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2021-02-08 City Council Agenda Packet
City Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Monday, February 8, 2021 Special Meeting 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. ***BY VIRTUAL TELECONFERENCE ONLY*** CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone: 1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Study Session 5:00-6:00 PM 1.231 Grant Avenue: Request by Santa Clara County for a Study Session to Obtain City Council and Community Input on its Proposed Teacher Housing Project. Environmental Assessment: Not Subject to the California Environmental Quality Act (CEQA) Because no Action Will be Taken. The County Will Serve as the Lead Agency for the Project. The County Issued a Notice of Preparation of an Environmental Impact Report (EIR) for the Project on December 4, 2020. Zoning District: PF (Public Facilities) REVISED Public Comment Presentation 2 February 8, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. 6:00-7:00 PM 2.3997 Fabian Way (20PLN-00287): Request for Pre-screening of the Applicant's Proposal to Re-zone the Subject Property From General Manufacturing (GM) to Planned Home Zoning (PHZ) and to Redevelop the Site With a 290 Unit Residential Development. Environmental Assessment: Not a Project. Zoning District: GM (General Manufacturing) Agenda Changes, Additions and Deletions Oral Communications 7:00-7:15 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 7:15-7:20 PM 3.Approval of Action Minutes for the January 25, 2021 City Council Meeting Consent Calendar 7:20-7:25 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4.Approval of Contract Number C21180550A With TJKM for a Four-year Term Not-to-Exceed $800,000, and Contract Number C21180550B With Fehr and Peers for a Four-year Term Not-to-Exceed $800,000, for On-call Transportation Engineering and Planning Project Support Services 5.Approval of Contract Number C21180050 With Clean Harbors Environmental Services, Inc. for Household Hazardous Waste Management and Emergency Response Services for a Five-year Term for a Total Amount Not-to-Exceed $1,650,000 6.Approval of Change Order Number 1 to Contract Number C20174826 With Monterey Mechanical Co. Adding $300,000 for a Total Not-to- Exceed Amount of $750,000 for the On-call Emergency Construction Services Project Funded in Wastewater Treatment Enterprise Fund Capital Improvement Program (Project WQ-19002) at the Regional Water Quality Control Plant 7.Adoption of a Park Improvement Ordinance for Renovations at Cameron Park 8.Appointment of the 2021 Emergency Standby Council 9.Approval of Construction Contract C21180619 With Cratus, Inc. in the Amount of $1,682,000 for Phase III of the Cross-bore Verification, Public Comment Presentation Public Comment 3 February 8, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Inspection, and Assessment Program; and Authorization to Execute and Negotiate Related Change Orders in the Amount of $168,200 for a Total Not-to-Exceed Amount of $1,850,200 10.Selection of Applicants to Interview for the Historic Resources Board and the Planning and Transportation Commission City Manager Comments 7:25-7:35 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:35-9:30 PM 11.Review the Potential Financial Scenarios and Direction to Staff on Development of the Fiscal Year (FY) 2022 Budget; Review and Accept the FY 2022 Budget Development Guidelines; and Review and Accept the FY 2022 – 2031 Long Range Financial Forecast 9:30-10:30 PM 12.Policy and Services Committee Recommends the City Council Approve the 2021 Legislative Guidelines; Utilities Advisory Commission Recommends the City Council Approve the 2021 Utilities Legislative Guidelines; and Discussion and Direction on Pending State Legislation 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. 13.Provide Direction on the Recruitment for an Unfinished Term on the Planning Transportation Commission due to a Resignation 10:30-11:00 PM Presentation Presentation Presentation 4 February 8, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Additional Information Informational Report Informational Update on Progress Toward a Second Transmission Line Corridor Connecting the City of Palo Alto Electric Distribution System to the Pacific Gas & Electric Transmission Grid City of Palo Alto Local Hazard Mitigation Plan 2020 Annual Report Standing Committee Meetings Policy and Services Committee Meeting February 9, 2021 Schedule of Meetings Schedule of Meetings Public Letters to Council Set 1 5 February 8, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A. You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone: 1(669)900-6833 City of Palo Alto (ID # 11922) City Council Staff Report Report Type: Study Session Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: 231 Grant Avenue: Study Session for County Teacher Housing Project Title: 231 Grant Avenue: Request by Santa Clara County for a Study Session to Obtain City Council and Community Input on its Proposed Teacher Housing Project. Environmental A ssessment: Not Subject to the California Environmental Quality Act (CEQA) Because no Action Will be Taken. The County Will Serve as the Lead Agency for the Project. The County Issued a Notice of Preparation of an Environmental Impact Report (EIR) for the Project on December 4, 2020. Zoning District: PF (Public Facilities). From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that Council conduct a study session to provide informal comments regarding the County’s proposal to redevelop the property at 231 Grant Avenue with 110 residential rental units primarily for teachers and other school district employees from participating school districts in Santa Clara and San Mateo counties. Background Two years ago, the City Council adopted a housing work plan1, which staff prepared in response to a City Council Colleagues’ Memorandum.2 The Colleagues’ Memorandum stated the desire for zoning updates to encourage diverse housing near jobs, transit, and services. The memo presented several specific concepts, many of which were also identified in the City’s Housing Element (adopted November 2014) and the updated Comprehensive Plan (adopted November 13, 2017). The Housing Work Plan identified specific policies and other actions staff should take 1 City of Palo Alto Housing Work Plan: https://tinyurl.com/Housing-Work-Plan-PA 2 Colleagues Memo Regarding Zoning Updates to Encourage Diverse Housing Near Jobs, Transit, and Services, dated November 6, 2017: https://tinyurl.com/Colleagues-Memo-Housing City of Palo Alto Page 2 in order to address the housing need of Palo Altans, including a policy supporting creation of affordable housing for City and School District employees, as discussed further in this report. Project Description A project description, location map, and preliminary schematic drawings are included in Attachment A. As outlined in this attachment, the County’s Teacher Housing Project includes demolition of an existing 6,800 sf office building and construction of a new, four -story, multi- family residential building with 110 rental units. The floor area ratio (FAR) is approximately 1.85 to 1. The building would be 55 feet in height. Additional detail regarding the common open space and other common amenity spaces on the site is included in the project description attached. Behind the Grant Avenue frontage, an at-grade parking structure can be accessed from both Park and Birch Street. The parking garage utilizes double car stackers to provide 112 parking spaces. A secure bicycle room provides 134 bicycle parking spaces. Project Process The project is located on County-owned land and will serve a public purpose of providing housing for public employees. Because cities and counties enjoy intergovernmental/sovereign immunity when performing governmental functions, the project is not required to comply with City zoning and building regulations. Therefore, the City does not have discretionary authority over the project and the County would serve as the lead agency for compliance with the California Environmental Quality Act (CEQA). The County Board of Supervisors would be responsible for making the required CEQA findings and the final decision on whether to approve the project. If approved, the County Building Official would review the project plans for compliance with state building codes and would be responsible for reviewing and approving the various building permits. County staff has indicated their intent to adhere , to the extent feasible, with the City’s workforce housing ordinance that allows up to a 2.0 FAR and 50 feet in height along with other relaxed zoning standards. Discussion The County is seeking input from Councilmembers, as well as the public, as key stakeholders in the public process. This includes, but is not limited to, input on the proposed use as well as the concept design. Although staff can not complete a full analysis of the project’s consistency with the Comprehensive Plan and Zoning Ordinance witho ut a complete plan set, staff’s believes that the overall concept and design is generally consistent with the City’s goals, policies, and regulations. City of Palo Alto Page 3 Consistency with the Comprehensive Plan, Area Plans and Guidelines3 The Comprehensive Plan includes Goals, Policies, and Programs that guide the physical form of the City. The Comprehensive Plan land use designation for the project site is Major Institution Special Facilities (MISP). This land use allows for: “Institutional, academic, governmental and community service uses and lands that are either publicly owned or operat ed as non-profit organizations…[c]onsistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher density multi-family housing may be allowed in specific locations.” The project is located adjacent to the California Avenue Caltrain station and would be used to serve a public purpose by providing more affordable housing to teachers and school district employees. In the event these units are not completely filled by school employees, the City understands that a small portion of the units may be offered to public safety employees or nonprofit employees. Therefore, the proposed use is consistent with this Comprehensive Plan land use designation. The City’s Comprehensive Plan, particularly the Land Use and Housing Elements, includes several other goals and policies that encourage housing development, particularly higher density development in transit-oriented locations. In addition, the Land Use Element includes Policy L-2.5, which states: “Support the creation of affordable housing units for middle to lower income level earners, such as City and school district employees” and Program L2.5.1, which states “Collaborate with PAUSD in exploring opportunities to build housing.” These policies are reflected in the City’s approved Housing Work Plan. The proposed project is a collaborative project with the County, and several school districts, including PAUSD, among others. Therefore, encouragement of the proposed project is consistent with the Comprehensive Plan and Housing Work Plan. Zoning Compliance4 As discussed above, this project is not required to comply with the City’s Zoning Ordinance pursuant to California Government Code Section 53090 -53091. However, for Council’s benefit, staff has generally evaluated how the project would otherwise compare with the City’s Zoning Ordinance. The project is located on a site zoned Public Facilities (PF). The Public Facilities zoning does not typically allow multi-family residential uses on the site. Therefore, a standard project under this zoning would be required to rezone to multi-family residential or otherwise apply an overlay to the site, such as the Workforce Housing Overlay. Council has previously encouraged high- density, multi-family residential on PF zoned properties in close proximity to fixed-rail transit, particularly through its adoption of the Workforce Housing (WH) overlay, which is intended to 3 The Palo Alto Comprehensive Plan is available online: http://www.cityofpaloalto.org/gov/topics/projects/landuse/compplan.asp 4 The Palo Alto Zoning Code is available online: http://www.amlegal.com/codes/client/palo-alto_ca City of Palo Alto Page 4 be applied to PF Zoned Properties. Attachment B evaluates the proposed project’s consistency with zone district standards for multi-family zone districts that could have been applied to the site if the County were required to follow City zoning standards. Although the plans are schematic, therefore staff could not provide a complete analysis, the project appears generally consistent with the requirements that would apply to a multi-family zoning within this project area. Key differences include the 55 foot height, which exceeds the City’s typical standard of 50 feet, and the density of approximately 80 dwelling units per acre, approximately double the density allowed for the RM-40 zoning. However, staff notes that under the WH overlay there are no density requirements. Multi-Modal Access & Parking Further information is needed regarding the on-site circulation and vehicle tips to determine whether the project is consistent with the City’s Bicycle and Pedestrian Transportation Plan and other transportation policies, including Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2019 (CMR 11256). In the City’s comments on the Notice of Preparation (Attachment C), staff requested that the traffic analysis for the proposed project identify the anticipated trips generated by the proposed development, the distribution pattern of those trips, and the estimated number of peak hour project trips at nearby intersections. This information is necessary to determine the project’s consistency with Council’s adopted Local Transportation Impact Analysis Policy and to understand the traffic circulation around the site. Depending on the trip generation and distribution , modifications to ensure optimal circulation (e.g. modifications to traffic light timing) may be appropriate. Because Park Boulevard is a major bike route, the City also encouraged reducing curb cuts along Park Avenue where feasible. Staff notes that the conceptual design appears to replace an existing curb cut along Park Avenue but does not add new curb cuts. Coordination If approved, project construction could coincide with construction of the City’s Public Service Building. The City has requested that this be considered as a cumulative project in the County’s EIR, and that the County closely coordinate with the City to minimize impacts on nearby properties, especially with respect to traffic. Parking The County proposes 112 vehicle parking spaces, which are provided in a double stacker configuration. The City would typically require 135 vehicle parking spaces based on the proposed unit mix (25 two-bedroom units, 61 one-bedroom units, and 24 studios). This is approximately a 17% reduction in comparison to the City’s typical standards under the RM-40 or WH overlay requirements. Typically, 10% of these parking spaces would be standard spaces, outside of a stacker system. PAMC Chapter 18.52 sets forth a process by which up to a 20% City of Palo Alto Page 5 parking reduction may be granted; however, staff notes that the City’s code requires approval of a Transit Demand Management (TDM) Plan to support a parking reduction. Although the project is not required to comply with the City’s zoning requirements, the City recommends that a TDM plan be prepared for the project. Given the project’s location along a bicycle boulevard, a key element of that TDM plan should focus on how the project is making cycling a priority (i.e. safe and more convenient than driving) through the project design. Safe access to the resident bicycle parking should be provided through the main entrance. Visitor bicycle parking should also be incorporated into the project design. Permits The City understands that the County intends to evaluate the potential for modular construction, in lieu of traditional construction, as an alternative in the CEQA analysis. This would likely reduce the overall construction timeframe but would require increased daily truck trips to the site during construction, particularly wide load trips. The County must obtain a permit from the City for wide truck loads. The City notes that it typically limits wide load trips to outside of peak hours; however, each project is evaluated on a case-by-case basis, considering the proposed trips, location, and existing conditions around the site. Policy Implications Study sessions are intended to solicit early feedback on proposed projects and cannot result in any formal action. Therefore, informal comments from Councilmembers would not have direct policy implications. However, the concept of teacher housing is one that has been discussed in the City Council housing Colleagues’ Memo and the Comprehensive Plan (Policy L-2.5 and Program L-2.5.1). The proposed development is generally consistent with the City’s housing goals, which express an interest in providing high density multi-family housing near transit. The City understands that the housing units for the proposed development would count toward the City’s Regional Housing Need Allocation (RHNA) despite the fact that the project is loca ted on County-owned land. Staff has requested that the County confirm this for the City. The City Attorney’s Office has evaluated and affirms the County’s assertion that the project, as currently proposed, is immune from local zoning regulations. Cities and counties in California enjoy intergovernmental/soverign immunity when performing prima rily governmental functions on land owned by the city or county. The provision of housing for public employees is recognized as a governmental function of counties. Staff will continue to coordinate with the City Attorney’s Office and the County as the project moves forward. Resource Impact No formal action is requested. Comments provided during a study session are non-binding and would have no impact on City resources. However, on June 25, 2018 Council authorized the City City of Palo Alto Page 6 Manager to set aside $3 million in affordable housing funds in support of the Grant Avenue Teacher Housing proposal, to be disbursed if and when a suitable project concept and contract is determined to be agreeable by final project partners, which includes the City of Palo Alto (CMR 9371). On January 13, 2020 Council reallocated $2,638,993 from the housing in-lieu and impact fee funds, which were previously earmarked for this project, to support an affordable housing project at 3705 El Camino Real (Wilton Court Apartments) (CMR 10928). These funds are anticipated to be replenished prior to issuance of final occupancy for the first four units of the 567 Maybell 16-unit development. The City anticipates payment of these fees into the housing in-lieu fund within the next month. Staff intends to return to City Council to formally dedicate the fees toward this project. The City understands that in April 2018 the County of Santa Clara dedicated $6 million in funds toward the project and in October 2019 Facebook dedicated $25 million toward the project. Timeline The County has provided a timeline for the proposed project in Attachment A. The County anticipates release of the Draft EIR this summer and a Board of Supervisor’s hearing in late summary 2021. If approved, construction would begin in fall 2022. Stakeholder Engagement A summary of the County’s community outreach to date on this project is included in the applicant’s letter in Attachment A. Early outreach included a survey to gauge interest in the project and to determine the appropriate unit mix as well as coordination with a variety of stakeholders. These stakeholders include but are not limited to: the City of Palo Alto; school districts; teacher associations; Palo Alto Neighborhood Association; Palo Alto Forward; and nearby residents, businesses and property owners. This study session is intended to obtain informal comments from councilmembers and comments from members of the public to provide early feedback on the project. The City understands that additional outreach is planned throughout the entitlement process, including throughout the environmental review process. Environmental Review This study session is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Action (CEQA) is required for this study session. The County will serve as the lead agency for the proposed application. As the lead agency, the County of Santa Clara issued a Notice of Preparation (NOP) of an Environmental Impact Report (EIR) on December 4, 2021. The City of Palo Alto provided a comment letter on the Notice of Preparation, which is included in Attachment C. Attachments: City of Palo Alto Page 7 Attachment A: County Project Description, Location Map and Conceptual Plans (PDF) Attachment B: Zoning Comparison Table (DOCX) Attachment C: City Comments on the Notice of Preparation (PDF) County of Santa Clara Facilities and Fleet Department County Center at Charcot 2310 North First Street, Suite 200 San Jose, California 95131-1011 (408) 993-4600 _____________________________________________________________________________________________ Board of Supervisors: Mike Wasserman, Cindy Chavez, Otto Lee, Susan Ellenberg, S. Joseph Simitian County Executive: Jeffrey V. Smith 231 GRANT EDUCATOR WORKFORCE HOUSING Project Address: 231 Grant Avenue, Palo Alto, 94306 Developer: 231 Grant Avenue LLC (Comprised of Abode Communities and Mercy Housing California) A. Project Description The 231 Grant Educator Workforce Housing is currently sponsored by the County of Santa Clara, Facebook, the City of Palo Alto, and certain school districts in Santa Clara County. The project will involve the demolition of the existing 6,800-square-foot office building at the project site and construction of a new four-story building, totaling approximately 112,000 square feet. The project consists of 110 residential units made up of studios, one and two bedroom units. The units will serve primarily teachers and other school district employees from participating school districts in Santa Clara and San Mateo County. The residential units are laid out in two C-shaped buildings which outline three semiprivate courtyards and support residential amenities that foster connection and community. Approximately 2,000 square feet of community space, including a lounge, activity room and laundry, will be provided for residents’ use, as well as on-site property management. The courtyard spaces provide outdoor spaces for residents to relax and gather. High-activity uses will occur in the central courtyard, near the central bridge, stair and elevator. Other courtyards will be designed to include a variety of seating, planting, gardening and gathering areas to support a wide range of individual and small group activities. Public space in the project, provided at street level, is centered on three existing trees. Each space features a different active public use so residents, workers and community members can live, work and mingle in a variety of ways. The existing palm, camphor, and redwood trees each define a “public living room” to create almost 5,600 square feet of open public space. At Palm Plaza, at the corner of Birch and Grant, an outdoor area is coupled with a nook carved into the building, next to the five ground floor residential units. Camphor Plaza, in the middle of the block, is the central heart of the project. Plantings and paving circle the camphor tree to welcome residents into the plaza and main residential entry. A community use room, management offices, and the residential lobby all are centered on the ground floor and activate the street level plaza. Redwood Plaza anchors the corner of Park Blvd and Grant, just off the Park Blvd bikeway. A 1,120 SF flex space invites the neighborhood in, while outdoor seating frames the redwood. 2 Behind the active Grant Avenue edge, a compact, at-grade parking structure holds 112 parking spaces. To achieve parking efficiency and to reduce costs, the at-grade concrete garage uses efficient double car stackers, which is more cost efficient than a below grade garage. The garage has the ability to be accessed from both Birch and Park Street. A secure bike room is included that can hold up to 134 bicycle parking spaces to encourage bicycling. Proximity to transit and to farmers markets, groceries, shops, restaurants, parks, and libraries, can help residents reduce car trips for daily tasks, cutting down on vehicle miles traveled and greenhouse gas emissions. B. Site Plan – See attached site plan and massing C. Community Outreach 1. Commitment to Community Involvement Mercy Housing and Abode Communities is committed to incorporating the local community into the development process through meetings with neighbors, neighborhood associations, and local leaders, as well as through public meetings and regular written and electronic communications. In addition, they are collaborating with local teachers and school employees from San Mateo and Santa Clara County School Districts, including Los Altos, Palo Alto, Mountain View Whisman, Mountain View Los Altos, and the Foothill-De Anza Community College District. In observance of health guidelines related to COVID- 19, community input will be sought through virtual meetings, email, regular mail, and the development website 231grant.org (in development). 2. Teacher and School Employee Survey – June 2020 A survey conducted amongst the school districts in June 2020 produced the following results: • 1300 Respondents • 938 Interested in teacher & school employee housing • 204 Palo Alto teachers & school employees interested in housing • 94% Unit mix design meets the needs of future residents 3. Commitment to Continuous Communication Community outreach will occur throughout pre-entitlement, entitlement, construction and during operations. All communication will be timely, concise, and easily understood by all stakeholders. During the initial outreach period, numerous stakeholder and community groups were engaged, as follows: • Groups Engaged During Initial Outreach Period o Palo Alto Unified School District o Palo Alto Educator Association o California School Employee Association- Palo Alto Chapter o Palo Alto Chamber of Commerce o Palo Alto Forward o Palo Alto Neighborhood Association o League of Women Voters 3 o College Terrace Residents Association o Nearby residents, businesses and property owners o Mountain View Los Altos School District o Mountain View Los Altos Teachers Association o California School Employee Association- Mountain View Los Altos Chapter o Los Altos School District o Los Altos Teachers Association o California School Employee Association- Los Altos Chapter o Mountain View Whisman School District o Mountain View Whisman Teachers Association o California School Employee Association- Mountain View Whisman Chapter o Foothill De Anza College District In addition, ongoing and future outreach efforts will include the following: • Ongoing and Future Outreach Efforts • January 2021 o Direct communication with residents of adjacent apartment property o Launch of 231grant.org website o Mailing to 1000‘ radius plus additional contacts: share Fact Sheet, introduce website, describe community design process, provide mailing address and phone contact for “non-web” input and participation • February, March, April o Community meetings with design team o Focus groups with teacher and classified union groups o Community meetings o Office hours/listening sessions • May o Additional mailing o Open House(s) • On-going outreach to o Nearby businesses o School district superintendents, teachers and classified unions, and school boards o Community Organizations Palo Alto for Sensible Zoning Canopy Kiwanis Club Lions Club Rotary Club Chamber of Commerce • See attached Fact Sheet for distribution to stakeholders and community groups 4 4. Entitlements As the Lead Agency, the County of Santa Clara will prepare an Environmental Impact Report (EIR) for the proposed project. The EIR Scoping Meeting was held on December 16, 2020. Because this is a public project undertaken by the County, approval of the project will require actions by the County of Santa Clara, including approval by the County Board of Supervisors. The EIR will identify the significant environmental effects anticipated to result from implementation of the proposed project. As allowed by CEQA Guidelines §15063(a), an Initial Study has not been prepared for the proposed project because an EIR will clearly be required. Due to the location of the project site in an urban area that is not within or close to any farmlands or forestry resources, known mineral deposits, or wildfire hazard areas, these environmental topics will not be addressed in detail in the EIR. The EIR will evaluate all other environmental issues contemplated for consideration under CEQA and the CEQA Guidelines, including: • Aesthetics • Air Quality • Biological Resources • Cultural Resources • Energy • Geology and Soils • Greenhouse Gas Emissions • Hazards and Hazardous Materials • Hydrology and Water Quality • Land Use and Planning • Noise and Vibration • Recreational Resources • Population and Housing • Public Services • Transportation • Utilities and Service Systems • Tribal Cultural Resources The EIR will also include other sections required by CEQA, including alternatives, cumulative impacts, growth inducing impacts, significant and irreversible environmental changes, significant unavoidable impacts, references, EIR preparers, and appendices. 5. Development Timeline Community Outreach Ongoing Draft EIR Early Summer 2021 Draft EIR Community Meeting Early Summer 2021 Board of Supervisors Meeting (project approval) Late Summer 2021 Design and Permitting Jan 2021 – June 2022 Construction August 2022 – February 2024 Lease Up January 2024 – June 2024 |231 GRANT AVE PALO ALTO, CA | SITE CONTEXT 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-1 |231 GRANT AVE PALO ALTO, CA | CALIFORNIA AVENUE BUSINESS DISTRICT 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-2 |231 GRANT AVE PALO ALTO, CA | COUNTY COURTHOUSE 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-3 |231 GRANT AVE PALO ALTO, CA | ADJACENT BUILDINGS 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-4 |231 GRANT AVE PALO ALTO, CA | PARKING GARAGE 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-5 |231 GRANT AVE PALO ALTO, CA | MULTIFAMILY ALONG GRANT 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-6 |231 GRANT AVE PALO ALTO, CA | MULTIFAMILY ALONG BIRCH 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-7 |231 GRANT AVE PALO ALTO, CA | 2555 PARK BLVD 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-8 |231 GRANT AVE PALO ALTO, CA | EXISTING SITE AERIAL 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-9 |231 GRANT AVE PALO ALTO, CA | PROPOSED - AXONOMETRIC VIEW 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-10 TRASHMAINTENANCEELECTRICAL PARCEL BIKE PARKING RESIDENTIAL COMMUNITY ROOM PROP. MGMT FLEX SPACE BFP UTIL.MECHANICAL 1-BR1-BR1-BR1-BR 2-BR PARKING GARAGE LOBBY MAIL ELEV ELEV CAMPHOR COURT REDWOOD PLAZA PALM PLAZA GRANT AVENUE BI R C H A V E N U E PA R K B L V D COMMERCIAL BLDG RESIDENTIAL BLDG COMMUNITY PLAZA 0'15' 30' 60' |231 GRANT AVE PALO ALTO, CA | FIRST FLOOR PLAN 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-11 COURTYARD 1 COURTYARD 2 COURT YARD 3 LAUNDTRASH 1-BR1-BR STUDIO 2-BR 1-BR STUDIO 2-BR STUDIO 1-BR1-BR 2-BR 2-BR BRIDGE 1-BR 1-BR STUDIO 1-BR 1-BR 1-BR GRANT AVENUE BI R C H A V E N U E 1-BR 1-BR 1-BR1-BR 1-BR STUDIO 2-BR STUDIO 2-BR 1-BR1-BR STUDIO 2-BR 2-BR 1-BR 1-BR STUDIO INDICATES SITE-BUILT SCOPE 0'4' 8' 16' |231 GRANT AVE PALO ALTO, CA | SECOND LEVEL PLAN (3RD & 4TH SIM) 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-12 GRANT AVENUE BI R C H A V E N U E PA R K B L V D 0'4' 8' 16' |231 GRANT AVE PALO ALTO, CA | ROOF PLAN 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-13 1ST FLOOR 0" 2ND FLOOR 16' -0" 3RD FLOOR 27' -0" 4TH FLOOR 38' -0" ROOF 50' -0" ROOF PARAPET 55' -0" 14 ' - 0 " 12 ' - 6 " 1ST FLOOR 0" 2ND FLOOR 16' -0" 3RD FLOOR 27' -0" 4TH FLOOR 38' -0" ROOF 50' -0" ROOF PARAPET 55' -0" 12 ' - 6 " 14 ' - 0 " 0'16' 32' 64' |231 GRANT AVE PALO ALTO, CA | SECTIONS 2021.01.14 | MERCY HOUSING / ABODE COMMUNITIES A-14 SCALE: 1/32" = 1'-0" SECTION - LONG1 SCALE: 1/32" = 1'-0" SECTION - CROSS2 231 GRANT Housing for teachers and school employees Mercy Housing California (MHC) and Abode Communities are working in conjunction with the County of Santa Clara, represented by County Supervisor Joe Simitian, Facebook, the City of Palo Alto, and participating school districts in Santa Clara and San Mateo Counties to develop new housing on a county-owned site. The property, located at 231 Grant Avenue in Palo Alto, offers an exciting opportunity to create new high-quality, and much needed, rental housing affordable for teachers, school employees, and their families. This new community will include studio, one- and two-bedroom apartments, amenity spaces, and landscaped gardens. COMMITMENT TO COMMUNITY INVOLVEMENT Mercy Housing California and Abode Communities are committed to incorporating the local community into the development process through meetings with neighbors, neighborhood associations, and local leaders, as well as public meetings and regular written and electronic communications. In addition, they are collaborating with local teachers and school employees from San Mateo and Santa Clara County School Districts, including Los Altos, Palo Alto, Mountain View Whisman, Mountain View Los Altos, and the Foothill-De Anza Community College District. In observance of health guidelines related to COVID-19, MHC and Abode will solicit community input through virtual meetings, email, regular mail, and the development website 231grant.org (in development). 231 GRANT AVENUE PALO ALTO, CA 94306 UNITS Approximately 110 PROPERTY TYPE Teacher & School Employee Housing CONTACT Sarah Chaffin Community Liaison 650.906.6650 Chaffin.Sarah@outlook.com mercyhousing.org/california | abodecommunities.org Or e g o n E x p y Par k B l v d . Par k B l v d . Mercy Housing California and Abode Communities are the state’s most experienced owners/managers of service-enriched affordable housing for families. 20,616 8,261 Family Residents Family Homes MERCY HOUSING CALIFORNIA AND ABODE COMMUNITIES CURRENTLY OPERATE AND SERVE Gra n t A v e . NOVEMBER 2020 mercyhousing.org/California | abodecommunities.org ABOUT MERCY HOUSING Mercy Housing California is a California-based nonprofit housing development organization with the mission of creating and strengthening healthy communities. Mercy Housing California has created and preserved affordable housing for Californians for over 35 years. Today MHC owns and manages 151 communities with over 10,300 homes statewide for more than 19,600 people. Mercy Housing Management Group (MHMG) will be the management agent for the property and is committed to providing quality property management services that reinforce the philosophy that all residents deserve respect, dignity, and a place to call home. MHC and MHMG are affiliates of Mercy Housing, Inc., a national nonprofit housing development, management, and resident services organization founded by six congregations of Women Religious including the Daughters of Charity, the Sisters of Mercy, and the Sisters of St. Joseph of Orange. ABOUT ABODE COMMUNITIES Abode Communities works to create service- enhanced affordable housing and socially beneficial community facilities that promote the social, economic, and physical transformation of underserved communities. Through the development, design, and long-term operation of service-enhanced affordable and supportive housing, we stabilize housing for families, seniors, and individuals. Abode Communities has previously built two school district housing developments in partnership with Los Angeles Unified School District, representing 116 units. Abode Communities owns and manages 41 affordable housing communities with over 3,000 homes serving almost 7,000 residents. MERCY HOUSING CALIFORNIA & ABODE COMMUNITIES PROPERTY LOCATIONS — Abode Communities — Mercy Housing ABODE COMMUNITIES 1149 S. Hill Street, Suite 700 Los Angeles, CA 90015 213.629.2702 MERCY HOUSING CALIFORNIA 1256 Market Street San Francisco, CA 94102 415.355.7100 ATTACHMENT B ZONING COMPARISON TABLE 231 Grant Avenue (1) Minimum front setbacks shall be determined by the Architectural Review Board upon review pursuant to criteria Regulation Proposed Required (RM-40; Chapter 18.13) Required (WH overlay; Chapter 18.30[k]) Minimum/Maximu m Site Area, Width and Depth 60,536 sf area, Approximately 170 (w)x350 foot (d) 8,500 sf area, 70 foot width, 100 foot depth None required Minimum Front Yard (2) 12’-9” (2) 0-25 feet (1) Subject to decision-making body Rear Yard 8’6” to 10 feet 10 feet 10 feet Interior Side Yard N/A 5 feet 5 feet Street Side Yard 7 to 12 feet on Park; 15 feet on Birch 0-16 feet (2) 5 feet; may be increased to 10’ by decision-making body Max. Building Height 55 feet 40 feet, 35 feet for portions of a building within 50 feet of a more restrictive residential zone/use 50 feet Side Yard Daylight Plane (6) Not shown 10 feet at interior side lot line then 45 degree angle N/A Rear Yard Daylight Plane (6) Not shown None for lots > than 70 ft wide N/A Max. Site Coverage Not shown 45%, plus 5% for covered patios (27,241 sf + 3,027 sf) None required Max. Total Floor Area Ratio (4) 1.85:1 (112,000 sf) 1.0:1 (60,536 sf) 2.0:1 (121,072 sf) Max. Residential Density (3) ~80 DU/AC (110 DU/ 1.38 AC) 40 DU/AC None Required Minimum Site Open Space Not known 20% (12,107 sf) 20% (12,107 sf) Minimum Usable Open Space (5) Not known 100 sf per unit (11,000 sf) 75 sf per unit (8,250 sf) Minimum Common Open Space Not known 50 sf per unit (5,500 sf) N/A Minimum Private Open Space Not known 50 sf per unit (5,500 sf) N/A Vehicle parking 112 spaces 135 spaces (based on 25 two bedrooms, 24 studios and 61 one bedrooms). Maximum reduction of 20% allowed in accordance with PAMC Chapter 18.52. 135 spaces (based on 25 two bedrooms, 24 studios and 61 one bedrooms). The decision-making body may reduce this standard based on a parking study. Bicycle Parking 134 Long-term 110 Long-term; 11 Short-term 110 Long-term; 11 Short- term set forth in Chapter 18.76 and the context-based criteria outlined 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. 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 b e 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) Each daylight plane applies specifically and separately to each property line according to the adjacent use. January 6, 2021 Emily Chen, Project Manager City of East Palo Alto, Planning Division 2310 North First Street, Suite 200 San Jose, CA 95131 Email: Emily.F.Chen@faf.sccgov.org RE: Notice of Preparation of Environmental Impact Report, 231 Grant Educator Workforce Housing Thank you for including the City of Palo Alto in the environmental review process for the above-referenced project. Project Understanding The Project, 231 Grant Educator Workforce Housing, is located on Assessor’s Parcel Number (APN) 132-31- 074, a 1.4 acre County-owned parcel within the City of Palo Alto bounded by Park Boulevard, Grant Avenue, and Birch Street. The project proposes demolition of an existing 6,800 square foot (sf) office building and associated parking lot and reconstruction of the site with a new four-story building totaling approximately 112,000 sf. The new building would include 110 multi-family residential rental units, approximately 2,000 sf of community living space, and approximately 1,200 sf of “flex space:” which could be utilized as a café or other retail or commercial use. The City understands that 112 vehicle parking spaces and 134 bicycle parking spaces would be provided. Approximately 5,600 sf of open public space would be provided within three outdoor plaza areas, each plaza designed around an existing mature tree that would be retained. The zoning designation on the site is Public Facilities (PF) and the Comprehensive Plan land use designation of the site is Major Institution, Special Facilities (MISP). However, the City understands that the County intends to use preemptive authority for governmental immunity on this project. The City understands that, therefore, the City’s zoning code and associated permit requirements would not apply to the proposed project. The County will serve as the lead agency and the County’s applicable regulations would apply in- lieu of the City’s requirements. The City of Palo Alto provides the following comments in response to the Notice of Preparation. Project Description The project description should clearly demonstrate how the project qualifies for an exemption from local regulation under California Government Code Section 54701 with respect to the proposed uses of the site. The different uses of the project and the future tenants must meet the requirements in the government code in order to qualify for this exemption from local zoning requirements and local permitting requirements. Thresholds Because the project is located squarely within the City of Palo Alto and because the City of Palo Alto will serve as a responsible agency for this project, the EIR should utilize the City’s thresholds of significance in- lieu of or in addition to the County’s thresholds of significance when evaluating CEQA impacts. To the extent that these thresholds differ from the County’s thresholds, the County should utilize the more conservative threshold. In particular, the City notes that its Council adopted thresholds of significance for Vehicle Miles Traveled that may differ from the County’s thresholds. 