from the Premises and to return the Premises and other City property affected thereby, to the condition existing prior to such Release and otherwise investigate and Remediate the Release in accordance with applicable Environmental Laws, at no cost to City. 2.6 Hazardous Material Indemnity. Consultant shall, on behalf of itself and its successors and assigns, indemnify, defend and hold harmless City, its Council members, officers, employees and agents (each a “City Indemnified Party”) from and against any and all claims, liabilities, penalties, forfeitures, losses and/or expenses (including, without limitation, diminution in value of the Premise, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premise, damages arising from any adverse impact or marketing of the Premises and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, reasonable attorneys’ fees, reasonable expert fees, judgments, administrative rulings or orders, fines, penalties, costs of death of or injury), to any person or damage to any property whatsoever (including, without Page 29 of 34 pa-1776805 limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or about the Premises by Consultant, or Consultant’s officers, employees, agents or subcontractors, of Hazardous Material, or by any such party’s failure to comply with any applicable Environmental Law, whether knowingly or by strict liability. Such Consultant indemnity obligations include, without limitation, and whether foreseeable or unforeseeable, all costs of any Hazardous Materials management plan, closure, investigation, repairs, and Remediation and restoration of the Premises to its prior condition. For purposes of such indemnity obligations, any acts or omissions of Consultant, its officers, employees, agents, or subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Consultant. Consultant shall provide the City with written notice of and afford City a full opportunity to participate in any discussions with governmental regulatory agencies regarding any settlement agreement, Remediation or abatement agreement, consent decree, permit, approvals, or other compromise or proceeding involving a Release of Hazardous Materials in, on, under, or about the Premises by Consultant or Consultant’s officers, employees, agents, or subcontractors as detailed in this Section. Notwithstanding the foregoing, Consultant shall have no obligation to indemnify the City or any City Indemnified Party for (i) the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, or agents and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors. SECTION 3. DAMAGE TO UTILITIES. Consultant shall exercise reasonable care to not do anything in, on, under or about the Premises that could cause damage or interference to any City utilities (e.g. gas, water, wastewater, fiber, electric) located in, on, under or about the Premises. Consultant agrees to reimburse City within thirty (30) calendar days of City’s written request for any damages caused to City owned utilities caused by a failure of PIN to exercise reasonable care the Premises. SECTION 4. REMOVAL OR ALTERATION OF IMPROVEMENTS. Without limiting City’s rights under this Exhibit D or this Agreement, Consultant shall promptly, at City’s written request, alter or remove any and all machinery and equipment placed in, on, under or about the Premises by Consultant, as may be necessary to avoid any actual or potential interference with any of City’s use or other structures now or later constructed, or with the maintenance thereof or with any other operations or land uses by City. In the request, City shall have the right to specify reasonable time limits for completion of the work. If after such written notice Consultant fails to complete the requested work within the prescribed time limits, City shall have the right to perform the requested work at Consultant’s expense; within ten (10) days of receipt of a bill, Consultant shall reimburse City for the cost of such work, or City may reduce any outstanding amount due to Consultant under the Agreement by the cost to City of such work. In the event of an emergency City may, at its sole option and without notice, alter, remove or protect any and all improvements installed or placed in, on, under or about the Premises by Consultant. SECTION 5. SURRENDER; DUTIES UPON TERMINATION OR EXPIRATION. Upon the expiration or earlier termination of this Agreement, Consultant shall immediately surrender the Premises in the same condition as received upon completion of the improvements detailed in this Agreement and any other improvements completed by City during the term of this agreement (excepting reasonable wear and tear), broom cleaned, walk-through with City staff completed, and free from hazards and clear of all debris. At such time, Consultant shall remove all of its property from the Premises hereunder, and shall repair, at its cost, any damage to the Premises caused by such removal. Consultant’s obligations under this Section shall survive any termination of this Agreement. Consultant shall deliver to the City the originals of all books, permits, plans, records, licenses, contracts, and other documents pertaining to the Premises and its operation, any insurance policies, bills of sale or other documents evidencing title or rights of the City, and any and all other records or Page 30 of 34 pa-1776805 documents pertaining to the Premise, whether or not enumerated herein, which are requested by the City or necessary or desirable for the ownership and operation of the Premise, which are in the Consultant’s possession. Consultant shall also deliver to City all keys, alarm codes, passwords, and other items used to secure the Premise. Consultant further agrees to do all other things reasonab ly necessary to cause an orderly transition of the management and operation of the Premises without detriment to the rights of the City or to the continued management of the Premise. The provisions of this Section shall survive the expiration or earlier termination of this Agreement until the obligations of the Consultant under this Section are fulfilled to the reasonable satisfaction of the City. SECTION 6. REPAIR OF DAMAGE. If any portion of the Premises or any property of City located on or about the Premises is damaged or at risk of damage by any of the activities conducted by Consultant or anyone acting by or through Consultant, Consultant shall immediately notify City in writing of such damage or risk of damage. City may remedy, but shall not be obligated to remedy, such damage or risk of damage at Consultant’s sole cost, or City may elect to witness Consultant’s repair work. In the event City elects not to remedy such damage or threat, Consultant shall repair any and all such damage and restore the Premises or such property to its previous condition subject to City’s inspection, review and approval. SECTION 7. CITY’S RIGHT TO CURE DEFAULTS BY CONSULTANT. If Consultant fails to perform any of its obligations under this Exhibit D to restore the Premise, remove or alter improvements or repair damage, or if Consultant defaults in the performance of any of its other obligations under this Exhibit D within a reasonable time after demand by City, then City may, at its sole option, remedy such failure at Consultant’s expense; within ten (10) days of receipt of a bill, Consultant shall promptly reimburse the City’s costs (including without limitation all costs, damages, expenses or liabilities incurred by City, reasonable attorneys’, experts’ and Consultants’ fees) in remedying or attempting to remedy such failure, or City may reduce any outstanding amount due to Consultant under the Agreement by the cost to City of such remedial action. In the alternative, the cost thereof may be made a lien on Consultant’s property as provided in section 12.12.010 of the Palo Alto Municipal Code. Any such remedial action by City shall not be construed as a waiver of any rights or remedies of City under this Exhibit D or the Agreement, and nothing herein shall imply any duty of City to do any act that Consultant is obligated to perform. Consultant’s obligations under this Section shall survive the expiration or earlier termination of this Exhibit D. SECTION 8. GENERAL PROVISIONS. (a) If Consultant consists of more than one person, the obligations of each person shall be joint and several. (b) Consultant may not record this Exhibit D or any memorandum hereof. (c) Any sale or conveyance by City of the Premise/Property shall automatically terminate this Agreement as provided for in Section 19 (“Termination”) of this Agreement. SECTION 9. HOLDING OVER. If Consultant remains in possession of the Premises or any part thereof after the expiration of the term of this Agreement, or any renewal option thereto, such occupancy shall be a revocable license from month to month with all the obligations of this Exhibit D applicable to Consultant. Nothing contained Exhibit D or in the Agreement shall give to Consultant the right to occupy the Premises after the expiration of the term of this Agreement, or any renewal option thereto, or upon any earlier termination. SECTION 10. WAIVER OF CIVIL CODE. Consultant expressly waives the benefit of any statute now or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of California, to the extent applicable, which would otherwise afford Consultant the right to make repairs at City’s expense or to terminate this Agreement because of City’s failure to keep Premises in good order, condition and repair. Page 31 of 34 pa-1776805 SECTION 11. ALTERATIONS BY CONSULTANT. Consultant shall not make any alterations or improvements to the Premises without obtaining the prior written consent of the City Manager, except for alterations or improvements that cost less than Ten Thousand Dollars ($10,000.00) and which do not affect any building systems or the structural integrity or any structural components of the Premises. 11.1 Ownership of Improvements. All improvements constructed, erected, or installed upon the Premises by Consultant must be free and clear of all liens, claims, or liability for labor or material and shall become the property of City, at its election, upon expiration or earlier termination of the term, and shall remain upon the Premises upon expiration or earlier termination of this Agreement. Any furniture, fixtures not affixed to the Premises, equipment or other property of Consultant (whether obtained prior to or during the term of this Agreement) shall remain the property of Consultant. In the event that the parties agree to make significant improvements in addition to those in this Agreement, the parties will complete an amendment to this Agreement with regard to such improvements. 11.2 Indemnity for Claims Arising Out of Construction. For the avoidance of doubt, included in Consultant’s obligations under Section 16 (“Indemnity”) of the Agreement to which this is an exhibit, is Consultant’s obligation to indemnify, defend and hold harmless City Indemnified Parties against all Claims arising out of construction and maintenance work performed on the Premises by Consultant or caused to be performed on the Premises by Consultant. 11.3 Certificate of Inspection. In the event Consultant will perform, or cause to be performed, any construction, improvement or alteration or any other work on or to the Premises for which City requires a certificate of completion, then upon completion of any such construction, improvement or alteration, Consultant shall submit to the City Manager a Certificate of Inspection, verifying that such construction, improvement or alteration was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction, as applicable. 11.4 As Built Plans. Consultant shall provide the City Manager with a complete set of reproducible “as built plans” reflecting actual construction within or upon the Premises upon completion of any: (i) new construction or (ii) structural alterations. SECTION 12. ASBESTOS NOTIFICATION. Consultant acknowledges that City has advised Consultant that the Premises contains, or because of its age, is likely to contain asbestos-containing materials (“ACMs”). If Consultant undertakes any alterations, additions, or improvements to the Premises, Consultant shall do so in a manner that avoids disturbing any ACMs present on the Premises. If ACMs are likely to be disturbed in the course of such work, Consultant shall encapsulate or remove the ACMs in accordance with an asbestos-removal plan approved by the City and otherwise in accordance with all applicable laws, including giving all notices required, if any, by California Health and Safety Code §§ 25915-25919.7, as may be amended. SECTION 13. MATERIAL CASUALTY 13.1 Damage and Repair. If a Material Casualty (as defined herein) occurs, then the City shall determine, in its sole and absolute discretion, whether it wishes to continue to operate the Premises as an animal shelter. The City’s failure to provide written notice to Consultant of such election within thirty (30) days after the occurrence of a Material Casualty or other damage or destruction of the Premises shall constitute the City’s election to continue the operation of the Premises as an animal shelter. If the City elects (or is deemed to elect) to continue the operation of the Premises as an animal shelter after a Material Casualty, or if the Premises is damaged but such Page 32 of 34 pa-1776805 damage does not constitute a Material Casualty, then the City shall promptly reconstruct or repair the destroyed or damaged portion of the Premises. City shall pay all costs of repairing and reconstructing the Premises. A “Material Casualty” is a total destruction of the Premises or any damage to the Premises which [ ] [NTD: PIN and City to discuss what would constitute “material” damage]. 13.2 Termination. If City notifies Consultant in writing within thirty (30) days after the occurrence of a Material Casualty that the City elects to not continue the operation of the Premises as an animal shelter after such Material Casualty, then the Agreement shall immediately terminate as of the date such notice is delivered to Consultant. In the event of such termination, (i) City shall pay Consultant’s reasonable costs in winding down the operations at the Premises, including, but not limited to, any costs associated with the termination of employees by Consultant and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which termination occurs (prorated for the number of days in such quarter that elapsed up to the date of termination). 13.3 Continuation. If the City elects (or is deemed to elect) or is obligated to reconstruct or repair the damaged portions of the Premises because such damage does not c onstitute a Material Casualty pursuant to Section 13.1 (“Damage and Repair”), the City and Consultant shall make a determination as to whether the Premises will continue to operate during the reconstruction/repair period. If the parties mutually determine (in their respective reasonable discretion) that the Premises will operate during such period, this Agreement shall remain in full force and effect. If the parties mutually determine (as above) that the Premises will not operate during such period, Consultant’s obligations to provide animal shelter services under this Agreement shall be suspended during such period. In the event of such suspension, (i) City shall pay Consultant’s reasonable costs incurred by Consultant during any such suspension of operations and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which suspension occurs (prorated for the number of days in such quarter that elapsed up to the date of suspension). City shall further pay all reasonable costs incurred by Consultant due to such suspension. The parties will negotiate in good faith to try to provide for animal shelter services to the best of the parties’ reasonable abilities under the circumstances of such a suspension. SECTION 14. CITY IMPROVEMENTS TO PREMISES. The City has worked with Consultant to identify improvements to the Premises. The City shall improve the Premises as follows, subject to the Contingencies described in this section: 14.1 Expansion of Existing Medical Suite. The City shall expand the medical suite at the Premises to accommodate more animals and offer more privacy to customers. The remodeled medical suite would expand into the office area for the shelter and would offer separate entrances for medical customers, separate treatment, recovery, and preparation areas, as well as a lobby for medical customers. The City shall abate asbestos and lead paint within the medical suite area of the Premises. Expected Timeline: Design and Review Timelines: A/E Consultant Procurement: October 8 – November 30, 2018 Schematic Design / Design Development: December 2, 2018 – January 25, 2019 Construction Documents: January 28 – February 22, 2019 Building Permit: March 4 – April 5, 2019 Procurement and Construction Timelines: General Contract Bidding/Procurement: March 25 – June 7, 2019 Construction: June 24 – October 14, 2019 Note: During construction, the building will be closed, and staff will need alternative worksites. All Page 33 of 34 pa-1776805 other parts of the building should still be open. 14.2 Addition of New Modular Building. The City shall place a modular building on the site to supplement the existing building. The building shall be used for offices as well as for meetings and educational programs for the public. The modular building shall be connected to utilities and will likely require a concrete pad. Expected Timeline: Design and Review Timelines: Design: October 8, 2018 – January 25, 2019 ARB Review: December 10, 2018 – January 8, 2019 Building Permit (concurrent): December 11, 2018 – April 4, 2019 Procurement and Construction Timelines: Procurement (9 steps): January 28 – April 12, 2019 Construction (4 major steps): April 1, 2019 – June 28, 2019 14.3 Renovation of Existing Dog Kennels. The City shall renovate the existing dog kennels located at the Premises to ensure that all kennels are operable and expected that this work shall be done by March 15, 2019. 14.4 Construction of New Dog Kennels. The City shall construct approximately 16 new kennels on the Premises. Construction is expected to be complete by June 30, 2020. 14.5 Total Cost. The total cost of these improvements above is expected to be approximately $3.4 million, not including staff time, as estimated at the time as of the execution of this Agreement, and shall be fully paid for by the City of Palo Alto. 14.6 Contingencies. The Parties acknowledge that the improvements in this Section are subject to conditions which may alter the scope of the aforementioned improvements and could prevent one, some, or all of them from being constructed. These conditions include, but are n ot limited to: (a) Permitting and architectural review; (b) Appropriation of sufficient funds, as decided by the City Council; (c) Compliance with all laws, regulations, permits, and conditions, including CEQA; and (d) Changes in the prices for construction and materials. 14.7 Additional Compensation for Renovation Delays. Due to facility inadequacies, that would be remedied by the completion of the renovations outlined in sections 16.1, 16.2, and 16.3, the City will provide additional compensation to Consultant up to five-thousand dollars ($5,000) per month, for up to twelve consecutive months from the first month in which these funds are paid, should the City be unable to substantially complete the renovations in the time periods outlined in sections 16.1, 16.2, and 16.3. The additional compensation must be specifically documented and related to costs Consultant incurs as a result of facility inadequacies that would be remedied by the completion of renovations. 14.8 All work performed by the City shall be performed in a workmanlike manner, in compliance with all applicable laws. The City shall enforce all applicable third-party warranties at the request of Consultant. City shall promptly obtain final certificates of occupancy for all applicable portions of the Premises. 14.9 Renovation Timeline Updates. City shall provide renovation timeline updates to Page 34 of 34 pa-1776805 Consultant on a quarterly basis or more frequently upon request. Six month after the commencement of the construction of the improvements detailed in this Agreement, the parties will meet to review whether the renovation timelines stated herein are on track. City shall provide renovation timeline updates to Consultant on a quarterly basis or more frequently upon request. If, in Consultant’s reasonable determination, there is excessive delay in the renovation timelines stated herein, Consultant may terminate this Agreement upon sixty (60) days’ written notice to City. Pets  In  Need  Palo  Alto  Partnership   Frequently  Asked  Questions           1. What  does  it  mean  to  be  “no-­‐kill”?     At  Pets  In  Need,  “no-­‐kill”  means  that  we  do  not  euthanize  healthy  or  treatable  animals.  We  are   dedicated  to  finding  every  animal  we  rescue  a  safe  and  loving  home,  no  matter  how  long  it  takes  or   how  much  it  costs.         Pets  In  Need  rescues  and  saves  animals  with  serious  medical  and  behavioral  conditions.  As  an   example,  we  recently  provided  medical  care  or  training  for  the  following  rescued  animals:       • Janelle  and  Jessica,  two  dogs  who  came  to  us  with  injuries  that  required  extensive  surgeries   and  a  long  period  of  physical  therapy.       • Magoo,  a  senior  Chihuahua  whose  jaw  bones  were  fractured  and  unattached  due  to  trauma  or   extreme  neglect.  He  also  had  severe  dental  disease  and  required  removal  of  all  of  his  remaining   teeth.       • Caliber,  an  abandoned  dog  with  a  history  of  biting  due  to  fear,  received  one-­‐on-­‐one   attention  from  staff  and  volunteers.  Over  time,  he  became  comfortable  and  confident   enough  to  be  placed  on  the  adoption  floor  and  found  a  home  with  a  family.       As  a  nonprofit  with  the  flexibility  to  fundraise  for  special  cases  like  these,  Pets  In  Need  is  able  provide   animals  with  the  medical  attention  and  behavioral  training  necessary  to  allow  them  to  be  adopted.       2.          Will  Pets  In  Need  ever  euthanize  animals  and  if  so,  under  what  circumstances?     The  term  “euthanasia”  means  to  end  suffering.       All  animals  are  evaluated  by  Pets  In  Need’s  medical  and  animal  care  staff.    When,  in  the  professional   opinion  of  our  medical  and  animal  care  staff,  an  animal  is  deemed  to  have  a  poor  or  grave  prognosis   for  being  able  to  live  without  severe  physical  pain  or  is  a  danger  to  him/herself,  people  or  other   animals,  Pets  In  Need  will  euthanize  that  animal.         3.          Please  describe  Pets  In  Need’s  policy  regarding  owner  requested  euthanasia.     Pet  owners  who  want  their  pet  to  be  euthanized  will  be  asked  to  surrender  the  animal  to  Pets  In  Need.   After  the  ownership  transfer  has  been  completed,  PIN’s  professional  staff,  including  our  veterinarian,   will  evaluate  the  condition  of  the  animal  to  determine  if  euthanasia  is  justified.           If  our  professional  staff  decides  that  the  animal  has  the  potential  to  live  a  healthy  and  comfortable  life   after  receiving  medical  care  or  rehabilitation,  PIN  will  provide  the  medical  care  and/or  rehabilitation   necessary  and  then  place  the  animal  up  for  adoption.         The  previous  owner  could  adopt  the  animal  again  if  we  were  able  to  address  the  medical  or   behavioral  problem,  but  the  surrender/euthanasia  request  would  factor  into  our  decision  about   whether  or  not  to  adopt  the  animal  back  to  the  previous  owner.       If  the  euthanasia  request  is  being  made  simply  because  the  owner  is  destitute  or  having  financial   difficulties,  we  would  be  willing  to  work  together  with  the  owner  to  address  the  pet’s  condition  in   a  way  that  is  affordable  for  them.           4.          What  are  the  total  projected  operation  costs  for  the  Palo  Alto  shelter  under  Pets  In  Need’s   management?       We  expect  that  the  year  one  annual  operating  costs  for  the  Palo  Alto  shelter  will  be  approximately  $1.5   million.  Under  the  agreement,  the  City  of  Palo  Alto  will  provide  $650,000  to  support  general   operations;  revenue  from  fundraising  efforts  and  adoption  and  program  fees  will  be  used  to  cover  the   remaining  operational  costs.           5.          Can  you  describe  how  the  Palo  Alto  shelter  will  operate  under  Pets  In  Need’s  leadership?   How  will  services  change?     Pets  In  Need  will  accept  any  animal  brought  into  the  Palo  Alto  shelter  by  animal  control  officers  or   residents  of  Palo  Alto,  Los  Altos  and  Los  Altos  Hills.  Domesticated  animals  will  be  examined  by  medical   professionals,  behaviorally  assessed  by  trained  staff  and  treated  for  any  medical  or  behavioral   problems.  Wildlife  will  continue  to  be  taken  to  Peninsula  Humane  Society  for  assessment  and  care,  as   it  stands  under  the  current  structure.     Pets  In  Need  will  provide  humane  education  programs  similar  to  those  offered  at  our  Redwood  City   shelter.  This  may  include  summer,  spring  and  winter  camps  for  children,  birthday  parties,  school  and   Girl  Scouts  visits.         Additionally,  Pets  In  Need  will  continue  to  work  with  existing  volunteers  and  recruit  new  volunteers  in   order  to  develop  a  strong  network  that  can  provide  animals  with  training  and  one-­‐on-­‐one  attention,   and  foster  families  to  care  for  animals  in  their  homes,  instead  of  in  the  shelter.  Our  animal  behaviorist   will  work  with  animals  that  require  training  or  behavioral  modifications.       Once  fully  operational,  the  shelter  will  be  open  for  adoptions  seven  days  per  week.       Our  medical  department  will  provide  day-­‐to-­‐day  medical  care  for  animals  under  our  care  at  the   shelter.  Animals  with  more  extensive  medical  needs  may  receive  care  from  private  veterinarians.   Members  of  the  public  will  have  the  opportunity  to  bring  their  animals  to  the  shelter  for  free  or  low-­‐ cost  spay  and  neuter  surgeries.       Eventually,  we  hope  that  Pets  In  Needs’  operation  of  the  public  shelter  in  Palo  Alto  will  enable  other   neighboring  communities  to  consider  partnering  with  Palo  Alto,  Los  Altos  and  Los  Altos  Hills  to   provide  animal  care  and  educational  services  for  their  residents.       6.  Will  Pets  In  Need  accept  animals  other  than  cats  and  dogs?  How  are  you  prepared  to  deal   with  them?       Pets  In  Need  will  accept  any  animal  brought  into  the  Palo  Alto  shelter  by  animal  control  officers  or   residents  of  Palo  Alto,  Los  Altos  and  Los  Altos  Hills.  Domesticated  animals  will  be  examined  by  medical   professionals,  behaviorally  assessed  by  trained  staff  and  treated  for  any  medical  problems.  Wildlife   will  continue  to  be  taken  to  Peninsula  Humane  Society  for  assessment  and  care,  as  it  stands  under  the   current  structure.     7.          How  many  staff  do  you  intend  to  employ  at  the  Palo  Alto  shelter?     Once  fully  operational,  we  expect  to  employ  twelve  (12)  staff  at  the  Palo  Alto  shelter,  plus  four  animal   control  officers  who  will  continue  to  be  City  of  Palo  Alto  employees.  PIN  staff  will  include:       4  kennel  staff     1  adoption  and  volunteer  coordinator     2  administrative  support  staff     1  veterinarian     2  vet  techs     2  animal  care  staff       8.          How  many  current  Palo  Alto  shelter  staff  will  Pets  In  Need  employ?       Pets  In  Need  has  tentative  agreements  to  employ  three  current  Palo  Alto  shelter  employees,     including  both  medical  staff  members.  Four  animal  control  officers  will  remain  employed  by  the  City  of   Palo  Alto  and  continue  in  their  roles.       Pets  In  Need  offered  to  meet  with  and  interview  all  existing  employees  of  the  Palo  Alto  shelter.   However,  to  date,  only  the  three  staff  that  received  offer  letters  expressed  interest  in  being  employed   by  Pets  In  Need.  It  is  our  understanding  that  all  other  shelter  employees  will  continue  their   employment  with  the  City  of  Palo  Alto  in  a  different  role,  or  have  elected  to  resign  or  retire.       9.          How  will  the  animals  be  cared  for?     We  anticipate  operating  as  we  do  at  Redwood  City,  which  includes  twice-­‐daily  feeding  and   kennel/cage  cleaning,  twice-­‐daily  outdoor  time,  and  extensive  socializing  by  volunteers.  Animals  in   need  of  extra  care  or  attention,  and  underage  kittens  and  puppies  will  be  placed  in  foster  homes  or  in   Pets  In  Need’s  neo-­‐natal  kitten  unit  until  they  are  ready  for  adoption.  In  some  cases,  domesticated  or   farm  animals  will  be  sent  to  partner  organizations  with    more  suitable  accommodations  (e.g.  a  horse   rescue  where  horses  live  on  farmland).       10.          What  is  the  average  length  of  stay  for  a  Pets  In  Need  rescue  animal?     Our  average  length  of  stay  last  fiscal  year  was  22  days.  We  have  had  a  few  instances  where  it  has  taken   up  to  a  year  or  two  before  we  were  able  to  find  a  forever  home  for  one  of  our  residents.  Once  we   rescue  an  animal,  they  become  our  responsibility  for  as  long  as  it  takes  us  to  find  them  a  loving  family.       11.  You  have  said  in  the  past  that  you  are  going  to  make  the  Palo  Alto  shelter  a  no-­‐kill  shelter,   but  the  city  says  it  already  is  no-­‐kill,  what’s  the  difference?     The  Palo  Alto  shelter  has  made  progress  in  reducing  the  number  of  animals  it  euthanizes,  and  we   recognize  their  dedication  to  saving  animals’  lives.  Most  public  shelters  do  not  have  the  funding   available  to  save  animals  that  need  extensive  care.  As  a  nonprofit  with  the  flexibility  to  fundraise  for   special  needs  cases,  Pets  In  Need  is  able  save  animals  that  otherwise  would  be  euthanized  because  of   lack  of  resources.  Across  the  country,  the  sad  reality  is  that  euthanasia  is  a  too-­‐frequently  employed   strategy  to  manage  shelter  populations  and  meet  financial  challenges.         12.  Why  should  the  city  spend  this  money?       As  the  2015  audit  indicated,  the  shelter  is  facing  challenges  that  are  unlikely  to  be  resolved  if  it   continues  operating  as  solely  a  city-­‐managed  function  without  a  significant  increase  in  general  fund   subsidy,  donations  and/or  revenue  generating  contracts.  The  audit  also  found  that  the  shelter  is   woefully  outdated  and  fails  to  meet  the  modern-­‐day  standards  for  animal  care.  Kennels  are  cramped,   unsafe  and  unsanitary,  and  the  facility  too  small  to  satisfy  the  needs  of  the  community.       Regardless  of  whether  the  city  agrees  to  partner  with  Pets  In  Need,  it  will  have  to  make  significant   improvements  to  the  existing  shelter  if  it  is  going  to  continue  to  offer  animal  care  services  locally.       13.  What  is  Pets  In  Need  bringing  to  the  table?       The  agreement  between  Pets  In  Need  and  Palo  Alto  will  save  the  city  approximately  $200,000  a  year  in   operating  costs  while  providing  the  broader  community  with  greater  access  to  educational  programs   and  low-­‐cost  or  free  spaying  and  neutering  critical  to  reducing  the  population  of  homeless  animals.     With  more  than  53  years  of  experience  and  a  gold-­‐level,  four-­‐star  rating  from  Charity  Navigator,  Pets   In  Need  has  a  proven  track  record  of  operating  as  a  cost-­‐effective  and  efficient  animal  rescue  shelter,   and  we  will  use  a  similar  operational  model  at  Palo  Alto.       We  have  an  extensive  volunteer  network  that  makes  it  possible  for  us  to  house,  care  for  and   rehabilitate  all  of  the  animals  that  come  to  us.  We  also  rely  on  our  dedicated  volunteers  to  provide   animals  with  training  and  one-­‐on-­‐one  attention,  and  foster  families  to  care  for  some  animals  in  their   homes,  instead  of  in  the  shelter.     We  believe  that  our  volunteer  and  educational  opportunities,  in  addition  to  the  medical  care  and   animal  sheltering  services  we  provide,  will  be  of  considerable  benefit  to  residents  of  Palo  Alto,  Los   Altos  and  Los  Altos  Hills.         14.  What  if  the  city  does  not  do  this?       If  the  city  does  not  move  forward  with  Pets  In  Need  it  will  have  two  viable  options:  continue  to  operate   the  shelter  itself  while  significantly  increasing  financial  resources  for  the  shelter,  or,  outsource  animal   care  and  sheltering  responsibilities  to  another  agency.       That  said,  the  city’s  own  audit  found  that  having  local  animal  services  is  important  to  Palo  Alto,  Los   Altos  and  Los  Altos  Hills  residents  and  the  majority  supports  a  public-­‐private  partnership  to  minimize   the  burden  on  taxpayers.         15.  What  are  your  plans  for  moving  forward  with  building  a  new  shelter?     The  campaign  feasibility  study  we  conducted  is  a  good  start  to  understanding  the  work  we  have  ahead   of  us  and  the  investment  needed  from  the  city  and  community  in  order  to  build  a  state-­‐of-­‐the-­‐art   shelter.  For  now,  we  will  be  focused  on  making  improvements  to  the  existing  shelter  so  we  can   immediately  expand  our  life-­‐saving  operation  into  Palo  Alto.  Whether  or  not  we  move  forward  with  a   campaign  to  build  a  new  shelter,  the  current  shelter  will  be  in  use  for  at  least  the  next  several  years.           CITY OF PALO ALTO Memorandum TO: City Council DATE: November 26, 2018 SUBJECT: Agenda Item No. 14: Approval of a Five-year Operating and Revenue Sharing Agreement with Team Sheeper for Operations of the Rinconada Pool Staff recommends Item No. 14: Approval of a Five-year Operating and Revenue Sharing Agreement with Team Sheeper for Operations of the Rinconada Pool on the November 26, 2018 City Council Agenda be continued to the December 10, 2018 City Council Meeting. r Kristen O'Kane Jam's Keene Chief Operating Officer City Manager Community Services Department City of Palo Alto (ID # 9720) City Council Staff Report Report Type: Informational Report Meeting Date: 11/26/2018 City of Palo Alto Page 1 Summary Title: Annual Report for FY 18 Santa Clara County Multi - Jurisdictional Flood Preparedness Awareness Title: Fiscal Year (FY) 2018 Annual Evaluation Report for the Santa Clara County Multi -Jurisdictional Program for Public Information on Flood Preparedness Awareness and Resulting Community Rating System Flood Insurance Discounts From: City Manager Lead Department: Public Works Recommendation This is an informational report and no Council action is required. Background The Community Rating System (CRS) is a voluntary program under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) that allows communities to earn flood insurance premium discounts for their residents and businesses. Communities earn CRS credit points for activities that promote flood risk reduction practices and encourage residents to purchase flood insurance. CRS class ratings are assigned at 500-point increments, and each improvement in class rating nets an additional 5% flood insurance premium discount. The CRS class ratings range from 1 to 10, with 10 being the lowest rating and 1 being the highest. The City of Palo Alto has participated in the CRS program since 1990 and is currently rated as a Class 6 community, affording residents and businesses a 20% discount on their flood insurance premiums. Neighboring cities have earned similar CRS ratings (Mountain View – 8, East Palo Alto – 8, Los Altos – 8, Sunnyvale – 7). The CRS Coordinator’s Manual includes the option to implement a regional Program for Public Information (PPI). Under the PPI, a community or group of CITY OF PALO ALTO City of Palo Alto Page 2 communities work together to create customized flood risk reduction outreach messages. These coordinated messages are delivered to residents through handouts, mailers, electronic messages, etc. By disseminating these messages each community earns points that can improve their CRS rating. The number of CRS credit points earned depends on how extensive the implemented program is within each community’s boundaries. Staff estimates that the City of Palo Alto could earn up to 340 points for its PPI efforts. The total dollar savings for Santa Clara County residents from CRS flood insurance premium discounts is approximately $2.3 million per year. City of Palo Alto residents and businesses pay $3.6 million (per FEMA data as of August 31, 2018) for flood insurance premiums per year. The total savings from the 20% insurance discount achieved by the City on behalf of its residents due to its CRS participation is approximately $712,663 per year (per FEMA data as of August 31, 2018). Without CRS, residents and businesses would have paid $4.3 million. The objectives of the City’s participation in the Santa Clara County Multi-Jurisdictional PPI program are to enhance the effectiveness of the flood risk messages to residents, reduce flood risks, and maintain or improve the City’s CRS class rating of 6. As required by the terms of the PPI, the regional PPI committee must convene annually to evaluate whether the flood risk reduction messages are still appropriate and adjust them as needed. A report to FEMA must be submitted annually describing the PPI implementation. The annual report is transmitted to the city council of each participating agency as an informational document, updating the councils on the various flood preparedness and awareness outreach programs that the Santa Clara County Multi-Jurisdictional PPI has undertaken for the past year. Discussion The annual report for 2018 Santa Clara County Multi-Jurisdictional PPI is attached as information for Council (Attachment A). The annual report highlights the elements of the flood safety outreach programs implemented by the eleven Santa Clara County communities (Cupertino, Gilroy, Los Altos, Milpitas, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Santa Clara County, and Sunnyvale) that participate in CRS, along with the Santa Clara Valley Water District. City of Palo Alto Page 3 The Santa Clara Valley Water District acts as the lead agency in developing the PPI and prepares the annual report. The District hosted the PPI development process in November of 2013 and 2014, staff and stakeholders from each communities participated in the drafting of the Plan that was finalized in April 2015. The worksheet on Appendix A lists the outreach projects, implementing agencies, and the messages associated with each of the projects. Every year, the legislative bodies of all participating communities must re-approve the PPI plan to continue receiving CRS credit. The 2017 Santa Clara County Multi- Jurisdictional PPI was approved by Council on May 14, 2018 (CMR# 9053). Staff will continue to provide information to Council on the Santa Clara County Multi- Jurisdictional PPI on a yearly basis and after the end of each Fiscal Year to achieve the maximum CRS credit points and the associated flood insurance premium discounts for the community. Attachments:  Attachment A: PPI Annual Evaluation Report FY18 Year 3 Annual Evaluation Report for FY18 (Year 3) (July 2017 to June 2018) July 2018 Attachment A 2 of 9 Santa Clara County Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY18 Year 3 (July 2017 to June 2018) I. INTRODUCTION Ten cities and the Santa Clara Valley Water District (District) have been active participants in the National Flood Insurance Program’s (NFIP) Community Rating System (CRS) for almost 20 years. CRS is a voluntary program of the Federal Emergency Management Agency (FEMA) NFIP that allows participating communities to earn flood insurance premium discounts for their residents and businesses by agreeing to adopt and enforce practices that meet or exceed FEMA’s requirement to reduce the risk of flooding. As the flood risk reduction agency for Santa Clara County, the District performs many flood related outreach and maintenance activities that earn CRS points for the County’s CRS-participating communities. CRS points reduce, in 5% increments, flood insurance premiums for participating communities. The total savings for Santa Clara County residents from CRS discounts last year was approximately $2.2 million. The CRS Coordinator’s Manual, 2013 edition, included the option to undertake a Program for Public Information (PPI) which is a method to customize flood risk reduction outreach messages and increase CRS points. The District hosted the development of a Multi-Jurisdictional PPI in 2013 and 2014 so that all Santa Clara County CRS participating communities could work together and benefit from this effort. This PPI was finalized in April 2015. This report is the third Annual Evaluation Report (Report) to document our PPI activities. The number of CRS points that will be earned by the PPI are determined by FEMA’s consultant, Insurance Services Office (ISO/ CRS Specialists) examiners. We estimate that we could earn up to 340 points per participating community for our PPI efforts. The complete list of outreach projects is included as Attachment 1 of this Report. Attachment 1 lists all projects proposed in the 2015 PPI, with a “Project Accomplishments” column noting actions taken during the third year of the PPI, FY18. One important benefit from our PPI work has been developed through the close collaboration between city staff who work on flood protection throughout the County. Together, we have strengthened our CRS programs and learned from one another about shared flood protection and land use issues. For the Santa Clara County CRS Users Group, the PPI is our most important project. In addition to the PPI, the CRS Users Group also learned about new FEMA maps that are being updated to reflect coastal flooding in the San Francisco Bay. A sub- group of shoreline communities worked together on improved maps as part of this process. The CRS Users Group and the PPI effort provided a forum for the advancement of flood protection issues throughout the County. Twelve agencies initially participated in this Multi- Jurisdictional PPI; nine have approved it. We will continue to actively recruit more participation. 3 of 9 II. PPI DEVELOPMENT PROCESS The District initiated the PPI process for Santa Clara County in November 2013. The District hosted the process and provided staffing, while each participating community was required to: (1) conduct the CRS Self-Assessment; (2) recruit a non-governmental external stakeholder; (3) participate in the PPI Committee meetings; and (4) bring the PPI to their elected body for approval. With the enthusiastic support of the CRS coordinators, the PPI process was started. A number of meetings were held in 2013 and 2014 to develop the PPI. A committee worked between the meetings to draft the PPI and compose the extensive list of possible projects (Attachment 1, which is Appendix A of the 2015 PPI). Table 1 shows dates of approval of the PPI by each participating agency as of July 20, 2018. Nine agencies have approved; San Jose, Cupertino, and the County of Santa Clara are still pending approval. Table 1. Dates of PPI Approval Agency Date of Approval Yes Scheduled But Not Approved Not Scheduled Santa Clara Valley District 4/14/15 X City of Cupertino Not Yet Scheduled X City of Gilroy 11/21/16 X City of Los Altos 6/23/15 X City of Milpitas 1/19/16 X City of Morgan Hill 8/24/16 X City of Mountain View 10/27/15 X City of Palo Alto 6/8/15 X City of San Jose Scheduled for Early 2018 X City of Santa Clara 7/14/15 X Santa Clara County Not Yet Scheduled X City of Sunnyvale 6/23/15 X Total Approved 9 Approval Scheduled 1 Not Yet Scheduled 2 III. PPI ACCOMPLISHMENT FOR 2018 The PPI accomplishments for FY18 fall into three categories. The first was continuing to get the PPI approved by the governing bodies of the participating communities. The second was to continue to implement our accounting system to keep track of the PPI projects. The third was carrying out an extensive outreach program for flood risk reduction. Elected Body Approval: Including the District, nine of the 12 participating agencies had the PPI approved by their governing body by the end of FY18. The approval dates are shown by city/agency in Table 1. The City of San Jose has the approval scheduled for Spring 2019 and the City of Cupertino and the County are each still pending approval. 