231 Grant Educator Workforce Housing Project NOP Comments Page 2 of 3 Transportation Although the CEQA analysis will not include a level of service analysis at nearby intersections in accordance with SB 743, the City of Palo may require a separate local traffic analysis be prepared so that the local impacts of the proposed development can be understood in accordance with the City of Palo Alto’s Local Transportation Impact Analysis Policy and the City’s Comprehensive Plan. The City requests that a proposed analysis scope discuss the anticipated trip generated by the proposed development, the anticipated distribution pattern of those trips, and estimated number of peak hour project trips at the nearby intersections where anticipated project trips may trigger the City’s thresholds for additional Level of Service (LOS) analysis. This scoping and analysis is necessary for understanding traffic circulation around the site. The City of Palo Alto’s intersection standards should be utilized. The City’s LOS policy, which includes thresholds and standards, is provided here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=65453.84&BlobID=77026 Bicycle and Vehicle Circulation Park Boulevard is a major bike route; therefore, the City would not recommend the addition of any new curb cuts along this frontage or a design that directs increased vehicle ingress/egress to this frontage. The City encourages reducing existing curb cuts where feasible. Traffic Calming In the past, the City has received concerns from the residents in this neighborhood regarding the volume and speed of traffic in this area. The environmental analysis must determine whether the project may contribute to such issues, and consider if implementing traffic calming measures as part of the project would be appropriate within the immediate vicinity of the project. Coordination The City anticipates that construction of the City’s Public Service Building could coincide with construction of this building. The traffic analysis must consider the cumulative impacts of these projects, particularly during construction, so that the impacts on traffic and access to adjacent residences and businesses can be understood. Access to adjacent properties must be maintained throughout construction. Coordination between the County and City of Palo Alto must occur to minimize potential impacts associated with street closures, vehicle deliveries, and other construction activities. Permits The County must obtain a permit from the City of Palo Alto for any material haul/wide truck loads as well as encroachment permit(s) for any temporary or permanent encroachment within the City’s right-of-way. The City understands that the County will be evaluating modular construction as an alternative to traditional construction methods. This would reduce the timeframe of construction; however, the City anticipates that it would increase the number of wide loads and total trucks traveling to and from the site during certain periods of construction. Additional information on the number of truck trips, the number of wide loads, etc. must be provided as part of the environmental analysis. The City will require that the County submit a Traffic Control Plan (TCP) for the City’s review and approval prior to construction; this should be identified in the environmental analysis. The City would review the TCP to analyze and approve the routes, timing, and to determine if additional temporary traffic control measures are necessary. Groundwater The City understands that the project site is located within the California-Olive-Emerson Plume, which is known to contain groundwater contaminated with volatile organic compounds (VOCs). The EIR must analyze the impacts of construction activities on the release of VOCs and must identify the proper disposal of contaminated water, if encountered during construction. Although not required in accordance with 231 Grant Educator Workforce Housing Project NOP Comments Page 3 of 3 CEQA, the City anticipates that the County will work with the Regional Water Quality Control Board, Department of Toxic Substances Control, and/or the County Department of Environmental Health to identify appropriate measures for the safety of future residents/users. Should you have any questions regarding this letter and the City’s comment, please contact Claire Raybould at (650) 329-2116 or Claire.Raybould@cityofpaloalto.org or Jonathan Lait at Jonathan.Lait@cityofpaloalto.org. Sincerely, Claire Raybould, AICP Senior Planner, Planning & Development Services City of Palo Alto (ID # 11842) City Council Staff Report Report Type: Study Session Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: 3997 Fabian Way: Prescreening for PHZ Title: 3997 Fabian Way (20PLN -00287): Request for Pre -Screening of the Applicant's Proposal to Rezone the Subject Property From General Manufacturing (GM) to Planned Home Zoning (PHZ) and to Redevelop th e Site With a 290 Unit Residential Development. Environmental Assessment: Not a Project. Zoning District: GM (General Manufacturing). From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that Council conduct a prescreening review and provide informal comments regarding the applicant’s rezoning request. Executive Summary This prescreening is a request by the applicant to rezone the subject General Manufacturing (GM) zoned property (six parcels) to “Planned Home Zoning (PHZ)”.1 The applicant is a long- time owner of the property, which is currently used for research and development. The owner is exploring the possibility of removing the existing commercial floor area to construct a residential only project. This prescreening application responds to the City Council’s expressed interest in learning from home builders what it takes to create more housing opportunities in Palo Alto. Utilizing the Planned Community (PC) zoning process, a PHZ application must meet two initial qualifying criteria established by the City Council: 1) provide 20% of the total units as affordable housing selected from a prescribed menu of options, and 2) provide housing units that meet or exceed the demand generated by any net new jobs. 1 Referred to in this report as "Planned Home Zone" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. City of Palo Alto Page 2 The location of this project is near the San Antonio Road corridor. The property is adjacent to other high-density residential properties, near bus transit (lines on Fabian and Charleston), and near employment centers. This proximity presents unique policy considerations, described later in this report. The project would require a formal application consistent with Palo Alto Municipal Code (PAMC) 18.38 to allow for a Development Plan with increased height, increased Floor Area Ratio (FAR), and a zoning map change to Planned Community for the properties. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Comments provided during the prescreening process are not binding on the City or the applicant. Because this proposal may return to the City Council as a quasi-judicial application, Councilmembers should refrain from forming firm opinions supporting or opposing the project. Background One year ago, the City Council identified housing as a key priority. At a subsequent meeting in February 2020, the Council unanimously endorsed using Planned Home Zoning (PHZ) for housing and mixed-use housing projects to help spur housing production. PHZs allow a home builder to share a plan for adding housing, but also include one or more requests to modify local zoning standards. In exchange for modifying certain development standards, the project must include at least 20% of the housing units as affordable through a menu of options including a combination of inclusionary housing and payment of an in-lieu fee. Moreover, the number of housing units must offset the number of net new commercial jobs that are generated by the project. The City Council endorsed staff’s proposed approach for the inclusionary housing options and the formula to determin e the jobs/housing ratio on September 21, 2020.2 Since Council signaled its unanimous interest in using PHZs to stimulate housing, staff has met with several individuals exploring redevelopment of certain properties, including representatives for the subject request. Project Description The owner, Jeff Farrar of Far Western Land and Investment Company, requests a prescreening review for a conceptual residential project containing 290 dwelling units. The preliminary schematic drawings (available online: https://www.cityofpaloalto.org/civicax/filebank/documents/79745 ) are conceptual, as is 2 Link to 9-21-2020 Staff Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=43675.41&BlobID=78363. City of Palo Alto Page 3 appropriate at this stage of project consideration. The applicant proposes a six -story building with two levels of parking. One of the levels is a basement while the other level constitutes the podium level (ground level) of the building so that the residential levels would be on levels two through six. The total project floor area is 259,192 square feet resulting in a floor area ratio of 2.8 (2.8:1 FAR). The building would extend to approximately 67 feet in height. As shown in the conceptual plans, the height is uniform for the proposed building without any step backs proposed at this time. It is anticipated there would also be elevator shafts and mechanical equipment on the roof that would extend the height at some rooftop locations. The elevations are conceptual but convey that this is a residential project with uniform fenestration and private balconies. It is likely that a formal application would reflect adjustments to the design and that any design would be subject to evaluation by the City’s Architectural Review Board (ARB). The project provides all the required parking on site and includes two levels of structured parking with one level at grade and another in a basement level. The project site is located above a hazardous plume (described later in this report) and therefore there are limitations and precautions for subterranean construction, particularly when housing is proposed. Although not shown in detail at this time, all parking spaces would be standard spaces and have direct access – no mechanical vehicle lifts. Above the first level of parking (the podium level) the proposal is for five levels for residential units with a mix of studios (45 units), one-bedroom (160 units) and two-bedroom (85 units). The plans also indicate two courtyards with unspecified amenities available to the residents that would count towards open space requirements. Currently, the applicant proposes to provide 10% of the units as inclusionary (very low income at 50% Area Median Income (AMI)) and an in-lieu fee for full housing impact fee. This was identified as Option 3.3 This would result in an overall affordable inclusionary housing requirement of approximately 25%. The project would also result in a net housing increase and net jobs loss for the site as there is no commercial or office component proposed for the site. The applicant’s project description and conceptual project plans are included with this report as Attachments C and D, respectively. Project Setting The project site is currently developed with two existing research & development use buildings and surface parking spaces. The project site consists of six contiguous parcels on the northeast side of the intersection of Charleston Road and Fabian Way. Both Charleston Road and Fabian 33 Connect to staff report which has the options for affordability. City of Palo Alto Page 4 Way are four-lane roads adjacent to the subject property. All subject parcels are zoned General Manufacturing (GM). Attachment A provides a location map with adjacent zoning designations. The Taube-Koret Campus for Jewish Life (TKCJL) and Oshman Family Jewish Community Center is a mixed-use Planned Community (PC) on an 8.5-acre site (PC-4918 district4) located to the east of the subject site. The TKCJL campus also forms the boundary along the north of the subject site. To the west across Fabian Way are office buildings, private school Kehillah High School (at 3900 Fabian), and an automotive repair use at the intersection of Charleston Road and Fabian Way on GM zoned properties. To the southwest of the site is multi-family residential use on Multi-family residential (RM-20) zoned property. To the south across Charleston Road are automotive repair and office uses on GM-zoned properties. The buildings within this area range from one through five stories in height. Another notable residential project is north of the TKCJL and Community Center (Altaire apartments, PC-4917 district)5. Discussion Staff would provide a thorough analysis of the Zoning and Comprehenive Plan compliance following the submittal of a formal application. While the Comprehensive Plan allows residential uses within industrial land use districts, the GM zoning district does not allow for residential uses unlike other industrial zoning districts. A review of the conceptual plans shows that the project would exceed the typical zoning requirements allowed by the GM zoning regulations and also exceed zoning requirements of high density residential (RM-40) zoning regulations. Attachment B provides a comparison of the project with these development standards. The comparison demonstrates that the project would need to request increases in height, floor area, lot coverage and reductions to setbacks (Charleston). Open space proposed appears to be less than what is required; however, given the conceptual nature of the project this could likely be resolved. The project also does not specify daylight plane consistency as another development standard that would need to be addressed nor specify the location of the proposed bicycle parking. The PHZ application provides a path for home builders and the City Council to consider adjustments in zoning that stimulate more housing units. As previously reported, the City continues to lag in housing units produced compared to the state’s regional housing needs assessment for Palo Alto, but also through local objectives set forth in the adopted Palo Alto Comprehensive Plan 2030. The subject prescreening application represents one response to the City Council’s request to home builders to show what it would take to build more housing in Palo Alto. Different owners 4 PC-4918 – 432,200 SF mixed-use building with 193 condominium congregate care/senior units and 134,100 SF community center. 5 PC-4917 – 216,700 SF residential building with 103 for sale units and 56 BMR senior apartments. City of Palo Alto Page 5 with different site constraints and expectations on their return on investment may present different responses. However, as anticipated by authorizing PHZ applications, modifications to local zoning will be required to generate more housing. In exchange, the City would achieve more housing units, including inclusionary housing units, while not exacerbating the jobs/housing imbalance. It is staff’s expectation that after several PHZ applications are reviewed and ultimately approved, clearer direction will be enabled for property owners. The clarity would relate to development standards requiring adjustment to support more housing development and eventually reduce the need for PHZ applications. Key Issues The following are key issues the proposed project raises as staff and Council consider housing development at the subject site. Some of these are common issues seen with other PHZ applications as they demonstrate the constraints of the zoning code for housing development. • Land Use/Zoning • Height • Floor Area Ratio • Lot Coverage • Setbacks • Open Space Land Use/Zoning The Comprehensive Plan land use designation for the site is Light Industrial. Based on the description for the land use residential uses may be allowed. According to the Comprehensive Plan this designation is described as: Wholesale and storage warehouses and the manufacturing, processing, repairing and packaging of goods. Emission of fumes, noise, smoke, or other pollutants is strictly controlled. Examples include portions of the area south of Oregon Avenue between El Camino Real and Alma Street that historically have included these land uses, and the San Antonio Road industrial area. Compatible residential and mixed use projects may also be located in this category. FAR will range up to 0.5. Consistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher density multi-family housing may be allowed in specific locations. Unlike other industrial zoning classifications in the City, the GM zoning district does not allow residential uses. The underlying development standards for the district do not provide good comparisons for a residential project. Therefore, Attachment B also compares the project to the RM-40 development standards. The RM-40 district represents the highest residential densities City of Palo Alto Page 6 for the City absent any other combining district or applying the Housing Incentive Progra m (HIP). No combining district or the HIP are applicable to the subject project. Consideration of the PHZ is the appropriate zoning tool for th is site for housing production. The long-time property owner for the subject property is at a decision-point as to what to do with the property. The current tenant has vacated the site. The owner could allow new tenants to occupy the buildings, redevelop the site with newer R&D office buildings, or as proposed, a housing project. The owner has not proposed or considered a mixed-use development option. While the proposed housing project would represent a loss in jobs, overall, this would help the City’s jobs/housing balance because the City is rich in jobs and lower in housing. Height One of the common constraints for applicants seeking to produce more housing in Palo Alto is the building height limit standard. The underlying GM zoning district maintains a 35 foot height limit, while compared to the RM-40 district there is a 40 foot height limit. The proposed building height would be 66’-11”. The neighboring TKCJL Planned Community’s tallest structure is 56 feet. In accordance with PAMC 18.38.150(b) (Special Requirements for PC zones), the maximum height for PC’s proposed within 150 feet of residentially zoned pro perties including PC zones with residential is 35 feet. An exception is for PCs that propose at least 60% of the gross floor area excluding parking as residential, the height can be 50 feet when adjacent to a higher density residential district. The PAMC allows for a height of 50 feet in certain zoning districts, which is the tallest height allowed within the city except for the Hospital District (HD). Staff identifies two components of the project that drive the height: 1) one of the levels of the parking is at grade (11 feet floor to ceiling) and 2) the parapet is 5’-6” in height. If the parapet was reduced to a minimum that would allow for a design that meets the findings for an Architectural Review and both levels of parking were to be undergrounded, t hen the overall height of the building is reduced to approximately 53 feet. However, as described below, the underlying groundwater contamination increases mitigation costs in addition to typically high construction costs related to subterranean garage structures. Environmental Contamination The project site is located within the Ford Aerospace regional plume of volatile organic compounds, which has affected groundwater, due to off-site contamination.6 At the time the TKCJL project was constructed, the requirement was for an above grade parking facility was proposed given housing development. The TKCJL housing begins above the first level. A vapor 6 State Water Board Information: https://geotracker.waterboards.ca.gov/profile_report.asp?global_id=SL18288709 City of Palo Alto Page 7 barrier is likely to be required with this project and any below grade construction would likely necessitate an active ventilation system. This has cost and design implications with ongoing monitoring as well to ensure future residents are protected. The applicant confirmed that because the site is affected by the plume, subterranean development would be difficult and infeasible at certain depths. Other options to consider to potentially reduc e the height include partial undergrounding of the podium parking level and use of mechanical lift parking. The extent to which the height could be reduced by implementing this alternative has not been studied. Floor Area Ratio (FAR) Another common constraint for producing housing is the FAR limit. FAR is the measurement of a building's floor area in relation to the size of the lot/parcel that the building is located on. The owner proposes a 2.77:1 FAR. By comparison the maximum FAR for a project within the RM -40 zone is 1.0:1. The Housing Incentive Program (HIP) that was recently added to San antonio Road allows an FAR of 2.0:1. For comparison, other recent prescreening projects proposing to use the PHZ include an FAR range between 1.79:1 to 2.55:17. Lot Coverage While no information is provided by the applicant within the project plans, it is expected that the project would exceed the maximum lot coverage allowed. This appears to be consistent with other PHZ proposed projects. The City has previously allowed consideration of a lot coverage waiver for HIP projects. Comparatively, the subject PHZ proposal is a housing intensive development like that of a HIP project. Setbacks The project proposes setbacks that are consistent with the Special Setbacks along Fabian and Charleston. The project also provides setbacks that are consistent with the und erlying GM zoning district and comparable with the RM-40 district. However, PC districts have additoinal development standards when located within 150 feet of any RE, R -1, R-2, RM or any PC district permitting single-family development or multiple-family development that are contained in PAMC 18.38.150, Special requirements. Since the adjacent PC district contains a mixed-use development, these special requirements are not applicable in that instance, however, the project is opposite a property that is zoned RM -20 (diagonally across from intersection). Therefore, the setback requirements along Charleston shall be consistent with the minimum setback of the RM-20 district for the front yard, which is 20 feet instead of the proposed 10 foot setback. The minimum street side yard setback within the RM-20 district is 16 feet, while the 7 3300 El Camino Real (20PLN-00101), requested 1.79 FAR. Link to 6-22-2020 Staff Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=73113.28&BlobID=77258 2951 El Camino Real (20PLN-00158) requested 2.55 FAR. Link to 1-19-21 Staff Report - https://www.cityofpaloalto.org/civicax/filebank/documents/79814 City of Palo Alto Page 8 proposed project has a 20 foot setback. The setback is consistent with the more restrictive special setback. Open Space The project plans include a summary of the amount of open space proposed. The project would not meet the minimum requirements established by the RM-40 district. Without any detail it is difficult to ascertain any specific solutions to remedy the open space shortages. However, staff expects that with some revisions, these multi-family standards could be achieved. Other considerations The City recently approved expansion of the HIP with 2.0 FAR along the San Antonio Road corridor between Charleston Road and Middlefield Road that would accommodate approximately 800 dwelling units. Policy Implications The subject proposal illustrates the tensions between the City’s desire to increase housing unit production and the external constraints imposed by market forces and applicant tolerance for risk over return within the City’s regulatory framework. When the City Council endorsed using PHZ to encourage more housing, Council knew this process would necessarily result in potential home builders seeking relief from certain development standards. The likeliest exceptions to standards include excess floor area ratio and lot coverage, parking reductions, adjustments to retail preservation requirements, and excess height. Each PHZ that is presented to the City Council represents the unique challenges individual developers face with specific lot constraints and their willingness to accept various returns on cost or yield for the project. This project includes no office or commercial and would help provide more housing to allieviate the jobs-housing imbalance issue. An important policy consideration is whether a project that includes 100% residential and provides approximately 25% in affordable housing through a combination of inclusionary (very - low income) and payment of in-lieu housing impact fees is a good trade-off to allow increases in height, FAR, and lot coverage. The site is not adjacent to low-density residential and is located in an area with larger buildings and anticipated larger buildings along San Antonio Road. Lastly, the plans and compliance review in this report are preliminary. The purpose of the prescreening process is not to exhaustively review a project for compliance with code or require significantly detailed plans, which may change before a formal application is filed. However, several key development standards have been analyzed and discussed for the purposes of this prescreening application. If a formal application is filed, the Planning and City of Palo Alto Page 9 Transportation Commission and Architectural Review Board will have opportunities to hold public hearings and make recommendations to the City Council, which makes the final decision on any PHZ application. Stakeholder Engagement This item was published in the Daily Post on January 29, 2021, which is 10 days in advance of the meeting. Postcard mailing occurred on January 25, 2021, which is 14 days in advance of the meeting. Environmental Review The prescreening application involves no discretionary action and is therefore not a project and not subject to review pursuant to the California Environmental Quality Act (CEQA). Subsequent project applications will require project-specific environmental analysis. For this site, staff anticipates the documents required for environmental review will include Phase I & Phase II Environmental Site Assessments, a Traffic Report and a Historic Resource Evaluation. Attachments: Attachment A: Location Map (PDF) Attachment B: Zoning Comparison Table (DOCX) Attachment C: Applicant's Project Description (PDF) Attachment D: Project Plans (DOCX) 24 24 2 4 2 4 2 4 2 4 24 24 24 24 10 10 10 10 10 24 20 10 15 1 5 1 5 10 10 1524 15 15 15 24 24 24 24 24 24 15 Building 6 Bu i l d i n g 5 Building 4 Bu i l d i n g 2 Buildin g 1 0 Building 3 Bu i l d i n g 9 Bu i l d i n g 8 B u i l d i n g 7 Building 4 B u i l d i n g 5 Building 3 B u i l d i n g 2 Building 1 Buildin g 1 4 BUILDING 11_Offic es OFFICES OFFICES OFFICES Bu i l d i n g 6 CAFETERIA BU I L D I N G 9 Of f i c e s B A K L J B u i l d i n g 1 1 Bu i l d i n g 1 KORET CAMPUS C D E M F G H 3 9 9 2 7 6 6 3997 3998 7 7 8 7 8 4 3924 3916 3930 3928 3 9 7 4 3 9 8 0 3 9 8 6 774 772 7 7 0 3 9 8 5 3 9 7 9 3 9 7 3 3934 3940 3946 7 6 3 7 5 7 7 5 1 3 9 9 1 3945 3939 7 8 7 3 9 5 5 3 9 6 1 7 9 5 3951 39 43 39 49 3 9 4 8 39 40 39 21 39 27 83 0 80 0 7 9 2 7 8 6 84 9 3977 80 1 3980 81 1 7 7 9 7 8 5 3 8 6 3 3 8 6 5 38 56 38 60 3872 38 85 38 79 7 9 1 7 9 5 3896 38 8038 55 38 8638 57 38 59 3 8 6 1 38 90 7 9 0 7 9 6 39 31 39 25 39 19 39 37 39 07 39 13 8 2 3 39 01 8 1 1 8 0 5 8 1 7 8 0 4 8 1 2 39 36 39 30 39 09 39 15 39 24 3963 3960 39 40 39 50 39 01 39 10 38 7 5 38 5 7 38 45 38 4838 46 38 3 9 38 6838 51 38 74 38 53 38 54 38 52 38 39 38 42 38 33 38 36 38 27 38 30 38 17 38 24 38 07 38 18 38 40 38 34 38 28 38 18 3808 38 73 38 6638 8 6 38 57 3863 3 8 6 9 38 49 38 50 38 4438 43 38 9 3 38 8 7 38 38 38 37 38 32 38 31 38 26 38 25 38 19 38 51 38 45 38 39 38 33 38 27 38 21 38 6 3 38 75 38 90 38 70 399 1 400 5 725 745 741 737 7 2 0 7 2 1 7 3 1 749 7 1 0 7 4 4 7 5 0 7 5 6 7 6 2 7 6 8 7 6 9 7 6 3 7 5 7 7 5 1 7 3 8 7 3 9 7 4 5 7 2 6 7 3 2 7 3 3 7 2 7 7 3 7 7 4 3 7 5 9 75 3 7 2 8 7 3 4 7 4 0 7 4 4 779 7 2 2 7 1 6 76 5 7 3 3 744 749 743726 794 798 796 792 790 786 780 774 768 762 756 750 7 7 5 7 7 4 779 785 788 780 796 7 7 0 773 767772 764 761 750 755 734 77 7 4017 4015 40 5 7 40 5 5 825 835 40 8 0 40 7 4 40 6 2 40 3 0 40 2 0 795 797 799 801 821 815 809 85 1 87 0 86 0 84 4 9 9 9 1 0 0 0 991 989 981 977 969 4032 4030 4024 4022 920 916 892 890 882 998 988 992 994 990 960 900 910 876 872 868 862 860 850 92 1 845 855 885 883 895 897 925 937 935 931 4007 4009 840 91 0 824 816 814 810 808 802 800 79 6 788 916 951 864 858 40 7 7 39 00 1001 90 1 87 0 87 4 979 3950 790 792 812 856 996 914 817 85 6 85 8 86 0 86 2 86 4 86 6 86 8 86 9 86 7 86 5 86 3 86 1 85 9 85 7 88 2 88 0 87 8 87 6 87 4 87 2 87 0 88 3 88 1 87 9 87 7 87 5 87 3 87 1 89 6 89 4 89 2 89 0 88 8 88 6 88 4 80 1 80 2 80 3 80 4 80 5 80 6 80 7 80 8 80 9 81 0 81 2 81 4 81 6 81 8 82 0 82 2 82 4 82 6 81 1 81 3 81 5 81 7 81 9 82 1 82 3 82 5 82 7 83 5 83 4 83 3 83 2 83 1 83 0 82 9 82 8 895 893 891 889 887 885 83 6 83 7 83 8 83 9 84 0 84 1 84 2 84 3 84 4 84 5 84 6 84 7 84 8 84 9 85 0 85 1 85 2 85 3 85 4 85 5 39 21 89 9 39 03 38 95 39 97 88 1 88 3 88 5 88 7 88 9 89 1 89 3 G A I L E N C O U R T EAST C H A R L E S T O N R O A D SEMIN O L E W A Y MAPLEWOOD P L A C E FABIAN STREET SEMIN O L E W A Y M O N T R O S E A V E N U E SA N A N T O N I O R O A D BIBBI T S D R I V E LO U I S R O A D FA B I A N W A Y GAILE N A V E N U E BI B B I T S D R I V E EAST CHARLESTON R O A D SA N A N T O N I O R O A D CO M M E R C I A L S T R E E T CO R I N A W A Y ROSS ROAD LO U I S R O A D S A N A N T O N I O R O A D NA T H A N W A Y CO M M E R C I A L S T R E E T SA N A N T O N I O R O A D EAST CHARLESTON R O A D M A P L E W O O D A V E N U E EAST C H A R L E S T O N R O A D Altaire Walk Altaire Walk Federation Way CS RM-20 PC-4917 PC- 4918 This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Special Setback Frontages abc Building Roof Outline Zone Districts abc Zone District Labels City Jurisdictional Limits: Palo Alto City Boundary Subject Property 0'256' Location Map 3997 Fabian Way CITY O F PALO A L T O I N C O R P O R A T E D C ALIFO R N I A P a l o A l t o T h e C i t y o f A P R IL 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto sahsing, 2020-12-22 14:26:29 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) GM ATTACHMENT B ZONING COMPARISON TABLE 3997 Fabian, 20PLN-00287 Table 1: COMPARISON WITH CHAPTER 18.20 (GM DISTRICT) & 18.13 (RM-40 DISTRICT) Regulation Required Under GM Required Under RM-40 Existing Proposed Under PC Minimum Site Area, width and depth 1 acre, None, None 8,500 sf, 70 ft., 100 ft. 93,654 sf Width varies: 116 feet to 235 feet (Fabian) Depth: 492 feet (Charleston) 93,654 sf; 2.15 acres Minimum Front Yard (Charleston)(1) (2) None 0-25 ft (1) 180 feet 10 feet Rear Yard None 10 ft 60 feet 10 feet Interior Side Yard None 10 ft 20 feet 10 feet Street Side Yard (Fabian) None 0-16 ft (1) 40 feet 20 feet Min. yard for site lines abutting or opposite residential districts None None 50 feet 10 feet Special Setback 10 feet for Charleston Road & 15 feet for Fabian Way – see Chapter 20.08 & zoning maps 10 feet for Charleston Road & 15 feet for Fabian Way – see Chapter 20.08 & zoning maps 40 feet from Fabian 180 feet from Charleston 20 feet from Fabian 10 feet from Charleston (Deviates from 18.38.150(d)) Max. Site Coverage None 45% (3) Building 8: 15,854 sf Building 7: 14,692 sf Total: 30,977 sf 67.64% (deviates from GM zone) Max. Total Floor Area Ratio 0.5:1 (46,696 sf) 1.0:1 (93,393 sf) Building 8: 20,640 sf Building 7: 14,040 sf Total: 0.37:1 (34,680 sf) 2.8:1 (259,192 sf (deviates from GM zone) Max. Building Height (4) 35 ft within 150 ft of a residential zone, 35 ft within 40 ft of a residential zone 40 ft Building 8: 2 Stories Building 7: 1-Story 66’-11” (deviates from GM zone) Maximum number of dwelling units per acre Not allowed 40 DU/AC None 135 DU/AC (deviates from GM zone) Minimum number of dwelling units per acre Not allowed 21 DU/AC None 135 DU/AC (deviates from GM zone) Minimum site open space Not Applicable 20% (18,679 sf) None 42% (40,123 sf) Minimum Usable open space Not Applicable 150 sf per unit (43,500 sf) None 102 sf per unit (29,440 sf, deviates from RM-40 zone) Minimum Common open space Not Applicable 75 sf per unit (21,750 sf) None 53 sf per unit (15,476 sf, deviates from RM-40 zone) Minimum Private open space Not Applicable 50 sf per unit (14,500 sf) None 48 sf per unit (13,964 sf, deviates from RM-40 zone) Daylight Plane for site lines having any part abutting one or more residential districts. Initial Height 10 ft 10 ft Not shown Slope 1:2 45 degrees Not shown (1) Charleston to become front after merging lots (2) Determined by ARB (3) Additional area (5%) permitted to be covered by covered patios or overhangs otherwise in compliance with all applicable laws (4) Residential zones include R-1, R-2, RE, RMD, RM-15, RM-30, RM-40 and residential Planned Community (PC) zones. Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Multi-family Residential Uses Type Required Existing Proposed Vehicle Parking Residential: 1 space per one bedroom unit or smaller; 2 per 2 bedroom unit 45 Studio: 45 spaces 160 1-Bedroom: 160 spaces 85 2-Bedroom: 170 spaces Total: 375 spaces 127 spaces 375 spaces The applicant may elect to request parking adjustments if necessary, based on any design changes. Bicycle Parking Residential: 1/unit = 290 LT Guest Parking: 1/10 unit = 29 ST Total: 290 LT / 29 ST 3 spaces 319 spaces (unknown location) FAA WESTERN LAN1) December 21, 2020 Sheldon S. Ah Sing, AICP Principal Planner M -Group 51 E. Campbell Avenue #1247 Campbell, CA 95009 Geoffrey A. Farrar, President Far Western Land & Investment Co., Inc. jeff.farwestern@gmail.com 530.521.0608 direct Subject: Understanding the Redevelopment Proposal for 3997 Fabian Way, Palo Alto Sheldon, Jeff Farrar and his family (via Far Western Land & Investment Co., Inc.) have owned the property on the northwest corner of E. Charleston Road and Fabian Way since 1956. Jeff's father originally purchased the property and constructed the two existing industrial buildings for Philco, which built and launched its first satellite in 1960. Over the years, Philco's name has changed to Ford Aerospace, Space Systems/Loral, and finally to Maxar, the current tenant. Jeff grew up in the area and he and his family have been members of the Palo Alto community for over 3 generations now. Going forward, it is Jeff's desire to continue to retain ownership of the property and pass it along to future generations of Farrars. As of 12/31/20, Maxar will be vacating the property. When Maxar advised Far Western of its intent to move to a new campus in San Jose, several options were considered for the property. They included: 1. Re -lease the two existing buildings, originally built in 1956, to a new tech/R&D user. 2. Build approximately 11,000 sf of additional R&D space (allowed within the current zoning) and lease the entire campus to a new user. 3. Redevelop the property into multifamily housing. Options 1 and 2 involve the least amount of risk and effort, while still providing attractive investment returns. Option 3, however, could be an attractive long-term option for both Far Western and the City of Palo Alto. This site would be an ideal location for multifamily housing, as it is within walking and biking distance of thousands of jobs and could provide housing within Palo Alto that would contribute to improved traffic patterns for regional commuting. Additionally, the community has greatly benefited from the Oshman Family JCC and its related housing. This site is well -suited to add multifamily, near other housing and buildings of similar height and density. As proposed, the development would include approximately 290 units of high -quality housing, structured parking, and a first-class amenity package. Additionally, in accordance with Option 3 of the Planned Home Zone (PHZ) Inclusionary Housing Requirement, 29 units (10%) will be reserved for Very -Low Income residents and the project will contribute in -lieu housing fees. The project would require certain approvals from the city, including a rezone to the Planned Home Zone (PHZ) and increased height in specific sections of the building. In order to make multifamily development feasible, the project is requesting a height of 67'. This height would allow the project to incorporate affordable units, as requested by the city, and build adequate parking to meet the parking needs of all the project's residents. A subterranean garage will be constructed to deal with much of the required parking but there will also be a level of semi -at -grade podium parking as a result of constraints due to environmental 083562\11912969v2 PO Box 1701 Chico, CA 95927 FAR WESTERN LAND Geoffrey A. Farrar, President Far Western Land & Investment Co., Inc. jeff.farwestern@gmail.com 530.521.0608 direct conditions in this part of the City, similar to the parking solution at the nearby Oshman Family JCC. This results in living areas being elevated, requiring additional levels and height. Given the height and density of the adjacent properties, as well as the distance from any single-family neighborhoods, this request is very reasonable and supportable. This new development would cohesively fit into the neighborhood. Some of the major benefits to this proposal include: 1. The main community benefit of this redevelopment is much needed housing (including affordable housing). This project would add 290 units to Palo Alto's housing supply. Its location near employment would enable the city to add housing where it is most needed —within a short commute to jobs. 2. This project would meet the city's request for low income housing through Option 3 of the PHZ's Inclusionary Requirement: a hybrid method of units provided and an in -lieu fee. The city staff report from the 9/21/2020 meeting indicated that when using the weighted analysis of Option 2 within the PHZ Inclusionary Requirement, Option 3 is approximately equivalent to a 25% inclusionary requirement. This development would create 29, or 10% of the unit total, Very -Low Income units and pay the housing in -lieu fee. As a result, the city would be able to offer more Very -Low Income units, while simultaneously increasing the City's housing funds —which are used by non-profit organizations to build low income units with supportive programs. 3. The market -rate and low-income units would also help the city meet their current and future RHNA numbers. As city staff has mentioned in previous public hearings, meeting the RHNA requirements has a direct impact on the city's ability to maintain local control. 4. The redevelopment aligns with the city's goal of fixing the jobs/housing imbalance. This project would replace +/- 115 jobs with housing. 5. With the construction of housing, the project will help to remove contamination from the land. Due to environmental issues at the site and in the area, the property redevelopment will be coordinated with and under the direct oversight of the San Francisco Bay Regional Water Quality Control Board and the Board is supportive of the proposed approach. 6. A redevelopment of the property would replace outdated industrial buildings with new, state-of- the-art housing that is well positioned for decades to come. We look forward to the opportunity to discuss this project with Council at a pre-screening. Regards, A. Farrar, President WESTERN LAND & INVESTMENT CO., INC. 083562\11912969v2 PO Box 1701 Chico, CA 95927 Attachment D Project Plans Due to shelter-in-place, these documents are only available on-line. Directions to review Project plans online: 1. Go to: bit.ly/PApendingprojects 2. Scroll to find “3997 Fabian Way” and click the address link 3. On this project specific webpage you will find a link to the Project Plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=5064&TargetID=319 CITY OF PALO ALTO OFFICE OF THE CITY CLERK February 8, 2021 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the January 25, 2021 City Council Meeting Attached are the January 25, 2021 City Council meeting minutes for review and approval. ATTACHMENTS: • Attachment A: 01-25-21 CCM DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting January 25, 2021 The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:00 P.M. Participating Remotely: Burt arrived at 5:03 P.M., Cormack, DuBois, Filseth, Kou, Stone, Tanaka Absent: Special Orders of the Day 1. Presentation From the Palo Alto Community Child Care Non-profit. NO ACTION TAKEN Minutes Approval 2. Approval of Action Minutes for the January 4 and 11, 2021 City Council Meetings. MOTION: Council Member Cormack moved, seconded by Council Member Stone to approve the Action Minutes for the January 4 and 11, 2021 City Council Meetings. MOTION PASSED: 7-0 Consent Calendar Council Member Kou registered a no vote on Agenda Item Number 3. Council Member Tanaka registered a no vote on Agenda Item Number 4. MOTION: Vice Mayor Burt moved, seconded by Council Member Filseth to approve Agenda Item Numbers 3-4. 3. Review and Acceptance of the Annual Status Report on Development Impact Fees for Fiscal Year 2020 and Adopt Resolution 9939 Entitled, “Resolution of the Council of the City of Palo Alto Making Findings Regarding Continuing Need for Unexpected Development Fees.” DRAFT ACTION MINUTES Page 2 of 6 (Sp.) City Council Meeting Draft Action Minutes: 01/25/2021 4. Request for Authorization to Amend the Existing Legal Service Agreement With the Law Firm of Colantuono, Highsmith & Whatley, PC (Contract S17167696) to Increase the Contract Amount by an Additional $85,000, Bringing the new Not-to-Exceed Amount to $340,000; and to Increase the Term by one Year. MOTION PASSED FOR AGENDA ITEM NUMBER 3: 6-1 Kou no MOTION PASSED FOR AGENDA ITEM NUMBER 4: 6-1 Tanaka no Action Items 4A. Provide Feedback and Direction on the Community & Economic Recovery Workplan Which Includes Four Focus Areas: Managing Through the Pandemic, Community Wellness and Wellbeing, Focused Business Support, and City Initiatives; and Recommend Returning with Budget Amendments in Various Funds at the Mid-Year Budget Review. MOTION: Vice Mayor Burt moved, seconded by Mayor DuBois to: A. Direct Staff to proceed with the City of Palo Alto’s Community and Economic Recovery efforts and prioritized projects, community engagement strategies, and governance framework for future work; B. Direct Staff to bring forward budget adjustments to fund the following projects as part of the FY 2021 Mid-Year Budget Review to be funded from the Stanford University Medical Center (SUMC) Fund and Fiber Funds: i. Building Systems Improvements Project for City Facilities re lated to COVID-19 ($500,000); ii. Fiber to the Home funding for engagement ($200,000); C. Direct Staff to amend the prioritized Community and Economic Recovery workplan and future budget actions with the following: i. Provide an updated clear comprehensive and dynamic work safety plan; ii. Identify any additional open space projects that are needed in response to the emergency; iii. Begin the process of an updated consulting contract on the Foothills fire protection plan; DRAFT ACTION MINUTES Page 3 of 6 (Sp.) City Council Meeting Draft Action Minutes: 01/25/2021 iv. Look at how to allocate additional resources to RV parking, unhoused, and childcare; and v. Direct Staff to reevaluate the University Avenue Streetscape project in light of other priorities INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER to add to the Motion Part A “and agendize a discussion of the updated workplan based on tonight’s Motion.” MOTION AS AMENDED RESTATED: Vice Mayor Burt moved, seconded by Mayor DuBois to: A. Direct Staff to proceed with the City of Palo Alto’s Community and Economic Recovery efforts and prioritized projects, community engagement strategies, and governance framework for future work; and agendize a discussion of the updated workplan based on ton ight’s motion B. Direct Staff to bring forward budget adjustments to fund the following projects as part of the FY 2021 Mid-Year Budget Review to be funded from the Stanford University Medical Center (SUMC) Fund and Fiber Funds: i. Building Systems Improvements Project for City Facilities related to COVID-19 ($500,000); ii. Fiber to the Home funding for engagement ($200,000); C. Direct Staff to amend the prioritized Community and Economic Recovery workplan and future budget actions with the following: i. Provide an updated clear comprehensive and dynamic work safety plan; ii. Identify any additional open space projects that are needed in response to the emergency; iii. Initiate and return to Council with recommendations for an updated Foothills fire protection plan and required resources; and iv. Look at how to allocate additional resources to RV parking, unhoused, and childcare DRAFT ACTION MINUTES Page 4 of 6 (Sp.) City Council Meeting Draft Action Minutes: 01/25/2021 v. Direct Staff to reevaluate the University Avenue Streetscape project in light of other priorities MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION PARTS A, B i. and ii., and C i.-iv. PASSED: 7-0 MOTION PART C. v. FAILED: 3-4 DuBois, Kou, Stone yes MOTION: Council Member Filseth moved, seconded by Council Member Cormack to fund the University Avenue Streetscape Project Planning ($150,000) as part of the FY 2021 Mid-year Budget Review. MOTION PASSED: 4-3 DuBois, Kou, Stone no Council took a break at 8:11 P.M. and returned at 8:176 P.M. 5. PUBLIC HEARING / QUASI-JUDICIAL. 