4 of 9 Accounting System: Because the 2015 PPI included up to 12 agencies, tracking implementation became quite cumbersome compared to a single agency PPI. The District continues to host the record-keeping to ensure consistency throughout the County. An electronic file-sharing system, Egnyte, was initially set-up with folders for each of the agencies to file documents related to the 83 potential outreach projects identified in the PPI, including a comprehensive spreadsheet showing which projects were accomplished in any given fiscal year, by community/agency. This spreadsheet, along with the Annual Evaluation Report, will be will submitted with annual CRS recertifications. PPI related projects carried out by the District almost always apply to the entire county. Cities carried out projects in addition and they are shown on the composite spreadsheet which includes input from each city. At the May 22, 2018 CRS Users Group Meeting, the committee discussed the status of implementing Egnyte. We discussed the benefits of using the system for not only tracking PPI outreach projects, but also identified the benefits of restructuring the file system to track all CRS related documentation, including the 2015 PPI projects. The benefits are: - Information Share / Knowledge Transfer: Communities can view each other’s program documentation. When a community improves their CRS rating, another community can go access the documents submitted to determine how they carried out the CRS credited activity(ies) that helped improve their score. - Document Repository- Central location for CRS related documentation, organized to mirror the CRS Coordinator’s Manual (by community/by activity/by element). This will helpful for both CRS annual recertifications and cycle visits/audits, as well as when a community experiences staff turnover. Summary of PPI Projects Accomplished in FY18 Appendix A from 2015 PPI noting FY18 Project Accomplishments (Attachment No. 1) is summarized as follows: • Of the 49 Community at Large outreach projects (CAL OP) identified in the PPI, at least 48 were accomplished. • For outreach projects in the Special Flood Hazard Area (SHFA OP), at least 20 of the 22-potential projects were accomplished. • Of the 9 Targeted Audience outreach projects (TA OP) identified, 7 were accomplished. These numbers go well beyond the requirements of the CRS Program, and we anticipate collecting the maximum number of points for our collective efforts in 2018. Outreach Program The District’s flood awareness campaign for the 2017-2018 winter season followed a year in which the District’s flood risk reduction efforts were under increased scrutiny. The historical flooding along Coyote Creek in February 2017 was a very painful and visual reminder of flood threats in our county. As a result, the District doubled-down on its commitment to reduce flood risks and increase awareness among residents with a series of long-term and short-term measures on Coyote Creek that included physical barriers, revised reservoir operations, community 5 of 9 resource fairs and more (details available on: https://valleywaternews.org/2018/02/21/one- year-after-the-flood/). Our community outreach efforts were supplemented by an educational paid advertising campaign. This year, our advertising campaign was supplemented by a series of formative research to truly understand our target audience, its level of awareness, and explore what educational messages and images most appealed to the group. The District’s annual flood awareness campaign has a budget of $290,000. The total budget encompasses a paid advertisement campaign as well as staff outreach efforts related to flood awareness. The polling services provided by Probolsky cost $23,000. The remaining campaign funds were allocated for expenses related to community events such as the Coyote Creek resource fairs and additional community events during the months of September through March. The paid flood awareness campaign ran over a five-month period, from December 2017 through April 2018. The total paid advertisement campaign budget was $180,000 and was exhausted. The cost of the floodplain mailer due to an increase in size was almost $60,000. Total campaign impressions were calculated at over 21.8 million; with a cost of $5.50 per thousand impressions. Community Events: District communications staff actively participated in emergency preparedness fairs and community events in the fall of 2017. During that time staff attended 17 community events to distribute flood safety information including our starter emergency kits. In addition, the District Speaker’s Bureau Program includes general information on flood protection, including CRS, the county’s ALERT system, flood insurance, and District’s ongoing flood protection projects. During the 2018 Fiscal Year, 11 Speaker’s Bureau presentations were given to diverse groups throughout the county. The District does not post the PowerPoint Presentations on our website, nor is it posted on social media. However, if an organization requests an electronic/hard copy, it is provided. Information on the District’s Speakers Bureau Program is available on our website: https://www.valleywater.org/learning-center/lets-talk- water-speakers-bureau.In addition to these community efforts, District board members submitted guest columns to be placed in local newspapers. The District submitted four winter- related or flood protection-related columns that contained flood safety messages as well as PPI messages during the months of March, June, September (2017), and February (2018). Advertising Campaign: The paid advertisements began in December 2017 and ran through April 2018. In preparation for the campaign, as early as September 2017, Office of Communications staff led social media and digital communication efforts to convey flood safety messages including the use of Facebook, Twitter and blog posts, as well as the District’s e-newsletter. A key strategy of the paid campaign was to incorporate key PPI messages in our ads as much as possible. These messages were derived from the District’s annual Flood Plain Mailer, a publication distributed to residents in FEMA designated floodplains (Attachment 1 - Special Flood Hazard Area [SFHA] Outreach Projects [OP] 1 and 3). The flood awareness campaign included: Customer Target: The campaign was targeted to residents and commuters within Santa Clara County, and residents in areas in or near a Special Flood Hazard Area. These targeted areas were determined using zip codes from the floodplain mailer address list, which is based on published FEMA flood maps. 6 of 9 Media: The media breakdown was as follows: a) Radio – 45 percent b) Online & Social Media– 23 percent c) Print (including Ethnic publications) – 32 percent Radio: (45 percent) Scripts for radio were drafted to include key PPI messages such as making an emergency plan and preparing for flooding by purchasing flood insurance. The radio buy included 892 spots of both 15 second weather alerts and 30 second campaign spots for a total of 17 weeks on the following mainstream English radio stations: KBAY and KEZR. Ads were translated in Spanish (KBRG), Vietnamese (Cali Today and KVNN) and Chinese (KSQQ). The campaign had two kinds of radio ads: general ads and weather alerts. The weather alerts were scheduled days in advance of anticipated rain storms; weather alerts were heavily used during the months of January and March. General radio ads were scheduled throughout the campaign duration from January through April. Total impressions from radio spots were 4,462,514. Online & Social Media: (23 percent) The online buy included English banner ads on Facebook and Google AdWords, as well as Magellan Ads which featured all four languages. Facebook ads were targeted to specific characteristics (such as homeowners and renters) and interests including emergency preparedness and flood insurance and featured four versions of ads on topics (sandbags, flood insurance, emergency preparedness, and the flood ready theme). The Google AdWords buy placed ads through the Google Display Network, which allowed us to target to websites, smart phone apps and blogs according to specified keywords, topics/themes, websites and demographics that aligned with our target audience. Ads placed through Magellan featured all four languages with the same banner ads as the Facebook and AdWords, with similar targeting used in the Facebook buy. The online ads launched in December 2017 and ran through March 2018, serving a total of 12,534,028 impressions and generating 37,234 clicks. The cost per result was $0.88 for Facebook. The click through rate was 0.46% for Google AdWords, and Magellan 0.04%. Print: (32 percent) Print advertisements were placed as half page ads in the Mercury News and translated into Spanish, Chinese and Vietnamese for publication as full-page ads in El Avisador, El Observador, World Journal News (Chinese) and Cali Today (Vietnamese). Ads launched during the week of December 17 and were scheduled to run through March 18. Total impressions from print ads were 4,709,000. Results: Traffic to the flood protection resources page through the duration of campaign resulted in a total of 53,432 page views to both the flood protection resources and flood safety tip pages. During the campaign months, the flood protection resource page was the second most viewed page on the district’s website. Prior to the 2017-2018 campaign launch, the flood protection resources page was restructured to serve as a hub of flood safety information with 7 of 9 icons leading to a series of related web pages including information on flood zone maps, signing up for emergency alerts, sandbags, reporting local flooding and safety tips. Of these subpages, the most accessed was the emergency alerts resource page, which promoted the county’s newly launched ReadySCC app and the AlertSCC service. Pageviews to these resources increased by more than 17,000 clicks despite a reduced media buy. The last two campaign years had used the entire budget for a paid advertisement campaign. Coupled with staff community outreach efforts, the 2017-2018 campaign was a robust campaign with excellent results. IV. SANTA CLARA COUNTY CRS USERS GROUP MEETINGS 2018 – MONITORING AND EVALUATING THE PPI CRS Users Group meetings were held on May 22, 2018 and July 9, 2018 to gather communities’ input on project accomplished in FY18. Agenda and attendance sheets for each meeting are included as Attachments 2-5. At the July 9th meeting, a draft PPI Annual Evaluation Report FY18 (Year 3) was handed out to the communities for their review and input. As required by CRS, our May and July meetings were to monitor the implementation of the 2015 PPI outreach projects and to determine if the desired outcomes were achieved, as well as if any changes to the PPI were needed. The Users Group agreed that our 2015 PPI messaging and projects to support those messages would remain the same for the duration of the 2015 PPI, which sunsets in 2020. We discussed lessons learned from our third year and what was important to continue and strengthen. Attendance was excellent; staff from eleven agencies participated, as well as some external stakeholders and other interested parties. The general consensus is that our PPI implementation is on target and that no changes are needed. Cities who have had the PPI approved by their elected officials reported receiving strong support. For cities that had not gotten the PPI approved yet, the major problem was workload. The Public Works Departments in our area have a great deal of work to do now because of the high development level with the Silicon Valley’s current economic boom. The PPI Annual Evaluation Report needs to be shared with each participating community’s governing body. Table 2 is a chart of how each community expects to communicate the report. Table 2. How PPI Annual Evaluation Report will be shared with Community’s Governing Body Community Method for Sharing 1 Santa Clara Valley Water District Board Non-Agenda Item 2 City of Gilroy Consent Calendar 3 City of Los Altos City Manager’s Weekly Update 4 City of Milpitas Monthly Report to Council 5 City of Mountain View Council Weekly Update 6 City of Morgan Hill City Manager’s Weekly Update 7 City of Palo Alto Informational Staff Report 8 City of San Jose City Manager’s Weekly Report 9 City of Santa Clara Friday Update to Council 10 City of Sunnyvale City Manager’s Bi-Weekly Report 8 of 9 V. FUTURE MESSAGING The messages that we chose originally are still relevant to Santa Clara County. We continue to increase our efforts to get people to prepare their personal/family emergency plans and be flood-ready. This will be incorporated in the flood preparedness outreach that is done every fall. We will also coordinate efforts with the District’s Education Outreach Program to promote flood preparedness in local schools with an emphasis on reaching students and families that were affected by the February 2017 floods. Another recommendation of the PPI Committee is to increase the use of social media for messaging. People are using their phones more and more to get information, so the more we can use banner ads, sponsored articles, etc., the better. The PPI Committee was pleased to see all the outreach in different media that the District had done the year before. The meeting attendees shared that they had seen various messages throughout the season on different media. In support of our preparedness messaging, we will continue to promote the importance of having family emergency plans and emergency kits ready to go before an emergency event occurs. As we did last year, emergency starter mini-kits of emergency supplies have been developed as a give-away for emergency preparedness fairs or events. This year, to qualify for an emergency starter mini-kit, each person will have to demonstrate they’ve downloaded an emergency alert App onto their cell phones. We are promoting the County’s recently launched ReadySCC App, as well as the American Red Cross Flood App. For people who do not have cell phones, they will be asked to demonstrate that they’ve started to complete an American Red Cross Emergency Contact Card that will be provided to them. Additionally, Education Outreach (EO) presented flood awareness programming in classrooms throughout the county from October 2017 to March 2018. In addition to the classroom presentations, EO invited over 4,000 students in 176 classrooms, from 39 schools, to enter the District’s “Are You Flood Ready?” flood awareness coloring contest. The schools were located in 8 cities throughout the county; Campbell, Cupertino, Milpitas, San Jose, Morgan Hill, Santa Clara and Saratoga, these were schools that had requested visits from Education Outreach for the 2017-18 school year. The coloring contest closed in March 2018 and over 350 entries were received from 16 different schools. Winning entries were selected to represent each of the District’s seven board members’ districts and prizes were awarded. The winning students received an emergency hand-crank radio, plus an emergency mini starter kit and a copy of “Chicken Little’s Flood Advice” (a book about a character that is always prepared for any emergency). Emergency mini starter kits, “Chicken Little’s Flood Advice” books and a copy of the Red Cross Emergency Contact Card were given to all students in the winning student’s classes. The teacher in the winning students’ classrooms received a back-pack full of emergency supplies to keep in the classroom. Targeted Outreach: Education Outreach reached out to schools from the flood zone of the February 2017 Coyote Creek Flood to ask if they were interested in the EO Program. One school requested a visit and EO presented in May 2018. 9 of 9 VI. CONCLUSION Overall, the CRS Users Group was successful in implementing the PPI in FY18. The PPI allowed for participating communities to mutually decide which flood risk reduction messages are most appropriate and identifies how those messages are delivered. The objectives of participating in the PPI are to enhance the effectiveness of the flood risk messages to residents, reduce flood risks within the county, and earn valuable CRS credit points when identified projects are implemented by communities. The Users Group and the PPI will continue through FY19. ___________________________________________ Attachments for submission to District Board, City Councils/Managers, and FEMA as part of 2018 Verification/Recertification Package, as required: 1. Appendix A from 2015 SC County Multi-Jurisdictional PPI noting FY18 Project Accomplishments 2. May 22, 2018 Santa Clara County CRS Users Group Meeting Agenda 3. May 22, 2018 Santa Clara County CRS Users Group Meeting Sign-in Sheet 4. July 9, 2018 Santa Clara County CRS Users Group Meeting Agenda 5. July 9, 2018 Santa Clara County CRS Users Group Meeting Sign-in Sheet 1 of 27 ATTACHMENT NO. 1 Appendix A. The Santa Clara County 2015 Multi-Jurisdictional PPI Worksheet – Fiscal Year (FY) 2018 Annual Evaluation Report (Year 3) Project Accomplishments 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important Topics 1, 2, 3, 4, 5, 6, 7, 8, & 9 Message: Know your flood risk and be prepared; buy flood insurance Educate our community on flood protection and preparedness measures CAL OP #1. Flood messages inserted in and/or printed on Utility Bills. City Public Works Depts. (PWD) City CRS Coordinators District Communications (for South County Unincorporated areas) October – March Utility companies (water, electric, waste) All City of Milpitas utility bill messaging during November – December 2017 billing period (not an insert). City of Palo Alto sent out two utility bill inserts to home owners. City of Sunnyvale included flood insert in January 2018 utility billing. CAL OP #2. Post Utility Bill messages on websites (Element 352 WEB1) City of Gilroy posts messages on website. City of Palo Alto posted Utility bill inserts are on Flood Information/Winter Preparedness on their website. CAL OP#3. Winter Preparedness Briefing District Field Operations October NOAA, Cities Emergency Managers & Public Works Directors, Santa Clara County OES, Cal Fire, CCC, DWR All Not Applicable. Removed from list because all the people involved in the briefing are staff from numerous agencies. This wasn’t outreach to the public. CAL OP #4. Post “Winter Preparedness Briefing” notice and materials on website (Element 352 WEB1) October - November CAL OP#5. “Emergency Preparedness Workshop” District Emergency Services November CAL OP #6. Post “Emergency Preparedness Workshop” notice and materials on website (Element 352 WEB1) November - December Topics 1, 2, 3, 4, 5, 6, 7, 8, & 9 Message: Know your flood risk and be prepared; buy flood insurance. Flood Insurance will cover damage from flooding that most homeowner’s policies don’t cover Educate our community on flood protection and preparedness measures CAL OP #7. Develop newsletters with articles on flood protection and preparedness measures that urge residents and businesses to purchase flood insurance. These would include paper and electronic versions. These will be more extensive than messages included in utility bills. District‘s annual county-wide mailer (CWM) will include language on flood protection and preparedness measures. City of Sunnyvale will distribute yearly newsletter article called “Know how to be Flood Safe in Sunnyvale” (Element 352 WEB1 and 2) City CRS Coordinators or Communications staff District Communications Gilroy Chamber of Commerce October – March Insurance agencies Gilroy Chamber of Commerce District Grantee Organizations City of Morgan Hill City of Cupertino City of Sunnyvale Gilroy Chamber of Commerce Starting in September 2017, the District began including emergency preparedness and flood safety information and encouraging residents to consider flood insurance in its monthly newsletter, Valley Water News, through February 2018. The newsletter reaches over 29,000 residents county-wide and is shared on the web and district’s social media sites monthly. A countywide mailer was sent in November 2017 and included information on where to get sandbags, downloading emergency apps, and getting flood insurance. Outreach materials displayed at Los Altos City Hall front counter and Library. Ad article titled "Flood Insurance Information Available" was published two times in the Los Altos Town Crier. In June 2018, City of Milpitas mailed out citywide informational “SFHA brochure” (to all residences and businesses) that included this message. City of Morgan Hill's weekly newsletter/e-mail blast (called Weekly 411) sent out to subscribers during the months of September 2017, October 2017, November 2017, January 2018, and Mach 2018 included information on emergency preparedness measures. City of Palo Alto utility bill inserts include this message. City of Santa Clara, citywide newsletter “Inside Santa Clara” includes these messages and is sent to all addresses in City in fall each year. 1 Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water” and “Turn Around, Don’t Drown®.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 2 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Sunnyvale “Horizon” newsletter included these messages; newsletter sent to all addresses in the city. CAL OP #8. Post newsletters/articles/District’s CWM on websites (Element 352 WEB1 and 2) All were posted on city or District websites. City of Los Altos annual mailer and brochure are posted on the city website and provide information regarding Flood Protection, Preparedness, Illegal Dumping and purchase of flood insurance. In June 2018, City of Milpitas mailed out citywide informational “SFHA brochure” (to all residences and businesses) that included this message. “Know Your Flood Risk” article in citywide newsletter, May 2018 edition. City of Morgan Hill's weekly newsletters/e-mail blasts sent out during the months of September 2017, October 2017, November 2017, January 2018, and March 2018 were all posted in the City’s website. On City of Mountain View website. District’s CWM and City of Palo Alto’s utility bill inserts are posted on City’s Flood Information/Winter Preparedness webpage. City of Santa Clara posts the newsletter to City website. Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Topics 4 & 6 Message: Keep debris and trash out of our streams. It’s illegal to dump into streams Cleaner streams and fewer dumping violations Fewer debris blockages during high-flow events CAL OP #9. “Do Not Dump” message is sent each year to all Santa Clara County residents in the District’s CWM District Communications City of Sunnyvale June/July 2015 (CWM) Adopt-A-Creek Organizations District Grantee Organizations All District Floodplain Mailer (FPM) sent to all SC County parcels in the FEMA flood zone with “Do Not Dump” message. District has an extensive stewardship program. “Do Not Dump” message posted on construction/project sites with signs throughout the county. City of Los Altos annual mailer and brochure provide information regarding Flood program with an emphasis on the “DO NOT DUMP” message. City of Los Altos also communicates “DO NOT DUMP” message through litter mailer sent to property owners in the City’s Trash Management Area 1, which is characterized by higher trash levels. City of Milpitas citywide informational “SFHA brochure” included this message. City of Palo Alto utility bills inserts include “Do Not Dump” message. “Inside Santa Clara” newsletter includes this message and is sent to all addresses in City. CAL OP #10. Post “Do Not Dump” messages on website (Element 352 WEB1) FPM posted on the District’s website. City of Gilroy has this message on its website. City of Los Altos annual mailer and brochure provide information regarding the flood program with an emphasis on the “DO NOT DUMP” message and are posted on the city website. City of Milpitas “SFHA brochure” posted on website. On City of Mountain View website. “Do Not Dump” messages are in the City of Palo Alto’s Flood Information/Winter Preparedness webpage. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 3 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Santa Clara posts the newsletter on City website. City website also has additional information on keeping storm drains clear. CAL OP #11. “Illegal Dumping” - District Community Project Review Unit (CPRU) Water Resource Protection Ordinance No. 08-2 amending Ordinance No. 83-2 District CPRU Santa Clara Valley Urban Runoff Pollution Prevention Program Year-Round Adopt-A-Creek Organizations District Grantee Organizations All District Ordinance in force. City of Gilroy has this message on its website, City Code Chapter 12. City of Los Altos website posting of “Help Prevent Neighborhood Flooding…” provides information on illegal dumping reporting. City of Los Altos annual mailer and brochure provide information regarding the flood program with an emphasis on the “DO NOT DUMP” message and are posted on the city web site. The City of Los Altos Municipal Code Section 6.32.030 Watercourse Protection prohibits “discharge into or connect any pipe or channel to a watercourse.” City of Milpitas citywide informational “SFHA brochure” included this message. City of Morgan Hill has illegal dumping information on City’s website. “Illegal Dumping” is part of City of Palo Alto’s Municipal Code. City of Santa Clara has several City codes/charter on illegal dumping. City of Sunnyvale posts Illegal Dumping message on website. CAL OP #12. Post Water Resource Protection Ordinance on website (Element 352 WEB1) District Water Resources Protection Ordinance posted on website https://www.valleywater.org/sites/default/files/WRPO.pdf. City of Gilroy has this message on its website, City Code Chapter 27A. The City of Los Altos Municipal Code Section 6.32.030 Watercourse Protection is accessible through the Municipal Code link on the City’s website. City of Milpitas citywide informational “SFHA brochure” included this message. City of Morgan Hill has link to District’s “Permits for Working on District Land or Easement” on City’s website. The District’s webpage includes a link to the Water Resources Protection Ordinance. Link to City of Palo Alto’s Municipal Code on Floodplain Management posted on Flood Information/Winter Preparedness webpage. City of Santa Clara codes/charter is posted on City website. CAL OP #13. “No Dumping” signage on District project sites District Watersheds Operations & Maint. Santa Clara Valley Urban Runoff Pollution Prevention Program Year-Round Santa Clara Valley Urban Runoff Pollution Prevention Program (all communities that drain to San Francisco Bay) All District project sites throughout the county include “No Dumping” signage/message. City of Milpitas has a citywide application of “No Dumping” medallions on all public property storm drains. CAL OP #14. “Pollution Hotline 1-888-510-5151” to report all illegal dumping messages are included in Neighborhood Work Notices (target outreach – 6 points per topic) District Communications Year-Round Santa Clara Valley Urban Runoff Pollution Prevention Program All Information from Municipal Regional Permit NPDES Permit No.: CAS612008 Order Number: R2-2015-0049 Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 4 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Santa Clara Valley Urban Runoff Pollution Prevention Program Watershed Watch Organization San Francisco Estuarine Institute Oakland Museum FY 2016-2017 Annual Report NOTE: FY 17-18 Annual Report will not be available until September 2018 C.5 – Illicit Discharge Detection and Elimination C.7.c. Stormwater Pollution Prevention Education and The District’s Pollution Hotline (1-888-510-5151; www.valleywater.org/Services/PollutionHotline.aspx) receives and responds to emergency response reports throughout the Santa Clara County 24/7- 365 days per year availability to conduct storm water pollution investigations. The District received and responded to a total of 141 emergency response reports throughout Santa Clara County during FY 16-17. This were 24 reports more than in FY16. Of the 141 total incidents reported during FY17, 77 were actual or potential discharge events, and 88 required a field response by a team member or members for general investigation, source identification, multi-agency coordination, and clean-up or evidence collection. City of Milpitas maintains Pollution Prevention and SFHA phone lines. In addition, city mailed out citywide informational “SFHA brochure” that included this message. Their number is 911 dispatch for Fire Department response. Pollution hot line is posted on the City of Palo Alto’s utility bills. Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Topics 4 & 6 Message: Keep debris and trash out of our streams. It’s illegal to dump into streams Cleaner streams and fewer dumping violations Fewer debris blockages during high-flow events CAL OP #15. Post Project notices with “Pollution Hotline” on website (Element 352 WEB1) Not applicable, project notices did not include the Pollution Hotline number this fiscal year. The Do Not Dump messaging is in the District’s FPM and is posted on the website at http://apps2.valleywater.org/publication/flipbook/808_FloodMailer2017/ mobile/index.html#p=1 City of Milpitas citywide informational “SFHA brochure” included this message. “Pollution Hot Line” is posted on City of Palo Alto’s Flood Information/Winter Preparedness webpage. Pollution hotline is posted on City of Santa Clara’s website, and included in “Inside Santa Clara.” City of Sunnyvale posts link to Watershed Watch: Protect Creeks and Bay. CAL OP #16. Creekside Property Program – Creek Wise brochure handed out at community fairs (target outreach – 6 points per topic) District Communications Year-Round Fair Sponsors Attendees of community events who visit information booths SCVURPPP All The Creek Wise brochures were handed out at various community events at various SC County cities (not including Morgan Hill and Gilroy) in North County. City of Palo Alto’s utility insert brochure includes creek monitoring information. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 5 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community CAL OP #17. Post Creekside Property Program – Creek Wise brochure on website (Element 352 WEB1) Creek Wise brochure, , “You Are the Solution to Water Pollution” was mailed out to approximately 16,100 creek-side property owners in July 2018. Information on the District’s Creekside Program is posted on the District’s website at: https://www.valleywater.org/learning-center/healthy-creeks-and- ecosystems/creekside-property-program City of Los Altos general informational posting of “Local Creeks” provides information and direct readers to SCVWD website and Creekside Property Program. Utility insert which include creek monitoring information is City of Palo Alto’s Flood Information/Winter Preparedness. CAL OP#18. Organize volunteers for creek clean-ups through District’s Adopt-A-Creek Program or organized city clean-ups, such as City of Santa Clara’s, Adopt-A-Spot Program District Communications Year-Round Community Organizations Residents Schools Businesses Creek Connections Action Group (CCAG) All City of Santa Clara Participation in the Adopt-A-Creek Program was 142 partners/adopted sites in FY18 (an increase of 7sites from the previous year). Each participating Adopt-A-Creek partner was required to host a minimum of 2 clean-up events per year. Adopt-A-Creek program is also promoted in our Cree Wise brochure, “You Are the Solution to Water Pollution,” which was mailed out to all creek-side property owners in July 2018. https://www.valleywater.org/learning-center/adopt-a-creek/current- partners City of Los Altos posted National River Cleanup Day information in the City Manager Weekly updates, which is an email newsletter, and posted on the City website. City of Milpitas distributed a doorhanger to all residential households, organized cleanups at 4 sites and advertised in local paper, City website, KMLP-15 and social media for both Coastal Cleanup Day on 9/16/17 and National River Cleanup Day on 5/19/18 and 5/18/17. City of Morgan Hill advertised the National River Cleanup Day – Morgan Hill Creek Cleanup (scheduled May 19, 2018) and California Coastal Cleanup Day (scheduled September 16, 2018) in the City’s Recreation Activity Guide and City’s weekly newsletters/e-mail blasts. City of Palo Alto participates in District’s Adopt-A-Creek Program. City of Santa Clara has an Adopt-a-Spot program. City of Sunnyvale advertised the clean-ups. CAL OP #19. Post District’s Adopt a Creek Program and cities clean-up programs on website (Element 352 WEB1) Adopt-A-Creek Program information posted on the District’s website at http://valleywater.org/EkContent.aspx?id=336&terms=adopt+a+creek. Creek Wise brochure, “You Are the Solution to Water Pollution,” which included Adopt-A-Creek program information was mailed out countywide to all creek-side property owners in July 2018. City of Los Altos posted National River Cleanup Day information in the City Manager Weekly updates, which is an email newsletter, and posted on the City website. City of Palo Alto posts District’s Adopt a Creek Program on City’s website. City of Santa Clara Adopt-a-Spot Program is posted on City website. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 6 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Topics 4 & 6 Message: Keep debris and trash out of our streams. It’s illegal to dump into streams Cleaner streams and fewer dumping violations Fewer debris blockages during high-flow events CAL OP#20. Organize volunteers for National River Cleanup Day and California Coastal Cleanup Day District Communications City of San Jose May 16, 2015 and September 2015 annually All Information from Clean A Creek.org Creek Connections Action Group http://www.cleanacreek.org/Pasteventsresults_main%20page.asp National River Cleanup Day was held on May 19, 2018. 48 clean-up sites; 1,354 volunteers removed approximately 47,353 lbs. of trash, including 2,084 lbs. of recyclables along 65.24 miles of creeks and shoreline. California Coastal Cleanup Day was held on September 16, 2017. 49 clean-up sites; 2,028 volunteers removed approximately 51,502 lbs. of trash, including 6,957 lbs. of recyclables along 71.32 miles of creeks and shoreline. City of Los Altos posted National River Cleanup Day information in the City Manager Weekly updates, which is an email newsletter, and posted on the City website. City of Milpitas promoted and participated in these annual events. City of Morgan Hill participated in these annual events. City of Mountain View advertised Bi-Annual Creek Cleanups. City of Palo Alto participates on National River Cleanup Program. City of Santa Clara organized volunteers for National River Cleanup. CAL OP #21. Post volunteer information and results on website (Element 352 WEB1) Volunteer information and results posted on www.cleanacreek.org. City of Los Altos posted National River Cleanup Day information in the City Manager Weekly updates, which is an email newsletter, and posted on the City website. City of Milpitas promoted volunteer opportunities on promotions and website re-directing to www.cleanacreek.org City of Palo Alto posts National River Cleanup Program on City’s website. National River Cleanup event is posted on City of Santa Clara’s website. CAL OP # 22. Installation of trash booms Information from Municipal Regional Permit NPDES Permit No.: CAS612008 Order Number: R2-2015-0049 FY 2016-2017 Annual Report NOTE: FY 17-18 Annual Report will not be available until September 2018 C.10 – Provision C.10 Trash Load Reduction A total of 4 trash booms (2 in San Jose: Lower Silver Creek, Thompson Creek; 2 in Palo Alto: Matadero Creek, Adobe Creek) installed prior to FY16- 17. 15 cubic yards of trash and debris removed from trash boom s clean-up efforts in North County. There are trash capture devices throughout the City of Mountain View. In the City of Palo Alto, trash booms are installed at Matadero Creek and Adobe Creek. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 7 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community CAL OP #23. Stenciling storm drains “Do Not Dump - Flows Into Bay” City of San Jose CRS Coordinator All Cities CRS Coordinator City of San Jose All Cities District inspects and maintains, including stenciled storm drains on all District property. Information from Municipal Regional Permit NPDES Permit No.: CAS612008 Order Number: R2-2015-0049 FY 2016-2017 Annual Report NOTE: FY 17-18 Annual Report will not be available until September 2018 Provision C.7.a (Public Information and Outreach – Storm Drain Inlet Marking) of the Municipal Regional Stormwater NPDES Permit (Order No. R2-2015-0049) issued by the San Francisco Bay Regional Water Quality Control Board to 76 Bay Area permittees (including Santa Clara County, the District, and the cities in the northern part of the county that discharges to the Bay) requires that: Permittees shall mark and maintain municipally-maintained storm drain inlets with appropriate stormwater pollution prevention message, such as “No Dumping, drains to Bay” or equivalent. For newly -approved, privately maintained streets, Permittees shall require storm drain inlet markings by the project developer. Municipalities are to inspect and maintain storm drain inlet markings of at least 80 percent of municipality-maintained inlets to ensure they are legibly labeled. City of Gilroy adds medallions at drainage inlet locations. City of Los Altos storm drains are all stenciled (including the name of the creek that the inlet drains to) and the City aims to inspect, clean, and maintain each inlet annually. City of Milpitas places “No Dumping, Drains to Creek” medallions placed at public catch basins on as-needed basis. “Do Not Dump” stenciling is installed on all storm drain inlets in the City of Palo Alto. City of Santa Clara placed stencil on all storm drain inlets. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 8 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Cleaner streams and fewer dumping violations Fewer debris blockages during high-flow events CAL OP #24. Inserts into inlets Information from Municipal Regional Permit NPDES Permit No.: CAS612008 Order Number: R2-2015-0049 FY 2016-2017 Annual Report NOTE: FY 17-18 Annual Report will not be available until September 2018 Section 2 - Provision C.2 Reporting Municipal Operations Program District inspects and maintains drop inlet protection on all its property. City of Los Altos has one installed large trash capture device that is regularly maintained by the City’s maintenance division. City of Milpitas completed installation of 94 small full trash capture devices. Required on all new development projects for City of Mountain View. City of Palo Alto installed two large trash capture devices. In the City of Santa Clara, the total count for installed storm drain inlet inserts for FY 17/18 was 472. CAL OP #25. Hot Spot Assessment and Clean-ups Information from Municipal Regional Permit NPDES Permit No.: CAS612008 Order Number: R2-2015-0049 FY 2016-2017 Annual Report NOTE: FY 17-18 Annual Report will not be available until September 2018 C.10 – Provision C.10 Trash Load Reduction District staff continued to actively participate in the SCVURPPP Trash Ad- Hoc Task Group. In addition, District staff co-chairs the BASMAA trash committee and participated on the Project Management Team for the Receiving Water Trash Monitoring Plan development. District staff also participated in workshops related to receiving water trash monitoring for the statewide trash amendments organized by the Ocean Protection Council. During the spring trash hot spot site assessments, it was determined that the significant stream flows over the winter in Santa Clara County washed out all sign of the trash from the hot spot locations. A total of 3 cubic yards of trash and debris removed. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 9 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Gilroy completed hotspot assessment per City’s State Permit requirement for year 5 of permit. City of Los Altos continues active participation in SCVURPPPP and continues conducting Hot Spot cleanups. City of Milpitas has 4 (four) creek hot spots which are cleaned twice/year. City of Palo Alto identifies hot spots every year and keeps log of maintaining them. City of Palo Alto and City of Milpitas continue to actively participate in the SCVURPPP. In FY17/18, City of Santa Clara’s Trash Hot Spot Cleanups occurred in August and September 2017. There are 5 locations and 9.5 cubic feet of trash or .3518 cubic yards of trash was collected. Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Cleaner streams and fewer dumping violations Fewer debris blockages during high-flow events CAL OP #26. Send out yearly newsletter article discussing efforts to ready the storm drainage system for fall rains – cleaning out storm drains, and discusses “No Dumping” that reaches all households in the City or County City of Sunnyvale CRS Coordinator Cities CRS Coordinators Late Summer/ Fall Sunnyvale All Messages on storm drainage system included in the annual FPM sent out to 53,243 properties. City of Milpitas has monthly street sweeping print advertising in local newspaper; letters to 9,000 households in Fall Street Sweeping Program areas. City of Palo Alto sends winter storm preparedness on utility insert every year. City of Santa Clara’s “Inside Santa Clara” newsletter is posted on City website. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 10 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community CAL OP # 27. Post newsletter article on efforts to ready storm drainage system for fall rains – cleaning out storm drains, and “No Dumping” on website (Element 352 WEB1) City Sunnyvale CRS Coordinator Cities CRS Coordinators Late Summer/ Fall Sunnyvale All Newsletters and flier posted on the website. City of Los Altos website posting of “Storm Preparation in Los Altos” discusses efforts to get the drainage system ready for the storm season. City of Los Altos posts information on the website about City efforts to prepare for storms and emergencies, including 1) conducting emergency operation drills with the Police Department and Santa Clara County Fire Department to set up an Emergency Operation Center in order to practice and prepare for storm and flood response; 2) inspections and waterproofing of traffic signals related equipment and preparing backup generators for signal outages; 3) trimming trees and removes dead trees, which can help to prevent debris blockages during rains; 4) inspecting and clearing debris from difficult to access storm water ditches.. City of Milpitas posts their citywide informational “SFHA brochure” on City website. Winter storm preparedness is posted on City of Palo Alto’s Flood Information/Winter Preparedness webpage. City of Palo Alto utility bill inserts posted on their website. City of Santa Clara’s “Inside Santa Clara” newsletter is posted on City website. City of Sunnyvale posts Learn How to Prevent Stormwater Pollution on website. Topics 1,2,3,4,7, 8 & 9: Download disaster electronic Apps Messages: Be prepared for flood and other disasters; Know how to access needed information quickly during an emergency Increase in ‘hits’ on Apps and less stress during emergencies CAL OP #28. Advertise District, County Public Health Department and American Red Cross Electronic Apps City representatives, District Communications County Public Health Dept. Gilroy Chamber of Commerce, and American Red Cross Year-Round Community Organizations, including American Red Cross and Gilroy Chamber of Commerce Residents who download the apps. Attendees of community events who visit information booths Teachers /students visited by District’s School Outreach Program All Apps included in the District’s FPM. Also advertised on the newsletter, Countywide mailer, Facebook and Twitter by District, City of Palo Alto, and City of Mountain View. City of Milpitas Fire Department’s Office of Emergency Services offers instructions on downloading preparedness apps. City of Mountain View handed out Emergency Preparedness at Spanish Language Civic Leadership Class, also at one Council Neighborhood Committee Meeting and one Thursday Night Live event. Information on Red Cross Apps and Alert SCC is on City of Palo Alto’s Winter Storm Preparedness Tips utility insert. City of Santa Clara’s “Inside Santa Clara” has instruction to download Red Cross App. CAL OP #29. Post disaster apps information on website (Element 352 WEB1 and 2) Apps posted on District website at https://www.valleywater.org/flooding- safety/flood-protection-resources/sign-up-for-emergency-alerts City of Los Altos website posting of “Calling on Los Altans to be Disaster Prepared” provides links to AlertSCC.org, Red Cross and FEMA apps, and it encourages the viewers to explore www.ready.gov for more information. City of Los Altos posts AlertSCC app information on the City Website and in the City Manager Weekly Update online newsletter. Apps posted on City of Milpitas Fire Department webpage. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 11 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Morgan Hill included information about the AlertSCC and ReadySCC Apps in the City’s weekly newsletters/e-mail blasts during the months of September 2017, October 2017, January 2018, and March 2018. The City’s weekly newsletters were posted in the City’s website. Information on Red Cross Apps is posted on City of Palo Alto’s Flood Information/Winter Preparedness webpage. City of Sunnyvale offers this information on website. CAL OP #30. Instruct people to download apps at personal preparedness trainings Apps information provided at several emergency preparedness events hosted by District and several SC County cities, including City of Palo Alto. City of Los Altos website posting of “Calling on Los Altans to be Disaster Prepared” provides links to AlertSCC.org, Red Cross and FEMA apps, and it encourages the viewers to explore www.ready.gov for more information. City of Milpitas’ Fire Department Office of Emergency Services offers instructions on downloading preparedness Apps. at City events and trainings. City of Morgan Hill included information about the AlertSCC and ReadySCC Apps in the City’s weekly newsletters/e-mail blasts during the months of September 2017, October 2017, January 2018, and March 2018. The City’s weekly newsletters were posted in the City’s website. City of Mountain View handed out Emergency Preparedness at Spanish Language Civic Leadership Class, also at one Council Neighborhood Committee Meeting and one Thursday Night Live event. City of Sunnyvale staff instructed people to download emergency and Flood apps at Farmer’s Market event. CAL OP #31. Post instruction on how to download apps. on websites and electronic newsletters (Element 352 WEB1) District Communications City representatives Instructions on how to download AlertSCC, ReadySCC, American RedCross Flood Apps on District and City of Palo Alto websites at: https://www.valleywater.org/flooding-safety/flood-protection- resources/sign-up-for-emergency-alerts Posted on City of Milpitas Fire Department Office of Emergency Services web page. City of Morgan Hill included information about the AlertSCC and ReadySCC Apps in the City’s weekly newsletters/e-mail blasts during the months of September 2017, October 2017, January 2018, and March 2018. The City’s weekly newsletters were posted in the City’s website. City of Santa Clara’s “Inside Santa Clara” newsletter has instruction to download Red Cross App, and it is posted on City website. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 12 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. CAL OP #32. Promote ALERT SCC - Santa Clara County Emergency Alert System Cities CRS Coordinators District Communications Santa Clara County All District promoted ALERTSCC in the FPM. AlertSCC is a service for anyone who lives or works in SC County to get emergency warnings sent directly to their electronic devices. AlertSCC provides information in emergency situations like: • Flooding, wildfires and subsequent evacuations. • Public safety incidents, including crimes, that immediately affect your neighborhood. • Post-disaster information about shelters, transportation, or supplies City of Gilroy promotes ALERT SCC on their website. City of Los Altos social media messaging and City Manager Weekly Update online newsletter encouraged download of the AlertSCC app and promoted several different emergency training programs and drills. City of Los Altos website posting of “Calling on Los Altans to be Disaster Prepared” provides links to AlertSCC.org, Red Cross and FEMA apps, and it encourages the viewers to explore www.ready.gov for more information. Posted on City of Milpitas Fire Department Office of Emergency Services web page. City of Morgan Hill included information about the AlertSCC App in the City’s weekly newsletters/e-mail blasts during the months of October 2017 and March 2018. Information on Alert SCC- Santa Clara County Emergency Alert System is on City of Palo Alto’s utility insert. City of Santa Clara instructs people to sign-up for AlertSCC at CERT classes. CAL OP #33. Post ALERT SCC - Santa Clara County Emergency Alert System on District and cities websites http://www.sccgov.org/sites/alertscc/Pages/home.aspx (Element 352 WEB1 and WEB2) Sign-up info posted on District and Palo Alto website at: https://www.valleywater.org/flooding-safety/flood-protection- resources/sign-up-for-emergency-alerts City of Gilroy posts ALERT SCC link on their website. City of Los Altos posts AlertSCC app information on the City Website and in the City Manager Weekly Update online newsletter. City of Los Altos website posting of “Calling on Los Altans to be Disaster Prepared” provides links to AlertSCC.org, Red Cross and FEMA apps, and it encourages the viewers to explore www.ready.gov for more information. Posted on City of Milpitas Fire Department Office of Emergency Services web page. City of Morgan Hill included information about the AlertSCC App in the City’s weekly newsletters/e-mail blasts during the months of October 2017 and March 2018. The City’s weekly newsletters were posted in the City’s website. Alert SCC-Santa Clara County Emergency Alert System is posted on City of Palo Alto’s Flood Information/Winter Preparedness webpage. City of Santa Clara posts information on how to sign up for AlertSCC on City website. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 13 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Topic 7: Develop a Family Emergency Plan Messages: Be prepared for flood and other disasters Increase in Family Emergency Plan and less stress during emergencies More people know what to do in an emergency CAL OP#34. Workshop/contest to promote developing family Emergency Plans; Reaching out to a celebrity to carry our message District Communications and City representatives with assistance from Stakeholders Year-Round Schools American Red Cross Celebrity, TBD FEMA California Volunteers.org All District promoted emergency preparedness on Facebook and Twitter during National Preparedness Month in September. District’s education outreach team held “Are you Flood Ready?” flood awareness coloring contest. Contest required students to indicate what items they should put in their emergency kit and explain their family emergency plan. Contest closed in March 2018 and received over 350 entries from 16 different schools in cities throughout the county. Family Emergency Plan information is also included in District’s FPM and CWM. City of Los Altos police conducts Community Emergency Response Team (CERT) training to residents. The City of Los Altos also promotes the PREPARE program by the Los Altos Community Foundation. The program provides training to Block Action Team Leaders for emergency preparedness, response, and recovery. The City of Los Altos offers complementary Personal Emergency Preparedness courses taught by the SCC Fire Department personnel. City of Los Altos website posting of “Calling on Los Altans to be Disaster Prepared” provides a link to sign up for this class. City of Milpitas Fire Department conducts SAFE training for resident that includes a component of developing emergency plans. City of Morgan Hill declared September 2017 as “National Preparedness Month. The City also included information on putting together an emergency kit, creating a family communication emergency plan, signing up for emergency notifications and Community Emergency Response Team (CERT) Free Basic Training in the City’s weekly newsletters/e-mail blasts during the months of September 2017 and October 2017. The City’s Office of Emergency Services hosted a free Emergency Preparedness Seminar on November 6, 2017. City of Mountain View and City of Milpitas handed out District emergency starter kits at various community events with request that residents complete an emergency plan with their family. Distributed District’s emergency starter kits at Earth Day Fair and at City of Palo Alto’s Municipal Fair. City of Santa Clara handed out District emergency starter kits at various community events with request that residents complete an emergency plan with their family. CAL OP #35. Post Family Emergency Plan template form on website http://www.redcross.org/images/MEDIA_CustomProductCat alog/m12140360_ARC_Family_Disaster_Plan_Template_r08 3012.pdf?campmedium=internal_link_download&campname =family_disaster_plan_english or http://www.californiavolunteers.org/familyplan/pdf/family_ plan.pdf (Element 352 WEB1 and 2) Templates for Family Emergency Plan are posted on the District’s website in the FPM under “What to Do Before” section. https://www.valleywater.org/floodready/flood-safety-tips re-directing to https://www.ready.gov/make-a-plan Additionally, hard copies of FEMA’s Family Emergency Plan template were included in the emergency starter kits handed out by District and/or cities’ staff at several emergency preparedness events held throughout the county. City of Gilroy website provides a link to FEMA’s website. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 14 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Los Altos, in collaboration with SCC Fire, provides a once a month a 3-Hour Personal Emergency Preparedness Class, free of charge. City website posting of “Calling on Los Altos to be Disaster Prepared” provides a link to sign up for this class. City of Los Altos website page encourages families to plan communication before flooding/emergencies and includes link to FEMA communication plan steps and template. City of Los Altos, in collaboration with SCC Fire, provides a once a month a 3-Hour Personal Emergency Preparedness Class, free of charge. City website posting of “Calling on Los Altos to be Disaster Prepared” provides a link to sign up for this class. Family Emergency Plan template posted on City of Milpitas Fire Department Office of Emergency Services webpage. City of Morgan Hill’s Emergency Services webpage has a link to FEMA's website which contains a fillable Family Emergency Communication Plan. Emergency starter kits handed out at City events also included a copy of FEMA’s Family Emergency Plan template. Family emergency plan templates are posted on City of Palo Alto’s website. City of Santa Clara website has family emergency preparedness instruction and links to family emergency plan template on FEMA, CDC, and DHS. CAL OP#36. Include message “What to Do….Before – Prepare a Family Emergency Plan….” in District’s CWM District Communications City representatives October – March All Messages were included in District’s FPM and CWM. City of Milpitas citywide informational “SFHA brochure” included this message. City of Morgan Hill’s weekly newsletters/e-mail blasts included this message during the months of September 2017 and October 2017. City of Morgan Hill’s Emergency Services webpage has a link to FEMA's website that contains this message. On City of Mountain View website. City of Santa Clara’s “Inside Santa Clara” newsletter includes message what to do before, during, and after flood. Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Topic 7: Develop a Family Emergency Plan Messages: Be prepared for flood and other disasters Increase in Family Emergency Plan and less stress during emergencies More people know what to do in an emergency CAL OP #37. Post message “What to Do….Before – Prepare a Family Emergency Plan….” on website (Element 352 WEB1 and 2) District Communications City representatives All FPM was posted on the District’s website http://apps2.valleywater.org/publication/flipbook/808_FloodMailer2017/ mobile/index.html#p=1 Additional tips also listed on website: https://www.valleywater.org/floodready/flood-safety-tips City of Los Altos website page encourages families to plan communication before flooding/ emergencies and includes link to FEMA communication plan steps and template. City of Milpitas citywide informational “SFHA brochure” is posted on City website. City of Morgan Hill’s weekly newsletters/e-mail blasts with this message were posted in the City’s website. On City of Mountain View website and link to District’s webpage. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 15 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Messages on what to do before emergency and on preparing a family emergency plan are posted on City of Palo Alto’s Flood Information/Winter Preparedness website. City of Santa Clara’s “Inside Santa Clara” newsletter is posted on City website. CAL OP#38. Promote the official site of the NFIP Floodsmart.gov for flood preparation and recovery messages District Communications City CRS Coordinator and Communications staff All Federal Flood Insurance Program (Floodsmart.gov) information linked on District’s flood protection landing page website as well as included FPM. Although Floodsmart.gov website was down during most of FY18, we include the link on our website which re-directed to FEMA’s NFIP landing page https://www.valleywater.org/floodready/flood-insurance The NFIP information and web link is posted on the City of Los Altos website. City of Milpitas citywide informational “SFHA brochure promotes the Floodsmart.gov website. On City of Mountain View website. Information on Floodsmart.gov is on City of Palo Alto’s utility insert. City of Santa Clara did not promote floodsmart.gov during FY17-18 because the website was down. CAL OP #39. Post message “NFIP Floodsmart.gov Flood Preparation and Recovery….” on website https://www.floodsmart.gov/floodsmart/pages/preparation _recovery/before_a_flood.jsp (Element 352 WEB1 and 2) District Communications City CRS Coordinator and Communications staff All Federal Flood Insurance Program (Floodsmart.gov) posted on District website directing audience to FEMA’s NFIP website while Floodsmart.gov is under redesign. The NFIP information and web link is posted on the City of Los Altos website. City of Milpitas citywide informational “SFHA brochure” posted on City website with link to the Floodsmart.gov website. Information on Floodsmart.gov is posted on City’ of Palo Alto’s Flood Information/Winter Preparedness website. Topics 1, 3, & 4 Messages: Protect people and property from flood hazards Less damage due to the floods; improve sandbag distribution CAL OP #40. Sandbags available at various sites throughout county District Vegetation Unit City of Palo Alto Public Works November through April All County residents Community organizations (SF Creek JPA, Boys Scouts, etc.) All Published SC County map of sandbag locations in Winter Prep flier and FPM. City of Gilroy has various sandbag sites located throughout the city. City of Los Altos prepare a sandbag station(s) for complimentary sandbags. City of Milpitas has four (4) sandbag stations offering complimentary sandbags. City of Morgan Hill’s April 8, 2018 weekly newsletter/e-mail blast included information on the locations of sandbag stations. Sandbags available at City of Mountain View Maintenance Operation Center and information website. City of Palo Alto and District have various sandbag site locations throughout the city. City of Santa Clara provides sandbags at City Corp yard. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 16 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community CAL OP #41. Post sandbag information on website, including How to Use Sandbags, sandbag webcams to view availability, etc. (Element 352 WEB1 and 2) District Communications Year-Round Sandbag distribution sites map/flier, webcams for certain sandbag sites, and sandbagging techniques video for correct positioning and tips. Posted on District’s website. https://www.valleywater.org/floodready/sandbags City of Gilroy posts sandbag information using social media. City of Los Altos provides information on website on how to prepare for storms and emergencies (e.gh. How to get and use free sandbags, tree maintenance, dispose of leaf litter, remove debris, prepare an emergency kit). City of Milpitas sandbag station locations posted on City website and referral bulletin on KMLP-15. City of Morgan Hill’s April 8, 2018 weekly newsletter/e-mail blast with information on the locations of sandbag stations was posted in the City’s website. Sandbag information was also posted in the City’s Flooding Information webpage. On City of Mountain View website. Information on sand bag locations is posted on the City of Palo Alto’s Flood Information/Winter Preparedness website. City of Santa Clara website has sandbag information. Topics 1 & 9: Know your flood hazard; Understand shallow flooding risks Messages: Drive slowly; Avoid shallow moving water; 2 ft. water moves vehicles; FEMA’s message: “Turn Around Don't Drown®.” Fewer accidents and rescues CAL OP #42. Permanent street signage (2 signs/City/year); each City will determine best location for signage and will install them. “Subject to Flooding” (Cities to coordinate common standard message design) Cities PWD County Planning Gilroy Chamber of Commerce Year-Round FEMA Caltrans Gilroy Chamber of Commerce American Red Cross Residents and people who work in county All City of Palo Alto installed two signs. City of Sunnyvale installed two “Road May Flood” street signs. CAL OP#43. Include message “What to Do….After – Turn Around Don’t Drown®….” in District’s CWM District Communications City representatives All Messages were included in the District’s FPM. City of Los Altos included “Do not drive on flooded roadways” in police social media post. Los Altos SFHA mailer brochure posted on website warns not to attempt to drive or wade through deep pockets of water or running washes. City of Milpitas citywide informational “SFHA brochure” included this message. Posted link to District’s webpage on City of Mountain View website. Message “What to do after storm and turn around don’t drown” is on City of Palo Alto’s utility insert and District’s FPM. City of Santa Clara’s “Inside Santa Clara” newsletter has this message. CAL OP #44. Post message “What to Do….After – Turn Around Don’t Drown®….” on website (Element 352 WEB1 and 2) District Communications City representatives Messages posted on District’s website. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 17 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Milpitas citywide informational “SFHA brochure” included this message. City of Palo Alto’s utility insert is posted on City’s Flood Information website. City of Santa Clara’s “Inside Santa Clara” newsletter is posted on city website. CAL OP #45. Post shallow flooding risks information on websites (Element 352 WEB1 and 2) District Communications Cities Communications All Risk of driving through standing water is included in FPM which is posted on District’s website, and in flood safety tips listed on District’s website. City of Milpitas citywide informational “SFHA brochure” included this message. Information on shallow flooding risks are posted City of Palo Alto’s Flood Information website. Shallow water hazard message posted to Twitter by City of Santa Clara. CAL OP #46. Promote City’s online “Flood Zone Lookup” tool on Website (Element 352 WEB1 and 2) City of Palo Alto Public Works City of Palo Alto District promotes FEMA’s Flood Map Service Center on our website: https://www.valleywater.org/floodready/is-your-home-in-a-flood-zone City of Milpitas citywide informational “SFHA brochure” included this message. Information on City of Palo Alto’s Flood Zone Look Up is available both on utility insert and City’s Flood Information website. Community At Large (CAL) The PPI Committee recognized that the entire community that lives and/or works in Santa Clara County is subject to impacts due to flooding. The CRS typically focuses on residential flooding, but here, flooding of businesses and roads is also very important. Topics 1, 2, 3, 4, 5, 6, 7, 8, & 9 Message: Know your flood risk and be prepared; buy flood insurance Educate our community on flood protection and preparedness measures Increase in ‘hits’ on District and cities Flood Protection Resources pages and improve District’s Flood Campaign results CAL OP #47. Flood Awareness Campaign, including radio and bus ads. For this year, we are preparing to have radio ads ready to place, but we’ll only place them if/when there are major storm systems in the forecast District Communications Cities Communications October-April FEMA Radio Stations Valley Transportation Authority American Red Cross All District’s Flood Awareness Campaign - Radio spots ran for 17 weeks in 2 mainstream English stations, Spanish, Vietnamese and Chinese language stations over the course of 4 months. From the months of September through March, the District featured 39 Facebook and 34 Twitter posts with the flood safety messages. These posts included links to the Flood Awareness Campaign elements on the District’s website. City of Gilroy Emergency Radio Station AM1610. Outreach materials were displayed at Los Altos City Hall front counter and Library. An ad article titled "Flood Insurance Information Available" was published two times in the Los Altos Town Crier, providing Flood Awareness information and promoting flood insurance. City of Los Altos website encourages emergency planning. The City of Los Altos website promotes Community Emergency Response Team (CERT) academy training, which is hosted by Police Department for residents. The Los Altos website also promotes the activities of the Los Altos PREPARE program by the Los Altos Community Foundation and training of Block Action Team Leaders for emergency preparedness, response, and recovery. City of Los Altos provides information on its website on how to prepare for storms and emergencies (e.g. How to get and use free sandbags, tree maintenance, dispose of leaf litter, remove debris, prepare an emergency kit). City of Los Altos provides contact & after-hours number on City website for reporting storm-related hazards. The City of Los Altos weekly newsletter email included 20 issues with content on flood information, insurance, and/or emergency preparations. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 18 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Morgan Hill’s April 8, 2018 weekly newsletter/e-mail blast included the Santa Clara Valley Water District’s Storm Update and Resource Links. City of Palo Alto’s Emergency Services Department promotes several hazard related messages, including flood awareness; they lead a campaign effort in support of these messages. City of Mountain View proclamation recognizing Red Cross Month on March 2018 City of Palo Alto’s Emergency Services promotes campaign on hazards including flood awareness. CAL OP #48. Post Flood Awareness Campaign elements on District website (Element 352 WEB1 and 2) District Communications Cities Communications Year-Round Facebook, Twitter, Google+, LinkedIn, Instagram, etc. All Social media posts referred to above link to elements in the flood awareness campaign. The District’s news blog, Valley Water News, also features stories on campaign elements: wwww.valleywaternews.org City of Morgan Hill’s April 8, 2018 weekly newsletter/e-mail blast which included the Santa Clara Valley Water District’s Storm Update and Resource Links was also posted in the City’s Flooding Information webpage. City of Palo Alto noted this was on District’s website. CAL OP #49. Post Flood Awareness Campaign information on websites (Element 352 WEB1 and 2) District Communications Cities Communications Year-Round Several elements of the District’s Flood Awareness Campaign are promoted throughout the website, for example radio spots, ads., flood safety tips, etc. City of Los Altos website encourages emergency planning. The City of Los Altos website promotes Community Emergency Response Team (CERT) academy training, which is hosted by Police Department for residents. The Los Altos website also promotes the activities of the Los Altos PREPARE program by the Los Altos Community Foundation and training of Block Action Team Leaders for emergency preparedness, response, and recovery. City of Los Altos provides information on its website on how to prepare for storms and emergencies (e.g. How to get and use free sandbags, tree maintenance, dispose of leaf litter, remove debris, prepare an emergency kit). City of Los Altos provides contact & after-hours number on City website for reporting storm-related hazards. The City of Los Altos weekly newsletter email included 20 issues with content on flood information, insurance, and/or emergency preparations. City of Morgan Hill’s April 8, 2018 weekly newsletter/e-mail blast which included the Santa Clara Valley Water District’s Storm Update and Resource Links was also posted in the City’s Flooding Information webpage. On City of Mountain View website. City of Santa Clara has Flood Awareness material set out at City Hall and City library. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 19 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community CAL OP 50. Distribute flood prevention materials at fairs Fair Sponsors During the months of September through March, District and/or cities’ staff attended community fairs/events where flood safety information and flood prevention materials was shared. The District attended at least 17 community events/fairs. Outreach materials distributed to public at City of Los Altos Fall Festival by Police Department. Flood emergency readiness kits distributed to public at Los Altos Fall Festival by Police Department to each attendee who completed a survey. City of Milpitas distributed Family Emergency Starter Kits and other flood prevention collateral materials at multiple city sponsored events. City of Morgan Hill handed out emergency starter kits on November 3, 2017, at the Emergency Preparedness Workshop for Afterschool Youth Program, and on December 5, 2017 during staff presentation at Morgan Hill Youth Action Council (YAC) Meeting. City of Sunnyvale distributed Family Emergency Starter Kits and flood prevention brochures at Farmer’s Market event. Distributed Water District’s emergency preparedness starter kits on Earth Day and City of Palo Alto MSC Fair. City of Santa Clara distributed flood emergency starter kits at Art & Wine Festival and another community event. CAL OP #51. Social Media Messaging (such as Facebook, Twitter, LinkedIn, Instagram, etc.) Fair Sponsors Residents who share posts Facebook, Twitter, Google, LinkedIn, Instagram, etc. See above-noted response to CAL OP#47. City of Gilroy uses social media to post flood awareness campaign information. City of Los Altos and Los Altos Police social media posted 16 messages about flooding or emergency preparation in FY 17-18. The Los Altos social media messaging encouraged download of the AlertSCC app and promoted several emergency training programs and drills. Public Safety Social Media link is posted on the City of Palo Alto’s utility insert. City of Santa Clara posted social media message with topics on protect people and property from the hazard (Topics 3 & 4). CAL OP #52. Post social media messages on websites (Element 352 WEB1 and 2) See above-noted response to CAL OP#48. City of Gilroy website posts flood awareness campaign information. City of Los Altos and Los Altos Police social media posted 16 messages about flooding or emergency preparation in FY 17-18. The Los Altos social media messaging encouraged download of the AlertSCC app and promoted several emergency training programs and drills. Message posted on City of Santa Clara website. CAL OP #53. Staffing booths at fairs District Communications Cities Communications Year-Round Fair Sponsor Residents who attend booths All See above-noted response to CAL OP#50. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 20 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community District attended various city sponsored events and distributed collateral materials related to flood prevention Outreach materials distributed to public at City of Los Altos Fall Festival by Police Department. Flood emergency readiness kits distributed to public at City of Los Altos Fall Festival by Police Department to each attendee who completed a survey. City of Milpitas distributed Family Emergency Starter Kits and other flood prevention collateral materials at the May 20-21, 2017 Milpitas International BBQ & Festival. Distributed Winter Preparedness fliers and family emergency starter kits at Earth Day Fair and City of Palo Alto MSC Fair. City of Santa Clara has a Department of Public Works booth at Art & Wine Festival to distribute flood prevention materials. City of Sunnyvale distributed Family Emergency Starter Kits and flood prevention brochures at Farmer’s Market event. Special Flood Hazard Area (SFHA) Communities The PPI Committee identified several geographic areas that are particularly prone to flooding. Topics 4 & 6 Message: Keep debris and trash out of our streams. It’s illegal to dump into streams Cleaner streams and fewer dumping violations SFHA OP #1. “Do Not Dump” message is sent each year to all SFHA residents county-wide in the District’s annual Floodplain Mailer (FPM) (2014 FPM reached 71,000 residents & businesses) (target outreach – 6 points per topic) District Communications October/ November 2015 annually FEMA SCVURPPP All District’s annual FPM sent in January to 53,243 parcels which includes message of keeping creeks clean and healthy. City of Milpitas citywide informational “SFHA brochure” included this message. City of Los Altos annual mailer and brochure provide information regarding Flood program with an emphasis on “Do Not Dump” message. City of Los Altos also communicates “Do Not Dump” message through litter mailer sent to property owners in the City’s Trash Management Area 1, which is characterized by higher trash level. In December 2016, City of Milpitas mailed out citywide informational “SFHA brochure” that included this message. “Do not Dump” message is posted on City of Palo Alto’s utility insert. City of Santa Clara “Inside Santa Clara” newsletter includes DO NOT DUMP message. Less flooding damage due to debris build- up SFHA OP #2. Post Floodplain Mailer on website (Element 352 WEB1 and 2) District Communications Year-Round All FPM posted on District and Palo Alto’s websites. City of Los Altos has posted the SFHA mailer and brochure on the City website. City of Milpitas citywide informational “SFHA brochure” included this message and posted on City website. Winter Storm Preparedness Utility Insert is posted on City of Palo Alto’s website. City of Santa Clara “Inside Santa Clara” newsletter is posted on City website. DO NOT DUMP message is also on another City webpage. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 21 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Topics 3 & 5 Message: Protect your family and property from flooding Educate our community on flood protection and preparedness measures SFHA OP #3. “What to Do – Protect Your Family and Property from Flooding” message is sent each year to all SFHA residents in the District’s annual FPM October - November All District’s annual FPM sent in January to 53,243 properties included message of protecting your family against floods. City of Los Altos sent mailers to property owners in SFHAs in September 2017 and in February 2018, which included a letter and flood hazard information brochure. City of Milpitas citywide informational “SFHA brochure” included this message. Flood messages on Utility Insert are sent to City of Palo Alto residents every year. City of Santa Clara “Inside Santa Clara” newsletter includes message about protecting property and family. Special Flood Hazard Area (SFHA) Communities The PPI Committee identified several geographic areas that are particularly prone to flooding. Reduce number of claims SFHA OP #4. Post Floodplain Mailer on website (Element 352 WEB1 and 2) Year-Round FPM posted on District’s website. City of Los Altos has posted the SFHA mailer and brochure on the City website. City of Milpitas citywide informational “SFHA brochure” included this message. Utility Bill Insert is posted on City of Palo Alto’s Flood Information/Winter Preparedness website. City of Santa Clara “Inside Santa Clara” newsletter is posted on City website. SFHA OP #5. Maintain the ALERTSCC System District Communications City of Palo Alto CRS Coordinator Cities CRS Coordinators Year-Round peaks time October - April County of Santa Clara All ALERTSCC emergency notification system is maintained by Santa Clara County. District advertised the resource in our annual FPM and is also on our website: https://www.valleywater.org/flooding-safety/flood- protection-resources/sign-up-for-emergency-alerts. Posted on City of Milpitas Fire Department Office of Emergency Services webpage. Information on Alert SCC and real time creek water surface elevation is posted on City of Palo Alto Utility Bill Insert. Keep families safe SFHA OP #6. ALERT System – Post real-time gauge information on website so users can see current water levels, and where available, flood height predictions (Element 352 WEB3) All Alert System Real Time Data is available on the District website. https://www.valleywater.org/floodready The District’s Alert System (gauge monitoring site) was maintained and updated to produce a mobile friendly site. City of Milpitas citywide informational “SFHA brochure” included this message and is posted on their website. City of Morgan Hill’s Flood Information webpage includes a link to the District’s website with ALERT System Real-Time Data. Information on real time creek water surface elevation is posted on City of Palo Alto website. SFHA OP #7. Post cards sent to floodplain residents; this is in addition to the District’s Annual FPM. City of Sunnyvale sends City of San José Need dates from communities FEMA Lenders City of San José City of Sunnyvale Cities of Sunnyvale send postcards to residents to floodplain residents. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 22 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community out postcards annually that includes a link to flood insurance agent referrals. City of Sunnyvale CRS Coordinator City of Gilroy County of Santa Clara Real Estate Brokers Silicon Valley Realtors Association City of Gilroy County of Santa Clara City of Milpitas citywide informational “SFHA brochure” included this message. SFHA OP #8. Post postcards on website (Element 352 WEB1 and 2) City of Sunnyvale CRS Coordinator Sunnyvale City of Sunnyvale posted on their website. City of Milpitas citywide residential newsletter “Connected” editions in November 2017 and May 2018 with “be prepared; buy flood insurance” messages are posted on City website. In June 2018, City of Milpitas mailed out citywide informational “SFHA brochure” (to all residences and businesses) that also included this message and is posted to the City’s website. SFHA OP# 9. City of Sunnyvale sends out postcards annually that offers flood protection assistance site visits. Sunnyvale CRS Coordinator Sunnyvale City of Sunnyvale sent out a postcard that offers flood protection assistance site visits. SFHA OP #10. Post postcards that offers flood protection assistance site visits on website (Element 352 WEB1 and 2) Message was posted on City of Sunnyvale’s website. SHA OP #11. Inserts into District’s School Outreach Program material District Communications Year-Round Schools Students/Parents All Several of the District School Outreach Program (Water Education Outreach) materials are made available at various preparedness fairs/events. Additionally, there will be a focus in FY18 to partner with the District’s Outreach Program to promote emergency/flood preparedness. An “Are You Flood Ready” coloring contest was successfully launched throughout several elementary schools in the county. SFHA OP #12. Post School Outreach Program materials on website (Element 352 WEB1) District Communications Year-Round All The District’s Water Education Outreach Program materials are posted on our website at: https://www.valleywater.org/learning-center/for-teachers- students Topics 1, 2, 3, 4, 5, 6, 7, 8, & 9 Message: Know your flood risk and be prepared; buy flood insurance Increase in the number of inquiries for purchasing flood insurance SFHA OP #13. “Do You Need Flood Insurance” message is sent each year to all SFHA residents in the District’s annual FPM District Communications October/ November 2015 Lenders Real Estate Brokers Flood insurance customers All District’s annual FPM sent in January 2017 which includes message of flood insurance and the federal flood insurance program (Floodsmart.gov directing audience to FEMA’s NFIP website while Floodmart.gov is under redesign. https://www.valleywater.org/floodready/flood-insurance City of Los Altos annual mailer and brochure provide information regarding Flood program and flood insurance requirements. City of Milpitas citywide residential newsletter “Connected” editions in November 2017 and May 2018 mailed with “be prepared; buy flood insurance” messages. In June 2018, City of Milpitas mailed out citywide informational “SFHA brochure” (to all residences and businesses) that included these messages. Aside from Water District sending messages, City of Palo Alto also sends letters to lenders and real estate brokers every year and “Do you need flood insurance message” is included in the City’s Utility Bill Insert. City of Santa Clara “Inside Santa Clara” newsletter includes the message “Do you need flood insurance?” and is sent to all addresses in the City. Topics 1, 2, 3, 4, 5, and 7 Message: Flood Insurance will cover damage from flooding that most homeowner’s policies don’t’ covers. Standard homeowner or commercial policies will not cover damage to structures or contents caused by natural flooding. Flood insurance is the Increase in number of flood insurance policies in the SFHAs and in the county in general SFHA OP #14. Post Floodplain Mailer on website (Element 352 WEB1) Year-Round An electronic version of the FPM was posted on the District’s website under the Flood Protection Resources landing page. http://apps2.valleywater.org/publication/flipbook/808_FloodMailer2017/ mobile/index.html#p=1 Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 23 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community only sure way to be reimbursed for some of your flood loses City of Los Altos has posted the SFHA mailer and brochure on the City website. City of Milpitas citywide informational “SFHA brochure” posted on their website. City of Palo Alto’s Utility Bill Insert includes all flood awareness messages which is posted on City website. City’s Flood Information/Winter Preparedness website has additional messages on flood awareness aside from the Utility Bill Insert. City of Santa Clara “Inside Santa Clara” newsletter is posted on City website. Special Flood Hazard Area (SFHA) Communities The PPI Committee identified several geographic areas that are particularly prone to flooding. Prospective buyers understand flood risks SFHA OP #15. Mail out mailer(s) regarding flood insurance and elevation certificates City of Milpitas CRS Coordinator City of Los Altos CRS Coordinator Cities CRS Coordinators Fall City of Milpitas City of Los Altos City of Los Altos sent mailers regarding flood insurance. City of Milpitas citywide informational “SFHA brochure” included this message. Information on Insurance and elevation certificate mailed to residents through City of Palo Alto’s Utility Bill Insert. City of Santa Clara “Inside Santa Clara” newsletter includes message on flood insurance and elevation certificates. SFHA OP #16. Post mailers on website (Element 352 WEB1) City of Milpitas Fall City of Milpitas City of Los Altos has posted the SFHA mailer and brochure on the City website. City of Milpitas citywide informational “SFHA brochure” posted on City website. Utility Bill Insert mailed is posted on City of Palo Alto’s Flood Information website. City of Santa Clara “Inside Santa Clara” newsletter is posted on City website. SFHA OP #17. Mailer (brochure published by insurance company) sent to all real estate agents and lenders (can be set out at City Hall) – requirement to purchase flood insurance and discount. City of Sunnyvale City of San Jose City of Palo Alto Need dates from communities Lenders, real estate agents or boards, developers/contractors and appraisers; organizations or agencies that serve communities at risk for flooding include PG&E, American Red Cross, Community Emergency Response Teams (CERT), neighborhood associations, schools, churches, hospitals and museums. City of Sunnyvale City of San Jose City of Palo Alto City of Sunnyvale and City of Palo Alto have one-page newsletter which is sent to all real estate agents and set out for pick-up at City Hall. City of Los Altos sends a one-page newsletter mailer to Lending Institutions and Real Estate and Insurance Agents discussing the program, Flood information and Elevation Certificate. City of Los Altos posts the newsletter to Lending Institutions and Real Estate and Insurance Agents in the city website. City of Santa Clara provided FEMA flood insurance brochures to the 2017 Santa Clara County Association of Realtors Convention and Expo. City of Santa Clara also provide FEMA flood insurance brochures, inside the Santa Clara newsletter to the Santa Clara County Association of Realtor seminar on flood insurance and elevation certificate. City of Milpitas makes available literature regarding this messaging at Public Counters at various satellite facilities. Letter to lenders and real estate agents is mailed every year by the City of Palo Alto. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 24 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Topic 1: Know your flood hazard Message: A FIRMette is a full-scale section of a FEMA Flood Insurance Rate Map (FIRM) that you create online. A FIRM indicates if property is in a Special Hazard Flood Area Increase in the number of inquiries from prospective buyers asking about the flood designation of property SFHA OP #18. Presentation and training to realtors at Realtor’s Association Meetings and/or write-up in realty association newsletters District Communications City representatives Alain Pinel Realtors October - April Insurance companies Lenders Brokers Alain Pinel Realtors and other realty companies Residents who access FEMA Map Service Center Silicon Valley Realtors Association All Not applicable this fiscal year. Plan to work on next fiscal year. SFHA OP #19. Post training presentation on website (Element 352 WEB1) District Communications City representatives Year-Round Not applicable this fiscal year. City of Milpitas’ citywide informational “SFHA brochure” posted on City website. FEMA’s Map Service Center website is included in City of Santa Clara “Inside Santa Clara” newsletter to all addresses in the City. SFHA OP #20. Publicize FEMA’s Flood Map Service Center website District Communications City representatives Year-Round FEMA Realtors Lenders Brokers Residents who access FEMA Map Service Center All Publicized trough the District’s FPM sent to all parcels in the FEMA designated flood zone. Additionally posted on district’s flood safety tips website: https://www.valleywater.org/floodready/is-your-home-in-a- flood-zone City of Gilroy posts Floodplain Management Study. The FEMA Flood Map Service Center web link is posted on the City of Los Altos website. City of Milpitas’ citywide informational “SFHA brochure” posted on City website. City of Morgan Hill has a link to FEMA’s Flood Map Service Center in the City’s Flood Information webpage. FEMA’s Flood Map Center is posted on City of Palo Alto’s Flood Information website. City of Santa Clara “Inside Santa Clara” newsletter is posted on City website. Special Flood Hazard Area (SFHA) Communities The PPI Committee identified several geographic areas that are particularly prone to flooding. SFHA OP #21. Post link to FEMAs Flood Map Service Center on website (https://msc.fema.gov/portal) (Element 352 WEB1) Posted on the District’s website; the FP Resources landing page has a designated icon directing audience to FEMA’s Flood Map Service Center. https://www.valleywater.org/floodready/is-your-home-in-a-flood-zone The FEMA Flood Map Service Center web link is posted on the City of Los Altos website. City of Milpitas posts their “SFHA brochure” on website. City of Morgan Hill has a link to FEMA’s Flood Map Service Center in the City’s Flood Information webpage. City of Mountain View does not have any repetitive loss properties. Link to FEMA’s Flood Map Center is provided on City of Palo Alto’s Flood Information website. Topics 3, 4, & 5 Message: Retrofit or elevate your home/building to reduce future flood damage. Contact your local planning department to determine what steps should be taken to protect your property. Contact Public Increase in inquires on retrofitting measures. Decrease the number of repairs and SFHA OP #22. Annual letters mailed to repetitive loss properties and real estate agencies. The District FPM also includes a message regarding repairs or improvements greater than 50 percent of a structure’s value need to meet City of San Jose City of Palo Alto City of Sunnyvale City of Morgan Hill Real Estate Agencies City of San Jose City of Palo Alto City of Sunnyvale City of Morgan Hill City of Sunnyvale sent letters to repetitive loss parcels as required by FEMA. City of Los Altos does not have any repetitive loss properties. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 25 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Works CRS Coordinator to find out if grant assistance is available elevations without permits. Increase number of repairs with permits NFIP requirements and the message that special permits are required. City of Mountain View does not have any repetitive loss properties. City of Morgan Hill sent letters to repetitive loss parcels as required by FEMA. Annual letters are mailed by the City of Palo Alto to repetitive properties and real estate agencies. City of Santa Clara does not have repetitive loss properties. Increase number of elevation certificates on file, and structures repaired with permits; decrease the number of repetitive loss increase homes Messengers to Other Target Audiences (TA) Lenders, real estate agencies or boards, developers/contractors and appraisers all serve as a messenger to people who are at risk of flooding as they provide their respective business service. In addition, organizations or agencies that serve communities at risk for flooding include PG&E, the American Red Cross, and Community Emergency Response Teams (CERT), neighborhood associations, schools, churches, hospitals and museums. Topics 1, 2, 3, 4, 5, 6, 7, 8, & 9 Message: Know your flood risk and be prepared; buy flood insurance Educate our community on flood protection and preparedness measures TA OP #1. Have American Red Cross include the topic of flood protection in their presentations. Have engineers accompany American Red Cross to community meetings (2/city/year) American Red Cross Year-Round American Red Cross Neighborhood Associations Service Clubs (e.g. Notary, Kiwanas, etc.) Chamber of Commerce Silicon Valley Realtors Association American Red Cross Neighborhood Associations Service Clubs (e.g. Notary, Kiwanas, etc.) Chamber of Commerce Silicon Valley Realtors Association All Not applicable this fiscal year. Due to limited resources at the Red Cross, they are unable to commit resources to assist in this proposed project at this time. Topic 2: Insure your property for your flood hazard Message: Standard homeowner or commercial policies will not cover damage to structures or contents caused by natural flooding. Flood insurance is the only sure way to be reimbursed for some of your flood loses. A discount on your flood insurance premium is available. Flood insurance is also available for renters and commercial properties. There is a mandatory 30-day waiting period for flood insurance to become effective Increase the number of real estate agents who will advise their clients that they are interested in a home that’s in a floodplain area TA OP #2. Post presentations on website (Element 352 WEB1) All City of Sunnyvale City of San Jose City of Palo Alto All City of Sunnyvale City of San Jose City of Palo Alto Not applicable this fiscal year. District has template available for any city to use. Presentation of flood awareness during earth day is provided on City of Palo Alto’s Flood Information website. Message: A discount is available. Flood insurance is also available for renters and commercial properties. There is a mandatory 30-day waiting period for flood insurance to become effective TA OP #3. Annual mailer targeted towards real estate agents and lenders with this message City of Sunnyvale CRS Coordinator City of San Jose CRS Coordinators Cities CRS Coordinators Late Summer/ Fall City of Sunnyvale City of San Jose All City of Sunnyvale and City of Palo Alto have one-page newsletter which is sent to all real estate agents and set out for pick-up at City Hall. City of Los Altos sends a one-page newsletter mailer to Lending Institutions and Real Estate and Insurance Agents discussing the program, Flood information and Elevation Certificate. City of Los Altos posts the newsletter to Lending Institutions and Real Estate and Insurance Agents in the city website. Annual letters regarding flood insurance is sent to lenders and real estate agents every year by the City of Palo Alto. Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 26 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community City of Santa Clara provided 3 flood insurance pamphlets for real estate professionals to County of Santa Clara Realtor Convention in October 2017. TA OP #4. Post annual mailer targeted towards real estate agents and lenders on website (Element 352 WEB1) Posted on city websites. Annual letters mailed to lenders and real estate agents is posted on City of Palo Alto’s Flood Information website. 3 flood insurance pamphlets posted on City of Santa Clara’s website. Topics 1, 2, 3, 4, 5, 6, 7, 8, & 9 Message: Know your flood risk and be prepared; buy flood insurance Improve SFHA disclosure during real estate process TA OP #5. Include flood protection and preparedness messages in newsletters of organizations or agencies that serve communities at risk for flooding; District and City staff would draft messages for insertion into newsletters All City of Sunnyvale City of San Jose City of Palo Alto All City of Sunnyvale City of San Jose City of Palo Alto Starting in September, the District began including flood safety information in its monthly newsletter through March. The newsletter reached over 29,000 residents county-wide and was shared on the web and District’s social media sites monthly. The City of Los Altos weekly newsletter email included 20 issues with content on flood information, insurance, and/or emergency preparations. City of Milpitas utility bill messaging during November – December 2017 billing period (not an insert). Utility bill inserts. See CAL OP #1 and #2. Increase in number of policies in the SFHAs and in the county in general TA OP #6. Post newsletters on websites (Element 352 WEB1) All monthly newsletters posted on District’s website at http://www.valleywater.org/Newsletters.aspx The City of Los Altos weekly newsletter email included 20 issues with content on flood information, insurance, and/or emergency preparations. The email newsletter is also posted on the City website. TA OP#7. Countywide mailer to all residents – language on purchasing flood insurance District Communications All District sends FPM to all residents in FEMA designated flood zone. Additionally, the District sends out a CWM that also contains this messaging (sent November 2017). Appendix A. The Multi-Jurisdictional PPI Worksheet for Santa Clara County - 2017 Annual Report Version (Year 2) Project Accomplishments Message Topics: Outreach Projects (OP): Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions Flood Response Preparations (FRP): Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster electronic Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” 2 CAL OP = Community At Large Outreach Projects; SFHA OP = Special Flood Hazard Area Communities Outreach Projects; TA OP = Target Audiences Outreach Project 3 Each September, all deliverables need to be reported to District for tracking purposes. 4 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 27 of 27 ATTACHMENT NO. 1 2015 PPI Plan FY 2018 Project Accomplishments Target Audience 1 Message Outcome 2Project(s) Proposed to Support the Messages Assignment 3 Proposed Schedule 4 Stakeholder CRS Community Educate our community on flood protection and preparedness measures TA OP# 8. Speaker’s Bureau of staff from CRS Communities to talk at events organized by various community groups. The goal is for each CRS Community to speak at a minimum of 2 events per year or more. City representatives Community Organizations October-April All The below-listed organizations (11) were reached by the District's Speakers Bureau Program in FY18. All general presentations include slides on the topic of flood protection, including CRS, ALERT system, flood insurance, and District’s ongoing flood protection projects. 1) August 1, 2017: Kiwanis Club of Morgan Hill 2) August 30, 2017: Morgan Hill Rotary Club 3) September 8, 2017: Leadership Gilroy 4) October 7, 2017: Los Paseos Neighborhood Association (San Jose) 5) January 9, 2018: Sons in Retirement (SIRS) at Villages Golf & Country Club (San Jose) 6) March 14, 2018: Alma and Goodyear Mastic Neighborhood Associations (San Jose) 7) March 29, 2018: In-Home Supportive Services all staff mtg. (County- wide) 8) April 18, 2018: HGST Earth Day celebration (San Jose) 9) April 30, 2018: Bellarmine Environmental Club (San Jose) 10) May 3, 2018: SPUR-Flood Awareness & Prevention (San Jose) 11) May 15, 2018: Mid-Peninsula Widows and Widowers Association (Los Altos) TA OP#9. Post Speaker’s Bureau presentation on website and/or share on social media. The District does not post the PowerPoint Presentations on our website, nor is it posted on social media. However, if an organization requests an electronic/hard copy, it is provided. Information on the District’s Speakers Bureau Program is available on our website: https://www.valleywater.org/learning-center/lets-talk-water- speakers-bureau References 1. Washington Multi-Jurisdictional PPI 2. Snohomish County, City of Monroe, City of Sultan Multi -Jurisdictional Program for Public Information 2013 3. Flood Futures Report 4. Agenda Santa Clara County CRS Users Group Tuesday, May 22, 20181 2:00 ~ 4:00 p.m. Santa Clara Valley Water District I Administration Building, Conference Room B-108 5750 Almaden Expressway, San Jose, CA 95118 Directions at: https://www.valleywoter.org/directions-santq-clara-valley-water-district-offices Purpose: PPI Stakeholder Committee Annual Evaluation Meeting per Activity 330, Outreac.h Project, Element 332:c. Program for Public Information, Step 7 requirement (see page 2 of this agenda) Desired Outcome: Gather communities' input on how the PPI worked over the last year: plan and choose/confirm PPI messages 1. 2. 3. 4. 5. 6. 7. 8. Introductions (~e sure to sign-,ln) (All) a. Interested parties request to participate 2017-2018 Flootj Preparedness Fairs (All) a. Outreach promotional items 1. Office of Emergency Services District's Storm Ready Application . . 2. District Education Outreach "Are You Rood Ready?" coloring contest 2017 CRS Users Group Survey (Maria Angeles) June 2018 NFIP Workshops presented by DWR sponsored by District (Merna Leal) 6/27 /18 -Floodplain Management dnd Duties of the Local Administrator 6/28/18 -FEMA Elevation Certificate To register or get more information, go to: https;llwww.ev§ntbrite.com/o/gwr-floodplain-mtmagement-assistgn~e-17 l 2§~99424 Participation Requests (Merna Leal) a. July 9, 20.18 CRS Users Group Meeting -Facilitator needed b. September 7, 2018 FMA Conference -Panelist needed (CRS User Grol,.Jp Conference Workshop) ,. Egnyte -Repository Shared File System (Merna Leal & Kathryn Demeter) a. Benefit~ of using _the system b. Restructured files to mirror CRS Coordinator's Manual C. Brief navigation demonstration d. Who else needs access? PPI Monitor:& Annual Evaluation for Annual Evaluation Report for FYl 8 (Year 3) a. Using Annual Evaluation FY 17 (Year 2), Appendix A Table, populate FY 18 data b. District will update report and send to communities via Egnyte for review/input Adjourn Questions, please contact Kathryn Demeter at (408) 630-2695 or kdemeter@valleywater.org The call-in number and the passcode are in the Outlook meeting invite Next Meeting Purpose: Finalize PPI Annual Evaluation Report for FY18{Year 3} Must be completed before August 1, 2018 (annual recertificaHon due date) (All) Mark Your Calendars -Monday, July 9, 20181 District Offices, Administration B-1081 2:00-4:00 p.m. ATTACHMENT NO. 2 (Excerpt noted below from 2017 CRS Coordinator's Manual} Step i': Implement, monitor, and evaluate the program. The Program for Pub]ic lnforrnatwn cori!'lril ittee meets a~ least annually t o a1.10ni1or the impl~meri1iati,:M1· of lhe outreach projec1s. The comrll1illee assesses whether the desfred outcomes were achieved and what, if anything, should be chang~d. This work is descri bed in an evaluation report t hat is prapared each year~ sent to t he ,sovernin,g body, and "indud~d in t he annual recert ificaticm . · The c.ommunity must update it s Program fur Pubi ic Informat ion at ie .ast every five years . Th is can be a new document or an addendum io th,e ,existing document that updat es the needs assessment and all s:ect3ons that should be ·ch.anged based ,on eval uati-ons of the proj ects . ~i:lllli1. \..,lafi:l V a.u~y water LJlSil"lCt 1'Jtrm.,_:. CAo.d~ ~;. https://scvwd.egnyte.com/app/index.do Page 1 of 1 ATTACHMENT NO. 3 7/9/2018 Agenda Santa Clara County CRS Users Group Monday, July 9, 20181 2:00-4:00 p.m. Santa Clara Valley Water District I Administration Building, Conference Room B-108 5750 Almaden Expressway, San Jose, CA 95118 __ Directions at: https://www.valleywate r.org /directions-sant a-data-vafley-wat e r-dist rict..offi ces Purpo1e: · PPI Stakeholder Committee Annual Evaluation Meeting per Activity 330; Outreach Project, Element 332.c'. Program. for Public Information, Step 7 requirement (see page 2 of this agenda) . pe,lred Outcome: Gather communities' input on how the PPI worked over the last year; plqn and 1. 2 .. 3 .. 4. 5. 6. 7. · choose/confirm PPI messages Introductions (be sure to sign-In) (All) . September 7, 20 l8 FMA Conference _ . (Merna Leal) CRS User Group Conference Workshop-Panelist representing SC County CRS Users.Group; CSG, Consultants Inc. Frank Navarro/ Babak Kaderi Recap Jone 2018 NFIP Workshops presented by DWR & sponsored by SCVWD (Merna Leal) a. 6/27 /18 -Floodplain Management .& Duties of the Local Administrator b. 6/28/18 -FEMA Elevation Certificate Plans for 2018-2019 District Rood Awareness Campaign (Gina Adriano) a. Floodplain Mai/et {FPMJ Language Revqmp -Confirm cities' phone numbers . -Muffl-llngual mailer -Abbreviated text b . Targeted Outreach -Cities' recommendea vulnerable neighborhoods/"hotspots?". •, Roster updat~. including contract information for the 2018 Floodplain Mailer (Merna Leal) ·• PPI Monitor & Annual Evaluation for Ann,ual Evaluation Report for FYl 8 (Year 3) (All) a. Finalize PPI Annuol Evaluation Report for fYl 8 (Year 3) _ b.· Mustbe ·eompleted prior 8/1/18 ·(annual recertification due dote) . . . . .. . . ·Adjourn if you have questions,.please contact Merna Leal at (408) 630-2610 or mleai@vaHeywater.org The eaH:-ifl_ number is 1-~57-6511 and the Participant C()de is 9074000 Next Meeting Date / Purpose: TBD ATTACHMENT NO. 4 (Excerpt noted below from 2017 CRS Coordinator's Manual) Step 7: Implement. mo • _r, and evaluate i•e pro1ram. The Program fot Pub· ic Information comm itte~ meets fit least annual•y to inonitor the impJementation o:f the outreach projects . The commiu~e assesses whether the desired o·atcomes were achieved and what, if anything. should ibe changed. Thi$ work is described i~· an evaluat ion repon that is prepared each ),ltar, sent to the govem'ing_body, and inc!udetJ in the annuaO recertmcat i 0111. The comm ni y must updat e its Program for Public lnformahon at east e vef)• fi_ve ~ars_ This can be a ne,,, docume.tu or an adde~dum to the existing document that ~es ei ~eeds assessment artd .a11 ·s~t ·ons t at should be changed based on e val uations ofdt projects. Santa Clara Cou11ty CRS User's Group Meeting Communlty Name 1 Campbell, City of 2· Cupertino, City of 3 Gilroy, City of 4 Los Altos Hilts, Town of 5 Los Altos, City of 6 Los Gatos, Town of 7 Milpitas, City of a· Monte Sereno, City of 9. Morgan Hill, City of 10 IV!ouotain View, City of . 11 ·Palo Alto, City of 12 San Jose, City of 13 Santa Clara County 14 Santa Clara; City of 15 Saratoga., City of 16 Sunnyvale, City of ·17 Santa Clara Vall~y Water District Other Interested Parties · July 9, 2018 (Monday) SCVWD Administration Building, Room B-108 · 2:30 -4:00 p.m. Sign-In Sheet Committee Member Agency Signature Not a CRS Participating Community Chad Mosely Winnie Pagan Jorge Duran Weston Hill Babak Kaderi, CSG Consultants, Inc. Not a CRS Participating COIJM'i'?Unlty Frank Navar_ro, CSG Consultants, Inc. /re, kit-J<.. t-f--~ . Leslie Stobbe Maria Angeles Rajeev Hada Arlene Lew Chris Frietas . Evelyn.Liang Jennifer Ng Mern~ Leal · Gina Adriano c/-1, ~ C«.S-t 111/() A Ht> '3:>A11i el -8~rv1A1'1~·"1 B Participation by conference call ATTACHMENT NO. 5 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR November 26, 2018 The Honorable City Council Palo Alto, California City of Palo Alto Sales Tax Digest Summary First Quarter Sales (January - March 2018) We received $6.0 million for first quarter sales of 2018 which is $1.1 million (15.9 percent) less than the same quarter of 2017. The following files are attached for this informational report for which no action is required. ATTACHMENTS: • Attachment A: Avenu Sales Tax Digest Summary (PDF) • Attachment B: Economic Categories and Segments (PDF) • Attachment C: Avenu Economic News and Trends (PDF) Department Head: Harriet Richardson, City Auditor Page 2 City of Palo Alto Sales Tax Digest Summary Collections through June 2018 Sales through March 2018 (2018Q1) www.avenuinsights.com (800)800-8181 Page 1 California Overview The percent change in cash receipts from the prior year was 2.7% statewide, 3.3% in Northern California and 2.2% 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 1st Quarter 2018 by 2.1% statewide, 1.6% in Southern California and 3.0% in Northern California. City of Palo Alto For the year ended 1st Quarter 2018, sales tax cash receipts for the City decreased by 1.7% from the prior year. On a quarterly basis, sales tax revenues decreased by 15.9% from 1st quarter 2017 to 1st Quarter 2018. 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 5.7% for the year ended 1st Quarter 2018 from the prior year. On a quarterly basis, sales tax activity increased by 13.4% in 1st Quarter 2018 compared to 1st quarter 2017. 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 32.1 / -4.5 27.5 / 0.0 25.4 / -1.4 26.5 / 0.3 30.7 / 3.4 28.4 / -0.4 26.7 / 2.2 27.0 / -2.4 29.5 / -7.1 Food Products 18.7 / -1.3 21.2 / 3.1 22.4 / 2.4 17.7 / 5.6 16.4 / 3.0 22.8 / 3.4 17.5 / 3.2 18.4 / 0.9 31.4 / -3.4 Construction 1.8 / -39.6 9.9 / 7.5 10.0 / 7.3 12.8 / 10.9 12.3 / 9.0 8.7 / 7.0 10.9 / 6.1 14.6 / 10.3 8.6 / -8.5 Business to Business 23.6 / 37.3 16.3 / 0.4 19.3 / 0.1 13.4 / 2.7 13.4 / 13.3 15.8 / -1.9 16.4 / 1.9 8.1 / 0.3 5.9 / -7.7 Miscellaneous/Other 23.7 / 9.1 25.1 / 2.7 22.9 / 5.1 29.6 / 4.2 27.2 / 4.3 24.3 / 0.8 28.5 / 3.4 31.9 / 5.5 24.6 / 5.7 Total 100.0 / 5.7 100.0 / 2.1 100.0 / 2.0 100.0 / 4.0 100.0 / 5.5 100.0 / 1.1 100.0 / 3.1 100.0 / 2.6 100.0 / -3.2 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 Auto Sales - New Department Stores Restaurants Restaurants Auto Sales - New Restaurants % of Total / % Change 16.8 / 1.5 15.2 / 3.4 16.1 / 2.8 12.4 / 1.9 12.9 / 2.0 16.9 / 3.7 11.6 / 3.8 12.2 / 3.7 22.3 / -4.7 2nd Largest Segment Auto Sales - New Auto Sales - New Auto Sales - New Restaurants Restaurants Auto Sales - New Auto Sales - New Service Stations Auto Sales - New % of Total / % Change 16.4 / 6.6 11.2 / 1.3 11.4 / 5.3 11.8 / 4.4 10.7 / 3.4 11.1 / -1.0 10.8 / 0.4 11.5 / 15.2 11.9 / 14.8 3rd Largest Segment Leasing Department Stores Department Stores Department Stores Auto Sales - New Department Stores Department Stores Restaurants Miscellaneo us Retail % of Total / % Change 9.3 / 28.8 9.2 / 0.9 7.4 / 0.2 10.6 / 2.8 10.7 / 3.8 8.9 / 0.3 10.2 / 2.5 10.7 / 0.8 10.0 / -5.0 *** Not specified to maintain confidentiality of tax information CITY OF PALO ALTO ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st QUARTER 2018 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 1st QUARTER 2018 BENCHMARK YEAR 2018Q1 COMPARED TO BENCHMARK YEAR 2017Q1 Attachment A City of Palo Alto www.avenuinsights.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 1st Quarter 2018: $28,843,483 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2018Q1 BMY is sum of 2018 Q1, 2017 Q4, Q3, Q2) Attachment A City of Palo Alto www.avenuinsights.com (800)800-8181 Page 3 Restaurants 16% Leasing 10% Department Stores 8% Furniture/Appliance 6%Food Markets 2%Recreation Products 1% All Other 52% Net Pools & Adjustments 5% 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 1st Quarter 2018. The Top 25 Sales/Use Tax contributors generate 53.7% of Palo Alto’s total sales and use tax revenue. Anderson Honda Lucile S.Packard Chldrn Hosp/Stfd Stanford University Hospital Apple Stores Macy's Department Store Tesla Lease Trust Audi Palo Alto Magnussen's Toyota Of Palo Alto Tesla Motors Bloomingdale's Neiman Marcus Department Store Tiffany & Company Bon Appetit Management Co.Nest Labs Urban Outfitters Fry's Electronics Nordstrom Department Store Usb Leasing Hewlett-Packard Shell Service Stations Varian Medical Systems Houzz Shop Space Systems Loral Volvo Cars Palo Alto Integrated Archive Systems Sales Tax from Largest Non-Confidential Economic Segments Attachment A City of Palo Alto www.avenuinsights.com (800)800-8181 Page 4 $- $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 2018Q1 Benchmark Year 2017Q1 Attachment A City of Palo Alto www.avenuinsights.com (800)800-8181 Page 5 Historical Analysis by Calendar Quarter Economic Category % 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4 2015Q3 General Retail 30.8% 1,851,152 2,635,136 1,860,347 1,952,490 1,684,023 2,784,731 1,983,231 2,141,794 1,673,846 2,526,551 1,935,178 Miscellaneous/Other 25.3% 1,516,808 1,881,732 1,602,213 1,301,138 1,392,756 1,621,044 1,727,134 1,617,307 1,413,133 1,491,158 1,609,541 Food Products 19.7% 1,183,895 1,206,578 1,184,645 1,189,257 1,192,662 1,235,801 1,213,382 1,194,369 1,126,103 1,166,195 1,146,174 Business To Business 27.3% 1,639,073 1,569,619 1,448,336 1,284,056 1,240,962 1,004,883 1,027,730 1,140,526 974,162 1,428,210 888,609 Net Pools & Adjustments -3.1% -183,952 1,136,075 1,374,372 1,210,511 1,631,125 1,351,709 831,377 1,313,745 1,072,794 1,226,261 1,060,979 Total 100.0% 6,006,976 8,429,141 7,469,913 6,937,453 7,141,528 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375 6,640,481 Economic Segments % 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4 2015Q3 Miscellaneous/Other 56.2% 3,373,907 3,791,527 3,233,434 2,986,873 2,910,133 2,939,228 3,027,081 2,973,047 2,607,097 3,237,983 2,720,241 Restaurants 17.4% 1,045,496 1,054,073 1,049,565 1,058,606 1,043,747 1,071,053 1,068,101 1,068,502 1,005,688 1,029,733 1,019,505 Miscellaneous Retail 6.9% 412,952 701,369 419,279 452,135 435,757 1,002,389 581,831 681,345 469,360 714,151 478,994 Department Stores 7.8% 471,419 642,666 458,066 510,561 392,565 641,541 491,433 546,629 435,470 714,831 553,325 Apparel Stores 6.5% 390,780 585,892 440,005 449,402 372,033 553,250 398,170 444,383 337,880 519,318 397,534 Service Stations 2.7% 163,072 148,906 147,499 159,371 119,552 130,396 138,155 144,735 123,004 140,758 173,082 Food Markets 2.0% 117,783 128,671 117,256 112,566 131,676 145,179 126,755 109,108 104,676 116,778 113,092 Business Services 2.6% 155,193 157,861 173,439 75,722 43,548 102,095 47,066 65,510 51,647 76,156 51,885 Recreation Products 1.0% 60,326 82,100 56,998 76,514 61,392 61,328 72,885 60,737 52,422 62,406 71,844 Net Pools & Adjustments -3.1% -183,952 1,136,075 1,374,372 1,055,702 1,631,125 1,351,709 831,377 1,313,745 1,072,794 1,226,261 1,060,979 Total 100.0% 6,006,976 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375 6,640,481 *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 A City of Palo Alto www.avenuinsights.com (800)800-8181 Page 6 Quarterly Analysis by Economic Category, Total and Segments: Change from 2017Q1 to 2018Q1 Ge n e r a l R e t a i l Foo d P r o d u c t s Con s t r u c t i o n Bus i n e s s t o Bus i n e s s Mi s c / O t h e r 201 8 / 1 T o t a l 201 7 / 1 T o t a l % C h g Lar g e s t G a i n Sec o n d L a r g e s t Ga i n Lar g e s t D e c l i n e Sec o n d L a r g e s t De c l i n e Campbell -8.1% 5.5%9.1% 20.9% -15.0% 2,180,126 2,156,402 1.1%Business Services Heavy Industry Service Stations Office Equipment Cupertino -1.1% 3.8% -56.2% -5.8% -1.8% 5,136,539 5,583,708 -8.0%Business Services Restaurants Office Equipment Bldg.Matls-Whsle Gilroy -1.5% 2.5% -1.7% 3.5% -1.1% 3,400,073 3,416,533 -0.5%Heavy Industry Service Stations Leasing Health & Government Los Altos -8.3% -4.3% 12.5% 8.7% 0.9% 526,091 545,333 -3.5%Restaurants Recreation Products Food Markets Drug Stores Los Gatos -9.1% -5.8% -5.1% -30.1% -11.7% 1,342,174 1,497,048 -10.3%Furniture/Appliance Service Stations Auto Sales - New Miscellaneous Other Milpitas 1.0% -4.0% 11.9% -28.2% 0.8% 4,690,227 5,125,995 -8.5%Bldg.Matls-Whsle Apparel Stores Office Equipment Electronic Equipment Morgan Hill -3.4% 1.8% 30.7% -3.0% 6.6% 1,914,530 1,833,421 4.4%Bldg.Matls-Whsle Heavy Industry Electronic Equipment Miscellaneous Retail Mountain View -6.3% 3.1% 92.7% -14.3% 10.3% 3,691,911 3,724,528 -0.9%Bldg.Matls-Whsle Service Stations Leasing Electronic Equipment Palo Alto -13.5% -3.9% -48.3% 1.8% 14.8% 6,190,928 5,457,418 13.4%Auto Sales - New Light Industry Department Stores Leasing San Jose -3.2% -4.0% 12.1% -4.9% 3.9% 34,329,832 34,429,615 -0.3%Bldg.Matls-Whsle Office Equipment Leasing Business Services Santa Clara 1.2% -10.6% 6.2% -19.5% -7.9% 9,908,673 11,215,157 -11.6%Electronic Equipment Light Industry Office Equipment Business Services Santa Clara Co.