922 College Avenue [20PLN-00104]: Request for Review of a Preliminary Parcel Map With Exceptions to Adjust Lot Lines for two Substandard Parcels to Facilitate the Redevelopment and Sale of two Homes. Environmental Assessment: Exempt. Zoning District: R-1 (Single Family Residential). Public Hearing opened at 8:24 P.M. Public Hearing closed at 8:31 P.M. MOTION: Mayor DuBois moved, seconded by Council Member Kou to adopt a Record of Land Use Action (RULA) approving the requests for a Preliminary Parcel Map with exceptions based on findings and subject to the conditions of approval, and as recommended by the Planning and Transportation Commission. MOTION PASSED: 6-0 Tanaka recused 6. Status Report on the South Palo Alto Bikeways Project Funded by the VERBS Grant; Approval of the Community Engagement Plan; and Approval of Budget Amendments in the Capital Improvement Fund, Projects: Safe Routes to School PL-00026, and El Camino Real Pedestrian Safety and Streetscape PL-18000. MOTION: Vice Mayor Burt moved, seconded by Council Member Tanaka to: A. Receive a status report on the South Palo Alto Bikeways Project funded by the One Bay Area Grant 2 (OBAG 2) for Vehicle Emissions Reductions Based at Schools (VERBS) program; DRAFT ACTION MINUTES Page 5 of 6 (Sp.) City Council Meeting Draft Action Minutes: 01/25/2021 B. Approve the Draft Community Engagement Plan (CEP), including specific public outreach strategies for the South Palo Alto Bikeways Project; C. Direct Staff to return after the first phase of public outreach to present the final concept plan for the project; D. Approve Amendment of the Fiscal Year 2021 Budget Appropriation Ordinance by a 2/3 vote for the Capital Improvement Fund by: i. Increasing the Safe Routes to School Project (PL-00026) expense appropriation by $110,000; and ii. Decreasing the El Camino Real Pedestrian Safety and Streetscape Project (PL-18000) by $110,000. MOTION PASSED: 7-0 7. Update on the Status of Capital Improvement Fund and Potential Direction on Prioritization of Projects for the Fiscal Year (FY) 2022 Budget and 2022-2026 Capital Improvement Plan. NO ACTION TAKEN Adjournment: The meeting was adjourned at 11:02 P.M. DRAFT ACTION MINUTES Page 6 of 6 (Sp.) City Council Meeting Draft Action Minutes: 01/25/2021 Public Hearing opened at X:XX P.M. Public Hearing closed at X:XX P.M. MOTION: Council Member XX moved, seconded by Council Member XX to MOTION PASSED/FAILED: 7-0 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER AMENDMENT: Council Member XX moved, seconded by Council Member XX to AMENDMENT PASSED/FAILED: 7-0 SUBSTITUTE MOTION: Council Member XX moved, seconded by Council Member XX to SUBSTITUTE MOTION PASSED/FAILED: 7-0 City of Palo Alto (ID # 11799) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: Approval of On -Call Transportation Engineering Contracts Title: Approval of Contract Number C21180550A With TJKM for a Four -year Term, Not-to-Exceed $800,000, and Contract Number C21180550B With Fehr and Peers for a Four-year Term, Not-to-Exceed $800,000, for On -call Transportation Engineering and Planning Project Support Services From: City Manager Lead Department: Transportation Department Recommendation Staff recommends that Council approve and authorize the City Manager or designee to e xecute a four-year contract (C21180550A) with TJKM Transportation Consultants and a four-year contract (C21180550B) with Fehr and Peers (Attachments A and B) in an amount not to exceed $800,000 per contract, for On-Call Transportation Engineering and Planning Services. Background On April 18, 2016 (Staff Report #6322) Council approved a four-year contract for On-Call Transportation Engineering Services to support the Office of Transportation staff with tasks for various small spot improvement projects throughout the City. At that time, staff awarded a four-year contract to both TJKM and Fehr & Peers for Transportation Engineering support services. Examples of some of the work that was included under these on-call contracts were: 1. Intelligent transportation systems planning 2. Perform traffic engineering studies and reports 3. Perform traffic signal coordination timing analysis using Syncro, SimTraffic and/or VisSim programs 4. Prepare traffic signal plans, specifications and estimates 5. Prepare engineering and traffic speed surveys 6. Prepare roadway/highway engineering plans, specifications and estimates 7. Perform transportation planning studies 8. Prepare grant funding applications and associated attachments and exhibits City of Palo Alto Page 2 Both contracts ended in October 2020. Staff issued a new Request for Proposals (RFP) on October 6, 2020, for On-Call Transportation Engineering and Planning Services contract providers. Discussion Following the completion of the RFP process, the City has identified two consulting firms to complete several key projects and to provide Transportation Engineering Project Support Services. The ideal respondents were identified as experienced transportation engineering and planning firm or a project team, with the ability to provide project support services and support the City’s Office of Transportation staff and assist with the implementation of the Bicycle and Pedestrian Safety Improvement projects. The selected consultants will assist staff in transportation engineering including, but not limited to, analyzing service requests, preparing signing and marking plans, developing traffic signal timing plans and modifications, assisting in the implementation of the bicycle and pedestrian safety projects, and other transportation capital improvement projects, as needed. Depending upon the project needs and staffing, the selected consultant team(s) will provide for services including community meeting facilitators, graphic artists (with experience in preparing transportation-focused material for reports and community presentations), grant writers, landscape plans, roadway design engineers, surveyors, traffic data collection, transportation engineers, transportation planners, and utility coordinators. Summary of Solicitation Process: Proposal Description/Number On-Call Transportation Engineering Services Proposed Length of Contract: 4 years each Total Days to Respond to RFP: 22 days Pre-proposal Meeting Date: None Number of Proposals Received: 7 Proposals Received from: Location (City, State) Selected for oral interview? TJKM Pleasanton, CA Yes Fehr & Peers San Jose, CA Yes Advanced Mobility Group Walnut Creek, CA Yes Bellecci & Associates Pleasanton, CA No CHS Consulting Group Crossroad Lab Kimley Horn San Jose, CA Cupertino, CA Pleasanton, CA No No Yes The proposals were judged by the following criteria: • Qualifications and experience of the staff assigned to the project; • Proposal quality and completeness; • Response time and ability to perform the work; and City of Palo Alto Page 3 • Fee The City released an RFP for the On-call Transportation Engineering Services on October 6, 2020. Seven proposals were received in response to the RFP. Staff from the Office of Transportation reviewed the proposals and recommended oral interviews for four consultant teams, after which staff selected two of the consultant teams, TJKM and Fehr and Peers, based on proposal content and criteria identified in the RFP and their superior knowledge of traffic engineering and the ability to complete the projects in a timely fashion. Both TJKM and Fehr & Peers have been under contract with the City for on -call Transportation Engineering Services from 2016 to 2020. Staff feels that both TJKM and Fehr and Peers Consultants have demonstrated successful completion of various traffic studies, implementation and development of the City’s transportation -related projects. Both TJKM and Fehr and Peers have demonstrated strong skills in completing traffic engineering projects such as signing and striping plans that include innovative bicycle and pedestrian facility design. A few examples of a few upcoming tasks for that staff will be asking for support on are: • Final evaluation and implementation of the trial and final design development of neighborhood (Crescent Park) traffic calming project • Preliminary evaluation and development of proposed measures for potential upcoming neighborhood traffic calming projects (Fulton, Seale, Tennyson, Park Avenue, etc.) • Safe Routes to School related improvements • Final development of the Charleston/San Antonio Traffic Signal design plans • Bike/Ped plan related minor improvements • Development/evaluation of Palo Alto’s 10 most critical intersections • Assistance in the updating of the Traffic Calming and Pedestrian Crossing Guidelines • Speed Zone Surveys Timeline Immediately upon execution of a contract, staff will meet with each of the Consultant teams to develop work orders for upcoming projects that includes defined scope, cost and timeline. In addition, staff will issue work orders as necessary over the course of the contract to perform transportation engineering tasks. Resource Impact Funding for year one of these contracts is available in the Fiscal Year 2021 Adopted Capital Improvement Program (CIP) and the Transportation Operation Budget to cover this work. The funding will be drawn from the following projects and programs as they require on-call support: PL-00026 (Safe Routes to School), PL-04010 (Bicycle & Pedestrian Transportation Plan – Implementation Project), PL-12000 (Parking & Transportation Improvements), and PL- 05030 City of Palo Alto Page 4 (Traffic Signal and ITS upgrade). Funding for future fiscal years is subject to City Council approval through the annual budget process. Policy Implications The City’s Comprehensive Plan recommends that the City strive to accommodate all modes of travel in its street system. These contracts are consistent with the following goals and policies: Goal T-3: Facilities, Services and Programs that encourage and promote walking an d bicycling. Goal T-4: An efficient Roadway Network is provided for all users, including motor vehicles, transit vehicles, bicyclists and pedestrians Program T-18: Develop and periodically update a comprehensive bicycle plan. Policy T-14: Improve pedestrian and bicycle access to and between local destination, including public facilities, schools, parks, open space, employment districts, shopping Centers and multi modal transit stations. Policy T-29: Make effective use of the traffic carrying ability of Palo Alto’s major street network without compromising the need of pedestrians and bicyclists also using this network. Stakeholder Engagement Stakeholder engagement for this contract consisted of the request for proposal and bidding process described above. Staff will conduct additional community/stakeholder engagement for any projects that result from this on-call contract. Environmental Review Approval of these contracts is exempt from environmental review under the California Environmental Quality Act (CEQA) because it can be seen with certainty that the contract approval alone will not have a significant effect on the environment. Although additional environmental review may be required and will be completed as necessary for specific projects utilizing consultant services under these contracts. Attachments: • C21180550A_TJKM_On-Call_Transportation_$800k • C21180550B_FP_On-Call_Transportation_$800k_final signed • Attachment A: C21180550A_TJKM_On-Call_Transportation_$800k_signed • Attachment B: C21180550B_Fehr Peers_On-Call_Transportation_$800k_signed Professional Services Rev. Dec.15, 2020 Page 1 of 23 CITY OF PALO ALTO CONTRACT NO. C21180550A AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND TJKM This Agreement for Professional Services (this “Agreement”) is entered into as of the 8 th day of February, 2021 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TJKM, a California corporation, located at 4305 Hacienda Drive, Suite 550, Pleasanton, CA 94588. (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and arefully incorporated herein by this reference: RECITALS A. CITY intends to provide on-call transportation services (the “Project”) and desires to engage a consultant to services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES.CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Professional Services Rev. Dec.15, 2020 Page 2 of 23 Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2024 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE.Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION.The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Eight Hundred Thousand Dollars ($800,000.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Eight Hundred Thousand Dollars ($800,000.00), as detailed in Exhibit C. “Additional Services” means 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. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in Professional Services Rev. Dec.15, 2020 Page 3 of 23 this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES.In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE.All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS.CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall Professional Services Rev. Dec.15, 2020 Page 4 of 23 procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS.CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES.If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR.CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT.The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor:CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to Professional Services Rev. Dec.15, 2020 Page 5 of 23 be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: Siegfried Engineering, Inc. 111 North Market Street, Suite 300 San Jose, CA 95113 Alta Planning + Design, Inc. 304 12th Street, #2A Oakland, CA 94607 CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT.CONSULTANT will assign Nayan Amin as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Shahla Yazdy, Office of Transportation Department, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: (650) 617-3151. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS.All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee.CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. Professional Services Rev. Dec.15, 2020 Page 6 of 23 SECTION 15. AUDITS.CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.]16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “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 attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.]16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS.No waiver of a condition or nonperformance of an obligation under Professional Services Rev. Dec.15, 2020 Page 7 of 23 this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will Professional Services Rev. Dec.15, 2020 Page 8 of 23 discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. Professional Services Rev. Dec.15, 2020 Page 9 of 23 CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, 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. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. 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, hereby incorporated by reference and as 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, 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 Professional Services Rev. Dec.15, 2020 Page 10 of 23 Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION.This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1.This Project is not subject to prevailing wages and related requirements.CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000or less,per California Labor Code Sections1782(d)(1),1725.5(f)and 1773.3(j). OR 26.1.This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations Professional Services Rev. Dec.15, 2020 Page 11 of 23 (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g.http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled “DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR. SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”.For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code §9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. OR This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or Professional Services Rev. Dec.15, 2020 Page 12 of 23 indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. 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. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes Professional Services Rev. Dec.15, 2020 Page 13 of 23 all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS.Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS EXHIBIT G: INFORMATION PRIVACY POLICY EXHIBIT H: CYBERSECURITY TERMS AND CONDITIONS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Professional Services Rev. Dec.15, 2020 Page 14 of 23 CONTRACT No. C21180550A SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee CONSULTANT TJKM Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Professional Services Rev. Dec.15, 2020 Page 15 of 23 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Project Background: TJKM to provide project support services, assist with the City with implementing various tasks described below. TJKM will facilitate community meetings, provide graphic artists, prepare transportation-focused material for reports and community presentations, provide grant writers, landscape architects (with experience in green street infrastructure), roadway design engineers, surveyors, traffic data collection supervisors, transportation engineers, transportation planners, utility coordinators, and other team members whom can provide on-site staff resources. Description of Project Tasks: 1.Transportation Engineering Project Support Services - The consultant team should be able to provide Transportation Engineering Project Support Services for various small spot improvement projects, including, but not limited to: a. Bikeway intersection treatment plans b. Collision diagrams c. Cross-section graphics and photo simulations of project alternatives d. Pavement marking plans; signing and striping plans e. Prepare design plans, specifications and estimates f. Parking occupancy surveys g. Peer review of transportation impact analyses h. Review and preparation of temporary traffic control plans i. Stamped and signed design plans, specifications and estimates j. Traffic sign design services k. Traffic signal plans l. Traffic signal timing plans m. Transportation impact analyses n. Other transportation engineering and planning tasks as needed Examples of a few upcoming tasks: x Final evaluation of Pilot and final development of neighborhood (Crescent Park) traffic calming x Preliminary evaluation and development of proposed measures for neighborhood traffic calming projects (Fulton, Seale, Tennyson, Park Avenue etc.) x Safe Routes to School related improvements x Final development of Charleston/San Antonio Traffic Signal design plans x Bike/Ped plan related minor improvements x Development/evaluation of Palo Alto’s 10 most critical intersections x Assistance in the development of Traffic Calming and Pedestrian Crossing Guidelines x Speed Zone Surveys Professional Services Rev. Dec.15, 2020 Page 16 of 23 2. Transportation Planning/Engineering Services–The Consultant team should be able to also be able to provide an Engineer, Planner and/or Project Manager support to assist with implementation of the adopted Palo Alto Bicycle + Pedestrian Transportation Plan. The plan identifies future bicycle and pedestrian transportation facilities including bicycle boulevards, enhanced bikeways, shared-use paths, and other improvements. The Engineer, Planner and/or Project Manager will assist in the preparation of Bikeway Concept Plans, development of signage and striping plans, community meeting facilitation, construction document preparation, project bidding, and planning and designing other improvements, as required. 3. Additional Tasks, which is included in the total contract cost: Additional Transportation Planning tasks that may be included under this contract include: 1. Assist with public outreach and meeting facilitation 2. Conduct site visits and obtain measurements and photographs 3. Perform transportation modeling 4. Perform transportation planning studies 5. Prepare grant funding applications and associated attachments and exhibits 6. Provide other transportation planning related professional services as required Additional Transportation Engineering tasks for various small spot improvement projects that may be included under this contract include: 1. Intelligent transportation systems planning 2. Perform traffic engineering studies and reports 3. Perform traffic signal coordination timing analysis using Syncro, SimTraffic and/or VisSim 4. Prepare traffic signal plans, specifications and estimates 5. Prepare transportation engineering plans, specifications and estimates 6. Provide other transportation engineering related professional services as required Additional Roadway/Highway Engineering tasks for various small spot improvement projects that may be included under this contract include: 1. Perform utility coordination activities 2. Prepare agreements 3. Prepare engineering land surveys 4. Prepare Engineering and Traffic Speed surveys 5. Prepare landscaping plans, specifications and estimates 6. Prepare roadway/highway engineering plans, specifications and estimates 7. Right-of-way requirement maps 8. Provide other roadway/highway engineering related professional services as required All plans shall be prepared and submitted using the most current version of AutoCAD software. Professional Services Rev. Dec.15, 2020 Page 17 of 23 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Professional Services Rev. Dec.15, 2020 Page 18 of 23 EXHIBIT B SCHEDULE OF PERFORMANCE On-call Services, therefore not applicable. Professional Services Rev. Dec.15, 2020 Page 19 of 23 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the 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, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), 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 CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of:$0.00. A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Professional Services Rev. Dec.15, 2020 Page 20 of 23 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: TJKM: Position Title Hourly Rate Principal $250.00/hr Director $230.00/hr Senior Project Manager $210.00/hr Project Manager $180.00/hr Senior Transportation Engineer $165.00/hr Transportation Engineer $145.00/hr Assistant Transportation Engineer $125.00/hr Transportation Planner $120.00/hr Assistant Transportation Planner $115.00/hr Graphics Designer $110.00/hr Designer $100.00/hr Technical Staff II $90.00/hr Administrative Staff $80.00/hr Production Staff $55.00/hr Siegfried Engineering, Inc.: Position Title Hourly Rate Managing Principal $253.00/hr Principal $227.00/hr Senior Associate $199.00/hr Associate $178.00/hr Project Engineer $168.00/hr Engineer II $154.00/hr Engineer I $138.00/hr Project Landscape Architect $166.00/hr Landscape Architect II $144.00/hr Landscape Architect I $118.00/hr Project Land Surveyor $168.00/hr Surveyor II $152.00/hr Surveyor I $134.00/hr Survey Crew, 2-person $273.00/hr Survey Crew, 1-person $181.00/hr Instrumentman $194.00/hr Chainman/Rodman $134.00/hr Senior Technician $134.00/hr Technician III $118.00/hr Technician II $102.00/hr Technician I $87.00/hr Professional Services Rev. Dec.15, 2020 Page 21 of 23 Expert Witness $400.00/hr Clerical $80.00/hr Alta Planning + Design, Inc.: Position Title/Category Hourly Rate Senior Principal (Labor Category 1a) $325.00/hr Principal (Labor Category 1b) $275.00/hr Principal (Labor Category 1c) $255.00/hr Principal (Labor Category 2) $225.00/hr Principal, Senior Associate (Labor Category 3) $218.00/hr Principal, Senior Associate (Labor Category 4) $205.00/hr Principal, Senior Associate (Labor Category 5) $197.00/hr Principal, Senior Associate (Labor Category 6) $189.00/hr Principal, Senior Associate (Labor Category 7) $185.00/hr Senior Associate, Associate (Labor Category 8) $178.00/hr Senior Associate, Associate (Labor Category 9) $169.00/hr Senior Associate, Associate (Labor Category 10) $165.00/hr Associate, Senior (Labor Category 11) $158.00/hr Associate, Senior (Labor Category 12) $148.00/hr Associate, Senior (Labor Category 13) $138.00/hr Senior, Level I (Labor Category 14) $126.00/hr Senior, Level I (Labor Category 15) $116.00/hr Level I, Level II (Labor Category 16) $106.00/hr Level I, Level II (Labor Category 17) $94.00/hr Administration (Labor Category 18) $80.00/hr Intern (Labor Category 19) $73.00/hr Professional Services Rev. Dec.15, 2020 Page 22 of 23 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS 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 HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, 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 CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Professional Services Rev. Dec.15, 2020 Page 23 of 23 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 CITY OF PALO ALTO CONTRACT NO. C21180550B AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND FEHR & PEERS This Agreement for Professional Services (this "Agreement") is entered into as of the 8th day of February, 2021 (the "Effective Date"), by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and FEHR & PEERS, a California corporation, located at 100 Pringle Avenue, Suite 600, Walnut Creek, CA 94596. ("CONSULTANT"). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide on -call transportation services (the "Project") and desires to engage a consultant to services in connection with the Project (the "Services", as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled "SCOPE OF SERVICES". NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. N Optional On -Call Provision (This provision only applies if checked and only applies to on -call agreements.) CITY may elect to, but is not required to, authorize on -call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Professional Services Rev. Dec.15, 2020 Page 1 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 Compensation for on -call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on -call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2024 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled "SCHEDULE OF PERFORMANCE". Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled "COMPENSATION," including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Eight Hundred Thousand Dollars ($800,000.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled "SCHEDULE OF RATES." Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. N Optional Additional Services Provision (This provision applies only if checked and a not -to -exceed compensation amount for Additional Services is allocated below under this Section 4.) The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Eight Hundred Thousand Dollars ($800,000.00), as detailed in Exhibit C. "Additional Services" means 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. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in Professional Services Rev. Dec.15, 2020 Page 2 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT's schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY's Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall Professional Services Rev. Dec.15, 2020 Page 3 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT's errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY'S stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers' compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT's performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT's provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. ❑ Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to Professional Services Rev. Dec.15, 2020 Page 4 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. ® Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: Mark Thomas 2833 Junction Avenue, Suite 110 San Jose, CA 95134 Callander Associates 2025 Gateway Place, Suite 285 San Jose, CA 95110 CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Steve Davis as the CONSULTANT's Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT's Project Manager or any other of CONSULTANT's key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's Project Manager. CONSULTANT, at CITY's request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY's Project Manager is Shahla Yazdy, Office of Transportation Department, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: (650) 617-3151. CITY's Project Manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement ("Work Product"), in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. However, notwithstanding any provision to the contrary, Professional Services Rev. Dec.15, 2020 Page 5 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 CONSULTANT shall retain without limitation all rights, titles, and interests, including but not limited to all ownership and intellectual property rights, in all ideas, inventions, improvements, discoveries, methodologies, models, formats, software algorithms, processes, procedures, designs, specifications, findings, other intellectual properties developed, gathered, compiled or produced by CONSULTANT prior to or independently of any of its services under this Agreement ("Background IP"), including such Background IP that CONSULTANT may employ in the performance of this Agreement, or may incorporate into any part of the Work Product. CONSULTANT grants CITY an irrevocable, non-exclusive, transferable, royalty -free, license in perpetuity to use, reuse, modify, disclose, and create derivatives from, such Background IP, insofar as the Background IP is a part of Consultant's Work Product and not as an independent product that Consultant is selling to the City. The parties understand and agree that the Background IP is not, by itself, a standalone Work Product with unrestricted rights. . SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT's records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "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 attorney's fees, experts fees, court costs and disbursements ("Claims") to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT's proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. ❑ [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.1 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 an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney's fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to negligent performance or nonperformance, recklessness, or willful misconduct by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. Professional Services Rev. Dec.15, 2020 Page 6 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT's Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled "INSURANCE REQUIREMENTS". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY' s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss Professional Services Rev. Dec.15, 2020 Page 7 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. Professional Services Rev. Dec.15, 2020 Page 8 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a "Consultant" as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person's race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, 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. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act ("ADA"), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. 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, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY' s Zero Waste Program. Zero Professional Services Rev. Dec.15, 2020 Page 9 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 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, 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 Department's office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). Professional Services Rev. Dec.15, 2020 Page 10 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 OR ❑ 26.1. This Project is subject to prevailing wages and related requirements as a "public works" under California Labor Code Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations ("DIR"). Copies of these rates may be obtained at the CITY's Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled "DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS", for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR. SECTION 27. CLAIMS PROCEDURE FOR "9204 PUBLIC WORKS PROJECTS". For purposes of this Section 27, a "9204 Public Works Project" means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". ❑ This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". OR This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY's Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical Professional Services Rev. Dec.15, 2020 Page 11 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT's obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. "Confidential Information" means all data, information (including without limitation "Personal Information" about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT's possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such Professional Services Rev. Dec.15, 2020 Page 12 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. 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. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT's proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT's proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: ® EXHIBIT A: SCOPE OF SERVICES ® EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE ® EXHIBIT C: COMPENSATION ® EXHIBIT C-1: SCHEDULE OF RATES ® EXHIBIT D: INSURANCE REQUIREMENTS ❑ EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS ❑ EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS Professional Services Rev. Dec.15, 2020 Page 13 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 ❑ EXHIBIT G: INFORMATION PRIVACY POLICY ❑ EXHIBIT H: CYBERSECURITY TERMS AND CONDITIONS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Professional Services Rev. Dec.15, 2020 Page 14 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 CONTRACT No. C21180550B SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO CONSULTANT FEHR & PEERS City Manager APPROVED AS TO FORM: City Attorney or designee off i mtcusigned by: 2Y B s r ctR r,�t, N Offi bic4 fired for Corp. or LLC) By: I 141444 Na Y° "fFrd Title: Chief Financial Officer Professional Services Rev. Dec.15, 2020 Page 15 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled "SCOPE OF SERVICES". Project Background: FEHR & PEERS to provide project support services, assist with the City with implementing various tasks described below. FEHR & PEERS will facilitate community meetings, provide graphic artists, prepare transportation -focused material for reports and community presentations, provide grant writers, landscape architects (with experience in green street infrastructure), roadway design engineers, surveyors, traffic data collection supervisors, transportation engineers, transportation planners, utility coordinators, and other team members whom can provide on -site staff resources. Description of Project Tasks: 1. Transportation Engineering Project Support Services - The consultant team should be able to provide Transportation Engineering Project Support Services for various small spot improvement projects, including, but not limited to: a. Bikeway intersection treatment plans b. Collision diagrams c. Cross-section graphics and photo simulations of project alternatives d. Pavement marking plans; signing and striping plans e. Prepare design plans, specifications and estimates f. Parking occupancy surveys g. Peer review of transportation impact analyses h. Review and preparation of temporary traffic control plans i. Stamped and signed design plans, specifications and estimates j. Traffic sign design services k. Traffic signal plans 1. Traffic signal timing plans m. Transportation impact analyses n. Other transportation engineering and planning tasks as needed Examples of a few upcoming tasks: • Final evaluation of Pilot and final development of neighborhood (Crescent Park) traffic calming • Preliminary evaluation and development of proposed measures for neighborhood traffic calming projects (Fulton, Seale, Tennyson, Park Avenue etc.) • Safe Routes to School related improvements • Final development of Charleston/San Antonio Traffic Signal design plans • Bike/Ped plan related minor improvements • Development/evaluation of Palo Alto's 10 most critical intersections • Assistance in the development of Traffic Calming and Pedestrian Crossing Guidelines • Speed Zone Surveys Professional Services Rev. Dec.15, 2020 Page 16 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 2. Transportation Planning/Engineering Services— The Consultant team should be able to also be able to provide an Engineer, Planner and/or Project Manager support to assist with implementation of the adopted Palo Alto Bicycle + Pedestrian Transportation Plan. The plan identifies future bicycle and pedestrian transportation facilities including bicycle boulevards, enhanced bikeways, shared -use paths, and other improvements. The Engineer, Planner and/or Project Manager will assist in the preparation of Bikeway Concept Plans, development of signage and striping plans, community meeting facilitation, construction document preparation, project bidding, and planning and designing other improvements, as required. 3. Additional Tasks, which is included in the total contract cost: Additional Transportation Planning tasks that may be included under this contract include: 1. Assist with public outreach and meeting facilitation 2. Conduct site visits and obtain measurements and photographs 3. Perform transportation modeling 4. Perform transportation planning studies 5. Prepare grant funding applications and associated attachments and exhibits 6. Provide other transportation planning related professional services as required Additional Transportation Engineering tasks for various small spot improvement projects that may be included under this contract include: 1. Intelligent transportation systems planning 2. Perform traffic engineering studies and reports 3. Perform traffic signal coordination timing analysis using Syncro, SimTraffic and/or VisSim 4. Prepare traffic signal plans, specifications and estimates 5. Prepare transportation engineering plans, specifications and estimates 6. Provide other transportation engineering related professional services as required Additional Roadway/Highway Engineering tasks for various small spot improvement projects that may be included under this contract include: 1. Perform utility coordination activities 2. Prepare agreements 3. Prepare engineering land surveys 4. Prepare Engineering and Traffic Speed surveys 5. Prepare landscaping plans, specifications and estimates 6. Prepare roadway/highway engineering plans, specifications and estimates 7. Right-of-way requirement maps 8. Provide other roadway/highway engineering related professional services as required All plans shall be prepared and submitted using the most current version of AutoCAD software. Professional Services Rev. Dec.15, 2020 Page 17 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAYBE SAME AS CONTRACT/P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: • SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) • REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the work described in this Task Order. I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: BY: BY: Name Name Title Title Date Date Professional Services Rev. Dec.15, 2020 Page 18 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 EXHIBIT B SCHEDULE OF PERFORMANCE On -call services shall be completed according to schedule approved by Professional Services Task Order. Professional Services Rev. Dec.15, 2020 Page 19 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 EXHIBIT C CO ENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the 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, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), 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 CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not -to -exceed amount of: $0.00. A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Professional Services Rev. Dec.15, 2020 Page 20 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT's schedule of rates is as follows: FEHR & PEERS: Position Title Hourly Rate Principal $310.00/hr Senior Associate $255.00/hr Associate $245.00/hr Senior Engineer/Planner $190.00/hr Engineer/Planner $165.00/hr Senior Engineering Technician $170.00/hr Senior Project Accountant $165.00/hr Senior Project Coordinator $145.00/hr Project Coordinator $135.00/hr Technician $155.00/hr Intern $115.00/hr MARK THOMAS: Position Title Hourly Rate Principal $395.00/hr Senior Engineering Manager $375.00/hr Practice Area Leader $352.00/hr Engineering Manager $352.00/hr Senior Technical Lead $314.00/hr Technical Lead $243.00/hr Project Manager $243.00/hr Senior Technical Engineer $213.00/hr Senior Project Engineer $213.00/hr Project Engineer $180.00/hr Design Engineer II $162.00/hr Senior Technician $163.00/hr Design Engineer I $138.00/hr Technician $128.00/hr Intern $ 85.00/hr Callandar Associates: Position Title/Category Hourly Rate Principal $224.00/hr Senior Associate $204.00/hr Associate $194.00/hr Senior Project Manager $175.00/hr Construction Manager $171.00/hr Project Manager 1 $168.00/hr Professional Services Rev. Dec.15, 2020 Page 21 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 Project Manager 2 $159.00/hr Job Captain $147.00/hr Designer 1 $138.00/hr Designer 2 $126.00/hr Assistant Designer $112.00/hr Accounting $170.00/hr Senior Project Administrator $129.00/hr Project Administrator $115.00/hr Professional Services Rev. Dec.15, 2020 Page 22 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS 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-:VH, 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 HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YFS YES WORKER'S COMPENSATION EMPLOYER'S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YFS GENERAL LIABILITY, INCLUDING BODILY INJURY $1,000,400 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET PROPERTY DAMAGE $1,000,000 $1,000,000 CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, NON -OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $1,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, 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 CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. GENERAL AND AUTOMOBILE LIABILITY INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Professional Services Rev. Dec.15, 2020 Page 23 of 24 DocuSign Envelope ID: D6ECEC55-EA65-4463-AEAD-E33F6E5EAA93 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://W W W.PLANETBIDS.COM/PORTAL/PORTAL.CFM? COMPANYI D=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET BIDS HOW TO.ASP Professional Services Rev. Dec.15, 2020 Page 24 of 24 City of Palo Alto (ID # 11816) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: Contract Approval with Clean Harbors for Household Hazardous Waste Management and Emergency Services Title: Approval of Contract Number C21180050 With Clean Harbors Environmental Services, Inc. for Household Hazardous Waste Management and Em ergency Response Services for a Five -year Term With a Total Amount Not-to-Exceed $1,650,000 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute C ontract No. C21180050 (Attachment A), with Clean Harbors Environmental Services, Inc. (Clean Harbors), to provide household hazardous waste management and emergency response services for a term of five years and a total amount not -to-exceed $1,650,000; including $1,500,000 for basic services and $150,000 for additional services. 2. Authorize the City Manager or his designee to execute contract amendments to memorialize the annual Consumer Price Index adjustments to the contractor’s compensation rates, as described in Section 6 of the contract. Background Palo Alto’s Household Hazardous Waste (HHW) program began in 1983 when Palo Alto became the second jurisdiction in the state to provide residential collection of household hazardous wastes in response to community concerns about toxic wastes in the environment. The objectives of the HHW program are to provide public education on the safe use, storage, disposal and alternatives to HHW products, and to provide a convenient point of collection to reduce improper disposal of HHW to storm drains, landfill, and the sanitary sewer. In 1989, AB 939 was enacted, and cities were required to adopt and submit an HHW Element setting policies, objectives, and programs for collection of HHW in compliance with state mandates. CITY OF PALO ALTO City of Palo Alto Page 2 In the early 1990s, the Regional Water Quality Control Plant (RWQCP) became a permitted permanent HHW collection facility, focusing on the collection and proper disposal of target wastes that directly affected the wastewater effluent such as photo che micals, mercury wastes, certain types of pesticides, and more recently, pharmaceutical wastes. In 2008, the RWQCP upgraded its hazardous waste storage structures by adding a new hazardous waste storage locker (and related improvements) at the entrance to the RWQCP and in 2013, the new HHW Station (HHWS) was built. Today, the HHWS serves residents at weekly HHW collection events and has one of the highest participation rates in the state. The City has contracted out HHW services since the 1980s including th e acceptance, handling, transportation, and disposal or recycling of the various HHW streams collected from the community. Clean Harbors or their subsidiaries have operated the program for over twenty years, including the HHWS. The current contract (CMR 8687) expires February 11, 2021. Discussion Staff recommends Council approve a new five-year contract with Clean Harbors Environmental Services, Inc., to continue providing the City the HHW basic services and emergency services that the community values, including the following: Household Hazardous Waste Services • Weekly HHW Collection Program – Collection events are conducted every Saturday and the first Friday of each month at the HHWS. During collection events Palo Alto residents drop off unused, unwanted , or expired household chemicals, which are then segregated, packaged, and stored until they can be transported offsite for disposal, reuse, or recycling. • HHWS Reuse Zone Program – During collection events, incoming HHW is screened for reusable products, including paint, cleaners, and motor oil that residents can later claim from a secure storage cabinet. • Door-To-Door HHW Program – To ensure physically limited residents can dispose of their HHW, the City’s HHW contractor dispatches personnel to the qualified residents’ homes to collect and transport waste to the HHWS for proper management. • Conditionally Exempt Small Quantity Generators (CESQG) Program – Businesses located within the RWQCP service area that generate less than 220 pounds per month of hazardous waste can dispose of it at the HHWS. Businesses fill out appropriate paperwork, pay a fee for disposal, and set up an appointment through the City’s HHW Contractor. Emergency Services City of Palo Alto Page 3 Emergency Response Services – On-call 24-hour emergency response services to assist the City in cleaning up any hazardous waste spills that occur across the City, when needed. Solicitation Process A Request for Proposals (RFP) for Household Hazardous Waste and Emergency Response Services was posted on October 6, 2020 in Planet Bids, the City’s electronic bidding portal. The solicitation period was 25 days. Proposals were received from four qualified contractors on October 30, 2020. Summary of Solicitation Process: Proposal Description Household Hazardous Waste and Emergency Response Services/RFP #180050 Proposed Length of Project 60 Months (5 years) Number of Vendors Notified 334 Number of Prospective Proposers 12 Number of Proposal Packages Downloaded 10 Total Days to Respond to Proposal 25 days Pre-Proposal Meeting? No Pre-Proposal Meeting Date N/A Number of Proposals Received: 4 Proposal Estimated Price Range $280,000 to $356,000 per year Company Name Location (City, State) Estimated Amount per Year Advanced Chemical Transport, Inc. (dba ACTenviro) San Jose, California $280,000 Clean Harbors Environmental Services, Inc. San Jose, California $300,000 NRC Environmental Services, Inc. Alameda, California $350,000 Clean Earth Environmental Solutions, Inc. Camp Hill, Pennsylvania $356,000 Staff evaluated the proposals to ensure that each firm met the criteria identified in the RFP. Staff rated Clean Harbors Environmental Services, Inc. as the recommended proposer based on: • quality and completeness of the proposal; • quality, performance, and effectiveness of the services proposed; • experience; • ability to perform the work within the time specified; and • prior work performance with the City. City of Palo Alto Page 4 The costs of the four proposals to provide similar services for the five-year contract term were calculated based on the collection and disposal needs from calendar year 2019, which are considered representative of future programs and services. Services needed include staffing the HHWS weekly events, and collecting, packaging, storing, transporting, and disposing of various waste streams in accordance with regulations. Proposal costs were compared with an overall weighted importance of 20%. The estimated annual costs for the four proposals were $280,000, $300,000, $350,000, and $356,000. The lowest cost proposer was not selected because they have far less experience providing the services needed, specifically with operating HHW programs within California where regulations for hazardous waste are some of the most stringent in the nation. The quality of the lowest proposal and effectiveness of the proposed services were also rated lower compared to other bidders. Clean Harbors came in as the second lowest cost of the four proposals and within budget fo r the program. Additionally, through negotiations, Clean Harbors further reduced some of their proposed rates and decreased their costs by approximately 8.5% from the initial estimated annual cost. The final estimated annual cost of $300,000 matches the annual cost for the current contract cycle. The services proposed by Clean Harbors for HHW management, their record for the safe and efficient management of other local HHW programs, and their close attention to State and Federal rules and regulations ensures that the Palo Alto community will continue receiving the high-quality service that they rely on, and the City will receive the best service for the cost. The selection of Clean Harbors will also ensure a smooth transition into the next contract without interruption of service. An additional services amount of up to $150,000 ($30,000 per year), equal to 10 percent of the basic services amount, is requested to cover any additional emergency services. Clean Harbors is the current contractor for the HHWS and emergency response services. Staff has confirmed that Clean Harbors has the required state and local permits to complete the scope of work. This contract is on the City’s general services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. City of Palo Alto Page 5 Resource Impact Funding for the first year of this contract is available in the Refuse Fund Fiscal Year 2021 Adopted Operating Budget. Funding for subsequent years of the contract is subject to Council approval of the annual appropriation of funds through the budget process. Summary of Contract Costs for HHW Management and Emergency Response Services*: HHW Management per Year $300,000 Additional Services per Year $30,000 Total Annual Cost $330,000 Contract Term 5 years TOTAL Contract Not-to-Exceed Amount $1,650,000 Policy Implications This project does not represent any change to existing City policies and supports goal S-3 in the Comprehensive Plan. Stakeholder Engagement This contract is for a continuation of existing HHW program services and community engagement was not deemed necessary. Environmental Review The HHW program was reviewed in the negative declaration issued for the Source Reduction and Recycling Element and Household Hazardous Waste Element which were approved and adopted by Council on June 6, 1991 (Negative Declaration No. 91- EIA-12). The CESQG program was reviewed in the negative declaration for the implementation of the program, which was approved and adopted by Council on June 24, 1993 (Negative Declaration No. 93-EIA-22). Attachments: • Attachment A: Contract C21180050 Partially Executed DocuSign Envelope ID: AB51 B604-619E-4F2E-8525-28A887EDFAA1 CITY OF PALO ALTO CONTRACT NO. C21180050 HOUSEHOLD HAZARDOUS WASTE (HHW) STATION SERVICES CONTRACT THIS AGREEMENT made and entered into on the day of , by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and Clean Harbors Environmental Services, Inc., a Massachusetts Corporation, located at 1010 Commercial Street, San Jose, California 95112, Telephone Number: 408-451-5000 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1.SERVICES. CONTRACTOR shall provide or furnish the services (the "Services") described in the Scope of Services, attached at Exhibit A. D Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY's Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 5 of this Agreement. CONTRACTOR shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 5. 2.EXHIBITS. The following exhibits are attached to and made a part of this Agreement: cg] "A" -Scope of ServicesD "A-1" -On-Call Task Order (Optional) cg] "B" -Schedule of Performance cg] "C" -Schedule of Fees cg] "C-1" -Program Fee Schedule cg] "C-2" -Regional Rate Sheets cg] "D" -Insurance Requirements CONTRACT IS NOT COMPLETE UNLESS All INDICATED EXHIBITS ARE ATTACHED. 3.TERM. The term of this Agreement is from February 12, 2021 to February 11, 2026 inclusive, subject to the provisions of Sections Q and V of the General Terms and Conditions. City of Palo Alto General Services Agreement 1 Rev. March 29, 2018 City of Palo Alto General Services Agreement 2 Rev. March 29, 2018 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached at Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ ); OR The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of One Million Five Hundred Thousand dollars ($1,500,000.00). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. CITY has set aside the sum of One Hundred Fifty Thousand dollars ($150,000.00) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 3 Rev. March 29, 2018 6. COMPENSATION FOR SUCCESSIVE CONTRACT YEARS DURING THE TERM. CONTRACTOR’S compensation rates for each successive contract year during the term shall be the same; OR CONTRACTOR’s compensation rates shall be firm for the first two years of the Agreement, and thereafter adjusted annually effective on the commencement of each successive contract year. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 abov e, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable successive contract year, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring contract year. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent (5%) of the rates effective during the immediately preceding contract year during the term. Any adjustment to CONTRACTOR’s compensation rates shall be refl ected in a written amendment to this Agreement. 7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claim s procedures for Public Works Projects, which are set forth in “Appendix __ Claims for Public Contract Code Section 9204 Public Works Projects”. This project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Appendix __, attached hereto and incorporated herein. OR This project is not a 9204 Public Works Project . 8. INVOICING. Send all invoices to CITY, Attention: Project Man ager. The Project Manager is Sarah Fitzgerald, Public Works Department, Environmental Services Division, 3201 East Bayshore Road, Palo Alto, CA 94303, Telephone: (650) 496-6980. Invoices shall be submitted in arrears for Services performed. Invoices sh all not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 ~ City of Palo Alto General Services Agreement 4 Rev. March 29, 2018 GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 8 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled “SERVICES,” and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR’s representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulat ions, and orders. G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 5 Rev. March 29, 2018 In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agre es to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement. K. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 6 Rev. March 29, 2018 M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment o f premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement. O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability aris ing from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Agreement. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 7 Rev. March 29, 2018 RESPONDER IMMUNITY: Notwithstanding anything to the contrary herein, it is understood and agreed by the parties that Contractor will at all times under this Agreement retain any exemption or limitation from liability ("Responder Immunity") pursuant to the Federal Water Pollution Control Act, as amended (FWPCA) 33 U.S.C.A. 1251 et seq., the Oil Pollution Act of 1990, as amended (OPA-90) 33 U.S.C.A. 2701 et seq., and any other applicable Federal, state or local law, regulation or or dinance which provides such responder immunity. Operation of such immunity shall be suspended if Contractor is grossly negligent or engages in willful misconduct. For purposes of this indemnity, "gross negligence" shall not be deemed to include (a) Contractor's lack of available equipment or personnel, or (b) failure of Contractor's equipment. P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to CONTRACTOR’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 8 Rev. March 29, 2018 S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY. T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. CONTRACTOR further covenants that, in the performance of this Agreement, it will not employ any person having such an interest. CONTRACTOR certifies that no CITY officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. CONTRACTOR agrees to advise CITY if any conflict arises. U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws of the State of California. V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any tim e 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. X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Division, which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONTRACTOR shall comply with the following zero waste requirements: • All printed materials provided by CONTRACTOR to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 9 Rev. March 29, 2018 reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post - consumer material and printed with vegetable based inks. • Goods purchased by Contractor on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including, but not limited to, Extended Producer Responsibility requirements for products and packagi ng. A copy of this policy is on file at the Purchasing Division’s office. • Reusable/returnable pallets shall be taken back by CONTRACTOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Z. PREVAILING WAGES This Project is not subject to prevailing wages. CONTRACTOR is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the Agreement is not a public works contract, if Agreement does not include a public works construction project of more than $25,000, or the Agreement does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. OR Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the Agreement for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. AA. DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 □ City of Palo Alto General Services Agreement 10 Rev. March 29, 2018 Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854. CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Sectio n 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the Agreement is awarded.” CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR is required to post all job site notices prescribed by law or regulation and CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by DIR. CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project. The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively. At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of recei pt of CITY’s request. [For state- and federally-funded projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 □ City of Palo Alto General Services Agreement 11 Rev. March 29, 2018 If the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR. Inform the project manager of the location of CONTRACTOR’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control. 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 CLEAN HARBORS ENVIRONMENTAL SERVICES, INC. Officer 1 ____________________________________ By________________________________________ City Manager or Designee Name _____________________________________ Title_______________________________________ Telephone__________________________________ Approved as to form: Officer 2 By________________________________________ Name______________________________________ ____________________________________ Title_______________________________________ City Attorney or Designee Telephone__________________________________ 781 792 5000 Senior Vice President Marc McReynolds Michael McDonald 781 792 5000 Assistant Secretary DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 1/19/2021 | 8:30:07 PM EST 1/20/2021 | 5:40:12 AM EST CDocuSigned by: ~1:~741F City of Palo Alto General Services Agreement 12 Rev. March 29, 2018 EXHIBIT A SCOPE OF SERVICES CITY currently provides a comprehensive program for Household Hazardous Waste (HHW) management. The various HHW programs operate out of the HHW Station (HHWS) which is located at 2501 Embarcadero Way, Palo Alto, CA 94303. The HHWS consists of specially designed storage sheds, reuse cabinet, and a drive-through unloading area. CONTRACTOR shall operate the HHWS during the weekly collection events. CONTRACTOR shall package, store, and transport HHW office for proper recycling, reuse, or disposal. In addition, the scope of work requires CONTRACTOR to provide for 24-hour hazardous waste emergency spill response services on an as-needed basis. A. SCOPE OF WORK a. General Requirements and Provisions i. CONTRACTOR shall operate and manage CITY’s HHW Station collection events, Conditionally Exempt Small Quantity Generators (CESQG) program, door-to-door HHW pickups, including all HHW collected through those events and programs; provide equipment and materials for event setup; provide staff and materials to place signage and cones; and collect, segregate, pack, and store HHW at the HHW Station. CONTRACTOR shall also provide 24-hour hazardous waste emergency spill response services on an as-needed-basis. ii. CONTRACTOR shall collect and package all HHW, universal wastes, and hazardous waste for transportation to state and federal approved Treatment, Storage, and Disposal Facilities (TSDFs) and for shipping or transporting to current and future extended product responsibility (EPR) programs which provide disposal of HHW (Examples: PaintCare, Call2Recycle). CONTRACTOR shall perform all services related to this scope of work in compliance with all applicable laws, permits and regulations including but not limited to: Title 22 of the Californi a Code of Regulations (CCR), Palo Alto’s Permanent Facility Permit and Permit by Rule conditions, applicable California Health and Safety Code requirements, CCR Title 8 (Cal OSHA) and Code of Federal Regulations Title 49 (DOT) sections as well as any other federal, state or local regulations relating to HHW collection, transportation and disposal activities. iii. CONTRACTOR shall designate a Project Coordinator to act as a contact for the coordination and execution of CONTRACTOR’s activities. CONTRACTOR’s Project Coordinator shall be authorized to act on behalf of DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 13 Rev. March 29, 2018 CONTRACTOR in all matters pertaining to the contract and shall have sufficient knowledge of all aspects of CONTRACTOR’s business and the requirements of this contract. iv. CONTRACTOR shall collect and manage HHW for the various HHW programs, transport HHW, and manage the disposal of HHW. Upon CONTRACTOR’s acceptance of wastes identified for removal, transportation, management and disposal under this contract, CONTRACTOR shall undertake title to, and ownership of, including risk of loss and all other incidents of ownership of such wastes except where the generator is responsible by law. v. CONTRACTOR shall be responsible for preparing and maintaining any and all necessary plans, licenses or other mandatory documents as required by federal, state or local laws, regulations, and ordinances, including but not limited to, health and safety plans, contingency plans and site operations plans. CONTRACTOR shall provide to CITY copies of all plans, licenses or other mandatory documents prepared for the operation of CITY’s HHW Programs prior to beginning any work. vi. CONTRACTOR shall package, consolidate, store and transport offsite the following HHW when accumulation limits have been reached or when necessary: 1. HHW collected by CONTRACTOR during the HHW Station collection events for residential program; 2. HHW from CESQGs collected by CONTRACTOR; 3. HHW collected by CONTRACTOR from the door to door program; and, 4. HHW from RWQCP programs collected by CITY staff. vii. CONTRACTOR shall provide copies of transportation documents such as but not limited to uniform hazardous waste manifests, non-hazardous waste manifest, bills of lading, land disposal restrictions, certificates of destruction, closed copies of documents listed above, and 303 Summary Reports, for any hazardous waste shipped to a TSDF or EPR associated entity for proper disposal or recycling. viii. Under these HHW programs, CONTRACTOR shall collect from CITY residents and CESQGs all HHW, with the exception of: 1. Electronic waste (without embedded batteries) 2. Radioactive wastes 3. Infectious waste and bio-hazardous wastes (containing body tissues or fluids) DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 14 Rev. March 29, 2018 4. Controlled substances 5. Explosive wastes 6. Marine flares 7. Fireworks 8. Ammunition 9. Large gas cylinders 10. Other gas cylinders not listed as acceptable* * Generally acceptable gas cylinders include propane (small, BBQ size), MAPP, isobutane/propane, butane, helium, and refrigerants (Freon). ix. All personnel handling hazardous waste shall be trained in hazardous waste management and have the training as specified in 22 CCR 66264.16, including the use of personal protective safety equipment, and emergency response equipment and procedures as required under applicable state and federal laws and regulations. x. CONTRACTOR shall use CITY’s permanent EPA Generator Identification Number for the manifesting of wastes collected under all HHW Programs. For emergency spill cleanup services CONTRACTOR shall use the Santa Clara County Temporary EPA Generator Identification Nu mber. b. Documentation i. CONTRACTOR shall prepare, provide and maintain all documentation, certificates and records as required by applicable federal, state and local laws and regulations, and CITY. All documentation shall be filled out clearly, correctly and legibly. Documentation submittals for all work shall include but not be limited to: 1. bills of lading or non-hazardous waste manifests 2. hazardous waste manifests and continuation sheets 3. labpack inventory sheets 4. land disposal restriction notifications 5. hazardous waste profiles 6. certificates of destruction, decontamination, disposal and/or recycling 7. monthly and annual CalRecycle 303 forms 8. inventory of items moved to reuse cabinet 9. event summary reports. ii. Copies of the documentation listed above as well as any other documents required by CITY’s Program Manager shall be furnished to CITY’s Program Manager at the time of waste shipment or within 10 working days. Copies DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 15 Rev. March 29, 2018 of any manifest attachments shall be provided to CITY’s Program Manager at the time of transport of waste. iii. CONTRACTOR shall furnish to CITY’s Program Manager closed originals of all uniform hazardous (and non-hazardous) waste manifests signed by a duly authorized representative of the receiving TSDF within thirty (30) calendar days of waste shipment. iv. CONTRACTOR shall, at all times during the transportation, storage, and disposal of wastes know the location, condition and status of each item being managed. CONTRACTOR shall make such information available in written progress reports to CITY’s Program Manager upon request. The progress reports shall include a listing of items removed, referenced by an appropriate identification number and uniform hazardous waste manifest number and a description of the location and status of wastes on date of the written progress report. v. CONTRACTOR shall indicate “Emergency Response” on all relevant documents, including manifests, for any transportation or disposal in connection with hazardous waste emergency response services for incidents occurring within the jurisdictional borders of CITY. CONTRACTOR shall also include on the manifest a relevant address of the spill location. vi. Following each waste removal or when waste is shipped to the appropriate TSDF, CONTRACTOR shall provide summary reports listing and sorted by hazardous waste manifest number and by DOT hazard class, and shall include the following information for each drum collected: 1. name of HHW (e.g. Flammable Liquids); 2. unique drum ID number; 3. container type/size, quantity; 4. estimated actual quantity of wastes (for solids: in pounds exclusive of container and absorbent; for liquids: in gallons); and 5. TSDF profile number (if applicable); 6. subtotals of the number of drums and weight/volume of wastes for each manifest; 7. DOT hazard class and the total number of drums; and 8. weight/volume of wastes for all hazard classes. vii. If required by CITY’s Program Manager, CONTRACTOR shall perform reconciliation of manifests including preparation of a letter of explanation for any shipping or manifest discrepancies within 10 working days. viii. CONTRACTOR shall provide CITY’s Program Manager with the CalRecycle DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 16 Rev. March 29, 2018 Form 303 (waste quantities with management methods used) collected for each of the HHW programs (residential permanent facility events, CESQG program, door to door collection program) for each fiscal year during the term of the Agreement. CONTRACTOR shall provide the completed Form 303 covering the previous FY (July 1 through June 30) to CITY no later than 45 days prior to the due date of Form 303 to the State. CITY shall prepare and submit the official CITY HHW Program CalRecycle 303 forms. c. Spill Prevention and Clean Up i. CONTRACTOR shall use appropriate methods, equipment and practices required by all federal, state and local laws and regulations as well as industry recommended and approved methods, equipment and practices to ensure that no discharges, releases, spills or leakage occurs during the packaging, loading, transportation, storage and disposal of wastes to be managed under this Agreement. In the event of an accidental spill (by or from a resident, CITY staff, or CONTRACTOR) CONTRACTOR is responsible for having supplies (brushes, absorbent, cleaners, etc.,) on site to properly clean up the spill. ii. In the event of a discharge, release, spill or leakage of hazardous wastes during packaging, loading, transportation, storage or disposal of wastes to be managed under this Agreement, CONTRACTOR shall take appropriate and immediate action to protect human health and the environment. CONTRACTOR shall, at no expense to CITY, be fully responsible for, and take appropriate and immediate action to remediate and clean-up any such discharge, release, spill or leakage in accordance with all applicable federal, state and local laws and regulations. For small spills CONTRACTOR is responsible for having supplies (brushes, absorbent, cleaners, etc.,) on site to remediate and clean-up any such discharge, release, spill, or leakage. iii. If during loading and transportation on CITY property, there is a discharge, release, spill, or leak of hazardous waste CITY shall direct the actions taken. CONTRACTOR shall compensate CITY for any costs incurred for response to any discharge, release, spill or leakage of hazardous wastes occurring on CITY property during loading, packaging and/or transportation activities caused by CONTRACTOR negligence. iv. CONTRACTOR shall immediately notify CITY’s Program Manager in person or by telephone should any accident or incident occur which results in any discharge, release, spill or leakage which involves any wastes to be managed under this Agreement. CONTRACTOR shall make all notifications DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 17 Rev. March 29, 2018 and reporting to the appropriate regulatory or emergency response agencies as required under federal, state and local laws and regulations in the event of a discharge, release, spill or leakage of hazardous waste s during transportation, storage or disposal of wastes to be managed under this Agreement. v. If requested by CITY, CONTRACTOR shall furnish CITY’s Program Manager with a detailed written report describing any discharge, release, spill or leakage of hazardous wastes during transportation, storage or disposal of wastes to be managed under this Agreement that required notification to CITY or any federal, state and local regulatory or emergency respons e agency within 5 days. vi. The HHW drop-off events take place outdoors. CONTRACTOR shall protect the collection area from any runoff of residual materials from garbage bins, collection area, or spills. CONTRACTOR shall develop a plan to use for inclement weather to protect against any runoff of HHW materials from garbage bins, the collection area, or accidental spills. d. HHW Station Collection Events. CITY’s HHW Station collection events are permitted under a Permanent Household Hazardous Waste Collection Facility Permit (PHHWFP). The events are held at 2501 Embarcadero Way, Palo Alto every Saturday from 9:00 a.m. to 11:00 a.m. and on the first Friday of the month from 3:00 to 5:00 p.m. (excluding holidays). i. CONTRACTOR shall staff and operate the HHW Station collection. CONTRACTOR shall be responsible for: 1. Event preparation; 2. Tear down and clean-up in accordance with Title 22 regulations, as amended, in accordance with federal, state, and local laws and regulations; 3. Provide all staff, labor, materials, tools and equipment for handling, identification, profiling, packaging, labeling, marking, placarding, manifesting, loading, transportation, and final disposal of collected hazardous wastes. 4. Supply sufficient traffic cones to identify entrance lane at the entrance to the HHW Station at the end of Embarcadero Way. CITY shall provide guidance as to where CONTRACTOR staff are to place the cones. ii. Conduct all activities and operate collection events in accordance with all applicable federal, state and local laws and regulations, and the health and safety, contingency and operation plans prepared by CONTRACTOR and DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 18 Rev. March 29, 2018 approved by the Program Manager. iii. CONTRACTOR shall staff the collection events with personnel in sufficient numbers and expertise. iv. During the collection events CONTRACTOR shall recycle all clean containers, boxes, and other materials to the extent possible and place them into the recycling bin. CITY’s Zero Waste Staff shall provide training to the Site Supervisor on what materials can be recycled. The Site Supervisor shall be responsible for training their staff on what materials can be recycled. v. For each scheduled event, CITY shall provide the following: 1. HHW program advertisement; 2. additional signage; 3. survey forms; 4. literature for survey takers to distribute to event participants; and 5. debris bins for disposal of recyclables and non-hazardous wastes. vi. CITY reserves the right to increase, decrease or modify the number of staff as may be deemed necessary or expedient by CITY’s Program Manager. e. HHW Reuse Zone Program i. CONTRACTOR shall recover incoming HHW that CITY deems reusable and add those materials to the HHW Reuse Zone cabinet. ii. CONTRACTOR shall assign one appropriately trained staff per event to identify, capture, prepare, inventory and stock reusable HHW materia ls, organize and keep clean the Reuse Zone cabinet and path, and assist residents with use of the program as needed. f. PaintCare Program. CONTRACTOR shall collect, segregate, store, and dispose of approved paints and paint-related products through PaintCare at no cost to CITY. i. CONTRACTOR is responsible for obtaining an agreement with PaintCare to have paint and paint-related items managed through the PaintCare Program. ii. CONTRACTOR shall arrange with PaintCare to collect, store, manage, and have disposed of approved paint related items. iii. CONTRACTOR shall provide at least a 30 cubic yard roll off bin or other bin approved by CITY to store approved PaintCare related items. Prior to the DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 19 Rev. March 29, 2018 bin reaching capacity CONTRACTOR shall arrange for the bin to be emptied or replaced with a new empty bin. iv. The cost of managing, transporting, and recycling PaintCare related products shall not be charged to CITY. v. CONTRACTOR may transport the waste or may use an approved PaintCare transporter. CITY shall not be charged any fees associated with managing eligible PaintCare related items. g. Call2Recycle (Battery Take Back Program). CONTRACTOR shall use Call2Recycle to dispose of rechargeable batteries. Batteries accepted by Call2Recycle include lithium rechargeables, nickel cadmium, nickel metal halide, nickel zinc, lead acid (whole), lead acid (leaking and broken), and sealed lead acid (gel cell). i. CONTRACTOR shall follow the requirements of Call2Recycle for sorting, packaging, and sending batteries to Call2Recycle. ii. CONTRACTOR shall setup an account with Call2Recycle or use an existing CITY account to recycle batteries. iii. CONTRACTOR shall not charge CITY for shipping costs for approved Call2Recycle batteries. h. Conditionally Exempt Small Quantity Generator Program. CITY accepts, at the HHW Station, hazardous waste from businesses that generate less than 220 pounds per month. These businesses are known as Conditionally Exempt Small Quantity Generators (CESQG). The business must be located in the Palo Alto Regional Water Quality Control Plant (PARWQCP) service area. The participating Cities include Palo Alto, Mountain View, Stanford, East Palo Alto, Los Altos, and Los Altos Hills. CONTRACTOR shall operate and be responsible for the CESQG Program, under which it shall provide for the appropriat e handling, packaging, transportation, and disposal of hazardous wastes generated by CESQGs in the PARWQCP service area. Collection of CEQSG hazardous waste generally occurs after 11:00am on Saturday’s or at a time agreed upon by CITY. i. CONTRACTOR shall permit participating and qualified businesses to deliver wastes by appointment with CONTRACTOR to the HHW Station. 1. CONTRACTOR shall verify the CESQG business status, waste type and waste quantities generated. 2. CONTRACTOR is responsible for obtaining the business name, address, and phone number of each participating CESQG. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 20 Rev. March 29, 2018 ii. CONTRACTOR shall provide an appointment system for signing up CESQGs. As part of the appointment system CONTRACTOR shall at a minimum provide: 1. information and assistance to the CESQG. 2. a toll-free telephone number and email dedicated to the Palo Alto CESQG appointments. iii. CONTRACTOR shall properly manage any CESQG wastes. iv. CONTRACTOR shall check the Palo Alto CESQG voicemail and email accounts on a daily basis and respond to all inquiries from CESQGs within two business days. v. CESQG waste shall be combined with the permanent HHW Station program’s waste to minimize the number of containers transported for disposal. vi. CONTRACTOR shall set up a payment system for CESQGs. CONTRACTOR is authorized to collect fees on a cost-recovery basis for services rendered at the time of delivery of the wastes to the HHW Station. CONTRACTOR shall be solely responsible for recovering all CESQG Program fees and costs from the Program participants. vii. CONTRACTOR shall be solely responsible to maintain all records required by local, state, and federal laws, ordinances, and regulations, including but not limited to. 1. CONTRACTOR shall provide separate Form 303 for CESQG program for the fiscal years the contract is in effect. 2. CONTRACTOR is responsible for providing the business hazardous waste generator identification numbers and permits (as applicable). 3. CONTRACTOR shall provide a copy of the fees charged and collected including copies of proof of payment (i.e. checks, visa, cash). 4. CONTRACTOR shall provide all state and federal land disposal restriction notification forms for hazardous waste subject to land disposal restrictions. 5. CONTRACTOR shall provide hazardous waste profiles required by TSDFs and other waste/recycling facilities; and 6. CONTRACTOR shall provide all bills of lading for non-hazardous wastes collected and managed through the CESQG Program. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 21 Rev. March 29, 2018 viii. CONTRACTOR shall retain all CESQG records and make available for inspection, review, and audit by representatives of the PARWQCP jurisdiction during normal business hours throughout the term of the Agreement for a period of three (3) years following the expiration or termination of the Agreement for any reason. ix. CONTRACTOR shall provide a monthly event summary report and submit to the Program Manager within one (1) week after each CESQG Program collection event. Each report shall include, at a minimum, the following: 1. CESQG contact information. 2. Copy of all payment records from the CESQG to CONTRACTOR. 3. Type, amount, and quantity of waste accepted for disposal. x. CONTRACTOR shall be responsible for preparing and maintaining any and all necessary plans, licenses or other mandatory documents required for the CESQG Program by regulatory agencies, federal, state or local laws, ordinances or regulations, including but not limited to, health and safety plans, contingency plans and site operations plans. CITY shall provide such reasonable assistance to CONTRACTOR as it may request. CONTRACTOR shall provide to the Program Manager copies of all plans, licenses or other mandatory documents prepared for the operation of the CESQG Program xi. CONTRACTOR shall solely assume: 1. Responsibility for transporting of, including arranging for transportation of all wastes managed under the CESQG Program hereunder; 2. Arranger status for the disposal of all wastes collected and managed under the CESQG Program hereunder; and 3. Operator status for all wastes collected and managed through the CESQG Program hereunder. CITY expressly disclaims any responsibility or liability for tracking of participating businesses, including waste quantities and types. To the extent permitted by law, CITY disclaims any responsibility, liability, or status in connection with the CESQG Program under the Agreement. CITY assumes no title to, nor ownership of the wastes collected, transported, recycled or disposed of through the CESQG Program. CITY shall not be deemed a transporter, disposer, operator or generator for, such wastes collected and managed under the CESQG Program except as may be established by law. In addition, CITY disclaims any responsibility or liability for arrangement of delivery, collection, transportation, recycling or disposal of such wastes collected and managed under the CESQG Program hereunder. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 22 Rev. March 29, 2018 i. Door-To-Door Collection for Residents with physical limitations in Palo Alto CONTRACTOR shall operate CITY’s door to door collection program for residents with physical limitations. The service generally operates on the First Saturday collection event days (alternate times and days may be arranged upon approval from CITY’s Program Manager) and services those individuals such as seniors and physically limited residents who may have difficulty attending the HHW collection events due to medical reasons. CITY staff shall ensure residents are eligible for the program and shall route the contact information to CONTRACTOR. CONTRACTOR shall contact the residents and schedule an appointment to collect the waste. All HHW collected from the physically limited resi dents shall be combined with and stored at the permanent facility. CONTRACTOR shall document the waste types and quantities collected. j. 24-Hour Emergency Response Services In the event of a hazardous materials or waste incident (abandoned waste, spill, leak, etc.) that requires services beyond those that CITY is capable of providing internally, CONTRACTOR shall provide emergency response services. CONTRACTOR’s contact information can be obtained from CITY’s Program Manager. CONTRACTOR shall provide the following services: i. Upon notification from CITY, CONTRACTOR shall respond within 4 hours of notification. ii. CONTRACTOR shall furnish a vacuum tanker services or a mini-guzzler vacuum service for pumping of underground tanks and utility vaults (may involve PCB contaminated wastes). iii. CONTRACTOR shall furnish personnel and materials and/or equipment for waste containment. iv. CONTRACTOR shall provide spill clean-up and site decontamination. v. CONTRACTOR shall provide as needed Hazcat identification of unknown s. vi. CONTRACTOR shall package, transport, and dispose of any hazardous waste. vii. CONTRACTOR shall provide proper shipping documents such as hazardous waste manifest, bill of lading, or non-hazardous waste manifest. viii. CONTRACTOR shall provide to the Project Manager 24-hour emergency contact telephone numbers and notification procedures for requesting DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 23 Rev. March 29, 2018 emergency response services. Upon notification by the Program Manager or their designee, CONTRACTOR shall mobilize appropriate personnel, materials and equipment to respond to incidents to provide emergency response services. Waste collected during the emergency respon se shall be immediately disposed by CONTRACTOR. k. Management of Additional Programs As Needed CONTRACTOR shall provide management of additional programs as needed and as requested by CITY’s Program Manager. Any additional services requested by CITY shall be billed in accordance with the Schedule of Fees set forth in Exhibit C. END OF SCOPE DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 24 Rev. March 29, 2018 EXHIBIT B SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services as needed by CITY during the five-year contract term in accordance with the Scope of Services set forth in Exhibit A. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 25 Rev. March 29, 2018 EXHIBIT C SCHEDULE OF FEES CITY shall pay CONTRACTOR according to the following rate schedules set forth in Exhibit C-1 and C-2. The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. SEE FEE SCHEDULE FOR COMPENSATION, following (PAGES 26 THROUGH 47) The fee schedules attached hereto in Exhibit C-1 and C-2 shall apply during the first two years of the term of the Agreement. Thereafter, CONTRACTOR’s compensation rates shall be adjusted annually effective on the commencement of the 3rd year, as follows: Each unit price, hourly rates, and fee, as set forth the attached fee schedule, shall be adjusted by a percentage e qual to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI), published most immediately preceding the commencement of the applicable contract year, compared with the CPI published for the prior year. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding contract year. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 26 Rev. March 29, 2018 EXHIBIT “C-1” HHW GENERATED HAZARDOUS WASTE MANAGEMENT PROGRAM FEE SCHEDULE Labor Setup and Mobilization/Demobilization Prices Fee Item Description Price 1 Mobilization, Set-up, Demobilization for facility collection events (Saturday Events) Standard 8-person crew - Lump sum for staff and materials PER EVENT $ 2,342.63 Discount or addition per chemist added or subtracted $ 374.50 Discount or addition per technician added or subtracted $ 304.50 Discount or addition per surveyor added or subtracted $ 266.00 Post event additional site maintenance activities (for example pressure washing & cleaning out under all grates after each event) Note: Typically, these additional activities take a two-person crew an additional hour per event. rate per hour for 2-person crew $ 122.50 2 Mobilization, Set-up, Demobilization for facility collection events (Friday Events) Standard 5-person crew - Lump sum for staff and materials PER EVENT $ 1,142.46 Discount or addition per chemist added or subtracted $ 267.50 Discount or addition per technician added or subtracted $ 217.50 Discount or addition per surveyor added or subtracted $ 190.00 3 Door to Door Program - Price per household serviced $ 70.00 Waste Unit Prices Unit prices for packaging, transporting, and disposal Fee Item Waste Description Management Method 5 gallon 20 gallon 30 gallon 55 gallon CY Box CH WCC 4 Latex Paint Recycle PAINTCARE NO COST TO THE CITY LFB3 5 Oil Based Paint Recycle PAINTCARE NO COST TO THE CITY LPTP 6 Flammable Liquids (bulk) Fuel Substitution $37.00 $76.00 $94.00 $125.00 FB1 Incineration 7 Flammable Liquids - Poisons or Toxics Incineration $69.00 $139.00 $173.00 $231.00 $807.00 LCCRC/D 8 Flammable Solids Fuel Substitution Incineration $63.00 $124.00 $156.00 $208.00 $519.00 LPTN Alternative Method 9 Empty Steel Cans Recycle $13.60 $24.50 $28.00 $31.00 D23 Landfill $13.60 $24.50 $28.00 $31.00 D23 10 Empty Gasoline Containers (5 gal. or less) Recycle $13.60 $24.50 $28.00 $31.00 D23 Landfill $13.60 $24.50 $28.00 $31.00 D23 11 Aerosol Cans (partially full) Corrosive, Flammable or Poisons Fuel Substitution Incineration $94.00 $132.00 $165.00 $220.00 $624.00 LCCRQ Alternative Method 12 Contaminated Debris (absorbents/solids with hydrocarbons) Incineration $63.00 $125.00 $158.00 $183.00 CCRK Landfill $70.00 $118.00 $150.00 $158.00 CBP 13 PCB Light Ballast Incineration $164.00 $329.00 $410.00 $547.00 CHBI/CHSI DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 27 Rev. March 29, 2018 Fee Item Waste Description Management Method 5 gallon 20 gallon 30 gallon 55 gallon CY Box CH WCC 14 Non-PCB Light Ballast Incineration D80I Recycle D80B Landfill $110.00 $220.00 $276.00 $368.00 CHBL 15 Poison/Toxic Solids Incineration $69.00 $139.00 $173.00 $231.00 $775.00 LCCRC 16 Fluorescent Lamps Tubes Recycle Price Per Linear Foot: $0.14 CFL1 17 Compact Fluorescent Lights Recycle Price Per Pound: $3.25 CFL8 18 Compact Fluorescent Lights (u-shaped, other) Recycle Price Per Pound: $3.25 CFL2 &4-7 19 Paint Related Material Recycle (only applies to non PaintCare waste) Incineration $63.00 $124.00 $156.00 $208.00 $519.00 LPTN 20 Inorganic Acids or Bases Treatment/ Neutralization Incineration $61.00 $121.00 $152.00 $202.00 LCCRA/B 21 Organic Acids or Bases Treatment/ Neutralization Incineration $61.00 $121.00 $152.00 $202.00 LCCRA/B 22 Oxidizer Solids Treatment/ Neutralization Incineration $65.10 $130.20 $162.75 $217.00 LCCRO 23 Oxidizer Liquids Treatment/ Neutralization Incineration $65.10 $130.20 $162.75 $217.00 LCCRO 24 Propane Cylinders (up to 1 pounds; and, including MAPP, isobutane/propane, butane, and helium) Recycle $150.75 $201.00 $5.80 cylinder 25 Propane Cylinders - BBQ Size (up to 50 pounds) Recycle Price Per Tank: $11.60 tank $710.50 CYB LCY1-CYME 26 Zinc Carbon/Alkaline (Universal Waste Batteries) Recycle $164.00 $329.00 $410.00 $547.00 LBD1 Incineration Landfill $547.00 LLF 27 Lithium (Universal Waste Batteries) Recycle $199.00 LBBGB Incineration CBC CBC CBC LBR Landfill 28 Lithium - Rechargeables (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill 29 Nickel Cadmium (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill 30 Nickel Metal Hydride (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill 31 Nickel Zinc (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 28 Rev. March 29, 2018 Fee Item Waste Description Management Method 5 gallon 20 gallon 30 gallon 55 gallon CY Box CH WCC 32 Lead Acid (whole) (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill 33 Lead Acid (broken or leaking) (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill 34 Sealed Lead-Acid (gel cell) (Universal Waste Batteries) Recycle CALL2RECYCLE NO CHARGE TO THE CITY Incineration Landfill 35 Asbestos Landfill $44.00 $90.00 $112.00 $150.00 $525.00 CNIA 36 Mercury Recycle $350.00 $1,140.00 $1,425.00 $1,900.00 LCHG2/4 37 Water Reactive Wastes Incineration $180.00 LRCTD, Q or O Treatment/ Neutralization 38 Photo Developer Recycle Incineration $69.00 $139.00 $173.00 $231.00 LCCRC 39 Photo Fixer Fuel Substitution Other $69.00 $139.00 $173.00 $231.00 LCCRC 40 Cyanide Incineration $180.00 LRCTB 41 Polychlorinated Biphenyls Incineration $164.00 $329.00 $410.00 $547.00 LCHSI 42 Used Motor Oil Recycle $134.00 A31 Fuel Substitution $37.00 $76.00 $94.00 $125.00 FB1 Other 43 Used Oil Filters Recycle $129.00 $173.00 COF Landfill 44 Used Antifreeze Recycle $152.00 B35 Other 45 Flares/Fusees (automotive) Incineration $131.00 CAXI 46 Flares (marine) Incineration CBC Disposal Price Per Flare: A99X 47 Fire Extinguishers 47a Fire Extinguisher - Lecture Size Recycle $23.00 cylinder LCY2-CYLE Landfill 47b Fire Extinguisher - Small Size Recycle $52.00 cylinder LCY2-CYSM Landfill 47c Fire Extinguisher - Medium Size Recycle $57.00 cylinder LCY2-CYME Landfill 47d Fire Extinguisher - Large Size Recycle $140.00 cylinder LCY2-CYLG Landfill 48 Sharps Incineration or Autoclave $69.00 $139.00 $173.00 $231.00 D20X Landfill DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 29 Rev. March 29, 2018 Fee Item Waste Description Management Method 5 gallon 20 gallon 30 gallon 55 gallon CY Box CH WCC 49 Expired or unwanted medications (no controlled substances) Incineration $69.00 $139.00 $173.00 $231.00 RXHZ/LCCRC 50 Vaping Devices 50a Vaping devices containing nicotine Recycle Must be intact & undamaged devices not known to contain THC. If devices are known to contain THC, they should be handled by local law enforcement since THC is a DEA controlled Substance. Incineration $478.50 $957.00 $1,196.25 $1,595.00 LBRE 50b Vaping devices with tanks/cartridges empty or removed Recycle $199.00 LBBGB Must be intact & undamaged devices with empty or removed e-liquid ("juice) tank/cartridge. Must not contain any nicotine, cannabis / CBD or THC Incineration 51 Compressed gas cylinders (refrigerant gases [freon]; oxygen [used for welding or soldering]; carbon dioxide [CO2 cartridges]; mace; pepper spray). 51a Compressed gas cylinders - lecture size Recycle $28.00 cylinder LCY2-CYLE Incineration $55.00 cylinder LCY4 CYLE Incineration $156.00 cylinder LCY6 CYLE 51b Compressed gas cylinders - small Recycle $64.00 cylinder LCY2 CYSM Incineration $62.00 cylinder LCY4 CYSM Incineration $289.00 cylinder LCY6 CYSM 51c Compressed gas cylinders - medium Recycle $72.00 cylinder LCY2 CYME Incineration $76.00 cylinder LCY4 CYME Incineration $368.00 cylinder LCY6 CYME 51d Compressed gas cylinders - large Recycle $140.00 cylinder LCY2 CYLG Incineration $137.00 cylinder LCY4 CYLG Incineration 624.00 cylinder LCY6 CYLG DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 >-------------+-------------------------< I City of Palo Alto General Services Agreement 30 Rev. March 29, 2018 Fee Item Waste Description Management Method 5 gallon 20 gallon 30 gallon 55 gallon CY Box 51e Butane Lighters or Reactive Comp Gas Cartridge (includes pepper spray and CO2 cartridges) Incineration $180.00 LRCTQ 52 Ammonia Solutions Incineration $61.00 $121.00 $152.00 $202.00 LCCRB 53 Non-Specified Flammable or Combustible Liquids Fuel Substitution $94.00 $158.00 $197.00 $263.00 LFB1 Incineration $69.00 $139.00 $173.00 $231.00 LCCRD 54 Non-Specified Flammable or Combustible Solids Fuel Substitution $60.00 $119.00 $150.00 $199.00 $698.00 FB5/LFB5 Incineration $63.00 $124.00 $156.00 $208.00 $519.00 LPTN 55 Non-Specified Corrosive Liquids Treatment/ Neutralization $94.00 $140.00 $174.00 $233.00 LAT-A or B 56 Emergency Responses and Tanker Truck Bulk Liquids (1) Specify Method 56a Oily Water (Non-PCB) (pricing for non-hazardous wastewater) Treatment/ Neutralization Disposal Price Per Gallon: $0.94 A32 56b Oily Water (PCB Contaminated) Incineration Disposal Price Per Gallon: $2.72 DHLI 56c Solids and Surcharges (if applicable) Price Per Every Percent Solids: see below 56d Tanker Cleanout and Surcharges (if applicable) Tanker Cleanout Per Event Price: $275.00 non PCB $1,000.00 PCB 56c Solids and Surcharges Schedule A32 - Oily Water (Non-PCB) Solids Surcharges 5.00% – 19.99% = additional $0.20/gal 20.00% – 29.99% = additional $0.35/gal > 30.00% = case by case DHLI - Oily Water (PCB-Contaminated) Solids Surcharges 5.00% – 10.00% = additional $0.20/gal 10.01% – 15.00% = additional $0.35/gal 15.01% – 20.00% = additional $0.52gal > 20.00% = case by case DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 31 Rev. March 29, 2018 Notes: (1) Labor and equipment for all emergency response services (including tanker) shall be charged at time and materials pursuant to contractor's submitted rate sheet. Supplies & Materials for waste managed through various EPR programs, unless EPR reimburses Clean Harbors for supplies and materials Cost +20% Manifest Fee (each Hazardous Waste Manifest) $ 20.00 Pricing will be held firm for the 1st two years of a resultant contract. Rates for years 3, 4 and 5 will be increased by the San Francisco-Oakland-San Jose area CPI. The HHW Program Fee Schedule as shown in this Exhibit C-1 supersedes any conflicting information in the Contractor’s Regional Rate Sheets in Exhibit C-2, following. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 32 Rev. March 29, 2018 EXHIBIT “C-2” DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regional Rate Sheet Regi on : Greater San Francisco Rate Catego ry Type: Emergency Response Rates Currency Code : USO Oescnption UOM Pri ce (USO) FIELD P ERSONNEL Field T ed"lnicisn Equipment Operator F oreman Chemist Su pervisor Lead Chemist Project Manager Site Safety Officer TECH NICAL PERSONNEL Field l.nspector Med"lanic Welde r Field Engi neer/Scientis-VGeologisf Senior Engi neer/ScientisVGeologi.5-1 Professional Engineer/LSP ADMI NI STRATIVE/MANAGE RIAL P E RSONNEL On Site Administration Emergen cy Response Coordinator General Man ag er COV1019 RESPONSE EQ UIPMENT Antiviral Backpack Sprayer Antiviral Disin fectant Fogger Antiviral Disin fectant Solution Antiviral Electros ta tic Sprayer Oec:on Station HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR DAY DAY GAL DAY DAY $7 1.00 $88.00 $88.00 $98.00 S 103.00 $·113.00 S 133.00 S 16 1.00 $84.00 $99.00 $99.00 $·110.00 S 124.00 S 156.00 $67.00 S 130.00 S 166.00 S250.00 S 180.00 $46.00 S250.00 S200.00 "Contloental I Propne,tary 8U8IA888 lnlormatlon • Do Nol Ol&CI08& To Arr, Tnlrd.i.arty WlthOut Written COnteM Of Clean Harbors." Executed on: 10/27/2020 8 :39:05 PM Page 1 of 16 City of Palo Alto General Services Agreement 33 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regional Rate Sheet Oe-scnption UOM Price (USO) High POYo<er Antiviral Fogg er N95 MASK Wheeled Antivi ral Sprayer PER DIEM / SUBSI STENCE Per Diem I Su bsis!ence HEAVY DUTY TRUCKS Sox Truck O\Jmp Truck. 10 Wheel High POYo<ered Vacuum Truck/Cusco Rolloff Strsightjob Rolloff Two Can Tr ailer Skid t,foun ted V acuum System Tr actor O nly. No Tra iler Tr sctorw/SoxVa n Tr actor w/Ou mp Tr ailer Tr actor w/Flstbed/Lowbed Trailer Tr actor w /Liqu id Tr ansporter Tr actor w/Rolloff Trail er Tr actor wNscoum Trailer V actor with J et R odder V acuum Truck. Straigh t WeUDry High Powered V acuum Truck/Guzzler HYDRO EXCAVATION SERVICES Hydrovac -SW'lgle Drive w ith Operator & Helper Hydrovac-Tan dem Drive with Operator & H elpe r Hydrovac-Tri-Drive with Oper ator & Helper Wort(ing Boiler I Heating Charge LIGHT DUTY TRUCK/RE SPONSE EQUI PMENT Emergency Response V an P ickup with Dump Body DAY EA DAY DAY HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR HR $650.00 $7.50 $500.00 $190.00 $89.00 $1 02.00 $143.00 $98.00 $107.00 $66.00 sn.oo $101.00 $101.00 $109.00 $1 22.00 $107.00 $126.00 $143.00 $98.00 $143.00 $271.00 $300.00 $300.00 $66.00 $81.00 $30.00 "Cont1oent1a11 Propnetary BuelneH lntormatlon • Do Nol oeec10,e To Arv, rn1ro.i.arty Wlloout Written con,ene or c 1ean Ha~ra." Executed on: 10/27/2020 8 :39:05 PM Page 2 of 16 City of Palo Alto General Services Agreement 34 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Reg i onal Rate Sheet Oe-scnption UOM Price (USO) P ickup.Nan/Cao'Crew Csb S m all Box T ruck / Cube V an Spill Trailer Stake Sody/Utiity Truck Utifity I Su pport Trailer PRESSURE WASHING EQUIPMENT 10 .000 P S I · 60 GPM • HP Pum p (350, 405) t OOOpsi Pressur e Washer 2-0 R otating Nozzl e 20.000 P S I -23 GPM -HP Pum p (305) 2000psi Pr essur e Washer 2500psi Hot Water Pressure Washer 2500psi Pressur e Washer 3-0 R otating Nozzle -10K. 20-80 GPM (LV) 3000psi Hot Water Pressure Washer 40 .000PS I -1 2 GPM -UHP Pump (305) 40 .000 P S I -6 GPM -UHP Pump (200 H P) PUM PINGfTRAN SFERRING PUMPS Orum H ead Vacuum System , Electric Orum Lo ader Pump -Centrifugal, 2 in Pump -Diesel Lister. 3 i n Pump -D ouble Diaph ragm. 1 i n Pump -D ouble Diaph ragm. 2 in Pump -D ouble Diaph ragm. 2 in. Chemical Pump -D ouble Diaph ragm. 3 in Pump -D ouble Diaph ragm. 3 in. Chemical Pump -D ouble Diaph ragm. 4 i n Pump -Electric Orum Pump -Electric Submersible, 2 in Pump 4 Electric Submersible, 3 in HR HR DAY HR DAY HR DAY HR HR DAY DAY DAY HR DAY HR HR DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY $27.00 $38 .00 S295.00 $38 .00 S201.00 $73.00 S 103.00 $67.00 S 144.00 $·112.00 S351.00 S 122.00 $88 .00 538 7.00 S 170 .00 S 170 .00 $55.00 S 177.00 $·113.00 S 159.00 S 100.00 S 14 1.00 S 18 7.00 S 159.00 S207.00 S21 8 .00 $·112.00 $89.00 $·112.00 aconnoenta11 Propnetary BuelneH 1ntormat1on 4 Do Nol oeec1oee To Any rn1ro.i.arty Wltoout wrttten conaenC or c 1ean Hamora.'' Executed on: 10/27/2020 8 :39:05 PM Page 3 of 16 City of Palo Alto General Services Agreement 35 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regi ona l Rate Sheet Oe-scnption UOM Price (USO) Pump -Electric Submersible , 4 in Pump-Hand Pump -H y dr a ulic Transfer, 4 in Pump -H y dr a ulic Transfer, 6 in Pump -Trash. 4 in MARINE RESPON SE EQUIPMENT A i rboat. Single E ng ine Airboat. Twin Engine SoatiWorksl<iff w ithout Motor Brush Skimm er Containment Boom -10" Per F oot Per Day Containment Boom -18" Per Foot Per Day Containment Boom -24" Per Foot Per Day Containment Boom -36" Per Foot Per Day Orum S kimmer (2 4in-36i n) Orum S kimmer. D ou ble Barrel 24" Hydraulic Power Pack for Skrnm er L an di"lg Cr aft (LCM). 2eft-29ft L an di"lg Cr aft (LCM). 30ft-34ft L an di"lg Cr aft (LCM). 35ft-45ft P FO Life V est P FO Su rvival Su it / Cold W eather Survival Work Su its POlo\-er Berge Boat. 26ft-30ft POlo\-er Berge Boat. 30ft-42ft POV\<er Workboal Fast Response. 12-Hft POV\<er Workboal Fast Response. 15-Hft POV\<er Workboal Fast Response. 18-22ft POV\<er Workboal Fast Response. 23-26ft POlo\-er Workboal Fast Response. 27-36ft Rigid Hull Inflatable {RIB) (18ft-22ft) Rope Mop -4" {Per Foot) Rope Mop -Q" {Per Foot) DAY DAY HR HR DAY DAY DAY DAY DAY FT FT FT FT DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY FT FT $·164.00 $36.00 $36.00 $270.0 0 $294.00 $1440.00 $4200.00 $·170.0 0 $960.00 $2.14 $2.39 $3.08 $3.46 $752.00 S 11 75.00 $264 .00 S 1140 .00 $1236.00 $1854.00 $32.00 $98.00 $1320.00 $2400.00 $358.00 $427.00 $715.00 $900.00 S 1140 .00 $942.00 $36.00 $46.00 "Cont1oent1a11 Propnetary BuelneH lntormatlon -Do Nol oeec10,e To Arv, rn1ro.i.arty v111oout wrttten con,ene or c 1ean Ha~ra." Executed on: 10/27/2020 8 :39:05 PM Page 4 of 16 City of Palo Alto General Services Agreement 36 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regional Rate Sheet Oe-scnption UOM Price (USO) Rotating Oi se Skimm er Unit DAY $979.00 S kim Pack Skim mer DAY $·1 94 .00 S kimmer • C24H H ydr au lically Powered Rope Mop Wringer DAY $780.00 S kimmer • C2QH H ydr au lically Powered Rope Mop Wringer DAY $1050.00 S kimmer• C V -46H H y dr a ulically powered V ertical M op W ringer DAY $930.00 S kimmer . Duck Bill DAY $34 .00 S kim ming V essel (M arco/J BF o r Eq u ivalent) 28-30ft DAY $e570.00 S kim ming V essel Belt Driv e R eplacemen t EA $1610.00 W eir S kimmer U n it DAY $208 .00 FIELD ANA LYTICAL 4 Gas/5 Gas M eter DAY $·1 83.00 S d er & Sampling Equip ment DAY $e2.00 Draeger Au Monitoring Pum p DAY $8·1.00 Explosion/Oxygen M et er DAY $·1 30.00 G eige r Count er M eter DAY $·1 62.00 Hydrogen Cyanide Me ter DAY $·1 34 .00 Interface Probe DAY $·1 30.00 L u mex RA.9·15+ Me rcury V apor Analyzer DAY $528.00 t.~ercory V apor A.natyzer DAY $270.00 Particulate M eter, Mini Ram or equ ivalen t DAY $·1 30.00 Personal A ir P\Jm p Meter DAY $e2.00 p H Meter DAY $e2.00 PIO Meter DAY $·1 30.00 W ell P u rgi ng/Sampling Pump DAY $e2.00 HOSE S/PIP E H ose -Chemicsl. 2 in X 20 ft DAY $38.00 H ose • Chemicsl. 3 in X 20 ft DAY $53.00 H ose • C h emicsl. 4 in X 20 ft DAY $e9.00 H ose • Flex ADS. 6 in. per ft FT $4 .5 0 H ose • Flex, 4 in , per ft FT $4.00 H ose • L ay Fial 2 i n X 25ft DAY $28.00 "Cont1oent1a1 1 Propnetary BuelneH Information • Do Nol Ol&CI088 To Arr, Tn1rd.i.arty Vllloout Written contenC Of Clean Ha~rt.'' Executed on: 10/27/2020 8 :39:05 PM Pa ge 5 of 16 City of Palo Alto General Services Agreement 37 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regi onal Rate Shee t Oe-scnption UOM Price (USO) Hose -L ay Fial 4 i n X 25 ft Hose -L ay Fial e i n X 25 ft Hose - S uction. 2 in X 25 ft Hose -S uction. 3 in X 25 ft Hose -S uction. 4 in X 25 ft Hose -S uction. 6 in X 25 ft W ash Hose. 1/2in x 50ft EARTH MOVI NG EQUIPMENT B ackhoe Loader. 1 Ya rd Bucket Sobca1 Load er/1.~foi Excsva tor Excavator. 20-30 Ton Fork Attachment for Bobcat Lo ader loader, 2-3 Yard B ucke t t.~foi Excava tor Sweeper Attachment for Bobcat Loader PNEU MATIC PO WER TOOL S 3/4in Drill. Rotary Hammer A i rsp ad e Pneumatic S hovel Ja ckhammer. 40l.b Ja ckhammer. 60l.b Ja ckhammer. 90l.b P neumatic Chipping G un SteeJ Nibbler, P neumatic GAS POWERED TO O L S Brush Cutter/Power B room ChUI Ssw Cutoff Saw (Demo) ELE CTRIC POWER T OOLS 1/2in Drill. Electric Circular Saw. Electric DAY DAY DAY DAY DAY DAY DAY HR HR HR DAY HR HR DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY $62.00 $8 1.00 $32.00 $43.00 $62.00 $90.00 $18 .00 $8 1.00 $76 .00 S 103.00 $60.00 $79 .00 $76 .00 S 146.00 $9-4.00 $68.00 $67.00 $84.00 S 10 1.00 S 108.00 S 135.00 S 126.00 S 126.00 S 135.00 $44.00 $62.00 "Cont1oent1a1 1 Propnetary BuelneH Information • Do Nol Ol&CI088 To Arr, Tn1rd.i.arty Vllloout Written COfltenC Of Clean Ha~rt .'' Executed on: 10/27/2020 8 :39:05 PM Page e of 16 City of Palo Alto General Services Agreement 38 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Reg i onal Rate Sheet Oe-scnption UOM Price (USO) M ercury V acuum R eciprocating Saw {Sswzall), Electric Wet Vacuum (Sh op V ee) SITE SUPPORT 100 HP boiler un it 15 Gal HEPA V acuu m 150,000 BTU Portable Heater 2 CU YO self dumping hopper 2 .000 -2.900 G al Pofy Storage Tank 3,000 -3 .900 G al Steel Storage Tank 300 -500 Gal Poly Storage Tank 4,000 -6 .000 G al Pofy Storage Tank Adverse Climatic Conditions Relief A ir Compressor 175-185CF M A ir Compressor 8-10 CA,~ ATV. 4X4 or 4X6 C3rbon Fitter System Decontamination Trailer Oewateri ng Box Orum V a cuu m, Pna,matic O\Jmp TraiSer (TraiSer Only. Staged on S ite) Eyewash Station Free Tan k 2 0 ,000 GaJ Free Tan k, Doub le Walled G enerato, -12K Watt G enerato, -4,000 Watt G enerato, -5,000 Watt G enerato, -8 ,000 Watt Ha logen Spotiight Incident Command Unit lntermodal Container In trinsically Safe Drop Ligh t DAY DAY DAY HR DAY DAY DAY DAY DAY DAY DAY EA DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY DAY $212.00 $8·1.00 $44.00 $·103.00 $'177.00 $280.00 $4.43 $8·1.00 $28.00 $42.00 $99.00 $75.00 $270.00 $·125.00 $377.00 $256.00 $·188.00 $'177.00 $·188.00 $76.00 $55.00 $·167.00 $200.00 $258.00 $·143.00 $·162.00 $·188.00 $·108.00 $1615.00 $33.00 $·108.00 aconnoenta11 Propnetary BuelneH 1ntormat1on • Do Nol oeec1oee To Any rn1ro.i.arty Ylllooot wrttten conaenC or c 1ean Hamora.'' Executed on: 10/27/2020 8 :39:05 P M Page 7 of 16 City of Palo Alto General Services Agreement 39 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Reg i onal Rate Sheet Oescnption UOM Price (U SD) l igh t S tan d l igh t Tower w/Genera tor M a nlift Office Trailer On-site V an Tr ailer (Tr actor not induded) PersoMel Stag ing Ten t. ·10x·10 ft. Pu rchased PersoMel Stag ing Ten t. 20' x 30' P ump 4 Trash. 2 in P ump 4 Trash. 3 in Rolloff ContU'ler with Me:tal lid Rolloff ContU'ler with Tarp & Sows S ea Contai ner I Conex / Tool Ctib, 20 ft. S eoond ary Containment Unit S kid Mo un ted Liquid Phase C3rbon System (1 0GPM) Tank Trailer/Transporter. No Tractor (F or S torage Only} Tr affic Cone/Barricade U nit Utifity/Cro ss Terrain V ehde (Mule/Gator} V acuu m Sox. Wa tertight SPEClAL T Y EQ UIPM ENT A uger. Manu al Comp a ctor Confin ed Sp ace E ntty Gear (Retrieval & R escue Equ ip ) Cuttrig Torch/Acetylene Torch 081/Rogliss Tripod OigitaJ Cam era Orum Crusher . Portable Orum n tter. Me cha n ical E lectric Auger E lectric Slower Explosion Proo f P neumatic Fan S lower Fiber Optic C3mera Fiber Optic C3mera Truck DAY $108.00 DAY $539.00 DAY $2 58.00 DAY S'11 8 .00 DAY $2 07.00 EA $180.00 DAY $1 55.00 DAY S'11 2.00 DAY $129.00 DAY $24.00 DAY $21.00 DAY $31.00 DAY $42 .00 DAY $70.00 DAY $469.00 DAY $1.55 DAY $323.00 DAY S'11 2.00 DAY $67.00 DAY $67.00 DAY $375.00 DAY $124.00 DAY $67.00 DAY $6'l.00 DAY $469.00 DAY $1TT.OO DAY $76.00 DAY $90.00 DAY $90.00 HR $60.00 HR $153.00 "Connoenta1 1 Propnetary BuelneH 1ntormat1on • Do Nol oeec1oee To Arv, rn1ro.i.arty Wltoout wrttten con,eM or c 1ean Hamor,." Executed on: 10/27/2020 8 :39:05 PM Page 8 of 16 Custom er In itials City of Palo Alto General Services Agreement 40 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regio nal Rate Sheet Oe-scnption UOM Price (USO) F orklift, 2 ,000Lb Capacity DAY $431.00 F orklift, 6,000Lb Capacity (High R each / L ull) DAY $464.00 P lasma Cutting Torch DAY $244.00 R emote Orum Opener, P nuematic DAY S·l 228.00 Sand Blaster afld Hose HR S30 .00 Tr ansit Set DAY $12'1.00 W alk Behind Concrete S aw DAY $235.00 RE SPIRAT ORY PROTECTI ON 2 M an Breathing System DAY $297.00 4 M an Breathing System DAY $377.00 Acid C3rtridges PAIR S30 .00 Asbestos Cartridges PAIR S31 .00 S reath.-ig A ir H ose. 100ft DAY $108.00 Chlorine Cartridges PAIR S30 .00 t.~ercory Cartridges PAIR S56 .00 t.~SA Chemical C3rtridge EA S31 .00 Negstive A ir Machi ne (8I0¥\<er w/ HEPA filter} DAY $270.00 Organ ic V apor Cartridges (No Oust) PAIR S37.00 Organ ic V apor/Oust Combination Cartridges PAIR S53 .00 R espirator. Full Face DAY S33 .00 Self ContU'led Breathi ng Apparatus (SCBA) DAY $270.00 PERSO NAL PROTECTIVE EQUIPME NT (PER PERSON P ER C HANGE OUT) L evel A w/RespooderPlus SuitlChengeout EA $979.00 L evel B w1CPF2 or Pofytyvec/Changeoot EA $206.00 L evel B w1CPF 3 or Saranex Suib'Changeout EA $258.00 l evel 8 w/CPF 4 or Barricade SuitfCh sngeout EA $309.00 l evel C w/CPF1 .2 or Polytyvec/Ch sn geout EA S62.00 l evel C w/CPF3 o r Ssranex S uitfChsngeout EA S77.00 l evel C w/CPF4 o r Barricade Suib'Changeout EA $124.00 t.fod.ified l ev el D (Tyvec. Gloves and Boots) EA S31 .00 "Cont1oent1a11 Propnetary BuelneH lntormatlon • Do Nol oeec10,e To Arv, rn1ro.i.arty Wlloout Written con,ene or c 1ean Ha~ra." Executed on: 10/27/2020 8 :39:05 PM Page g of 16 City of Palo Alto General Services Agreement 41 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Reg ional Rate Sheet Oe-scnption UOM Price (U SD) C HEMJCAL PROTECTIVE GARMENTS Chem.rel Suit. level C K appler CPF1 Suit (Blue) K appler CPF 2 Suit (Grey) Kappler CPF2 Suit ,\IJStrapped Sesms (Grey) Kappler CPF3 Suit wJHood & Boots (Tan) K appler CPF 3 Suit wJHood & Strapped Seams (Tan) K appler CPF 4 Suit wJHood & Soots {Green} Nomex Suit and Hood Potyooated Rain Gear, 2 2rnil Tyvec. Polycoat HOJBT Tyvec. Ssranex Tyvec. \/Vhite HANO PROTECTION 14-l Neoprene Gioves 14-l Nitrite Gloves Cotton W nfer Glove Liners Cut R esi stan t Gloves G love, Nitri1e, Inner liner G loves -12 in PVC G loves - 18 in PVC G loves -Leather L atex G lox es Pun cture Resistant Gloves S i1ve,r Sh iekl Gloves FOOT PROTECTI ON Oispossble Boot Covers (Chicken Boots) Non Steel Toe Ch est Waders-Purchased SteeJ Toe Hi p Boots -Purchase SteeJ Toe K nee Boots EA EA EA EA EA EA EA EA EA EA EA EA PAIR PAIR PAIR PAIR PAIR PAIR PAIR PAIR BOX PAIR PAIR PAIR PAIR PAIR PAIR $86.00 $35.00 $58.00 $97.00 $·131.00 $165.00 $136.00 $187.00 $32.00 $19.00 $59.00 $23.00 $13.39 $13.39 $6.1 8 $32.00 $3.50 $12.00 $12.46 $8.24 $14.00 $35.00 $35.00 $12.88 $232.00 $165.00 $82.00 "Connoenta11 Propnetary BuelneH 1ntormat1on • Do Nol oeec1oee To Arv, rn1ro.i.arty Yllloout wrttten conaeM or c 1ean Hamor,." Executed on: 10/27/2020 8 :39:05 PM Page ·10 of 16 City of Palo Alto General Services Agreement 42 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regi onal Rate Sheet Oescnption UOM Price (U SD) HEAD I FACIA L PRO TEC TION 16o z Eyewash Bottled Wa ter / S tress Relief (Csse) Earplu gs Face/Splash Shield Fust A id Kit. 2 5 Person DOT SHIPP ING CONTAINERS EA CA PAIR EA EA 1 C ubic Yard S uperssc 13H2M/06 EA 10 Gal I 40 litre Fiber Drum EA 110 Gal Steel Orum. Reconditioned 1A2N400S EA 16 Gal I 70 l Closed Poly Orum EA 16 Gal I 70 l Open Poly Oru m 1H2/Y56/S EA 16 Gal Fiber Otu m EA t 8x-18x2 4in t-lonhazardous Pathological Waste Box EA 20 Gal I 80 litre Fiber Drum EA 20 Gal 1 80 litre Poty Orum (1H2N56/S) EA 275G I 1100 L Poly TOTE, DOT Rated EA 275G 1 1 100 L Recond ition Poly TOTE. DOT Rated EA 30 Gal 1 120 Litre Closed PotyOr u m 1H1M1.81100 EA 30 Gal 1 120 Litre Closed S teel Drum . Ne w 1A1M1.6/200 EA 30 Gal 1 120 Litre Closed S teel Drum . Re ooned 1A1N1.41100 EA 30 Gal 1 120 Litre Fiber Orum ·1G/X561S EA 30 Gal 1 120 Litre Open Po ly Orum 1H2NH2/S EA 30 Gal 1 120 Litre Steel Orum. New ·I A2/Y1 .4/100 EA 30 Gal 1 120 Litre Steel Orum. Reconditioned 1A21Y 1.2l 100 EA 4ft Fluorescent Tube Box 4G/Y275 EA 5 Gal /20 Li1re Closed PotyOrum 1H1M1.8/170 EA 5 Gal / 20 Li1re Closed S teel Drum 1A1N1.8/300 EA 5 Gal / 20 Li1re Po ly Drum 1H2/Y.1.5/60 EA 5 Gal /20 Li1re Steel Orum ·1A2N1 .8/100 EA 5.5 Gal / 20 L S teel Drum 1A2fY231S EA $23.00 $26.00 $1 .98 $23.00 $85.00 $1l1.00 $41 .00 $536.00 $63.00 $66.00 $35.00 $10.30 $35.00 $103.00 $309.00 s:ig5_00 $80.00 $1l7.00 $1l2.00 $53.00 $87.00 $1 14 .00 $1l6.00 $26.00 $30.00 $35.00 $23.00 $35.00 $25.00 "Connoenta1 1 Propnetary BuelneH 1ntormat1on • Do Nol oeec1oee To Arv, rn1ro.i.arty Wltoout wrttten conaeM or c 1ean Hamor,." Executed on: 10/27/2020 8 :39:05 PM Page 11 o f ·16 City of Palo Alto General Services Agreement 43 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Region al Rate Sheet Oe-scnption UOM Price (U SD) 5 5 G / 205 L Closed Steel Orum. Rec:on ·1A1/Y·1.4 /1 00 (17-E ) EA $50 .00 5 5 G /205 L Steel Orum. R econditioned 1A2/Y1.2/100 (17-H) EA $68.00 5 5 Gal I 205 L Stai nless Steel Orum. Reconditioned EA S2 60.00 5 5 Gal 1 205 Litre Closed P oly Or u m 1 H 1M1.81150 EA S 103.00 5 5 Gal 1 205 Litre Closed P oly Or u m 1H1M1.81150, Recyded EA S 10 1.00 5 5 Gal 1 205 Litre Closed S teel Drum . New 1A1N1.8/300 EA S 150 .00 5 5 Gal 1 205 Litre Fiber Orum ·1GN190/S EA $58 .00 5 5 Gal 1 205 Litre Open Head Poly. Recond itioned Orum 1H 2N2 EA $98 .00 5 5 Gal 1 205 Litre Po ly Orum 1H21Y237/S EA S 126.00 5 5 Gal 1 205 Litre Steel Orum . N ew 1A2/Y1 .5/100 EA S'11 2.00 85 G / 3 20 L Steel Orum. R econde d 1A2/X400/S {Overpeck} EA S208.00 85 Gal I 320 Litre Steel Orum. New 1A2/X400IS EA S2 37.00 85 Gal 1 320 Litre Steel Orum. Recycled 1A2/X400/S EA S 198.00 8ft Fluorescent Tu be Box 4G/Y275 EA $28.00 95 Gal Poly Orum ·1 H2N3·181S (Overpack) EA S304.00 95 Gal Poly Orum. Recycle d ·1H2N3·181S (Overpac k ) EA S276 .00 Orum 15 Gal / 60 L itre P oly (1H2N1 .8/100) EA $73 .00 Orum Liners EA $23.00 Orum Rings/Sotts/Gsske.fs EA $30.00 O\Jmp TraiSer Poly Liner EA $99.00 Fitter/Liner for F ilter Box EA S367.00 Aexbin . 1 Cub ic Y a rd Aexbin ·11G!Y/2022/11 22 EA S 159.00 Aexbin . Cubic Yard Sox for Non-Haz Wast e EA S 103.00 Aexbin/Cubic Y a rd Box Liner EA $30.00 Fluorescent Bu lb Tu bes, 4 ft 100 bulb capacity BOX2 $63.00 Au0tescent Bu lb Tu bes. 8ft 100 bulb capacity BOX2 $91.00 H azardous Waste labels / Markings EA S 1.3 4 l ab els -DOT Di amond s EA S 1.55 P a thologies! Waste Bag EA S6.28 Poty S ag s. 6 miL per Roll EA S 175.00 Poty S heet 6mi 2 0ft x 100ft EA S 129.00 Rolloff Po ly Liner EA $80 .00 V ac:box Liner/Bladder EA S793.00 "Connoenta1 1 Propnetary BuelneH 1ntormat1on -Do Nol oeec1oee To Arv, rn1ro.i.arty w1toout wrttten conaeM or c 1ean Hamor,." Executed on : 10/27/2020 8 :39:05 PM Page ·12 of16 City of Palo Alto General Services Agreement 44 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Reg i ona l Rate Sheet Oescnption UOM Price (U SD) W aste VI/rangier ABSORBENT MATERIA L S Absorbent Boom. 3in x 4ft Absorbent Boom. 5in x 10ft x 418ele Absorbent Boom. Sin x '10ft x 418ale Absorbent Pad {101 Grade) 100/baJe Absorbent Roll, 3Sin x 144ft Absorbent Rug. 36in x 300ft Absorbent Swee p . 17in x 100ft Activated Carbon for Water treatment s ystems Com Cob Absorbent 40Ib / 18 kg bag H GX Absorben t (M ercury absorbent) O il Snare , on a U'le , 50ft Poty Absorbent 20 l b / 2 3 kg Rags. 50 lb / 2 3 kg Speedi Ory SPI Solidification Partiool ate (Oil Bond) SPI Waterbond Vermiculite 4 cufl DEGREASERS & NEUTRALIZING AGENTS 142 Solven t Antifreeze. Concentrate C.pw, Cirtic Acid S olution. 15% Citrus Cleaner Degreaser Hydrated Lime, 50 lb I 23 kg Hydrochloric Acid Penetone Degreaser P ink S tuff Degreaser S imple Green Degreaser Soda A sh. 100 lb 1 45 kg EA $193.00 EA $8.24 BALE $159.00 BALE $254.00 BALE $·13·1.00 EA $186.00 EA $309.00 BALE $·164.00 LBS $3.19 BAG $1 8 .00 LBS $21.00 EA $100.00 BAG $108.00 BOX $63.00 BAG $14.00 LBS $2 0.00 LBS $16.00 BAG $48.00 GAL S'11 .33 GAL $5.97 GAL $175.00 GAL $7.21 GAL $63.00 BAG $8.24 LBS $3.71 GAL $34.00 GAL $37.00 GAL $35.00 BAG $54.00 "Connoenta11 Propnetary BuelneH 1ntormat1on • Do Nol oeec1oee To Arv, rn1ro.i.arty Yllloout wrttten conaeM or c 1ean Hamor,." Executed on: 10/27/2020 8:39:05 PM Page ·13 of 16 City of Palo Alto General Services Agreement 45 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regional Rate Sheet Oe-scnption UOM Price (USO) Sodium bisu tfst e 50 lb I 23 kg Sodium Hypochlorife . ·15% {Bleach) SAMPLING ANO LAB SUPPLIES 8oz Samp le Jars CHLOR'N'OIL Test Kif 0 -50ppm, P CS CHLOR-O-TECT 4000 Test Kit (H a logens} Draeger Tube p H Paper, 1-14/Roll Sample Tube MARINE EQUIPMENT 1/2in Ny1on Rope 1/2in Poly Rope 3/Sin Poly Rope 3/Sin Unguarded Galvanized Chain Anchor. 18Lb P FO Oec:k Suit P FO Safety Light HANO TOOL/CONSTRUCTI ON ACCE SSORIE S t 6a'l Street Broom 2 49"1 Floor Btoom 3 Gal Pump Spray Baffle 3/Sin M an ille Rope 3/Sin Man ille Rope Coil. 600ft 3in Long Handle Sa-ap er 3in Scraper C3ution Tape/Roll Chemical Tape/Roll Deck/Scrub Brush Oispossble Hand P u mp/Syphon Pump Duct Tape/Roll Extension Cord, 50ft BAG GAL EA EA EA EA EA EA FT FT FT FT EA EA EA EA EA EA FT EA EA EA EA EA EA EA EA EA $·125.00 $19.00 $14.42 $40.00 $30.00 $30.00 $18.00 $18.00 $·1.03 $0.52 $0.41 $7.21 $'141.00 $696.00 $30.00 $36.00 $36.00 $56.00 $0.52 $·170.00 $24.00 $15.00 $58.00 $53.00 $19.00 $35.00 $15.00 $58.00 aconnoenta11 Propnetary BuelneH 1ntormat1on -Do Nol oeec1oee To Any rn1ro.i.arty Wltooot wrttten conaenC or c 1ean Hamora." Executed on: 10/27/2020 8 :39:05 PM Page 14of 16 City of Palo Alto General Services Agreement 46 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regional Rate Sheet Oe-scnption UOM Price (USO) Fence Stak es EA $9.37 Fence. SILT 100ft EA $'147.00 Ast Shovel EA $33.00 Garden Hoe EA $3·1.00 Garden Rake EA $3·1.00 P itch FOO: EA $·103.00 P l astic Shovel EA $57.00 S awz.all Slade EA $35.00 Shr ink Wrap RO L $49.00 Snow F en ce/Safety Fen ce, 100ft EA $79.00 Spade d Shovel EA $36.00 Squeegee EA $38.00 ER COVERAGE FEE S/SAFETY PLANS/REP ORTS Additional Site Listings EA $1000.00 OPA 90 Single F a ciity Fee EA $2500.00 WASTE MATERIAL APPROVAL Profie Approval F ee (No Sa~le) EA $75.00 Sample & Profile Approval Fee EA $·150.00 MI SCELLANEOUS Acetylene Bottle EA $46.00 S reath.-ig A ir Bottle R e fill EA $3·1.00 Collection Jar for Mercury Vacuum EA $45.00 Fitter Bags• 2 5 Micron Nominal EA $9.27 Filtration Bag for Mercury V acuu m EA $30.00 H-and Cleaner EA $34.00 t.tisc. H andtools DAY $50.00 Rolloff Bow EA $43.00 RolloffTarp EA $43·1.00 "Cont1oent1a11 Propnetary BuelneH lntormatlon • Do Nol oeec10,e To Arv, rn1ro.i.arty Wltooot Written con,ene or c 1ean Ha~r,." Executed on: 10/27/2020 8:39:05 PM Page 15of 16 City of Palo Alto General Services Agreement 47 Rev. March 29, 2018 DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 Regional Rate Sheet NOTES: 1) All labor. equiprrient. materials and services outined ii this SchedtM of Rates ,..;11 be invoiced at tlle ra1es listed. regardJess ol Clean Harbofs' method oi acquisition. My iterm not descriled i, this Schedule of Rates wNCh are acquired by Clean Hartots shall be invoiced at Clean Harbors' cos1 plus a matkup of thirty-five percenl (35%). (Unless othen'tise specified, these rat-ss are not valid for re:;ponse to l r.iec6ous AQents/6 iologicals.) The Schedule of Rate; iicludes lhe cost of Clean Harbors' basic medcal monitorinQ oroi:iram. Arrv special m:dica1 monitorinQ reQuired bl( the clffl or the nature ol ttwe work ,..;11 be added 10 th'? project scope and the client will invoiced at cost plus a markup listed above. 2) Loog.lg and subsistence for Clean Harbors personnel and our subcontraC':ors al the field are included in a ~ d~ charge per person per day ,men working rr,ore than 30 me from tlle employee's normal operations oente,r and ,men ov.emight accommodations are requs-ed. The ra.'.e is outlined in th'? labor see1ion of this document. \"Jhen ovemigl\1 accommodations are not required but work exceeds 12 hours , S40.00 per day per person may apply to cover meals and llciden~als. 3) At its sole discretion, Clean Harbors ,..;11 determine lhe level of protedioo requi'ed for each p(qect Level A 8 , C or D personal protec1ion aod safety packages ,..;11 be invoiced a.t the ra1es shown '1 the Schedule of Rates. 4) Clean Harbors' persoMel and equipment wJI be charged portal•t~ortal (mobilization and demobiliza:ion included}. Services provided prior, during andfor subsequent 10 ae1ual project si~e aclMties ,wl also be charged a11he Hoorly Rate.. T!Ms incl.ldes. bui is no! i rniled to, time taken by personnel 1odecontaminat,s, aod rlHlon pro:eciiYe cb!hing aod equipmen1 that is billed as pan oi the project 5) Clean Harbors' norma1 employee workday is 7:00 am 10 3 :30 pm, Monday 1hrough Friday. Other work hours must be agreed to i1 writrtg in advance. No more tt\an eight (8) hours of straight time will be ~ for one person for one day. AJI 1ime will be based upon a 24 hour day. 6) All hours worked in excess of eight (8) OOln in the normal wori:day, as described above. as well as all hours worked all d';f/ Saturday ate considered overti'ne and ~ be billed at 1.5 times the applicable straight tirrie ra.:e for all billab~ personnel. 7) Sunday and Hoidays are considered premium time and will be billed at 2.0 times tlle appicable straight tme rate for a!I billable personnel Holiday.s ate the legaltyobserved lklited Stat-s:s F ederal Holidays plis the day after Tt\anksgi\lW"lg . 1;\.tlen local laws or regij;_1ions recognize adcilior\al holicfay.s or when local laws or rep.tions defile premUl'I hours n exo:ss of thi.s definition. Clean Harbors w ill invoice in accordance 'M1h local laws or regija.~ions. 8) I n the e,.•.eni of adverse tellil)eratores aod worloog conditions , a daily charge \WI appllj for ·Adverse v,ea1herfoonditions relief' of S75 Day. The daitycharge covers consl#Tlable; for both hotfoold conditions such a; ice, water, Ga1oratl:.'electrolyte drinks, and coolers/thermos. 9) All projects are subject to a minimum four (4) floor response charge or $3500.00 minimum charge. whichever is greater. Mirin.im charges do no! apply to T ran:sporta6oo and Disposal 10) Charges for Safi:fy Plans are asse.ssed oo all projects involving OSHA regula1ed substances or when required by the Customer or other ~ency. In some insi ances a Site Saiety Officer charge will apply per OOUr to crea1e and adllY!ister the Safety Plan. 11) A variable Energy and ~urity ReOO\!ery Fee (that &.ictuates ";~h the DOE national av.erage diesel price), w ill be applied to Che tol!al invoie:. excludilg sales tax. 12) Unless specifically notat:d. ttw:-:;e rat-s:s do not appty to any prqects ,..;th Prevailing Wage requirements. Ally Prevailing ',\'age rates ,..;11 be Mgclia1ed on a case-by-case baslS. 13) Equijpmenl billed on an OOUfly basis ,'111 be bined a rr,inimi.m of four hours upon atWation. For equipment with onty Daily Ra1es. a day will be charged up to 12 OOUrs. No more than 2 Daity Ra1es will apply per calendar day. For boai.s and o ther marine equipmenl, Daily Rat-s:s wJI apply regardiess of the hours u~ per day. 14) Unless specifically notated in the eqlipment description. all equJ)ment rat-s:s are un-opera:ed. 15) All ,vaste dispo.sal from proj ect aod or response activities ,..;11 be charged adcfitionall'j to lhe rates lists herein. A Waste Documenl Preparation Fee oi $·125 per day will apply to any ,\IOfk genera1ing waste. The fee includes labels, manifes1s/tlils of lacing aod profiles. 16) Standby charges wl be negotiated oo a case-by-ease basis. 17) Clean Harbors guaran~ee:; to hold prices mn for60 days. "Cont1oent1a11 Propnetary BuelneH lntormatlon • Do Nol oeec10,e To Arv, rn1ro.i.arty Wltooot Written con,ene or c 1ean Ha~ra." Executed on: 10/27/2020 8 :3'9:05 PM Page 16of 16 City of Palo Alto General Services Agreement 48 Rev. March 29, 2018 EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES WORKER’S COMPENSATION YES EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE $2,000,000 $2,000,000 $4,000,000 $4,000,000 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 POLLUTION LIABLITY ALL DAMAGES $1,000,000 $2,000,000 PROFESSIONAL LIABILITY, YES INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto General Services Agreement 49 Rev. March 29, 2018 I. INSURANCE COVERAGE MUST INCLUDE: ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto at the following URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569 OR http://www.cityofpaloalto.org/gov/depts/asd/planet_bids_how_to.asp DocuSign Envelope ID: AB51B604-619E-4F2E-8525-28A887EDFAA1 City of Palo Alto (ID # 11849) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: Change Order Number 1 to Contract C20174826 with Monterey Mechanical Co. Title: Approval of Change Order Number 1 to Contract Number C20174826 With Monterey Mechanical Co., Adding $300,000 in Compensation for a Total Not-to-Exceed Amount of $750,000 for the On -call Emergency Construction Services Project Funded in Wastewater Treatment Enterprise Fund Capital Improvement Program, Project WQ -19002 at the Regional Water Quality Control Plant From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute Change Order No. 1 to Contract C20174826 (Attachment A) with Monterey Mechanical Co. in the amount of $300,000 for a revised total contract Not-To-Exceed amount of $750,000 for on-call emergency construction services at the Regional Water Quality Control Plant, funded by Capital Improvement Program project WQ-19002. Background The Regional Water Quality Control Plant (Plant) treats an average of 17 million gallons of wastewater each day. At times, on-call emergency construction services are necessary for maintaining the operation of the Plant, which operates 24/7 to provide wastewater treatment, recycled water delivery, and related environmental services to protect health and safety. On September 16, 2019, Council approved a three-year contract with Monterey Mechanical Co. (Monterey) to provide on-call emergency construction services. The contract was executed in the amount of $450,000 for a term of three years ending October 12, 2022 (See SR #10526). Discussion Monterey’s contract allows for the issuance of task orders for work that is above and beyond the capabilities of the City’s in-house maintenance staff at the time the work is necessary. In the first year of the existing contract, the City issued three task orders totaling approximately CITY OF PALO ALTO City of Palo Alto Page 2 $316,000 for work that included: • Removal and replacement of a significant portion of the Grit Building roofing structure, which was in danger of collapse; • Removal and replacement of a severely corroded 8-inch drain line from an odor control bioscrubber because the drain line was leaking into the soil, and into conduits and pipes directly under the leaking drain line; and • Excavation and repair of a groundwater intrusion leak on the 25-foot deep 72- inch influent sewer line to the Plant, which was causing severe crown corrosion on the top of the 72-inch influent sewer pipe. The services in this contract are above and beyond the capacities of City staff. Work in the contract is initiated through the issuance of task orders, as required. In previous on -call emergency construction service contracts, repairs have included (a) numerous pipe and structural wall leak repairs and replacements; (b) installation and removal of inflatable blow -up plugs by specialty underwater commercial divers to allow for unit process isolation; (c) repair of damaged equipment and structures that could lead to unsafe facility conditions; (d) replacement of a damaged sewage sludge conveyor plastic liner; (e) replacement of damaged power distribution equipment; (f) repair of a damaged secondary clarifier mechanism; and (g) repair of damaged isolation stop logs. Task orders issued for critical work may eventually deplete available funds as new emergencies arise. To ensure sufficient funds are available for future emergencies, staff recommend s an additional $300,000 be approved by Council for a new total contract amount not-to-exceed $750,000. The mechanism for increasing the amount of this existing construction contract is execution of a change order to the contract, which will increase the contract funds available for future task orders. Timeline The work is anticipated to be complete by October 12, 2022. Resource Impact Funding for the additional $300,000 to fund Change Order No. 1 contract is included in the Fiscal Year 2021 Wastewater Treatment Enterprise Fund Capital Improvement Program, Plant Repair, Retrofit, and Equipment Replacement project (WQ-19002). Palo Alto treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s cost share of this project is approximately 35% and the other five agencies’ share is approximately 65%. Policy Implications This recommendation does not represent any change to existing City policies. Stakeholder Engagement City of Palo Alto Page 3 This project is part of the Plant’s Capital Improvement Program funded by Palo Alto and its five additional partner agencies. The five partner agencies are regularly updated about both the need for and the progress on wastewater treatment capital work. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency staff about the major capital improvement program. With respect to Palo Alto itself, the open meetings on the budget process serve as the main vehicle for engaging the community on both new projects such as this and associated rate impacts. Environmental Review The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of existing publicly owned wastewater facilities involving no or negligible expansion. Attachments: • Attachment A - C20174826 C-O No1 Contract Change Order City of Palo Alto Department: Public Works WQCP Contract Number: C20174826 CONTRACT CHANGE ORDER PAGE 1 OF 3 Contract Change Order #01 Project Title: On-Call Emergency Construction Services Project No.: WQ - 19002 Contract Number: C20174826 Date: 2/08/21 Contractor: Monterey Mechanical Company Change Order: 01 Description of Change Order Background Information: The 3-year contract runs from October 12, 2019 to October 12, 2022 for $450,000 to cover the cost of immediate mobilization and construction costs by the on-call contractor for handling emergency and urgent construction services at the Palo Alto Regional Water Quality Control Plant. Change Order Justification: Task Order Nos. 1-3 expenses of $316,000 have already been disbursed for emergency and urgent construction services, leaving $134,000 remaining in the $450,000 contract budget for funding future emergency construction services over the remaining two years of the contract. Another $300,000 is requested to replenish the contract with funds to cover future unforeseen urgent and emergency work over the next two years. This CO will be subject to approval by the Palo Alto City Council. Description of Work to be Performed: Unexpected breakdowns or failures of equipment, piping, electrical, concrete, etc., requiring use of the funds in this contract for urgent, critical repair work. Incorporates Field Order Number(s): N / A Cost Time This change order will: No cost change: N/A Increase cost by $ 300,000 Decrease cost by $ N/A This change order will: No change in time Increase time by days Decrease time by days The date of completion as of this change order remains as: October 12, 2022 G/L account number (s):31651 Basis for change in cost: Unit price(s) Lump sum Cost plus Other: CITY OF PALO ALTO I I I - - CONTRACT CHANGE ORDER PAGE 2 OF 3 Contract Change Order – continued CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to complete any additional work specified therein, for the consideration stated therein. It is understood that the time and cost adjustments set forth in this Change Order include full compensation for any impacts or delays associated with the Line Items addressed in this Change Order. CLAIM PROCEDURE: Any items in Contractor’s Change Order Request that are not included in this Change Order are hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order. Accepted for Contractor: Accepted for City of Palo Alto: By: By: Title: Monterey Mechanical Co. Project Manager Title: Public Works Department - Project Manager Date: Date: PC O N o . AS I EW A CO R CO Description Amount Reason for Change -01 Unexpected emergency repairs $300,000 Replenishment of contract funds for unforeseen work. Total for this change order $300,000 Scope of Work Contract Change Order City of Palo Alto Department: Public Works WQCP Contract Number: C20174826 CONTRACT CHANGE ORDER PAGE 3 OF 3 Document Preparation By: Tom Kapushinski Title: Project Engineer Date: February 8, 2021 City Approval – Division Head Signature required on all change orders By: Title: James S Allen Plant Manager, Water Quality Control Plant Date: City Approval – Department Head: Signature required when any individual Change Order exceeds $10,000. By: Title: Brad Eggleston Director of Public Works Date: Contract Change Order – continued Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Amount: $ 450,000.00 Previous Change Orders $ 0.00 This Change Order $ 300,000.00 Revised Contract Amount: $ 750,000.00 Compare to: Original Contract Authorization: $ 450,000.00 Contingency: 0.00 Contract Amendment Authorizations $ 0.00 Contingency added: 0.00 Contingency Authorizations: $ 0.00 Used to date 0.00 Total Authorized Funding: $ 450,000.00 Balance remaining 0.00 Change orders shall not be initiated for Council-approved contracts if the revised contract total exceeds the total authorized funding amount. CITY OF PALO ALTO City of Palo Alto (ID # 11890) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: Cameron Park - Park Improvement Ordinance Title: Adoption of a Park Improvement Ordinance for Renovations at Cameron Park From: City Manager Lead Department: Community Services Recommendation Staff and the Parks and Recreation Commission recommend that Council adopt a Park Improvement Ordinance (Attachment A) for renovation of the playground and park amenities at Cameron Park. Background Capital improvement funding of $200,000 for Fiscal Year 2021 was approved by City Council to address park renovation needs at Cameron Park. The renovation needs include updated infrastructure, improved accessibility, and maintenance improvements. The renovation of the existing playground is the main park amenity to be replaced along with the removal of surrounding sand surfacing. Additionally, the connection of two concrete pathways on opposite sides of the park to form one pathway crossing the park along the playground and the replacement of site amenities comprise the remaining scope of work. Park improvements are anticipated to begin in Spring of 2021, with bid plan development, bidding, and permitting processes currently underway. Project Description The project primarily focuses on the playground, access, and surrounding park furnishings at Cameron Park as diagramed in Exhibit A of Attachment A. This includes: • Playground renovation/replacement to upgrade from a tot lot to include children age five and above. • Connect an existing concrete pathway to the other side of the park, creating an accessible path to the playground. • Creation of a small two table picnic area adjacent to the playground. • Installing new site furnishings: picnic table, benches, water fountain, and trash receptacles. • Installing additional trees around the playground area. City of Palo Alto Page 2 Discussion Two virtual community outreach meetings were held on May 5, 2020 and July 2, 2020 to present proposed renovation items and receive feedback from community members. A subsequent online survey was conducted to capture further input. The response from community members in attendance to the proposed renovations was positive and supportive. Additionally, there were 44 respondents to the online survey. Collectively, the community desired removal of the proposed fencing around the playground, additional shading for the playground, and inclusion of a wider range of play equipment to increase the designated age range of the playground. These three requests from community members have been incorporated into an updated design (Exhibit A of Attachment A). On September 22, 2020, the Parks and Recreation Commission (Commission) voted unanimously (6-0) to recommend that City Council adopt the Park Improvement Ordinance for Cameron Park (Attachment A). The Commission inquired into the possibility of inclusion of a bocce ball court or community garden and exclusion of adding a restroom. Staff responded that if surplus funding exists then a bocce ball court could be built and that a community garden would need funding support from the community. A restroom is excluded from the park renovation as the park size and amenities does not meet the threshold established in the Parks, Trails, Natural Open Space and Recreation Master Plan. The Commission also asked about accessibility of playground features and staff responded that the surrounding sand was being replaced with a rubberized flat surface. The swing and playhouse are also designed to be accessible. Lastly, the discussion with the Commission included shade as part of the renovation design where there are awnings above the play structures and a fast growing and broad Red Oak is planned to match the existing oak trees. Timeline Second Reading of the Park Improvement Ordinance – February 22, 2021 Solicit Bids – February / March 2021 City Council construction contract approval - Spring 2021 Construction – Spring 2021 Resource Impact The Capital Improvement Project (PG-14002) Cameron Park Improvements was approved by City Council for funding in Fiscal Year 2021 for approximately $200,000, which is sufficient to fund the improvements recommended in this report. Ongoing operating and maintenance costs are anticipated to be minimal and absorbed by the existing maintenance funding within the annual operating budget. Policy Implications The proposed Park Improvement Ordinance is consistent with the recommendations in the Parks, Trails, Natural Open Space and Recreation Master Plan. City of Palo Alto Page 3 Staff is advancing this recommendation as reflected in the City’s adopted budget. Should the City Council wish to defer this capital project in light of the current pandemic and other priorities related to community and economic recovery, this item may be removed from the Consent Calendar. Staff will then return to Council with this and other projects for reconsideration. Stakeholder Engagement Two public outreach meetings were held virtually on May 5, 2020 and July 2, 2020. These meetings were followed by a public survey. Additionally, review of park renovation design was discussed with the Commission at their September 22, 2020 meeting. Environmental Review This Project is categorically exempt from CEQA pursuant to Regulations 15301 for Existing Facilities and 15303 for New Construction or Conversion of Small Structures. Attachments: • Attachment A: Ordinance PIO Cameron Park *NOT YET ADOPTED* 1 211_20201222_ts_24 Ordinance No. ___ Ordinance of the Council of the City of Palo Alto Approving and Adopting a Plan for Facility Improvements at Cameron Park The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Improvements. The City Council finds and declares that: (a) Article VIII of the Charter of the City of Palo Alto and section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor. (b) Cameron Park (the “Park”) is dedicated to park purposes. (See Municipal Code section 22.08.030) (c) The City intends to authorize the renovation of various facilities at Cameron Park. (d) The plan of improvements shall comprise as follows: (1) Remove and replace existing toddler playground with a playground spanning the age of toddlers through children age five and above; (2) Connect two separate walkways to provide an accessible path to the playground; (3) Install small picnic tables for leisure use; (4) Replace or install site furnishings such as seating benches, trash receptacles, and drinking fountain; (5) Plant a tree near the playground; (6) Install bocce ball court and/or horseshoe court (if budget allows); and (7) Install a community garden (if budget allows). (e) Exhibit A depicts the expected implementation of the plan of improvements. (f) The plan of improvements described above is consistent with park, playground, recreation, and conservation purposes. (g) The City Council desires to approve the plan of improvements described above. *NOT YET ADOPTED* 2 211_20201222_ts_24 SECTION 2. The City Council hereby approves the plan of improvements in the Park described in this Ordinance. SECTION 3. The City Council finds that this ordinance falls under the California Environmental Quality Act (CEQA) exemptions found in Title 14 California Code of Regulations Section 15301 (Existing Facilities) and Section 15303 (New Construction of Small Facilities or Structures). SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Community Services ____________________________ Director of Administrative Services *NOT YET ADOPTED* 3 211_20201222_ts_24 Exhibit A CITY OF PALO ALTO OFFICE OF THE CITY CLERK February 8, 2021 The Honorable City Council Palo Alto, California Appointment of 2021 Emergency Standby Council Staff recommends the City Council approve the selection of the following former Council Members to serve as members of the 2021 Emergency Standby Council: - Bern Beecham - LaDoris Cordell - Peter Drekmeier - Hillary Freeman - Greg Scharff - Greg Schmid - Lanie Wheeler BACKGROUND The Charter of the City of Palo Alto provides that , "the Council may, by Ordinance or Resolution, provide for the preservation and continuation of government in the event of disaster which renders unavailable a majority of the Council." On August 7, 2006, the City Council adopted amendments to Section 2.12.090 of the Palo Alto Municipal Code regarding the selection procedure for the City's Emergency Standby Council. The adopted policy states that the Council shall consider the following criteria for appointments to the Emergency Standby Council: residency in the City of Palo Alto, availability, interest in serving and a lack of conflicts of interest. Seven members serve on the Emergency Standby Council. Members of the Standby Council have the authority delegated to them under Chapter 2.12 of the Palo Alto Municipal Code. The members of the Emergency Standby Council continue to serve until the Council appoints or reappoints the members at the beginning of each year. Department Head: Beth Minor, City Clerk City of Palo Alto (ID # 11969) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: Cross Bore Verification Program Phase III FY2021 - FY2021 Title: Approval of Construction Contract C21180619 With Cratus, Inc., in the Amount of $1,682,000 for Phase III of the Cross Bore Verification, Inspection and Assessment Program, and Authorization to Execute and Negotiate Related Change Orders in the Amount of $168,200 for a Total Not -to-Exceed Amount of $1,850,200 From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or designee to execute contract C21180619 with Cratus, Inc., in an amount not-to-exceed $1,682,000 for the Phase III Cross Bore Verification, Inspection and Assessment Program FY 2021 and FY 2022; 2. Approve and authorize the City Manager or designee to negotiate and execute one or more change orders to the contract with Cratus, Inc., for related additional, but unforeseen, work which may develop during the project, the total value of which shall not exceed $168,200 or 10% of the contract amount, for a total not-to-exceed amount of $1,850,200; and 3. Amend the Fiscal Year 2021 Budget Appropriation Ordinance for the Wastewater Collection Fund: i. Increase the Wastewater Collection Operating Budget by $394,000; and ii. Decrease the budget appropriation for the Sanitary Sewer Replacement Project 28 (WC-15001) by $394,000. The change to budget appropriations requires a 2/3 approval of Council. Contract C21180619 is found here and in Attachment A. Background In July 2011, the City began the first phase of the Cross Bore Verification, Inspection and Assessment Program to video-inspect existing sewer laterals. The main purpose is to ensure CITY OF PALO ALTO City of Palo Alto Page 2 natural gas pipelines or other utilities were not unintentionally installed within the sewer lateral at the time of installation (aka Cross Bore). The first phase (Phase I) concluded in 2013 ; 7,192 sewer laterals were successfully verified and cleared from potential cross bore , and CPAU Gas Operations repaired the identified 26 natural gas cross bores. In August 2019, the City started Phase II of the Cross Bore Program. Initially, 2,500 sewer laterals were scheduled for inspection, but due to the COVID -19 pandemic, the contractor was required to supply additional PPE and adjust work practices to meet Santa Clara County restrictions. The original bid price did not include the additional expenses to meet the County’s requirements and the contractor was not willing to execute a contract change order with the City for the additional expenses; therefore, the contract was terminated. Prior to termination there were 408 sewer laterals inspected and no cross bores were found during the second phase of inspection. The sequence of inspections for Phase II had been prioritized by staff, so these 408 sewer laterals were considered to be of the highest priority. From the total approved funding, 13% of the cross bore Phase II budget was spent before the contract was terminated. The remaining $1,659,732 was partially reappropriated for the new contract and returned to reserves. In addition to the Cross Bore Verification, Inspection and Assessment Program, the City requires video inspection for gas line replacement projects. Since 2001, all Capital Improvement Gas Main Replacement Projects have included a requirement to video-inspect sewer laterals to search for potential cross bores. Since 2011, City crews have conducted video inspections on projects they have completed. As part of the Phase III Cross Bore planning process, staff reviewed and reprioritized the remaining sewer laterals carried over from Phase I and Phase II projects. This contract will cover the inspection of 1,480 sewer laterals staff has determined to be the highest priority from the remaining laterals. Discussion Project Description The Phase III Cross Bore Verification, Inspection and Assessment Program FY 2021 and FY 2022 is a 2-year project that will video-inspect and assess approximately 1,480 sewer laterals throughout the City. Work performed under this contract will require inspecting the existing sanitary sewer laterals for the presence of cross bores and evaluat ing the pipe condition of City- owned laterals and coding any defects in conformance with the National Association of Sewer Services Companies (NASSCO) standards. Additional services in this contract include hydro excavation, water jetting, and cleaning of sewer lines which may be performed in advance to allow the video inspection to proceed. In the event attempts to video-inspect the sewer lateral are unsuccessful, the City may clear the sewer lateral by excavating to verify the gas pipeline and sewer lateral do not intersect. City of Palo Alto Page 3 Currently there are 2,760 sewer laterals remaining to be video-inspected and staff has identified 1,480 (shown here) to be included in this contract, through a risk assessment process that includes factors such as: method of gas service installation (bored in service s), gas pipe material (polyethylene), type of structure the natural gas pipeline was serving (critical facility or high occupancy buildings), proximity of the gas and sewer pipes, and whether the gas service line had an automatic shutoff valve. Currently a Phase IV Cross Bore Project has not been budgeted to complete the remaining 1,280 sewer laterals. Staff will reassess Phase IV after inspections and findings are completed under Phase III. In addition to the cross bore video inspection, the contractor will perform a lateral condition assessment in conformance with the National Association of Sewer Services Companies (NASSCO) standards. These standards provide consistency in evaluating, maintaining, and rehabilitating underground sanitary sewer infrastructure. Most larger cities, engineering firms, and contractors around the US are using or adopting NASSCO standards in identifying pipeline defects. The contractor will identify and code pipe defects within the portion of the sewer lateral owned by the City using NASSCO’s Lateral Assessment and Certification Program (LACP). Staff will use the assessments generated from this program to ensure the timely repair or replacement of the highest priority laterals. Bid Process On October 9, 2020, the City posted a notice inviting formal bids (IFB) for the Phase III Cross Bore Verification, Inspection and Assessment Program FY 2021 and FY 2022 on PlanetBids through the City’s web portal. The bidding period was 20 working days. The City received 1 bid from a qualified contractor on November 9, 2020. Staff reached out to multiple vendors during the bidding period but the majority of them were unresponsive. One vendor indicated that they were not interested in bidding because they wanted to be compensated hourly, i nstead of per lateral. The hourly bidding method is not advantageous to the City because it could potentially create disagreement on how much work is being billed. Staff determined that pricing by lateral is the most cost-effective compensation method for this project. Bid Name/Number Phase III Cross Bore Verification, Inspection and Assessment Program FY 2021 and FY 2022 – IFB 180619 Proposed Length of Project 490 working days Number of Vendors notified through PlanetBids 1104 Number of Builder’s Exchanges notified through PlanetBids 27 Number of Bid Packages Downloaded by Contractors 23 Total Days to Respond to Bid 32 Pre-Bid Meeting October 22, 2020 (Mandatory) Number of Company Attendees at Pre-6 City of Palo Alto Page 4 Bid summary is linked here. *The bid price is based on the inspection of 1,480 sewer laterals submitted by the bidder. Cratus, Inc., is the only contractor that submitted a bid. The bid submitted by Cratus, Inc., is fifteen percent below the Engineer’s Estimate. The Engineer’s Estimate was calculated based on an average estimate provided to the City by contractors working in this field. Staff also applied “metropolitan cost modifier” to the average price to closely approximate the probable cost of each lateral inspection. The Contractors’ State License Board shows Cratus, Inc., has an active license on file. References provided by Cratus, Inc., and its subcontractor, Roy’s Sewer Services, were contacted by City staff and similar projects were found to be completed satisfactory. Cratus, Inc., will subcontract the sewer lateral inspection to Roy’s Sewer Services. Cratus and Roy’s Sewer Services are registered and in good standing with the Department of Industrial Relations (DIR). A contingency amount of $168,200, or ten percent (10%) of the total contract, is requested for unforeseen work that may develop during the project. Resource Impact Funding of $1,456,200 for the cross bore safety program is available in the Gas Fund operating budget in Fiscal Year (FY) 2021. The assessment of sewer lateral condition in conformance with NASSCO standards and one -way City sanitary sewer cleanout installation will be funded by the Wastewater Collection Fund. The remaining contract amount and estimated Wastewater Collection share of the contract is $394,000. Amendments to the Wastewater Collection Fund are recommended in this report. The recommended amendment is $394,000 to the Wastewater Collection Operating Budget. The increase will be accompanied by a reduction to the Wastewater Collection Sanitary Sewer Project 28 (WC-15001) of $394,000. There will be a net zero change to the Wastewater Collection Fund reserves. Staff is advancing this recommendation as reflected in the City’s adopted budget. Should the City Council wish to defer this project in light of the current pandemic and other priorities related to community and economic recovery, this item may be removed from the Consent Calendar. Staff will then return to Council with this and other projects for reconsideration. Bid Meeting Number of Bids Received: 1 Bid Price Range *$1,682,000 City of Palo Alto Page 6 maintaining social distancing requirements. City staff will attempt to schedule an entry to private property at least 7 days prior to video inspection. Environmental Impact This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (repair, maintenance or minor alteration of existing facilities). Attachments: • Attachment A: Contract C21180619 City of Palo Alto Page 5 Policy Implication The approval of this contract and implementation of this project is consistent with existing City goals, policies and plans including: 2018 Utilities Strategic Plan Priority 2: Collaboration • Strategy 1, Action 2: Proactively communicate capital improvement projects to mitigate the impacts of construction, while maximizing public support and the allocated financial resources. • Strategy 2, Action 2: Enhance current coordination of scheduling, synchronization and communication of capital improvement, maintenance, operations projects and other Utilities programs and services with other departments to improve implementation and efficiency. Priority 4: Financial Efficiency and Resource Optimization • Strategy 3: Enhance planned maintenance programs for all utilities through clearly defined maintenance plans, improved management reporting, and developi ng innovative ways to ensure efficient completion of all maintenance. • Strategy 5: Engage stakeholders and define CPAU’s role in supporting and facilitating community resiliency. Stakeholder Engagement Utilities infrastructure work has been and will con tinue to be coordinated with street paving activities. Project coordination within the City’s administration is enhanced by using the City’s Geographical Information System Project Coordinator Program to determine potential project conflicts. City staff and contractor will conduct public outreach prior to the commencement of the sanitary sewer lateral inspections. The City will inform the community about the safety inspection program by mailing construction notifications and posting information on the City’s website. A link to the City website for the Phase III Cross Bore Verification, Inspection and Assessment Program FY 2021 and FY 2022 will be included in the mailed project notifications. Staff’s Phase III Cross Bore Verification, Inspection and Assessment Program FY 2021 and FY 2022 communications will include project notifications mailed to all properties identified for inspection at least 30 days prior to the commencement of work. Cratus, Inc. will distribute project notifications to each property a minimum of 15 days and again 24 hours prior to beginning inspection work. The construction is expected to commence in April 2021. If private property access is necessary to successfully complete the inspection, the City will have a dedicated City Inspector to assist the contractor in gaining access to private property by Rev. October 2, 2018 1 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C21180619 City of Palo Alto Cross Bore Verification Program Phase III FY 2021 – FY 2022 Invitation for Bid (IFB) Package 2 Rev. October 2, 2018 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….……………6 1.1 Recitals…………………………………………………………………………………………………………………….....6 1.2 Definitions…………………………………………………………………………………………………………………..6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS.……………………………………………………………………………....7 3.1 List of Documents.…………………………………………………………………………………………..............7 3.2 Order of Precedence……………………………………………………………………………………………........7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………….8 4.1 Contractor's Duties……………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………...8 5.1 Contractor's Co-operation…………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………………..8 6.1 Time Is of Essence……………………………………………………………………………………………………….8 6.2 Commencement of Work………………………………………………………………………………………….…8 6.3 Contract Time……………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………...8 6.4.1 Other Remedies…………………………………………………………………………………………………….….9 6.5 Adjustments to Contract Time………………………………………………………………………………….…9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………..…9 7.1 Contract Sum…………………………………………………………………………………………………………….…9 7.2 Full Compensation………………………………………………………………………………………………………10 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..10 8.1 Standard of Care…………………………………………………………………………………..……………………10 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..……10 9.1 Hold Harmless………………………………………………………………………………………………………….…10 9.2 Survival………………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………..10 10.1 Municipal Code Requirement…………….………………………………..……………………………………..10 SECTION 11 INSURANCE AND BONDS.……………………………………………………………………………………11 Invitation for Bid (IFB) Package 3 Rev. October 2, 2018 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………………11 SECTION 12 PROHIBITION AGAINST TRANSFERS………………………………………………………………….….11 12.1 Assignment……………………………………………………………………………………………………………..…11 12.2 Assignment by Law.……………………………………………………………………………………………………11 SECTION 13 NOTICES……………………………………………………………………………………………………………….11 13.1 Method of Notice ………………………………………………………………………………………………………11 13.2 Notice Recipents ……………………………………………………………………………………………………….11 13.3 Change of Address…………………………………………………………………………………………………....12 SECTION 14 DEFAULT………………………………………………………………………………………………………….....13 14.1 Notice of Default……………………………………………………………………………………………………….13 14.2 Opportunity to Cure Default………………………………………………………………………………………13 SECTION 15 CITY'S RIGHTS AND REMEDIES……………………………………………………………………………..13 15.1 Remedies Upon Default…………………………………………………………………………………………....13 15.1.1 Delete Certain Services…………………………………………………………………………………………..13 15.1.2 Perform and Withhold…………………………………………………………………………………………....13 15.1.3 Suspend The Construction Contract……………………………………………………………………....13 15.1.4 Terminate the Construction Contract for Default…………………………………………………….13 15.1.5 Invoke the Performance Bond…………………………………………………………………………………..13 15.1.6 Additional Provisions………………………………………………………………………………………….……14 15.2 Delays by Sureties……………………………………………………………………………………………………….14 15.3 Damages to City………………………………………………………………………………………………………….14 15.3.1 For Contractor's Default………………………………………………………………………………………….14 15.3.2 Compensation for Losses…………………………………………………………………………………….….14 15.4 Suspension by City……………………………………………………………………………………………………..14 15.4.1 Suspension for Convenience……………………………………………………………………………………14 15.4.2 Suspension for Cause…………………………………………………………………………………………......15 15.5 Termination Without Cause……………………………………………………………………………………….15 15.5.1 Compensation………………………………………………………………………………………………………..15 15.5.2 Subcontractors……………………………………………………………………………………………………….15 15.6 Contractor’s Duties Upon Termination……………………………………………………………….........16 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES…………………………………………………………….…16 Invitation for Bid (IFB) Package 4 Rev. October 2, 2018 CONSTRUCTION CONTRACT 16.1 Contractor’s Remedies……………………………………..………………………………..………………………….16 16.1.1 For Work Stoppage…………………………………………………………………………………………………….16 16.1.2 For City's Non-Payment……………………………………………………………………………………………..16 16.2 Damages to Contractor………………………………………………………………………………………………….16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….……….16 17.1 Financial Management and City Access………………………………………………………………………….16 17.2 Compliance with City Requests………………………………………………………………………………………17 SECTION 18 INDEPENDENT PARTIES…………………………………………………………………………………………….17 18.1 Status of Parties……………………………………………………………………………………………………………..17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…..…..17 19.1 Nuisance Prohibited……………………………………………………………………………………………………....17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………………..17 20.1 Payment of Fees……………………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………………….18 21.1 Waiver…………………………………………………………………………………………………………………………....18 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS………………………………………..18 22.1 Governing Law…………………………………………………………………………………………………………………18 22.2 Compliance with Laws……………………………………………………………………………………………………..18 22.2.1 Palo Alto Minimum Wage Ordinance ………………………………………….……………………..…………18 SECTION 23 COMPLETE AGREEMENT…………………………………………………………………………………………...18 23.1 Integration……………………………………………………………………………………………………….……………..18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………………...18 SECTION 25 PREVAILING WAGES…………………………………………………………………………………………………..18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………………….19 SECTION 27 AUTHORITY……………………………………………………………………………………………………………….19 27.1 Representation of Parties………………………………………………………………………………………………..19 SECTION 28 COUNTERPARTS……………………………………………………………………………..………………….........19 28.1 Multiple Counterparts………………………………………………………………………..……………………………19 SECTION 29 SEVERABILITY………………………………………………………………………………..…………………………..19 Invitation for Bid (IFB) Package 5 Rev. October 2, 2018 CONSTRUCTION CONTRACT 29.1 Severability…………………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES ………………………………………………….........19 30.1 Amendments of Laws…………………………………………………………………………………………………….19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….…….20 31.1 Workers Compensation…………………………………………………………………………………………………20 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS…………………………………………20 32.1 General Notice to Contractor………………………………………………………………………………………….……….20 32.2 Labor Code section 1771.1(a)……………………………………………………………………………………...............20 32.3 DIR Registration Required…………………………………………………………………………………………….…………20 32.4 Posting of Job Site Notices…………………………………………………………………………………………….………..20 32.5 Payroll Records………………………………………………………………………………………………………….……………20 Invitation for Bid (IFB) Package 6 Rev. October 2, 2018 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on February 8, 2021 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and CRATUS INC ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a corporation duly organized and in good standing in the State of California, Contractor’s License Number 987888 and Department of Industrial Relations Registration Number 1000007809. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On October 9, 2020, City issued an Invitation for Bids (IFB) to contractors for the Cross Bore Verification Program Phase III FY 2021 – FY 2022 (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the Cross Bore Verification Program Phase III FY 2021 – FY 2022 Project, located at various locations, Palo Alto, CA. ("Project"). / / / / / / Invitation for Bid (IFB) Package 7 Rev. October 2, 2018 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Order 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre-Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. October 2, 2018 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within Four Hundred Ninety working days (490) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of Five Hundred dollars ($500) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Substantial Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Invitation for Bid (IFB) Package 9 Rev. October 2, 2018 CONSTRUCTION CONTRACT Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Six Hundred Eighty Two Thousand Dollars ($1,682,000.00). [This amount includes the Base Bid and Additive Alternates 04 to 07.] // // // // // // // // // // // // // // Invitation for Bid (IFB) Package 10 Rev. October 2, 2018 CONSTRUCTION CONTRACT 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties Invitation for Bid (IFB) Package 11 Rev. October 2, 2018 CONSTRUCTION CONTRACT for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Invitation for Bid (IFB) Package 12 Rev. October 2, 2018 CONSTRUCTION CONTRACT Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: AND [Include Construction Manager, If Applicable.] City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Edmar David In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Liam Finnegan, President Cratus Inc. 945 Taraval Street, #302, San Francisco, California 94116 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. // // // // // // Invitation for Bid (IFB) Package 13 Rev. October 2, 2018 CONSTRUCTION CONTRACT SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. // // Invitation for Bid (IFB) Package 14 Rev. October 2, 2018 CONSTRUCTION CONTRACT 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. // // // // Invitation for Bid (IFB) Package 15 Rev. October 2, 2018 CONSTRUCTION CONTRACT 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. // // // // Invitation for Bid (IFB) Package 16 Rev. October 2, 2018 CONSTRUCTION CONTRACT 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and Invitation for Bid (IFB) Package 17 Rev. October 2, 2018 CONSTRUCTION CONTRACT practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. // // // // // // Invitation for Bid (IFB) Package 18 Rev. October 2, 2018 CONSTRUCTION CONTRACT SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a Invitation for Bid (IFB) Package 19 Rev. October 2, 2018 CONSTRUCTION CONTRACT project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. // Invitation for Bid (IFB) Package 20 Rev. October 2, 2018 CONSTRUCTION CONTRACT With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. // // Invitation for Bid (IFB) Package 21 Rev. October 2, 2018 CONSTRUCTION CONTRACT (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee APPROVED: ____________________________ Utilities Director CRATUS INC Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:__________________________ Name: _______________________ Title:_________________________ Date:_________________________ CITY OF PALO ALTO OFFICE OF THE CITY CLERK February 8, 2021 The Honorable City Council Palo Alto, California Selection of Applicants to Interview for the Historic Resources Board and the Planning and Transportation Commission Recommendation Direct Staff to schedule interviews with all selected applicants for scheduled vacancies on the Historic Resources Board and Planning and Transportation Commission. Discussion A total of 16 applications have been submitted during the extended recruitment period for the Historic Resources Board (HRB) and the Planning and Transpor tation Commission (PTC). Staff is requesting the City Council select the candidates to be interviewed for: • Four (4) positions on the Historic Resources Board, with three-year terms ending December 15, 2023. • Two (2) positions on the Planning and Transportation Commission, with four-year terms ending December 15, 2024. A date for interviews has been scheduled for Wednesday, February 10, 2021 at 6 P.M . Copies of all applications are attached to this staff report. Background On December 14, 2020, the Council directed Staff to extend the recruitment for the Historic Resources Board and Planning and Transportation Commission. The City Clerk’s Office established a new application deadline of Wednesday, January 27, 2021. This recruitment was advertised on the City’s website, social media, and inclusion in the weekly Council Packet GovDelivery e-mail notifications. During the last several recruitments, Council has elected to interview all applicants for respective Boards and Commissions. Applicants Historic Resources Board (Four positions with terms ending December 15, 2023) 1. Martin Bernstein (Incumbent) 2. Gogo Heinrich 3. Michael Makinen (Incumbent) 4. Curtis Smolar 5. Caroline Willis 6. Margaret Wimmer (Incumbent) Planning and Transportation Commission (Two positions with terms ending Page 2 December 14, 2024) 1. Bobi Adle 2. Doug Burns 3. Alon Carmeli 4. Rebecca Eisenberg 5. Kathy Jordan 6. Ed Lauing (Incumbent) 7. Kevin Ma 8. Jessica Resmini 9. Meera Saxena 10. Doria Summa (Incumbent) ATTACHMENTS: • Attachment A: Board and Commission Applications-HRB and PTC (PDF) Department Head: Beth Minor, City Clerk Page 3 Boards and Commission Applications Fall 2020 Recruitment Historic Resources Board & Planning and Transportation Commission Historic Resources Board: 1.Martin Bernstein (Incumbent) 2.Gogo Heinrich 3.Michael Makinen (Incumbent) 4.Curtis Smolar 5.Caroline Willis 6.Margaret Wimmer (Incumbent) Planning and Transportation Commission: 1.Bobi Adle 2.Doug Burns 3.Alon Carmeli 4.Rebecca Eisenberg 5.Kathy Jordan 6.Ed Lauing (Incumbent) 7.Kevin Ma 8.Jessica Resmini 9.Meera Saxena 10.Doria Summa (Incumbent) Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Historic Resources Board Personal Information (Note: The HRB regularly meets the 2nd and 4th Thursdays of the month at 8:30 AM) Name: Martin Bernstein Address: Cell Phone: 6503871000 Q Home / Q Office Phone: 6503871000 E-mail: martinbernstein617@gmail . com Are you a Palo Alto Resident? QYesQ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? 0 Yes Q No Are you available and committed to complete the term applied for? Q Yes Q No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? OYes®No Excluding your principal residence, do you or your spouse own real property in Palo Alto?QYes® No How did you learn about the vacancy on the Historic Resources Board? ommunity Group mail from City Clerk alo Alto Weekly Other: daily Post City Website Flyer List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) Licensed Architect State of CA. Bachelor of Architecture, CA Polytechnic State Univ., S. Luis Obispo, CA. Advanced Management Institute, San Francisco, CA. Docent Training, Palo Alto Stanford Heritage. Architectural Studies in Firenze, IT and Wien, Austria. Training Seminars for Secretary of the Interior Standards (SIS) for Historic Structures. Martin Bernstein Page 1 Historic Resources Board Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteer and civic organizations: FKDUDFWHUV 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 3DJH +LVWRULF 5HVRXUFHV %RDUG Martin Bernstein Architect Architect Palo Alto Historic Resources Board, past-Chair. Palo Alto Stanford Heritage, past-Chair. Palo Alto Professorville Design Guidelines Committee, past-Chair. Los Altos Hills Historical Society, past-President. Volunteer and Counselor to Cesar Chavez Academy Middle School, East Palo Alto, for architectural studies. Membership on the HRB provides an opportunity to discuss with the community the cultural value of historic preservation. The quality of being a fair judge when balancing the concerns of historic preservation, the needs of contemporary life styles and property rights is an important attribute of a Board member. The focus of my practice is individual private residences and community buildings such as corporate venues, meeting centers, restaurants and other structures designed to meet particular institutional requirements. My architectural signature bears influence for the rich classical traditions of Italy and from Florence in particular. I am also well versed in contemporary and modern styles to meet the demands of each new project. I have remodeled and added on to many historic structures in Palo AltoA and the Bay Area Martin Bernstein 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU:/,1. FKDUDFWHUV 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 3DJH +LVWRULF 5HVRXUFHV %RDUG A predominant street-facing character defining feature of an existing historic residence was proposed by the applicant to be demolished. The Board moved and approved that this feature be retained. This decision was deemed to be consistent with the Secretary of the Interior Standards for Historic Structures. I would like the HRB to be an approachable educational resource for the community. I suggest scheduling a joint City Council-HRB meeting to publicly discuss the preservation principles that help guide the recommendations made by the HRB. Martin Bernstein 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, Staff may request that you bring hard copy print outs to the interviews. FKDUDFWHUV 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. FKDUDFWHUV 3DOR $OWR &RPSUHKHQVLYH 3ODQ /DQG 8VH (OHPHQW /,1. 