-4.2% -2.8% 5.8% -5.8% 1.4% 79,766,962 81,600,054 -2.2%Electronic Equipment Bldg.Matls-Whsle Office Equipment Leasing Saratoga 12.1% -8.9% -12.3% 82.1% 1.7% 194,816 198,914 -2.1%Miscellaneous Retail Business Services Food Markets Restaurants Sunnyvale -11.6% 2.8% 0.4% 43.7% -3.9% 6,257,542 5,560,343 12.5%Electronic Equipment Business Services Leasing Auto Sales - New Attachment A 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 B 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 B ECONOMIC NEWS & TRENDS July 18, 2018 www.avenuinsights.com Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 2 www.avenuinsights.com HIGHLIGHTS National Economic Indicators / Influences GDP: Partly due to soft spending in the first quarter, GDP growth slowed. In 2017 consumer spending was up 6%; the year before 3%. Real GDP increased 2.2% in 1Q2018 (was 2.9% in 4Q2017; 3.2% in 3Q2017, 3.1% in 2Q2017, 1.4% in 1Q2017, and 2.1% in 4Q2016). BOE analysts predict a rise to 4% in Q22018. Services Sector 1Q2018 Total Revenue: A decrease of 1.2% from 4Q2017 and up 5.2% from 1Q2017. Personal Consumption Expenditures: Up 2.1% from 3Q2017. Consumer Price Index: Prices rose for a third straight month in June; sending inflation to its highest rate in more than six years. Inflation: December 2017 to December 2018: Current headline rate of 2.9% will drop by December to 2.4%. (Kiplinger, July 13, 2018) Personal Savings: Falling to 3% in ’18 from 3.4% in ’17 as a percentage of disposable income. Recession Predictions: Despite persistent warnings about the impending end of the current economic expansion and the onset of another recession, U.S. GDP, employment, income, industrial production, exports, and business and consumer spending are all headed upwards and nothing on the immediate horizon has enough force to disrupt those trends. (Beacon Economics). A recession in the next two to three years has increased significantly, even if ongoing tensions with China don’t escalate into a full-blown trade war. (Temasek Holdings) Commercial Sectors/ Mall Value: Student housing, manufactured homes and industrial property were the top performers in the last three months; mall values in June fell 9% over the past 12 months, and 18% since the end of 2016. (WSJ, July 18, 2018) Job-Skills Gap May Curb Growth: White House economists (Council of Economic Advisors) note the growing gap between the rising number of job openings and the number of workers equipped to fill them could limit the Country’s economic growth. The Trump Administration is asking some large employers to sign a ‘pledge to the American worker’ to make significant investments in training their current and future workers. Trade and Tariff Threat Gets Closer to Consumers: After imposing import levies on steel, aluminum and solar panels, the Trump administration is threatening to assess nearly $505 billion on tariffs in exports that China sends to the U.S. that will affect U.S. customers. Out of the more than 6,000 Chinese products on the latest U.S. tariff list, the top 20 accounted for over $75 billion in U.S. imports last year, or more than a third of the total import value of all targeted items. Items include network gear, wooden and metal furniture, circuit board equipment, electrical panels, synthetic travel bags, electric lamps, vacuums, vehicle wheels, electric converters, brake parts, handbags, seafood, mattresses and more. About 40% of U.S. imports shipped in containers moves through the ports of Los Angeles and Long Beach. (WSJ, July 18, 2018 and BLS, July 13, 2018) California Indicators Ranking: California became the 5th largest economy in the world in 2017, behind Germany and ahead of the United Kingdom. Growth: Growth was 3% for 2017, compared to 2.3% for the U.S. California’s GDP for 4Q2017: 3.4%. GDP by state growth for the 4Q2017 ranged from 5.2% in Texas to 1.3% in North Dakota. Unemployment: Is 4% for June. Rate held at its record low of 4.2% in May; U.S. unemployment rate dropped to 3.8% in May, matching April 2000 as the lowest reading since 1969. Environmental Regulations: Predictions were dire when AB 32 (2006) meant cutting greenhouse gas emissions 25% by 2020. California's economy grew 26% since 2004, when emissions peaked. Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 3 www.avenuinsights.com California Existing Single-Family Homes for May: 409,270 in May up 0.3% ; -4.6 from May 2017, with May marking the first decline in homes sales in 4 months. Median Price in May: $600,080 up 9.2% from 2017. Peaks: Alameda, Marin, San Mateo, Santa Clara, San Diego, and Orange counties all hit a new peak price at $955,000, $1,392,500, $1,615,000, $1,454,500, $625,400, and $824,450, respectively. (CAR) E-Commerce, Retail Sales and Outlook Total Retail Sales for 1Q2018: An increase of 2% from 4Q2017. Retail Outlook in 2018: Retail sales are on track to match or exceed the healthy 4.2% gain they made in 2017. June Retail Sales: Up 0.5% from May and 6.6% above June 2017. Total sales for April 2018 through June 2018 up 5.9% from the same period a year ago. Non-store Retailers were up 10.2% from last year. E-Commerce as a Percent of Total Sales: 1Q2018 (9.5%); 4Q2017 (9.1%); 3Q2017 (9.1%); 2Q2017 (8.9%); 1Q2017 (8.5%) California’s E-commerce sales comprise approximately 13-14% of the total sales, based on California’s portion of the national economy. Amazon’s Prime Day 2018: Starts Monday July 16th at 3 PM ET and ends Wednesday, July 18 at 3: AM ET. Despite some issues with site crashes, Amazon outpaced previous sales volume for its ‘Prime Day’ summer sales specials day. The retailer reported “millions” of sales of its smart speaker Alexa. Top 10 U.S. Companies / Ranked by E-Commerce Sales Share, 2018: Amazon 49.1%; eBay 6.6%; Apple 3.9%; Walmart 3.7%; The Home Depot 1.5%; Best Buy 1.3%; QVC 1.2%; Macys 1.2%; Costco 1.2%; Wayfair 1.1%. Total U.S. Retail ecommerce sales equals $252.69 billion in 2018; top 10 companies’ sales share equals 70.1% of total retail ecommerce in 2018. (EMarketer, July 2018) Shipping and Handling Firms are facing delayed supply deliveries because of a truck driver shortage and slow rail service. Rising e- commerce sales in 2017 drove up delivery costs a rise of 7% from 2016. UPS raised fees by 30% to $650 for the largest items it delivers to discourage shippers from putting oversize items into a network meant for smaller parcels. Gas and Auto Sales Gas Prices: AAA shows (July 12, 2018) the national average at $2.884 per gallon. California’s average is $3.660. Increases from one year ago: California ($2.923). Gasoline Stations were up 21.6% from June 2017. California Car Sales: YTD Through March: California Total (-3.8%); US Total (-1.0%); Light Truck Registration for 1Q2018: In California increased 3.7%; passenger cars -11.2% Groceries, Food and Restaurants Convenience Continues to Expand: Reached a high of 154,958, up 0.3% or 423 units in 2017, from the 2016 year-end total of 54,535 at the end of 2016. (NACS). Restaurants: Industry’s share of the food dollar is 48% Franchises: Growth in 2018, with output increasing by around 6%, eclipsing 2017’s 5% rise. Sports Betting/ States Can Legalize Sports betting legalization moves forward following a U.S. Supreme Court ruling. There is a pending state constitutional amendment to capture some of the estimated $20 billion to $40 billion a year in black market gambling in California. Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 4 www.avenuinsights.com SECTION 1: U.S. ECONOMY U.S. Economy and Indicators https://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm (June 28, 2018) https://www.bls.gov/news.release/cpi.htm (July 12, 2018) GDP: Partly due to soft spending in the first quarter, GDP growth slowed. In 2017 consumer spending was up 6%; the year before 3%. Real GDP increased 2.2% in 1Q2018 (was 2.9% in 4Q2017; 3.2% in 3Q2017, 3.1% in 2Q2017, 1.4% in 1Q2017, and 2.1% in 4Q2016). Consumer Inflation: U.S. CPI for June 2018: Increased 0.1% in Jun, after rising 0.2 in May. Consumer prices rose in June at the highest level in more than six years reflecting a positive economy. Gasoline: From June 2017 to June 2018 (24.3%); June 2018 (.5%); May 2018 (1.7%); Apr (3%); Mar 2018 (-4.9); Feb 2018 (-.9); Jan 2018 (5.7%) New Vehicles: From June 2017 to June 2018 (-.5%); June 2018 (.4%); May 2018 (.3%); Apr (-.5%); Mar 2018 (.0); Feb 2018 (-.5); Jan 2018 (-.1%) Used Cars & Trucks: From June 2017 to June 2018 (-.7%); June 2018 (.7%); May 2018 (-.9%); Apr (-1.6%); Mar 2018 (-.3); Feb 2018 (-.3); Jan 2018 (.4%) Apparel: June 2018 (-.9%); May 2018 (0%); Apr (.3%); Mar 2018 (-.6); Feb 2018 (1.5); Jan 2018 (1.7%) Food At Home: From June 2017 to June 2018 (.4%); Food Away At Home: From June 2017 to June 2018 (2.8%) Full Services Meals and Snacks: From June 2017 to June 2018 (2.963%) Wine: From June 2017 to June 2018: Wine At Home (2.1%); Wine Away From Home: (1.9%). Cable and Satellite TV Service: From June 2017 to June 2018 (1.495); June 2018 (.0); May 2018 (.0); Apr 2018 (- .5) Wireless Telephone Service From June 2017 to June 2018 (1.707); June 2018 (.0); May 2018 (.1); Apr 2018 (.0) Lodging Away from Home: From June 2017 to June 2018 (1.707); June 2018 (.2); May 2018 (-.5); Apr 2018 (-.2) Shelter: From June 2017 to June 2018 (3.4%) Miscellaneous (June 2017 to June 2018): Eggs (14%); Citrus Fruits (5.5%); Food at Elementary and Secondary Schools (6.3%): Clocks and Lamps (-12.2); Dishes/ Flatware (-8.4%); Boy’s Apparel (10.2%); Video and Audio Products (-13.6%); Toys (-10.2%); Gardening and Lawn Services (7.6%); Cakes/ Cookies (2.3%) Economic Influence and Forecasts Interest Rates: The Federal Open Market Committee raised the current rate to 2% in June 2018. It expects to increase this interest rate to 2.4% in 2018, 2.9% in 2019, and 3.4% in 2020. Unemployment: Rate will drop to 3.6% in 2018, and 3.5% in 2019 and 2020. That's lower than the Fed's 6.7% target. Jobs: Expects total employment to increase by 20.5 million jobs from 2010 to 2020. While 88% of all occupations will experience growth, the fastest growth will occur in healthcare, personal care and social assistance, and construction. (BLS) U.S. Manufacturing: Forecast to increase faster than the general economy. Production will grow 2.8% in 2018. Growth will slow to 2.6% in 2019 and 2% in 2020. Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 5 www.avenuinsights.com Services Sector for 1Q2018/ Contributions to Percentage Change in GDP from 1Q2017 www.census.gov/services/index.html (June 7, 2018); https://bea.gov/newsreleases/international/trade/tradnewsrelease.htm (July 6, 2018) 1Q2018 Total Revenue: A decrease of 1.2% from 4Q2017 and up 5.2% from 1Q2017. Personal Consumption Expenditures: Up 2.1% from 3Q2017. Exports and Imports: Exports increased 8.8%; Imports increased 8.6%, year-to-date from May. Utilities: Increase of 9.1% from 4Q2017 and up 5.1% from the 1Q2017. Accommodations: Decrease 1% from 4Q2017 and down 2.2% from the 1Q2017. Selected Services: Percent Change Year to Date 2018 From 2017: Dry Cleaning (11.1%); Auto Repair (7.7%); Spectator Sports (-13.9%). Other Services: Includes auto and electronic repair, personal and laundry services, religious, grantmaking, civic, professional and similar organizations: Decrease 14.3% from 4Q2017 and up 2.0% from 1Q2017. E-Commerce 1Q2018 https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf (Next release is on August 17, 2018) E-Commerce as a Percent of Total Sales: 1Q2018 (9.5%); 4Q2017 (9.1%); 3Q2017 (9.1%); 2Q2017 (8.9%); 1Q2017 (8.5%). Percent From Prior Quarter: 1Q2018 (Total 0.2%; E- Commerce 3.9%); 4Q2017 (Total 2.7%; E-Commerce 3.2%); 3Q2017 (Total 1.1%; E-Commerce 3.5%); 2Q2017 (Total 0.5%; E-Commerce 4.9%); 1Q2017 (Total 1.4%; E- Commerce 4.4%). Total Retail Sales for 1Q2018: An increase of 2.0% from 4Q2017. Flipkart: Walmart is leading a group that will invest a 75% stake in this company; part of strategy to battle Amazon. Luxury: By 2025, online will represent 25% of luxury goods. Retail: 15% of retail sales take place online now. In 2013 it was 9%. Amazon nets 44% of those internet sales. 75% of households with yearly income of $100,000 or more have an Amazon Prime membership. (Kiplinger, June 2018) SECTION 2: CALIFORNIA ECONOMY https://www.sco.ca.gov/Files-EO/07-18summary.pdf http://www.dof.ca.gov/Forecasting/Economics/Economic_and_Revenue_Updates/index.html https://www.bea.gov/newsreleases/regional/gdp_state/qgdpstate_newsrelease.htm Economy: California became the 5th largest economy in the world in 2017, just behind Germany and ahead of the United Kingdom, with $2.75 trillion in gross domestic product. Growth: California’s growth was 3% for 2017, compared to 2.3% for the U.S. California’s GDP for 4Q2017: 3.4%. Employment: Unemployment rate held at its record low of 4.2% in May; U.S. unemployment rate dropped to 3.8% in May, matching April 2000 as the lowest unemployment reading since 1969. The largest job gain was in leisure and hospitality. Job losses occurred in construction trade, transportation, and others. California WARN Notices & Permanent Closures: Dec 2017: 36 notices / 14 closures; Jan 2018: 78 notices/ closures; Feb 2018: 45 notices/ 18 closures; Mar 2018: 41 notices/ 22 closures; Apr 2018: 65 notices/ 26 closures; May 2018: 71 notices/ 39 closures; June 2018: 52 notices/ 17 closures; July (as of 7.12): 13 notices/ 12 closures. Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 6 www.avenuinsights.com California Forecast (UOP, June 2018) http://www.pacific.edu/Documents/school-business/BFC/Forecasts/CA-Metro-Forecast-JUNE-2018-V2.pdf GDP: Over the next 12 months, real gross state product is forecast to grow at a strong 3.4% pace before dropping to 2.5% growth in 2020 as recession risks grow. Unemployment: Forecast to average 4.2% for 2018 and fall further below its record low to 3.7% in 2019 before gradually increasing. Tourism: Growing tourism and a gradual shift in consumer spending from retail to restaurants has fueled rapid growth in Leisure and Hospitality sector. Construction: Construction activity continues to grow with 40,000 to 50,000 new jobs anticipated in each of the next three years. Construction wages have been among the fastest growing of all sectors as employers compete for a limited supply of skilled workers. Housing: Single family housing starts surpassed 60,000 in 2017 and are projected to grow to 75,000 by 2020. Multi- family production is projected to be near 50,000 units this year, and near 60,000 units by 2021. With this increase, housing production will finally be sufficient to keep up with modest 0.7% projected annual population growth, but will not be enough to provide relief to California’s housing crisis. Population: California’s population growth rate has declined to 0.7% and is projected to remain at this level through the 4- year forecast. California’s population will reach 40 million by early 2019, and is adding less than 300,000 new residents per year, notably fewer than in the past. Cannabis (www.pacific.edu) In the first three months of legal recreational cannabis sales, California reported $34 million in revenue from the 15% excise tax that applies to all legal cannabis sales, or $227 million in sales. Legal cannabis sales should grow as permitting processes become permanent and more stable, and government agencies direct more resources to enforcement of illegal cannabis sales and production. Predictions are that the California legal cannabis industry should exceed $5 billion in annual sales and support 100,000 jobs over the next few years. The Central Coast region could displace the “Emerald Triangle” region of Humboldt, Mendocino and Trinity area as the center of cannabis growing by taking advantage of a regulatory decision by the California Department of Food and Agriculture to allow a single entity to hold an unlimited number of small grower permits, effectively allowing cannabis farms of unlimited size if allowed by a local jurisdiction. Tourism Assessment Program https://tourism.ca.gov/ Local businesses may receive notices from the California Office of Tourism regarding a possible assessment. The Office is a department within the Governor’s Office of Business and Economic Development that supports the promotion of California as a global tourism destination and provides information services to visitors. Certain businesses may be subject to Tourist Assessment Program, and a possible assessment. The California Tourism Marketing Act was enacted in 1995 to increase California’s share of the national travel and tourism market. The legislation enabled the state’s tourism industry to assess itself, authorizing the establishment of a nonprofit, public benefit corporation , Visit California, to oversee the promotion of California as a premier travel destination. The statute became operative upon industrywide approval in 1997. The assessment program was initiated in 1998 to be subsequently renewed every six years via industry vote. Additional program information can be found within the California Code of Regulations (Chapter 7.65 Tourism Marketing Act). Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 7 www.avenuinsights.com SECTION 3: RETAIL TRENDS AND INFLUENCES Retail Sales for June: Higher vehicle sales and gas prices helped push sales up 0.5% in June, versus May’s revised 1.3% rise; Retail sales—a measure of spending at U.S. stores, websites and restaurants—rose 0.5% in June from the prior month. (Commerce) Retail Outlook in 2018: Tax cuts, an improved economy and an American consumer that is less cautious about spending means retail sales are on track to match or exceed the healthy 4.2% gain they made in 2017. California’s Privacy Law: The National Retail Federation is calling new state privacy legislation “deeply flawed.” The law (effective in 2020) prohibits retailers from treating customers who opt out of data sharing any differently from those who do not, a provision that could put an end to retail loyalty programs that offer discounts to members. Robots: Target plans to add automatic cash-counting machines to its nearly 2,000 stores by this summer. Amongst the lowest unemployment, rising wages and shift to on-line shopping, retailers are automating more store work. Subscription: Hundreds of subscription businesses are flooding the retail market with subscribers to pay a monthly fee for a box of items chosen for them. 16% of U.S. consumers have such a service, and more than half are under 35. The Netflix Model Work for Clothes: Stich Fix looks to be among subscription model success. Shop Crawls: Store owners and downtown planners are organizing shop crawls, often with alcohol to spark interest. Selected Retail News Since May 2018 Brookstone: Debuted a new ‘Maker’s Showcase’ store in Garden City, New York to highlight new technology and innovations. The hands-on demo friendly stores feature products from independent ‘makers’ and global tech companies. Claire’s: As part of its bankruptcy, Claire’s has identified 130 stores it plans to close. Most are in malls. CVS: Adds home delivery; relies on Postal Service for delivery. Amazon is buying PillPack and plans to ship prescriptions throughout the country overnight. Dick’s Sporting Goods: Sales are up despite predictions by the National Rifle Association and others that the store’s policies to cease assault rifle sales and other gun sale restrictions would hurt its business. Kroger: In the fall will debut a new apparel brand called Dip developed by fashion designer Joe Mimran of Club Monaco, Joe Fresh and Pink Tartan brands. While the concept of apparel is unusual in traditional grocery stores, it has long been common in European hypermarkets as well as big box stores with grocery like Costco, Walmart, and Target. Fabletics: Kate Hudson's athleisure line plans to open 75 new stores across the U.S. and overseas, bringing its total to 100. Nike: Debuted a new concept store on Melrose in Los Angeles called Nike Live. The intent is to fuse its brick and mortar store with its digital marketing for an enhanced loyal customer focus and experience. Revolve: Los Angeles based online clothing retailer preparing for IPO. Starbucks: Raises prices per cup of coffee in June; opened more than 2,000 cafes in the U.S. over the past three years. Closing 150 stores in 2019 fiscal year. Toys ‘R’ Us: Closed more than 700 stores in late June after dropping plans to reorganize. Walmart/ Education Tuition: Part of the effort to keep staff in tight market. Subway: After closing more than 800 U.S. stores in 2018, expects to close hundreds more this year. Sears: Has identified 100 unprofitable stores and will begin closing sales for at least 72 of these stores. Pret A Manger: KBA Holdings, the parent company of Krispy Kreme, acquired Panera Bread last year and it recently announced plans to purchase the popular British sandwich shop Pret A Manger. Attachment C ECONOMIC NEWS & TRENDS July 18, 2018 8 www.avenuinsights.com SECTION 4: AUTO SALES AND GASOLINE California Car Sales / 1Q2018 https://www.cncda.org 2018 New Vehicle Projection: 2 million; 2017 was 2.05 million. YTD Through March: California Total (-3.8%); US Total (-1.0%) Light Truck Registration for 1Q2018: In California increased 3.7%; passenger cars -11.2% Truck Market Share: California 53.7% / 63.3% in the US Electric Vehicles: Grew 30% in 2017. Governor Brown in late January signed an executive order to put five million zero-emission vehicles on California’s roads by 2030. Tesla is planning to build 500,000 cars a year in China. Economic Impact of New Cars in 2017: Total Sales: $123.06 billion; Percent of Total Statewide Sales Tax Collected is 13%; Number of New Dealerships is 1,366. Total Spent From Other Businesses is $2.74 billion. Donations to Charitable Groups is $48.28 million. Car-Rental Firms Try to Push Upstarts: Membership growth for peer-to-peer car sharing has outstripped revenue growth of rental firms. Accounts for about 3 million registrations. SECTION 5: RESTAURANT AND FOOD INDUSTRY / ECONOMIC INDICATORS Restaurants as Economic Engine: Industry’s share of the food dollar is 48%.; Industry sales constitute 4% of the U.S. GDP. For every dollar spent in restaurants, $2 is generated in sales for other industries. (NAR) Restaurant Franchises: Poised for growth in 2018, with output increasing by around 6%, eclipsing 2017’s 5% rise. Casual Dining Restaurant Rebound: Sales are rebounding as sit-down restaurants upgrade decorum and ingredients. Local Ordinances/ Food Packaging: California has more than 120 local food-packaging ordinances. A focus on mandating compostable food packaging is popular, but many cities do not have the infrastructure to properly collect and compost the products. SECTION 6: GROCERY INDUSTRY Grocery Among Fastest-Growing Retail Segments: 674 stores are expected to open in 2018. Online grocery spending is projected to grow to 20% of the market, or $100 billion, by 2025. Convenience Expands: 154,958, up 0.3% or 423 units in 2017, from the 2016 year-end total of 54,535 at the end of 2016. (NACS). Grocers Squeezed: Competition is coming from Aldo to Amazon.com. Suppliers: Tesco and Carrefour have struck a deal to collaborate on how they buy from suppliers in an effort to cut prices amid mounting competition from Amazon.com. and other rivals. What’s Working in the Supermarket: Companies with strong frozen-food portfolios have outperformed rivals; Customers are shying away from packaged, processed foods and buying more fresh vegetables and meats; Investing in private labels; Small challenger brands are responsive (WSJ, June 8, 2018) Kroger: Private-label sales are up 40% over six years, and now account for almost 30% of unit sales. Amazon: Discounts for Prime members are at Whole Foods. Attachment C