3DOR $OWR 0XQLFLSDO &RGH &KDSWHU /,1. 6HFUHWDU\ RI WKH ,QWHULRUV 6WDQGDUGV IRU 3UHVHUYLQJ 5HKDELOLWDWLQJ 5HVWRULQJ DQG 5HFRQVWUXFWLQJ +LVWRULF %XLOGLQJV /,1. &DOLIRUQLD (QYLURQPHQWDO 4XDOLW\ $FW /,1. 3DJH +LVWRULF 5HVRXUFHV %RDUG I have extensive experience with the listed documents. 755 Hamilton Ave, Palo Alto. New second floor addition to a National Register Eligible residence. Project conforms with the Standards. 334 Kingsley Ave., Palo Alto. New one story addition to a Category 2 residence in the Professorville National Historic District. Project conforms with the Standards. Martin Bernstein Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 c) I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address:250 Hamilton Ave., Palo Alto, CA 94301 Cell Phone: 6503871000 ()Home .ffice Phone: 6503871000 E-mail:martinbernstein617@gmail.com Signature: (Please type or sign) Mart in Bernstein Date: 150CT2020 Martin Bernstein Page 5 Historic Resources Board -1ic;a;:>ic; ic;111a11 au \JUI 1 ltJIOLOU afJtJllVCILIVI Ii> LU .,Ol>l>l\JCl.UI cnLllO~VILJVI r CllV'"'9LU.VI ~ VI vny .VI Oi "~VILJVI r QIV'"'ILV.UI ~ ~ity Clerk's Office: 650-329-2571 Histori c Resources Board Personal Information (Note: The HRB regularly meets the 2 nd and 4th Thursdays of the month at 8:30 AM) Name: Gogo Heinrich Address: Cell Phone: (!)Home IQ Office Phone: E-mail: Are you a Palo Alto Resident? {!)YesQ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Q Y es{!) No Are you available and committed to complete the term applied for?(!) Y es 0 No California state law requires appointed board and commiss ion m embers to file a detailed disclosure of the ir financial interests, Fair Political Practices Commissio n, Conflict of Interest, Form 700. Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo A lto which you believ e is likely to; 1) engage in business with the City, 2) provide p roducts or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? .0ves0No Excl uding your principal residence, do you or your spouse own real property in Palo Alto?QYes(!} No How did you l earn about the vacancy on the Historic Resources Board? §om munity Group §aily Post mail from City Clerk ity W ebs ite alo Alto Weekly Flyer List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) California Licensed Architect C10903 UC Berkeley BA Arch itecture Employed as Arch itect/Senior Project Manage r for over 40 years, currently retired Accredited LEED Professiona l Gago Heinrich Page 1 Historic Resources Board Employment Present or Last Employer: City of San Mateo (retired in 2018) Occupation: Architect/Senior Project Manager Describe your involvement in community activities, volunteer and civic organizations: (1242 characters) Former Girl Scout Leader Troop 784 Former Board Member of the Peninsula Youth Orchestra Volunteer on the Professorville Guidelines Palo Alto CERT member 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? (1518 characters) As an architect who has lived in Palo Alto since 1989 , I have always been interested in the neighborhoods and historic buildings that make up the fabric of Palo Alto. I bel ieve in progress and historic preservation and the two need not be incompatible . Gogo Heinrich Page 2 Historic Resources Board 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archived video from the Midpen Media Center: LINK (1380 characters) I live in the neighborhood of Castilleja School. Castilleja's expansion plans had called for the demolition of the Lockey House on Emerson Street. The HRB's review of September 2019 questioned the historic analysis presented by the school's consultants. The HRB's review and request for further analysis was a very prudent decision. 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? (1725 characters) Review the buildings that are on the inv entory li st and reclassify as needed. Make a check off list and engage other members to perform analyses if required . Goga Heinrich Page 3 Historic Resources Board I 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, Staff may request that you bring hard copy print outs to the interviews. (1380 characters) Buildings designed by Birge Clark are examples of good historic architecture . The Professorville neighborhood in its entirety is a good example of a multiple residences that preserves good historic architecture. 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. (1104 characters) Palo Alto Comprehensive Plan Land Use Element LINK Palo Alto Municipal Code Chapter 16.49 LINK Secretary of the Interiors Standards for Preserving , Rehabilitating, Restoring, and Reconstructing Historic Buildings LINK California Environmental Quality Act LINK As a volunteer for the Professorville Guidelines, we worked with all of the above documents. In addition, in my past work experience, i have worked extensively with the Secretary of the Interiors Standards and CEQA. Gogo Heinrich Page4 Historic Resources Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The fu ll code can be read here: LI NK Read the code, and check only ONE option below: Q I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR f9'i ~ I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: OHome Qffice Phone: E-mail: Signature: (Please type or sign)~G~o"'"ig~o~H~e~i~n~ri ...... c~h ______________ Date: 12/12/2020 Gogo Heinrich Page 5 Historic Resources Board Applications due September 19, 2017 at 4:30 pm Historic Resources Board Personal Information - Note: The HRB regularly meets the second and fourth CITY ThursOdayCLERf('� 's of the month at 8:30 a.m. Name: Michael Makinen C I T y PALO L10, Cp S OFFICE Address: 17 SEP l 8 pH 2; 29 Cell Phone: 11111 Q Home /QOffice Phone: E-mail: Are you a Palo Alto Resident? QYes® No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Yes QNo Are you available and committed to complete the term applied for? Q Yes Q No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? QYes QNo Excluding your principal residence, do you or your spouse own real property in Palo Alto?QYesQ No How did you learn about the vacancy on the Historic Resources Board? Community Group _ Daily Post — Email from City Clerk _ City Website _ Palo Alto Weekly _ Flyer Other: I currently serve on the Historic Resources Board List relevant education, training, experience, certificates of training, licenses, or professional registration: Educataion: BSME and MSME. I am currently a historic preservation consultant for NASA, Ames Research Center at Moffettt Field. I maintain an office at NASA Ames for my historic consultant role. Prior to my retirement from NASA, I was Chief of the Facilities Planning Office and also the NASA - Ames federal historic preservation officer. I was responsible for all aspects of historic preservation at NASA Ames and the Moffet Field National Historic District, including coordination and reporting to the State Historic Preservation Office (SHPO) and the national Advistory Council on Historic preservation. My responsibilities included approximately 50 historic bulidings, historic districts and landmarks. My experience includes adaptive re -use of historic properties. out leasing of historic buildings and structures, creating re -use guidelines for historic buildings, writing memorandums of agreement between NASA and the State Office of Historic Preservation for the adaptive reuse,f treatment and out leasing of historic properties and coordination with other government agencies including the SHPO, the Advisory Council, the US Army and the US Navy.. I was also a member of the NASA - Ames Research Center Architectural Review Board. I have attended over 50 professional training sessions and seminars on various aspects of historic preservation. Page 1 Historic Resources Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Od the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. 1 have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: ell Phone: Home ?ffice Phone: E-mail: Signature: % ' -b Date: 7AM 7 Page 5 Historic Resources Board Historic Resources Board Personal Information (Note: The HRB regularly meets the nd and th Thursdays of the month at 8:30 $0 Name: Address: Cell Phone: __ Home / __ Office Phone: E-mail: Are you a Palo Alto Resident? __ Yes __ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? __ Yes __ No Are you available and committed to complete the term applied for? __ Yes __ No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? __ Yes __ No Excluding your principal residence, do you or your spouse own real property in Palo Alto? __ Yes __ No How did you learn about the vacancy on the Historic Resources Board? __ Community Group __ Email from City Clerk __ Palo Alto Weekly __ Daily Post __ City Website __ Flyer Other: ______________________________________________________________________________ List relevant education, training, experience, certificates of training, licenses, or professional registration: (1 characters) Page 1 Historic Resources Board Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Curtis E. Smolar ✔ I am a real estate attorney with approximately 25 years of experience working on numerous historic buildings, including getting properties designated as historic homes, getting or objecting to historic trees, lot lines and other historic preservation issues. Curtis E. Smolar Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: (14 characters) 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? (118 characters) Page 2 Historic Resources Board Legalist, Inc. General Counsel I was on the Palo Alto Little League Board for 4 years dealing with a broad spectrum of community land use issues including historic buildings. I was also on the Greene Middle School executive committee for one term and had great muffins and coffee. I spent a good portion of my teen years studying in some of the most notable museums, libraries and colleges on the east coast.I have long had an interest in historic preservation as it was involved in my undergraduate degree in which we studied historic buildings in New York, studied my Universities massive art collection and took numerous courses on local history as well as global history to understand how civic works interrelated with their society and time era. Since I became an attorney I have worked with clients to obtain historic recognition for their properties or helped in opposing it when it ran contrary to the state, county and or municipal codes. Curtis E. Smolar 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archived YLdeo from the 0LdSen 0edLa &enter: LINK (1380 characters) 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? (1 characters) Page 3 Historic Resources Board I particularly enjoyed watching the meeting on May 14, 2020 in which there was a presentation regarding istoric Designation Reclassification, From a Local Historic Resource Category 3 to a Category 2, of the Cardinal Hotel Located Within the National Register of Historic Places’ Ramona Street Architectural District. My goals would be to preserve the character of the buildings that give Palo Alto its character. This would be to determine what buildings those are, what the significance of the buildings are, how that building helps define either an era or aspect of Palo Alto that needs to be preserved. Once that is done, work to see how what the community opinion of the project is and work with community to a common goal of preservation and the modern aspects of the community. Curtis E. Smolar 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, Staff may request that you bring hard copy print outs to the interviews. (1380 characters) 5.Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. (1104 characters) Palo Alto Comprehensive Plan Land Use Element LINK Palo Alto Municipal Code Chapter 16.49 LINK Secretary of the Interiors Standards for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings LINK California Environmental Quality Act LINK Page 4 Historic Resources Board As an attorney I have experience interpreting and advising clients on the California Environmental Quality Act, the Palo Alto Comprehensive Land Use Element, and the Secretary of the Interiors Standards for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings. 1. First Church of Christ, Scientist, Forest Avenue (1916) 2. Cardinal Hotel (1924) including terracotta facade. 3. Fraternal Hall, High Street, is listed on the National Register (1898) 4. Charles W. Decker House, Waverley Street (1894) 5.Bell's Bookstore Building, Emerson Street (1924) Curtis E. Smolar Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, “No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual.” This consent form will not be redacted and will be attached to the Application and posted to the City’s website. The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City’s website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: __ Home / __ Office Phone: E-mail: Signature: (Please type or sign)_______________________________________________ Date: _____________ Page 5 Historic Resources Board 1/21/2021 Curtis E. Smolar Curtis E. Smolar +LVWRULF5HVRXUFHV%RDUG Personal Information 1RWH 7KH+5%UHJXODUO\PHHWVWKHQGDQGWK7KXUVGD\VRIWKHPRQWKDW $0 1DPH $GGUHVV &HOO3KRQH __+RPH__2IILFH3KRQH (PDLO $UH\RXD3DOR$OWR5HVLGHQW"__ Yes __ No 'R\RXKDYHDQ\UHODWLYHVRUPHPEHUVRI\RXUKRXVHKROGZKRDUHHPSOR\HGE\WKH&LW\RI3DOR$OWRZKR DUHFXUUHQWO\VHUYLQJRQWKH&LW\&RXQFLORUZKRDUH&RPPLVVLRQHUVRU%RDUG0HPEHUV"__ Yes __ No $UH\RXDYDLODEOHDQGFRPPLWWHGWRFRPSOHWHWKHWHUPDSSOLHGIRU"__ Yes __ No &DOLIRUQLDVWDWHODZUHTXLUHVDSSRLQWHGERDUGDQGFRPPLVVLRQPHPEHUVWRILOHDGHWDLOHGGLVFORVXUHRI WKHLUILQDQFLDOLQWHUHVWV)DLU3ROLWLFDO3UDFWLFHV&RPPLVVLRQ&RQIOLFWRI,QWHUHVW)RUP 'R\RXRU\RXUVSRXVHKDYHDQLQYHVWPHQWLQRUGR\RXRU\RXUVSRXVHVHUYHDVDQRIILFHURUGLUHFWRU RIDFRPSDQ\GRLQJEXVLQHVVLQ3DOR$OWRZKLFK\RXEHOLHYHLVOLNHO\WR HQJDJHLQEXVLQHVVZLWKWKH&LW\ SURYLGHSURGXFWVRUVHUYLFHVIRU&LW\SURMHFWVRU EHDIIHFWHGE\GHFLVLRQVRIWKHERDUGRUFRPPLVVLRQ\RXDUHDSSO\LQJIRU"__ Yes __ No ([FOXGLQJ\RXUSULQFLSDOUHVLGHQFHGR\RXRU\RXUVSRXVHRZQUHDOSURSHUW\LQ3DOR$OWR"__ Yes __ No How did you Oearn about the vacancy on the Historic Resources Board? BB&RPPXQLW\*URXS BB(PDLOIURP&LW\&OHUN BB3DOR$OWR:HHNO\ BB'DLO\3RVW BB&LW\:HEVLWH BB)O\HU 2WKHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB List relevant education, training, experience, certificates of training, licenses, or professional registration: FKDUDFWHUV 3DJH +LVWRULF5HVRXUFHV%RDUG 33OHDVHHPDLODOOFRPSOHWHGDSSOLFDWLRQVWR-HVVLFD%UHWWOH#&LW\RI3DOR$OWRRUJRU&LW\&OHUN#&LW\RI3DOR$OWRRUJ &LW\&OHUN V2IILFH a friend ( Registered Architect in the State of California Bachelors degree in Architecture from the Rhode Island School of Design. Previously served on the Historic Resources Board from August 1994 to May 1998 with training in the Secretary of the Interiors Standards. Former President of PAST Heritage. Caroline Willis Employment 3UHVHQWRU/DVW(PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteer and civic organizations: FKDUDFWHUV 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 3DJH +LVWRULF5HVRXUFHV%RDUG self Architect I am not currently actively involved in any community organizations. Previously, I have served as Chairman of the Palo Alto Historic Resources Board, President of PAST Heritage, President of the Ohlone Elementary PTA and President of the Palo Alto Recreation Foundation. I have also enjoyed giving tours of Professorville and our historic downtown as a docent for PAST Heritage. The architecture of Palo Alto is varied and interesting and I enjoy discussing how it might best be retained and enhanced while also serving comtemporary functions. My experiences as a homeowner and architect have offered me the opportunity to become famaliar with historic details and construction and I enjoy sharing my knowledge with others. I am interested in the history conveyed by our historic buildings. I have restored older homes, including my first house in the District of Columbia. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archiveGYLGHRIURPWKH0LGSHQ0HGLD&HQWHU:/,1. FKDUDFWHUV 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 3DJH +LVWRULF5HVRXUFHV%RDUG Looking back over the past year when the HRB only met four times, I was particularly pleased and interested that the Cardinal Hotel requested to be upgraded from a category 3 to a category 2. The hotel has been an outstanding anchor to the Ramona Street Historic District and, as it welcomes visitors, we are fortunate to have a resource to showcase an historic interior. The owners obviously value its preservation and, in doing so, set an example for the community. My primary goal would be to encourage preservation in Palo Alto. I would like to see the Board strengthen its presence on the web, consider updating the ordinance to provide demolition protection in the National Register District of Professorville and give clear and concise advice to applicants. The Palo Alto Historic Inventory should be updated and enhanced both visually and by updating it from 1998 to 2021. My suggestions are as follows: Consolidate information regarding historic preservation on the website and enhance it with self guided tour information and additional historic data about inventory properties. Make it easier to locate and identify incentives being offered to preserve our historic properties. Work with the city to establish demolition protection for historic structures in the National Register District of Professorville. As an incentive for owners to buy in, encourage the city to distinguish Professorvile in a physical way with historic street lights, street signage or by other means. The Board should encourage owners to take pride in their historic buildings by respecting them and enable rehabilitation and restoration that reflect the way we live today. 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, Staff may request that you bring hard copy print outs to the interviews. FKDUDFWHUV 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. FKDUDFWHUV 3DOR$OWR&RPSUHKHQVLYH3ODQ/DQG8VH(OHPHQW/,1. 3DOR$OWR0XQLFLSDO&RGH&KDSWHU /,1. 6HFUHWDU\RIWKH,QWHULRUV6WDQGDUGVIRU3UHVHUYLQJ5HKDELOLWDWLQJ5HVWRULQJDQG5HFRQVWUXFWLQJ+LVWRULF %XLOGLQJV/,1. &DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW/,1. 3DJH +LVWRULF5HVRXUFHV%RDUG I have a working familiarity over many years with the Secretary of the Interior Standards which I view as the primary tool of the HRB. I am also familiar with the Municipal Code relating to Historic Preservation and am aware of CEQA requirements. Additionally, I am familiar with the Comp Plan, particularly as it relates to historic districts and buildings. Stanford offers us many fine examples of historic architecture and how it can be preserved, remodeled and expanded. The Cantor Arts Center was enlarged and retrofitted for earthquake safety but continues to convey and showcase its original style and function both inside and out. The respect shown for the quad with its beautiful arches, the oval and the view down Palm Drive of Memorial Church are inspirational. Consent to Publish Personal Information on the City of Palo Alto Website &DOLIRUQLD*RYHUQPHQW&RGH6HFWLRQVWDWHVLQSDUW³1RVWDWHRUORFDODJHQF\VKDOOSRVWWKH KRPH DGGUHVV RU WHOHSKRQH QXPEHU RI DQ\ HOHFWHG RU DSSRLQWHG RIILFLDO RQ WKH ,QWHUQHW ZLWKRXW ILUVW REWDLQLQJWKHZULWWHQSHUPLVVLRQRIWKDWLQGLYLGXDO´This consent form will not be redacted and will be attached to the Application and posted to the City’s website. 7KHIXOOFRGHFDQEHUHDGKHUH /,1. 5HDGWKHFRGHDQGFKHFNRQO\21(RSWLRQEHORZ ,JLYHSHUPLVVLRQIRUWKH&LW\RI3DOR$OWRWRSRVWWRWKH&LW\¶VZHEVLWHWKHDWWDFKHG%RDUGDQG &RPPLVVLRQ$SSOLFDWLRQLQWDFW,KDYHUHDGDQGXQGHUVWDQGP\ULJKWVXQGHU*RYHUQPHQW&RGH 6HFWLRQ,PD\UHYRNHWKLVSHUPLVVLRQDWDQ\WLPHE\SURYLGLQJZULWWHQQRWLFHWRWKH3DOR $OWR&LW\&OHUN 25 ,UHTXHVWWKDWWKH&LW\RI3DOR$OWRUHGDFWP\KRPHDGGUHVVSKRQHQXPEHUVDQGHPDLODGGUHVV IURPWKHDWWDFKHG%RDUGDQG&RPPLVVLRQ$SSOLFDWLRQSULRUWRSRVWLQJWRWKH&LW\¶VZHEVLWH,DP SURYLGLQJWKHIROORZLQJDOWHUQDWHLQIRUPDWLRQDQGUHTXHVWWKDWWKH\XVHWKHIROORZLQJFRQWDFW LQIRUPDWLRQLQVWHDG $GGUHVV &HOO3KRQH __+RPH__2IILFH3KRQH (PDLO 6LJQDWXUH 3OHDVHW\SHRUVLJQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH BBBBBBBBBBBBB 3DJH +LVWRULF5HVRXUFHV%RDUG January 13, 202 Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Historic Resources Board Personal Information (Note: The HRB regularly meets the 2nd and 4th Thursdays of the month at 8:30 AM) Name: Margaret Wimmer Address: Cell Phone: 0 Home /QOffice Phone: E-mail: rr Are you a Palo Alto Resident? ()Yes() No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Q Yes Q No Are you available and committed to complete the term applied for? Q Yes Q No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? QYes®No Excluding your principal residence, do you or your spouse own real property in Palo Alto?Q Yes° No How did you learn about the vacancy on the Historic Resources Board? .1 111, Community Group mail from City Clerk _Palo Alto Weekly Other: Currently a board member li F daily Post City Website _Flyer List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) Bachelor of Design from Arizona State University College of Architecture and Environmental Design Docent and part time employee in the architectural drafting room at Taliesin West, Scottsdale Arizona 1986 - 1988 California Preservation Foundation member ICAA Member Margaret Wimmer Page 1 Historic Resources Board Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteer and civic organizations: FKDUDFWHUV 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 3DJH +LVWRULF 5HVRXUFHV %RDUG Self Employed Residential Designer Junior League Mid Peninsula Member 1994 - 1998 Cantor Art Center "Next Gen" Volunteer 2001-2003 Volunteered for the California Preservation Foundation Conference in 2018 when the conference was held in Palo Alto I am a residential designer with the majority of projects in the City of Palo Alto. I have done several projects on residences in the Professorville District as well as on the City Historic Inventory. I have had projects where I needed to present to the HRB, so understand what it is like to be an applicant. Margaret Wimmer 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU:/,1. FKDUDFWHUV 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 3DJH +LVWRULF 5HVRXUFHV %RDUG I find all of the projects interesting, and the residential projects the most interesting. I would like to continue to offer sound advice and share my experience and knowledge as much as I can to the board, applicants and participating public. I think the board has a positive impact on all projects, which I think is the greatest achievement that the board can realize. We have been discussing the meaning of categories 1-4 and how to better express their significance. I have been wanting to develop an HRB Binder for new members to understand the way the meetings are formatted to help with general understanding of the HRB process, which was a real learning curve for me and I assume most new members. Margaret Wimmer 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, Staff may request that you bring hard copy print outs to the interviews. FKDUDFWHUV 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. FKDUDFWHUV 3DOR $OWR &RPSUHKHQVLYH 3ODQ /DQG 8VH (OHPHQW /,1. 3DOR $OWR 0XQLFLSDO &RGH &KDSWHU /,1. 6HFUHWDU\ RI WKH ,QWHULRUV 6WDQGDUGV IRU 3UHVHUYLQJ 5HKDELOLWDWLQJ 5HVWRULQJ DQG 5HFRQVWUXFWLQJ +LVWRULF %XLOGLQJV /,1. &DOLIRUQLD (QYLURQPHQWDO 4XDOLW\ $FW /,1. 3DJH +LVWRULF 5HVRXUFHV %RDUG As a current board member, I have experience will all of these documents. The Post office on Hamilton Ave by Birdge Clark. The President Hotel The University Art Building The Downing House The Squire House These are all good examples in Palo Alto. Margaret Wimmer Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 c) I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address:250 Hamilton Avenue Palo Alto 94301 Cell Phone: 0Home /cbffice Phone: E-mail: Signature: (Please type or sign)Margaret Wimmer Date: 10/2/2020 Margaret Wimmer Page 5 Historic Resources Board __ __ __ __ __ __ Personal Information (Note: The PTC regularly meets the second and last Wednesdays of the month at 6 PM Name: Address: Cell Phone: Home / Office Phone: E-mail: Are you a Palo Alto Resident? Yes No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Yes No Are you available and committed to complete the term applied for? Yes No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1)engage in business with the City; 2)provide products or services for City projects; or 3)be affected by decisions of the board or commission you are applying for? Excluding your principal residence, do you or your spouse own real property in Palo Alto? Yes No How did you learn about the vacancy on the Planning and Transportation Commission? Community Group Email from City Clerk Palo Alto Weekly Daily Post City Website Flyer Other: _ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) Page 1 Planning & Transportation Commission Planning and Transportation Commission Yes No Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Bobi J Adle My current position involves logistics and transportation at a large Tech Company. I handle the logistics of 372 locations that feed around 75,000 meals a day pre-pandemic. Bobi J Adle Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteering or with civic organizations: (1311 characters) Page 2 Planning & Transportation Commission Bon Appetite Management Company District Manager I have been a part of Abilities Uniteds program of real world training for their people resulting in learning of skills and usually employment for most who would not have been able to get jobs. I am a very bad juggling clown for Ronald McDonald house cheering up children and struggling parents dealing with illness. The joy from doing this negates my aweful juggling skills. I am a part of a program called Surfers for Autism where we teach kids and adults on the spectrum how to surf as part of a fundraising program. It is a great way to help them learn to push beyond their percieved limits and also a great way to educate. Bobi J Adle 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? (1449 characters) 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archived video from the Midpen Media Center: LINK (1311 characters) Page 3 Planning & Transportation Commission Parking spaces have been an issue in Palo Alto for a while. Bulding garages and permit parking has been a sticky situation with lots of folks on both sides of it digging in their heels. I want to help mend those fences and help make what the city and its people need a priority. My experience in logistics and transtportation is a big part of what I can bring to the table. I wonder how many people really understand what it takes to make a city as amazing as Palo Alto so special. I have been part of the Greenmeadow Association and was a part of the board there that oversaw community guidelines. I currently live in the Charlston Meadows area and sit on the architectural board for the ovelay. Here we try and work with the homeowners and make sure that zoning laws are adhered to while keeping the classic look of the eichlers intact. It is often tricky managing new owners and red tape with permits but we do a great job keeping the commnity happy and eager. Living in NY for many years public transportation has been a huge part of my life and I understand how important it it to keep the community moving without stagnating the growth. I am an avid bicyclist and want to continue working with the city to make the bike corridors friendly to cars and bicyclists. The changes to Ross road and Charleston have been a dividing issue in the community and I want to be a part of helping out with the communication. Bobi J Adle 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this?(1587 characters) 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. (1380 characters) Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK Page 4 Planning & Transportation Commission The Baylands master plan has been one of my personal issues to watch. It is such an important part of our local area and I want to be a part of maintaing it. The El Camino Master Plan is a huge issue and will need a lot of people willing to get together and figure out how best to make it the central part of our community. California avenue is a large focus for me since it has the ability to be such a huge part of our city but is not yet. I do not but wish to get involved more. Bobi J Adle Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, “No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual.” This consent form will not be redacted and will be attached to the Application and posted to the City’s website. The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City’s website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: Home / Office Phone: E-mail: Page 5 Planning & Transportation Commission Signature: (Please type or sign)_______________________________________________ Date: _____________ 11/17/2020 Bobi J Adle Bobi J Adle Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Planning and Transportation Commission Personal Information (Note: The PTC regularly meets the second and last Wednesdays of the month at 6 PM Name: Doug Burns Address: Cell Phone: ()Home / ®Office Phone: E-mail: Are you a Palo Alto Resident? ®Yes ONo Do you have any relatives or members of your household who are employed by the City of RR. lo Alt who are currently serving on the City Council, or who are Commissioners or Board Members? UYes 'IUNo Are you available and committed to complete the term applied for? ® Yes ®No Califomia state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ®Yes ®No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ®Yes®No How did you learn about the vacancy on the Planning and Transportation Commission? ECommunity Group Daily Post ❑X Email from City Clerk City Website Palo Alto Weekly Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) Accounting Degree UCSB Page 1 Doug Burns 0 Planning & Transportation Commission Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJ RU ZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ member of BPA association member of BPA pathways Committee member of PAN Doug Burns 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Very interested in the grade separation project and have attended many community and XCAP meetings. Born and raised in Palo Alto. I take a lot of pride in my community and would like to help shape its future. Also worked in Palo Alto for many years. Doug Burns 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RX KDYH H[SHULHQFH ZLWK DQ\ RI WKHVH GRFXPHQWV SOHDVH GHVFULEH WKDW H[SHULHQFH ([SHULHQFH ZLWK WKHVH GRFXPHQWV LV QRW UHTXLUHG IRU VHOHFWLRQ FKDUDFWHUV 3DOR $OWR &RPSUHKHQVLYH 3ODQ /,1. =RQLQJ &RGH /,1. &LW\ &KDUWHU /,1. &DOLIRUQLD (QYLURQPHQWDO 4XDOLW\ $FW /,1. (O &DPLQR 5HDO 'HVLJQ *XLGHOLQHV /,1. (O &DPLQR 5HDO 0DVWHU 3ODQ 6WXG\/,1. $UHD 3ODQV VXFK DV WKH 6RXWK RI )RUHVW $YHQXH 62)$ , DQG ,, 3ODQV /,1. %D\ODQGV 0DVWHU 3ODQ /,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Moderate growth and keeping the character of the community. Improved bike/pedestrian pathways. Doug Burns Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 e I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0Home / 0 Office Phone: E-mail: Signature: (Please type or sign)Doug Burns Date:Nov 7, 2020 Page 5 Doug Burns 0 Planning & Transportation Commission BB BB BB BB BB BB PersonalInformation 1RWH 7KH37&UHJXODUO\PHHWVWKHVHFRQGDQGODVW:HGQHVGD\VRIWKHPRQWKDW30 1DPH $GGUHVV &HOO3KRQH +RPH 2IILFH3KRQH (PDLO $UH\RXD3DOR$OWR5HVLGHQW"Yes No 'R\RXKDYHDQ\UHODWLYHVRUPHPEHUVRI\RXUKRXVHKROGZKRDUHHPSOR\HGE\WKH&LW\RI3DOR$OWRZKR DUHFXUUHQWO\VHUYLQJRQWKH&LW\&RXQFLORUZKRDUH&RPPLVVLRQHUVRU%RDUG0HPEHUV"Yes No $UH\RXDYDLODEOHDQGFRPPLWWHGWRFRPSOHWHWKHWHUPDSSOLHGIRU"Yes No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es No How did you Oearn about the vacancy on the Planning and Transportation Commission? &RPPXQLW\*URXS (PDLOIURP&LW\&OHUN 3DOR$OWR:HHNO\ 'DLO\3RVW &LW\:HEVLWH )O\HU 2WKHU BB List relevant education, training, experience, certificates of training, licenses, or professional registration: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ 3ODQQLQJDQG7UDQVSRUWDWLRQ&RPPLVVLRQ <HV1R 3OHDVHHPDLODOOFRPSOHWHGDSSOLFDWLRQVWR-HVVLFD%UHWWOH#&LW\RI3DOR$OWRRUJRU&LW\&OHUN#&LW\RI3DOR$OWRRUJ &LW\&OHUN V2IILFH Alon Carmeli none LinkedIn - https://www.linkedin.com/in/alon-carmeli-a19243/ Employment High-tech industry - 1983 until 2016 in chip design, networking, security, wireless, video games, and 3D Computer vision Real estate Athena, Founding partner, condominium development, Israel 2005 until 2020 Greenpoint Real Estate, managing director, multifamily residential properties investment and redevelopment, SV - 2011 present Education Undergraduate, Computer engineering, Technion, Israel - 1986 Graduate,MBA, Carnegie Mellon University 1991 Passion for architecture, interior design, and art Alon Carmeli Employment 3UHVHQWRU/DVW(PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJRUZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ None so far. Alon Carmeli 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveGYLGHRIURPWKH0LGSHQ0HGLD&HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ I would like to bring up for discussion a major traffic congestion problem between Alma to El Camino on Embarcadero road surrounding Town and County and Palo Alto high school. From the location before the bridge to El Camino there are 3 traffic lights, 2 road entrances and 1 pedestrian crossroad, making it a nightmare to drive at certain times of the day. A better traffic and road design can alleviate the problem. It combines my education, current real estate involvement, and my passion in better appreciation for short and long-term needs for city of Palo Alto s residents Alon Carmeli 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RXKDYHH[SHULHQFHZLWKDQ\RIWKHVHGRFXPHQWVSOHDVHGHVFULEHWKDWH[SHULHQFH([SHULHQFH ZLWKWKHVHGRFXPHQWVLVQRWUHTXLUHGIRUVHOHFWLRQ FKDUDFWHUV 3DOR$OWR&RPSUHKHQVLYH3ODQ/,1. =RQLQJ&RGH/,1. &LW\&KDUWHU/,1. &DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW/,1. (O&DPLQR5HDO'HVLJQ*XLGHOLQHV/,1. (O&DPLQR5HDO0DVWHU3ODQ6WXG\/,1. $UHD3ODQVVXFKDVWKH6RXWKRI)RUHVW$YHQXH 62)$ ,DQG,,3ODQV/,1. %D\ODQGV0DVWHU3ODQ/,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ Start working on plans beyond 2030 master plan. Major impacts because of climate change, COVID-19, booming high tech industry, and new technologies create opportunities to transform Palo Alto beyond 2030. I do not have experience, but am interested in influencing SOFA II plans, and Baylands Alon Carmeli Consent to Publish Personal Information on the City of Palo Alto Website &DOLIRUQLD*RYHUQPHQW&RGH6HFWLRQVWDWHVLQSDUW³1RVWDWHRUORFDODJHQF\VKDOOSRVWWKH KRPH DGGUHVV RU WHOHSKRQH QXPEHU RI DQ\ HOHFWHG RU DSSRLQWHG RIILFLDO RQ WKH ,QWHUQHW ZLWKRXW ILUVW REWDLQLQJWKHZULWWHQSHUPLVVLRQRIWKDWLQGLYLGXDO´This consent form will not be redacted and will be attached to the Application and posted to the City’s website. 7KHIXOOFRGHFDQEHUHDGKHUH /,1. 5HDGWKHFRGHDQGFKHFNRQO\21(RSWLRQEHORZ ,JLYHSHUPLVVLRQIRUWKH&LW\RI3DOR$OWRWRSRVWWRWKH&LW\¶VZHEVLWHWKHDWWDFKHG%RDUGDQG &RPPLVVLRQ$SSOLFDWLRQLQWDFW ,KDYHUHDGDQGXQGHUVWDQGP\ULJKWVXQGHU*RYHUQPHQW&RGH 6HFWLRQ ,PD\UHYRNHWKLVSHUPLVVLRQDWDQ\WLPHE\SURYLGLQJZULWWHQQRWLFHWRWKH3DOR $OWR&LW\&OHUN 25 ,UHTXHVWWKDWWKH&LW\RI3DOR$OWRUHGDFWP\KRPHDGGUHVVSKRQHQXPEHUVDQGHPDLODGGUHVV IURPWKHDWWDFKHG%RDUGDQG&RPPLVVLRQ$SSOLFDWLRQSULRUWRSRVWLQJWRWKH&LW\¶VZHEVLWH ,DP SURYLGLQJWKHIROORZLQJDOWHUQDWHLQIRUPDWLRQDQGUHTXHVWWKDWWKH\XVHWKHIROORZLQJFRQWDFW LQIRUPDWLRQLQVWHDG $GGUHVV &HOO3KRQH +RPH 2IILFH3KRQH (PDLO 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ 6LJQDWXUH 3OHDVHW\SHRUVLJQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH BBBBBBBBBBBBB11/17/2020 Alon Carmeli Alon Carmeli BB BB BB BB BB BB PersonalInformation 1RWH 7KH37&UHJXODUO\PHHWVWKHVHFRQGDQGODVW:HGQHVGD\VRIWKHPRQWKDW30 1DPH $GGUHVV &HOO3KRQH +RPH 2IILFH3KRQH (PDLO $UH\RXD3DOR$OWR5HVLGHQW"Yes No 'R\RXKDYHDQ\UHODWLYHVRUPHPEHUVRI\RXUKRXVHKROGZKRDUHHPSOR\HGE\WKH&LW\RI3DOR$OWRZKR DUHFXUUHQWO\VHUYLQJRQWKH&LW\&RXQFLORUZKRDUH&RPPLVVLRQHUVRU%RDUG0HPEHUV"Yes No $UH\RXDYDLODEOHDQGFRPPLWWHGWRFRPSOHWHWKHWHUPDSSOLHGIRU"Yes No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es No How did you Oearn about the vacancy on the Planning and Transportation Commission? &RPPXQLW\*URXS (PDLOIURP&LW\&OHUN 3DOR$OWR:HHNO\ 'DLO\3RVW &LW\:HEVLWH )O\HU 2WKHU BB List relevant education, training, experience, certificates of training, licenses, or professional registration: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ 3ODQQLQJDQG7UDQVSRUWDWLRQ&RPPLVVLRQ <HV1R 3OHDVHHPDLODOOFRPSOHWHGDSSOLFDWLRQVWR-HVVLFD%UHWWOH#&LW\RI3DOR$OWRRUJRU&LW\&OHUN#&LW\RI3DOR$OWRRUJ &LW\&OHUN V2IILFH Rebecca Eisenberg Palo Alto City Council Meeting where you voted on this. JD, Harvard Law School, 1993. Editor, Harvard Law Review. BA, Stanford, Psychology/Decision Science, 1990, Phi Beta Kappa. Member of California Bar and Federal Bar, CD Calif. sworn in Dec 1993. 30 years of legal experience, including: - Senior Counsel, PayPal (IPO, Secondary Offering, Merger w/eBay) - General Counsel, Trulia (1st atty, IPO prep) - GC, Flip Video/Pure Digital (Merger w/Cisco) - GC, Reddit (Spin-off, Re-corp, Re-capitalization) Experience/expertise in: - Land use transactions - Budget oversight - Municipal Finance - Secured transactions - Tax law & policy - Contract negotiation - Ethics Rebecca Eisenberg Employment 3UHVHQWRU/DVW(PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJRUZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ Private Client Legal Services, Boutique Law Firm Negotiate high-value transactions for execs/entrepreneurs I spent most of 2020 running for City Council. Although I did not win, I am proud that I received almost 8000 votes -- and spent only approx $7000. I believe that money has no place in politics, so tried to live those values. My solid results reflect the time & energy I put into meeting with Palo Alto residents & small business owners, to hear their perspectives & understand their concerns. Rather than hobnob with wealthy donors, I went door to door, ringing doorbells and standing back 6 feet to meet the residents. It was a privilege each time a resident took time to meet me and share their views. Running for office was a humbling experience, and it also reinforced the great impact that our local government officials and their appointed volunteers have on the day to day lives of people in our community. When I visited 801 Alma St., I heard the challenges that many residents face in meeting their subsidized rents. When I spoke with small businesses on University and California Ave, I heard the frustration of seeing their landlords receive pandemic relief funds that did not trickle down to them. When I spoke with seniors at Channing House, I heard their appeals for affordable housing to live near their grandkids. We must do better for our community. I want to serve that worthy goal. Rebecca Eisenberg 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveGYLGHRIURPWKH0LGSHQ0HGLD&HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ I continue to be concerned about special treatment afforded Castilleja. According to public records on Palo Alto's website, Castilleja has been in violation of its Conditional Use Permit virtually each year since the CUP was granted in 2000. In 2013, the City of Palo Alto sent a notice to Castilleja that Castilleja needed to comply with its CUP, or else Castilleja's CUP would be revoked and Castilleja would leave its 6+ acres on 55 RH-1 lots in Old Palo Alto. In a letter from Nanci Kauffman, Castilleja promised that it would fully comply by 2018, or else Castilleja would submit to CUP Revocation Hearings. Ms. Kauffman also promised not to apply for an amended CUP until and unless Castilleja complied with its 2000 CUP. Nonetheless, currently the City Council is nearing approval of an amended CUP, even though Castilleja never complied with its 2000 CUP. Also, Castilleja never was charged its full Muni Code penalties of $500/violation/day. This perceived special treatment of Castilleja has harmed our community. Given RHNA requirements, we need all residential land to be used for residential purposes or risk state intrusion under SB35. If Castilleja were to move to a commercially zoned site, it would not need a CUP. Our City must enforce its own laws for our community's best interest. Land is a limited resource, and due to its particular scarcity in Palo Alto, it is extraordinarily valuable. Hence, decisions our City makes regarding land use can carry the financial of a NASDAC IPO. Plus, what we decide today impacts generations to come. The responsibility is heady. I have watched the Planning Commission make decisions that I believe may have been based on incomplete information. For example, some may have approved a housing development without knowing the size of the homes. Other times, they appeared to be unduly influenced by expensive attorneys representing wealthy applicants. Fancy attorneys do not impress me, as I myself am an expensive fancy lawyer and have outperformed the best of them. What I fear the City Council does not recognize is that when it appoints attorneys who represent commercial developers for a living to the PTC, those attorneys often have conflicts of interest. These land use lawyers are bound by ethical rules always to act in the best interest of their clients, which may limit their independence to approve and recommend measures that may disadvantage their client base. For example, they may not be wholly free to approve fees and taxes if those measures could impact clients. Palo Alto deserves Planning Commissioners whose sole duty is to represent the best interest of our community. I pledge to do that, entirely free of conflict. I will stand up for residents and small businesses. Rebecca Eisenberg 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RXKDYHH[SHULHQFHZLWKDQ\RIWKHVHGRFXPHQWVSOHDVHGHVFULEHWKDWH[SHULHQFH([SHULHQFH ZLWKWKHVHGRFXPHQWVLVQRWUHTXLUHGIRUVHOHFWLRQ FKDUDFWHUV 3DOR$OWR&RPSUHKHQVLYH3ODQ/,1. =RQLQJ&RGH/,1. &LW\&KDUWHU/,1. &DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW/,1. (O&DPLQR5HDO'HVLJQ*XLGHOLQHV/,1. (O&DPLQR5HDO0DVWHU3ODQ6WXG\/,1. $UHD3ODQVVXFKDVWKH6RXWKRI)RUHVW$YHQXH 62)$ ,DQG,,3ODQV/,1. %D\ODQGV0DVWHU3ODQ/,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ First, I would fill a representation gap by serving as the only renter on an official city Commission that regularly makes decisions that impact renters. Additionally, not only do I rent my family home in Palo Alto, but also my husband and I are landlords. In order to afford our rent in Old Palo Alto, we rent out the home we bought in 2003 in San Francisco. As both a tenant and landlord, my perspective is both valuable and missing on the Commission. Second, in terms of goals, I seek to provide the best, most informed, and least biased advice to the City Council on matters regarding planning and transportation. I have skin in the game in that I live here and my husband and I chose to raise our children here, but that skin does not comprise conflict of interest, because neither my husband (also an attorney) nor I make a living serving commercial developers, homeowners, or any other interest that regularly comes before the Commission. If such a conflict, or a potentially perceived conflict were to arise, I will disclose any/all potential conflicts, and recuse myself when appropriate, erring on the side of recusal in the best interest of the community. As you know, I have applied for the Planning Commission in the past. The most recent time I applied, instead of interviewing during my assigned 15 minutes, I spent the time drawing attention to a problematic perceived conflict of interest on the Commission. I believe that conflicts of interest erode trust, so exposing it was important for the community's interest. This time I will interview instead. Thank you. Having just run for City Council, I often was asked for my opinion on matters that relate to these documents and plans. To do my best work, I carefully read through most of these docs and plans. As an attorney for 3 decades, I am skilled at reading codes and plans. I also recognize, as a veteran negotiator, that every document is subject to multiple interpretations, and the job of an attorney is to interpret source material in most favorable light to my client. In this case, my client is the City. I urge the City Council to consider that when it appoints lawyers who represent commercial developers for a living, it appoints not just those individuals, but also the professional biases that these lawyers are ethically bound to carry with them when they analyze any and all documents. It is virtually impossible to expect a lawyer who is ethically bound to represent a party who negotiates against a city, then to prioritize the interest of the city over that of their client. This ethical bind harms our community. I do NOT represent commercial developers, nor do I represent ANY special interest that comes before the Planning Commission. That means I no longer represent homeowners in their appeals (although both my husband and I have done so in the past), nor do I represent any other interested party. My whole undivided ethical obligation is for the community. Rebecca Eisenberg Consent to Publish Personal Information on the City of Palo Alto Website &DOLIRUQLD*RYHUQPHQW&RGH6HFWLRQVWDWHVLQSDUW³1RVWDWHRUORFDODJHQF\VKDOOSRVWWKH KRPH DGGUHVV RU WHOHSKRQH QXPEHU RI DQ\ HOHFWHG RU DSSRLQWHG RIILFLDO RQ WKH ,QWHUQHW ZLWKRXW ILUVW REWDLQLQJWKHZULWWHQSHUPLVVLRQRIWKDWLQGLYLGXDO´This consent form will not be redacted and will be attached to the Application and posted to the City’s website. 7KHIXOOFRGHFDQEHUHDGKHUH /,1. 5HDGWKHFRGHDQGFKHFNRQO\21(RSWLRQEHORZ ,JLYHSHUPLVVLRQIRUWKH&LW\RI3DOR$OWRWRSRVWWRWKH&LW\¶VZHEVLWHWKHDWWDFKHG%RDUGDQG &RPPLVVLRQ$SSOLFDWLRQLQWDFW ,KDYHUHDGDQGXQGHUVWDQGP\ULJKWVXQGHU*RYHUQPHQW&RGH 6HFWLRQ ,PD\UHYRNHWKLVSHUPLVVLRQDWDQ\WLPHE\SURYLGLQJZULWWHQQRWLFHWRWKH3DOR $OWR&LW\&OHUN 25 ,UHTXHVWWKDWWKH&LW\RI3DOR$OWRUHGDFWP\KRPHDGGUHVVSKRQHQXPEHUVDQGHPDLODGGUHVV IURPWKHDWWDFKHG%RDUGDQG&RPPLVVLRQ$SSOLFDWLRQSULRUWRSRVWLQJWRWKH&LW\¶VZHEVLWH ,DP SURYLGLQJWKHIROORZLQJDOWHUQDWHLQIRUPDWLRQDQGUHTXHVWWKDWWKH\XVHWKHIROORZLQJFRQWDFW LQIRUPDWLRQLQVWHDG $GGUHVV &HOO3KRQH +RPH 2IILFH3KRQH (PDLO 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ 6LJQDWXUH 3OHDVHW\SHRUVLJQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH BBBBBBBBBBBBB11/17/2020 Rebecca Eisenberg Rebecca Eisenberg -r Clerk's Office: 650-329-2571 Planning and Transportation Commission Personal Information (Note: The PTC regularly meets the second and last Wednesdays of the month at 6 PM Name: Kathy Jordan Address: Cell Phone: Home /()Office Phone: E-mail: Are you a Palo Alto Resident? ()Yes I No Do you have any relatives or (members of your household who are employed by the City ofLelo Alt who are currently serving on thecity Council, or who are Commissioners or Board Members? Yes Whio Are you available and commi ed to complete the term applied for? ()Yes QNo California state law requires their financial interests, Fair Do you or your spouse have of a company doing busine 1) engage in business with tt 2) provide products or seivic 3) be affected by decisions o Excluding your principal resid appointed board and commission members to file a detailed disclosure of olitical Practices Commission, Conflict of Interest (Form 700). an investment in, or do you or your spouse serve as an officer or director s in Palo Alto which you believe is likely to: e City; s for City projects; or the board or commission you are applying for? ()Yes () No ence, do you or your spouse own real property in Palo Alto? Ores o)No How did you learn about th{e vacancy on the Planning and Transportation Commission? ECommunityGroup Email from City Clerk 0 Palo Alto Weekly Other: friend Daily Post City Website 1-1 Flyer List relevant education, t aining, experience, certificates of training, licenses, or professional registration: (621 charade ) BA Political Scie ce, Stanford University MSM, GSB, Stanfor• University Project Manager, iburon, Inc. Pagel Kathy Jordan Planning & Transportation Commission Employment Present or Last Employer: Women' s Tennis Association Occupation: Player representative Describe your involvement in community activities, volunteering or with civic organizations: (1311 characters) President, Palo Alto Plaza HOA Member, Parent and Student Advocate, Independent Parents Association Co -Secretary, Palo Alto Council of PTAs Volunteer at Duveneck elementary, Jordan MS and Paly. Kathy Jordan Pia Page 2 ning & Transportation Commission 1. What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? (1449 characters) I'm very interested in the current debate surrounding housing and transportation. In my view, this debate stems from the housing affordability difficulties in Calfornia, and in Palo Alto itself. As I see it, one camp of housing advocates have been pursuing a vision of retaining urban core job centers served by public transportation as their model, while seeking to encourage the building of market rate and below market rate housing. This camp seeks to accomplish this by incentivizing building dense (market rate) housing near public transportation, serving these core urban job centers. Further, the building of this desired housing would be encourage by reducing or modifying previous important requirements, such as parking, CEQA, zoning or other. At the same time, this camp has also sought to impose requirements on the building of the market rate housing, such as incorporating a required % of below market rate units. Further, these advocates also seem to have generally pursued eliminating single family home zoning as one of their proposals to driving the addition of more housing units. This debate has raged implications, possibl control, and so forth estate here in Palo A on in discussing jobs/housing ratios, their solutions, state policy and central planning, local It's certainly of great interest to me as we own real to, but also in terms of the outlook for the state. 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archived video from the Midpen Media Center: LINK (1311 characters) Certainly the proposed Castilleja expansion project is one what would be of particular interest to me. I am interested because the City has a very difficult role, with quite a controversial project placed before it, one which would disrupt the existing neighborhood and the adjacent main east west artery for quite awhile, while expanding the negotiated use (# of students)of the residing entity, which had previously violated an existing City use permit. This expansion project has proponents and detractors and involves a very valued all girls school, which has many alumni and supporters in the community. The project also proposes a large underground garage, which may have impact underground to neighbors and to the water table. All of these factors make this project one of great interest and of great import to the community. Kathy ordan Psse 3 Y Planning &Transportation Commission 3. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this?(1587 characters) My goal would be to make sure the Planning and Transportation commission places respect for private property rights uppermost in any decision making, and, of course, adhering to the zoning code of the City of Palo Alto. As for why --- private property rights are the foundation of our free market society, and the reason that those who have accumulated savings would feel comfortable investing those savings in housing development, in businesses, and in other economic sectors, all of which leads to employement and prosperity. 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. (1380 characters) Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK Area Plans such as the South of Forest Avenue (SOFA) 1 and II Plans LINK Baylands Master Plan LINK I have had experience with the Zoning Code -- when building a home in Palo Alto. Page 4 Kathy Jordan Planning & Transportation Commission Consent to Publish Perso al Information on the Ci of Palo Alto Website California Government Cod- Section 6254.21 states, in part, "No state or local agency shall post the home address or telephon- number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application a d posted to the City's website. The full code can be read he e: LINK Read the code, and check o 0 I give permission for Commission Appli - Section 6254.21. I Alto City Clerk. OR I request that the Cit from the attached B. providing the followi information instead. Address: Cell Phone: CHome / C Offic E-mail: Signature: (Please type or si ly ONE option below: the City of Palo Alto to post to the City's website the attached Board and on intact. I have read and understand my rights under Government Code ay revoke this permission at any time by providing written notice to the Palo of Palo Alto redact my home address, phone numbers, and email address and and Commission Application prior to posting to the City's website. I am g alternate information and request that they use the following contact Phone: )Kathryn Jordan Date:11/10/2o20 ordan Psses KathyY Planning &Transportation Commission Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Planning and Transportation Commission Personal Information (Note: The PTC regularly meets the second and last Wednesdays of the month at 6 PM Name: Ed Lauing Address: Cell Phone: ()Home / ®Office Phone: E-mail: Are you a Palo Alto Resident? ®Yes ONo Do you have any relatives or members of your household who are employed by the City of RR. lo Alt who are currently serving on the City Council, or who are Commissioners or Board Members? UYes 'IUNo Are you available and committed to complete the term applied for? ®Yes®No Califomia state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ®Yes ®No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ®Yes®No How did you learn about the vacancy on the Planning and Transportation Commission? ECommunity Group Daily Post ['Email from City Clerk City Website Palo Alto Weekly Flyer Other: PTC incumbent List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) + Completing first term on PTC 2017-2020 + Previously two terms on PRC 2010-2016 Page 1 Ed Lauing 0 Planning & Transportation Commission Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJ RU ZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Equity Search Partners Executive Recruiter Community Service Before joining my first commission in 2010, I was very active in local community service including: President of Palo Alto Babe Ruth regional baseball (5 years) and Palo Alto Little League Manager (6 years). Board member and Finance Chair of Urban Ministry of Palo Alto – addressing hunger and homelessness; co-leader of merger with InnVision for broader scope and financial sustainability, and also served on that board after merger. (3 years) Board member and VP on executive committee at Congregation Beth Am, with special focus on social action for housing and hunger on the Peninsula. (5 years) Ed Lauing 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ This week Council reviewed and approved a new housing project on 788 San Antonio for 100+ units including 15% inclusionary units. PTC previously worked this comprehensive and complex issue and recommended it to coucil. In some ways I feel this is the culminaton of what PTC, staff,and Council have worked on together for my four years on PTC. We finally found a way with the HIP to incentivize housing projects! Morever, this proposal essentially "creates more land" for housing by allowing it in the CS zone for the first time. This has massive positive implications for more new housing in the CS zone. It is a breakthrough for the city. I was adamant in the debate that this action needs to be coupled with a study by the city of the San Antonio transportation corridor. Housing and transportation are always always linked. With agressive housing growth,there will be a collatoral impact on an already congested corridor. I am concluding my 11th consecutive year on PA commisions. (Chair 4 times). I have worked effectively with colleagues and staff over this period to get productive outcomes for our citizens. On PTC I am sometimes considered a "swing" vote. That simply points to the fact that I am not idealogical on issues. Each has to be evaluated based on the problem to be solved and an outcome that will work for the community in the context of the municipal code and state law. I am thoroughly up to speed on all the issues our city faces and that PTC considers. I am also very familiar with the city process for decision-making. I love serving my community. Ed Lauing 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RX KDYH H[SHULHQFH ZLWK DQ\ RI WKHVH GRFXPHQWV SOHDVH GHVFULEH WKDW H[SHULHQFH ([SHULHQFH ZLWK WKHVH GRFXPHQWV LV QRW UHTXLUHG IRU VHOHFWLRQ FKDUDFWHUV 3DOR $OWR &RPSUHKHQVLYH 3ODQ /,1. =RQLQJ &RGH /,1. &LW\ &KDUWHU /,1. &DOLIRUQLD (QYLURQPHQWDO 4XDOLW\ $FW /,1. (O &DPLQR 5HDO 'HVLJQ *XLGHOLQHV /,1. (O &DPLQR 5HDO 0DVWHU 3ODQ 6WXG\/,1. $UHD 3ODQV VXFK DV WKH 6RXWK RI )RUHVW $YHQXH 62)$ , DQG ,, 3ODQV /,1. %D\ODQGV 0DVWHU 3ODQ /,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ 1. Help council find creative ways to finance and build truly affordable housing to attract a diverse population. We need new sources of funding beyond tax credits and multi-use buildings dominated by office space to make the project financially viable. We should analyze the feasibility of each housing segment - from BMR to market rate - and create a plan to meet housing priorities as determined in the city’s Comprehensive Plan, by regional allocations, and by Council. But the #1 priority should be the construction of much more truly affordable (BMR)housing. This is critical for creating more diversity in our community. 2. Work regionally on improving our local transportation system on the peninsula for last mile connectivity and to reduce SOV trips. Part of the execution plan should be to re-start and expand our own shuttle program. Even in the pandemic, planning for this should start now! I have experience with all of the above. Ed Lauing Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 e I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ®Home / 0 Office Phone: E-mail: Signature: (Please type or sign) Date: Page 5 Ed Lauing 0 Planning & Transportation Commission x x x x Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJ RU ZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Rubrik Software Engineer Mitchell Park library volunteer, worked on STEAM programs with children, tech assistance for the nontechnical. Was going to assist on VR efforts until the pandemic hit. Los Altos library volunteer (started since PACL was a bit slow on the volunteer uptake). Assisted with general library assistance before shifting to ESL tutoring. League of Women Voters of Palo Alto member, recently assisted with Pro-Cons presentations Sierra Club - Loma Prieta member. Monitor local Climate Action Plans and land use developments all over the Peninsula. Unitarian Universalist Church of Palo Alto member, assisting with the Green Sanctuary Committee and assisting with A/V work. Block Preparedness Coordinator in Ventura. Also volunteer(ed) at Stanford Health, Foothill Observatory, Stanford’s Code-in-Place program, Code for San Jose, Rapid Response Network, SURJ. 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ There was a recent study session regarding the renter community in Palo Alto. As a renter, I believe the city still has much to do to assist the community, especially when taking the Hotel President history into account. The study session pointed out that 37.48% of our renter population are cost-burdened, and given the patchwork of tenant protections and the current financial crisis, that number is bound to go higher or people are unfortunately leaving this community. We should be planning for a city that allows people to be less stressed about keeping their homes. There was also a recent discussion of SB 743 and its shifting of the CEQA transportation metric from Level of Service to Vehicle Miles Traveled. We need to address our system that leads people to drive long-distances, creating environmental impacts. As such, our planning should be prioritizing transit, whether it be focusing on our Caltrain stations as core transit hubs or creating a bus transit network that can reduce traffic and encourage connectivity throughout the city. This, along with better plans on bikeable, walkable infrastructure, should also assist in reducing our internal traffic concerns; this will require better communication with PABAC among others. The Planning and Transportation Commission does the important work of guiding what the city should look like under the Comprehensive Plan; to retain the unique things that make up Palo Alto but also open towards new ideas and change. For housing, we should be creating communities that allow for a full diversity of neighbors, from the service workers that commute from long distances to the children who would like to stay in their hometown. For transportation, we should be creating a community that moves beyond the car-centric paradigm and instead towards a walkable, bikable one with robust transit to allow people to get where they need to be. PTC also has a strong environmental component, given that how people live and work have major environmental impacts. Reducing the amount people drive and allowing the land to better house people will bring the greenhouse gas emission reductions demanded by our own 80x30 goal, if the desire to never see another murky-brown or bright-red sky is not enough. My work with the Sierra Club has been to further progress in the fight for environmental improvements here, as well see with the SCAP. 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RX KDYH H[SHULHQFH ZLWK DQ\ RI WKHVH GRFXPHQWV SOHDVH GHVFULEH WKDW H[SHULHQFH ([SHULHQFH ZLWK WKHVH GRFXPHQWV LV QRW UHTXLUHG IRU VHOHFWLRQ FKDUDFWHUV 3DOR $OWR &RPSUHKHQVLYH 3ODQ /,1. =RQLQJ &RGH /,1. &LW\ &KDUWHU /,1. &DOLIRUQLD (QYLURQPHQWDO 4XDOLW\ $FW /,1. (O &DPLQR 5HDO 'HVLJQ *XLGHOLQHV /,1. (O &DPLQR 5HDO 0DVWHU 3ODQ 6WXG\/,1. $UHD 3ODQV VXFK DV WKH 6RXWK RI )RUHVW $YHQXH 62)$ , DQG ,, 3ODQV /,1. %D\ODQGV 0DVWHU 3ODQ /,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ I would like to see the Planning and Transportation Commission achieve greater public outreach to hear all voices within the community. This can be done by focusing outreach efforts like meetings or mailing lists to communities that are not heard very often in this space, such as renters, youth, and disadvantaged communities. Note that this outreach is not solely towards them but should add on our current communication efforts. Perhaps this can be tied with assistance from the Center for Deliberative Democracy in order to produce a solution acceptable to many. I am familiar with the City Charter, the Comprehensive Plan, and CEQA, but I will further put in the work to digest and research all of these documents. As a former college teaching assistant, I would like to also boil down these documents to be able to provide others with an accessible way to understand these important documents. Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone:6506465053 ®Home / 0 Office Phone: E-mail: Signature: (Please type or sign)jcpain Ma ICI o Date: 10/20/20 Page 5 Planning & Transportation Commission Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Planning and Transportation Commission Personal Information (Note: The PTC regularly meets the second and last Wednesdays of the month at 6 PM Name: JESSICA RESMINI Address: Cell Phone: QHome / d E-mail: � ffice Phone: Are you a Palo Alto Resident? IC ONo Do you have any relatives or members of your household who are employed by the City of Palo Alto. who are currently serving on the City Council, or who are Commissioners or Board Members? °Yes ®No Are you available and committed to complete the term applied for? O Yes Q No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? QYes O No Excluding your principal residence, do you or your spouse own real property in Palo Alto? °Yes 0 No How did you learn about the vacancy on the Planning and Transportation Commission? E Community Group Daily Post ❑ Email from City Clerk City Website ▪ Palo Alto Weekly Flyer Other: List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) B.S. Env. Design, University of California, Davis California Licensed Architect LEED Accredited Professional Project Manager of PAUSD Bond Projects Owner, ADU Collective - Resmini Architects, Inc. Page 1 Planning & Transportation Commission Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJ RU ZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ ADU COLLECTIVE - RESMINI ARCHITECTS, INC ARCHITECT Relevant community volunteer activities: Serving on the ADU task force working with local homeowners, architects, and city staff to implement the State ADU Guidelines. Pro-Bono Design and Archtiectural services. I have provided extensive pro-bono work for Palo Alto Little League on the Middlefield Ballpark redesign. Chair of the Coastside Design Review Committee in San Mateo County. This appointment includes ensuring new development is compatible with coastal communities. In this role, I was able to help many proposals successfully navigate the process while finding common ground with the surrounding community. Guest lecturer at University of California Davis, I taught about the fundamentals of Architecture as it applies to socially responsible and sustainable design. As a board member of the Cuesta La Honda Guild, I helped make critical decisions and policies regarding the water district, recreational facilities and roads for hundreds of homes. Serving as CVC Chair and other local school positions. In our local schools including Ohlone Elementary School & JLS I have held roles such as CVC-Co Chair, member of our Parent Leadership Team and PiE representative. As a Co-Chair of the Core Values Committee at Ohlone Elementary School, our primary focus is facilitating and fostering common goals between parents and staff. 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU: /,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ As an Architect, I have in depth experience working with zoning regulations, building codes, city departments and managing many complex projects, but I feel my greatest compatible assets to the PTC would be my keen ability to listen, empathize, facilitate a team, speak candidly and explore every option in order to find common ground. On a personal level, our family roots go back to the 1960’s and my personal experience as a resident, parent, renter, landlord and small business owner give me many perspectives to draw from when considering Palo Alto's future. As a result, I feel deeply connected to Palo Alto and my specific interest in PTC is helping shape a future for my children here as those that have gone before us. A couple issues that interest me before the Commission are Below Market Rate Housing, 2nd Unit Dwellings, and the status of the Comprehensive Plan. Given the space, number of people, and the mission of Palo Alto, we are pushing the boundaries in every way. Responsible growth will take a mindset of cooperative synergy where the whole is greater than the sum of its parts. Affordable housing issues are interesting to me because they are key to preserving a vibrant, youthful and diverse community, where young families come to live, work, and invest in our public education system. The Comprehensive Plan interests me because it’s critical to have defined goals and priorities to examine daily decisions through a greater lens. Consent to Publish Personal Information on the City of Palo Alto Website Califomia Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 e I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: PO Box 1394, Palo Alto, CA 94303 Cell Phone: 415-823-3213 ®Home / 0 Office Phone: E-mail: Jessica@ aducollective.com Signature: (Please type or sign) .'/ Date: 11-17-20 Page 5 Planning & Transportation Commission COUNTYoF SAN MATEO PLANNING AND BUILDING January 31, 2017 City Council Members City of Palo Alto Sent via Email Dear Council Members: County Government Center 455 County Center, 2nd Floor Redwood City, CA 94063 650-363-4161 T 650-363-4849 F www.planning.smcgov.org SUBJECT: Recommendation in Support of Jessica Resmini for the Palo Alto Planning and Transportation Commission I am writing to provide a strong positive recommendation for Jessica Resmini, who has applied to be a member of the City's Planning and Transportation Commission. Jessica served for 5 years from 2008 to 2013 as the Chair of San Mateo County's Coastside Design Review Committee (CDRC), and I worked with her closely in that capacity. Jessica was a true leader for the CDRC, which is comprised of two architects and residents from the unincorporated communities of Montara, Moss Beach, El Granada and Miramar. Residents of these communities are known for being passionate about the preservation of their community's natural and built environment, and are very vocal, articulate and knowledgeable regarding the County's design review regulations. Jessica presided over the CDRC's monthly meetings with poise and compassion, keeping the often spirited debate over proposed development projects on topic and on time. In particular, Jessica used her architectural training and expertise and knowledge of the regulations to help develop alternatives that both the applicant and community members could agree on, which often resulted in an approved project that satisfied all parties to the greatest extent feasible. I am certain that Jessica would be a valuable addition to your Planning and Transportation Commission, and would be happy to answer any questions you may have regarding Jessica's service on the CDRC. Please feel free to contact me at 650/363-4852 or laozasa(a smcgov.orq. Sincerely, C17,(-/ Lisa Aozasa Deputy Director LAA:aow — LAABB028 WAN.DOCX BB BB BB BB BB BB PersonalInformation 1RWH 7KH37&UHJXODUO\PHHWVWKHVHFRQGDQGODVW:HGQHVGD\VRIWKHPRQWKDW30 1DPH $GGUHVV &HOO3KRQH +RPH 2IILFH3KRQH (PDLO $UH\RXD3DOR$OWR5HVLGHQW"Yes No 'R\RXKDYHDQ\UHODWLYHVRUPHPEHUVRI\RXUKRXVHKROGZKRDUHHPSOR\HGE\WKH&LW\RI3DOR$OWRZKR DUHFXUUHQWO\VHUYLQJRQWKH&LW\&RXQFLORUZKRDUH&RPPLVVLRQHUVRU%RDUG0HPEHUV"Yes No $UH\RXDYDLODEOHDQGFRPPLWWHGWRFRPSOHWHWKHWHUPDSSOLHGIRU"Yes No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es No How did you Oearn about the vacancy on the Planning and Transportation Commission? &RPPXQLW\*URXS (PDLOIURP&LW\&OHUN 3DOR$OWR:HHNO\ 'DLO\3RVW &LW\:HEVLWH )O\HU 2WKHU BB List relevant education, training, experience, certificates of training, licenses, or professional registration: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ 3ODQQLQJDQG7UDQVSRUWDWLRQ&RPPLVVLRQ <HV1R 3OHDVHHPDLODOOFRPSOHWHGDSSOLFDWLRQVWR-HVVLFD%UHWWOH#&LW\RI3DOR$OWRRUJRU&LW\&OHUN#&LW\RI3DOR$OWRRUJ &LW\&OHUN V2IILFH Meera Saxena I have: - B.Arch from Sir JJ collage of Architecture in Mumbai - M. Arch in Urban Design from U. of Texas in Austin - Was previously licenced to practice arcticture in NY & NJ - Under Dean Marchetto Atchitects (now Marchetto, Higgins Stieve Architects) was princpal planner for the Waterfront plans and Guidelines adopted by the City of Hoboken. - Worked on Multiple urban development and reuse projects for sub-urban areas very much like Palo Alto. Meera Saxena Employment 3UHVHQWRU/DVW(PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJRUZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ Self Employed Architect & Designer I have been involved with the PAUSD in various capacities small and larger. While a parent at Ohlone Elementry school,I came in as a parent volunteer to oversee the design of the schools expansion. I also chaired the Harvest festival for the school for two years. And of course had many smaller duties. I volunteered as a arts aide and taught the "Meet the Masters" programme for the PAUSD arts department. I have been a board member at the Palo Alto Arts Center as well as been a docent for the art exhibitions there. I am also a current member of SV2 with an interest in Housing and environmental issues. Along with my family I have been a canopy volunteer on MLK day for many years (not 2021). Lastly, I have a long list of adhoc volunteer projects maily around hunger and homeless issues. Meera Saxena 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveGYLGHRIURPWKH0LGSHQ0HGLD&HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ I have viewed a number of the videos, thank you for the links. Amoung these issues I have been following the Baylands development, Ventura neighborhood planning and the issues surrounding Buena Vista more closely. They each reflect differnt aspects of what the city needs and show creative solutions for the area. The Baylands has gone from a dump ground to a recreational space incorporating art and a sessivity to the natural environment. Ventura neighborhood gives us the oppertunity to work closely with the residents, create a varierty of housing options and have a plan for open spaces. With my background in Architecture and Urban design combined with a strong interest in the environmental issues I would be a great fit for this commission. Given that I no longer practice architecture there would be no conflict of interest either. I belive we have the opertunity to continue to develop our city with care for traffic movement be it foot, bikes, cars, busses or the trains and keep our open green spaces. I'd like to work towards greater connectivity of the open spaces and diversity in housing across economic groups. Planned with care and the expertice available in our area this can be done with a possitive environmental impact. I am also a strong supporter of community involvement and would be able to integrate that into the discussions of planning. Palo Alto has been my home for 18 years now and I want to see it grow and maintain it's quality and oppertunities for life. Meera Saxena 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RXKDYHH[SHULHQFHZLWKDQ\RIWKHVHGRFXPHQWVSOHDVHGHVFULEHWKDWH[SHULHQFH([SHULHQFH ZLWKWKHVHGRFXPHQWVLVQRWUHTXLUHGIRUVHOHFWLRQ FKDUDFWHUV 3DOR$OWR&RPSUHKHQVLYH3ODQ/,1. =RQLQJ&RGH/,1. &LW\&KDUWHU/,1. &DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW/,1. (O&DPLQR5HDO'HVLJQ*XLGHOLQHV/,1. (O&DPLQR5HDO0DVWHU3ODQ6WXG\/,1. $UHD3ODQVVXFKDVWKH6RXWKRI)RUHVW$YHQXH 62)$ ,DQG,,3ODQV/,1. %D\ODQGV0DVWHU3ODQ/,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ Along with issues of open space and the enviroment Palo Alto should consider the city dividers and how to make them more pedistrian and bike friendly. We have 101, that has one legal acess across for travel by foot or bike, the rail tracks that have multiple issues and ElCamino which could possitively be more "pedistrian and bike friendly". In the other direction we dividers though not a strong. As any planning goes forward there needs to be greater integration of spaces to create a more walkable and bike friendly town. Over the last 18 years I have dealt with the Zoning code while working and helping home owners with additions and renovations to their properties. I have viewed the PA comprehensive plan as well as the Baylands Master Plan. And seen the links to the rest. Meera Saxena Consent to Publish Personal Information on the City of Palo Alto Website &DOLIRUQLD*RYHUQPHQW&RGH6HFWLRQVWDWHVLQSDUW³1RVWDWHRUORFDODJHQF\VKDOOSRVWWKH KRPH DGGUHVV RU WHOHSKRQH QXPEHU RI DQ\ HOHFWHG RU DSSRLQWHG RIILFLDO RQ WKH ,QWHUQHW ZLWKRXW ILUVW REWDLQLQJWKHZULWWHQSHUPLVVLRQRIWKDWLQGLYLGXDO´This consent form will not be redacted and will be attached to the Application and posted to the City’s website. 7KHIXOOFRGHFDQEHUHDGKHUH /,1. 5HDGWKHFRGHDQGFKHFNRQO\21(RSWLRQEHORZ ,JLYHSHUPLVVLRQIRUWKH&LW\RI3DOR$OWRWRSRVWWRWKH&LW\¶VZHEVLWHWKHDWWDFKHG%RDUGDQG &RPPLVVLRQ$SSOLFDWLRQLQWDFW ,KDYHUHDGDQGXQGHUVWDQGP\ULJKWVXQGHU*RYHUQPHQW&RGH 6HFWLRQ ,PD\UHYRNHWKLVSHUPLVVLRQDWDQ\WLPHE\SURYLGLQJZULWWHQQRWLFHWRWKH3DOR $OWR&LW\&OHUN 25 ,UHTXHVWWKDWWKH&LW\RI3DOR$OWRUHGDFWP\KRPHDGGUHVVSKRQHQXPEHUVDQGHPDLODGGUHVV IURPWKHDWWDFKHG%RDUGDQG&RPPLVVLRQ$SSOLFDWLRQSULRUWRSRVWLQJWRWKH&LW\¶VZHEVLWH ,DP SURYLGLQJWKHIROORZLQJDOWHUQDWHLQIRUPDWLRQDQGUHTXHVWWKDWWKH\XVHWKHIROORZLQJFRQWDFW LQIRUPDWLRQLQVWHDG $GGUHVV &HOO3KRQH +RPH 2IILFH3KRQH (PDLO 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ&RPPLVVLRQ 6LJQDWXUH 3OHDVHW\SHRUVLJQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH BBBBBBBBBBBBBJan 25 2021 Meera Saxena Meera Saxena Please email all completed applications to Jessica.Brettle@CityofPaloAlto.org or City.Clerk@CityofPaloAlto.org City Clerk's Office: 650-329-2571 Planning and Transportation Commission Personal Information (Note: The PTC regularly meets the second and last Wednesdays of the month at 6 PM Name: Doria Summa Address: Cell Phone: ()Home / ®Office Phone: E-mail: Are you a Palo Alto Resident? ®Yes ONo Do you have any relatives or members of your household who are employed by the City of RR. lo Alt who are currently serving on the City Council, or who are Commissioners or Board Members? UYes 'IUNo Are you available and committed to complete the term applied for? ®Yes®No Califomia state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you or your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ®Yes ®No Excluding your principal residence, do you or your spouse own real property in Palo Alto? ®Yes®No How did you learn about the vacancy on the Planning and Transportation Commission? ▪ Community Group El Email from City Clerk ▪ Palo Alto Weekly Other: currently serving as ▪ Daily Post ▪ City Website ▪ Flyer planning commissioner List relevant education, training, experience, certificates of training, licenses, or professional registration: (621 characters) Served 3 and 3/4 years on Palo Alto PTC Doria Summa Page 1 0 Planning & Transportation Commission Employment 3UHVHQW RU /DVW (PSOR\HU 2FFXSDWLRQ Describe your involvement in community activities, volunteerLQJ RU ZLWK civic organizations: FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Haiku Tunnel LLC Producer Served on: College Terrace Traffic Calming Committee College Terrace Residential Parking Program Committee College Terrace Residents' Association (CTRA) including President Development Center Customer Advisory Group (DCAG) Comprehensive Plan Update Committee North Ventura Coordinated Area Plan (NVCAP) Committee Palo Alto Planning and Transportation Commission (2016 - present) Doria Summa 1.What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? FKDUDFWHUV 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archiveG YLGHR IURP WKH 0LGSHQ 0HGLD &HQWHU:/,1. FKDUDFWHUV 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Recently, the PTC held a study session on renter protection. Because nearly half of Palo Alto residents are renters, I feel strongly that renter needs need to be considered explicitly in our city planning. This is an important topic and I look forward to future City Council discussions on the matter. I have served on the Planning and Transportation Commission for more than three years. As a commissioner, I have attended every meeting but one, taken my time to familiarize myself with the issues and with the details of Palo Alto's zoning laws and related regulations. I feel strongly that the job of commissioner is not to express or impose one's personal opinions about the merits of particular projects, but to advise the City Council on the extent to which projects are in accordance with the rules and regulations established by the City of Palo Alto. During my tenure on the PTC I have done this faithfully and fairly. This is an important role in Palo Alto and I would like to continue to serve in this capacity. Doria Summa 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? FKDUDFWHUV 4.Planning and Transportation Commission Members work with the documents listed below. If \RX KDYH H[SHULHQFH ZLWK DQ\ RI WKHVH GRFXPHQWV SOHDVH GHVFULEH WKDW H[SHULHQFH ([SHULHQFH ZLWK WKHVH GRFXPHQWV LV QRW UHTXLUHG IRU VHOHFWLRQ FKDUDFWHUV 3DOR $OWR &RPSUHKHQVLYH 3ODQ /,1. =RQLQJ &RGH /,1. &LW\ &KDUWHU /,1. &DOLIRUQLD (QYLURQPHQWDO 4XDOLW\ $FW /,1. (O &DPLQR 5HDO 'HVLJQ *XLGHOLQHV /,1. (O &DPLQR 5HDO 0DVWHU 3ODQ 6WXG\/,1. $UHD 3ODQV VXFK DV WKH 6RXWK RI )RUHVW $YHQXH 62)$ , DQG ,, 3ODQV /,1. %D\ODQGV 0DVWHU 3ODQ /,1. 3DJH 3ODQQLQJ 7UDQVSRUWDWLRQ &RPPLVVLRQ Palo Alto is a great place for people to live, work and raise their families - a goal for the PTC should be to ensure that planning decisions are consistent with our laws and regulations and maintain the high quality of life that we enjoy. I feel that the best way to accomplish this is to ensure that projects are planned in a way that is consistent with our zoning rules and regulations. I have broad experience with all of these documents. Doria Summa Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: e 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0Home / 0 Office Phone: E-mail: Signature: (Please type or sign)Doria Summa Date: 10/17/2020 Page 5 Dori Summa Ei Planning & Transportation Commission City of Palo Alto (ID # 11954) City Council Staff Report Report Type: Action Items Meeting Date: 2/8/2021 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: FY 2022 Financial Balancing Scenarios & FY 2022 -2031 Long Range Financial Forecast Title: Review the Potential Financial Scenarios and Direction to Staff on Development of the Fiscal Year (FY) 2022 Bud get, Review and Accept the FY 2022 Budget Development Guidelines, and Review and Accept the FY 2022 - 2031 Long Range Financial Forecast From: City Manager Lead Department: Administrative Services RECOMMENDATION Staff recommends that the City Council accept the Fiscal Year 2022 to 2031 General Fund Long Range Financial Forecast (Attachment A) and annual Budget Development Guidelines (Attachment C), and that the City Council select a financial scenario to be used for planning and issuance of the FY 2022 Proposed budgets to be considered by the City Council and Finance Committee in May/June 2021. EXECUTIVE SUMMARY The Fiscal Year (FY) 2022 to 2031 General Fund Long Range Financial Forecast (LRFF), typically marks the beginning of the FY 2022 annual budget process. This year, adapting to the current fiscal environment due to an ongoing pandemic, staff has included in this LRFF three items for the City Council’s consideration and direction to staff: - FY 2022 Financial Balancing Scenarios for Council deliberation and direction to staff in preparing the FY 2022 Proposed Budget - Accept the Base Case LRFF, including a discussion of revenue and expense modeling assumptions, to aid in long range financial planning - Accept the FY 2022 Budget Development Guidelines to inform the budget process City of Palo Alto Page 2 This continues the multiple conversations with City Council to discuss the changing financial impacts of COVID-19. The three financial balancing scenarios for the City Council’s review include a two to three year, three to five and five to ten economic recovery where major tax revenues are modeled to reflect the impact of the COVID-19 pandemic and illustrate the financial outlook under several different recovery levels. Staff presented a preliminary one-year outlook of this LRFF at the December 15, 2020 Finance Committee meeting (CMR 11844). The Finance Committee directed staff to include a scenario that reflects more conservative estimates for Sales Tax and Transient Occupancy Tax (TOT) and a scenario that maintains transfers to infrastructure and salaries at current year (FY 2021) levels. Included in this report is a revised Base Case financial forecast assumes a three to five-year economic recovery (Scenario B) and projects a General Fund gap of $6.8 million in FY 2022. Annual gaps, where expenses outpace forecasted revenue growth range from a shortfall in FY 2026 of $17.6 million that decreases to a $13.0 million shortfall in FY 2031. The Base Case reflects staff’s best estimate given the information available at the time of this report and considers economic outlooks by UCLA Anderson and other resources. The forecast will be refined as new information becomes available and is intended to provide a preliminary forecast that can help gauge future policy or funding decisions and assumes that the world continues to change and unfold in line with current expectations. Of important note, the LRFF assumes that the significant reductions taken in the FY 20 21 Adopted Budget continue throughout the forecast period. A more detailed discussion of these reductions is included later on in this document. The budgetary gaps projected in this forecast suggest that it will again be necessary to prioritize spending an d consider additional service reductions over the next four to five fiscal years to ensure continued financial stability. More detailed guidelines or Budget Policies to inform the development of the FY 2022 Budget (Attachment C) and potential financial balancing strategies to resolve the anticipated budgetary gap are discussed at the end of this document. Looking forward, the City continues to face several pressures from the financial impacts of the COVID-19 shelter in place orders to fund the 2014 Counci l approved Infrastructure Plan projects (including the new public safety building) and the growing costs of pension benefits and labor costs due to the current labor market and cost of living around Palo Alto. The continued policy direction from the City Council regarding proactively addressing the pension obligations, including the direction to assume a lower discount rate in calculating pension costs, is contained in the Base Case forecast model. The City will continue to face critical choices in order to balance short- and long-term revenue projections based on the current economic situation and unknown impacts of the COVID-19 pandemic. City of Palo Alto Page 3 Included in this report and subsequent documents are the following: - FY 2021 Adopted Budget reductions recap and discussion of the current financial and economic climate. - FY 2022 Financial Balancing Scenarios including a) $4 million reduction; b) $7 million reduction; and c) $11 million reduction (details in Attachment A) - Base Case LRFF Forecast (Attachment A) and discussion of revenue and expense modeling assumptions (Attachment B) - Alternative LRFF Forecast Scenarios that maintains transfers to infrastructure and salaries at current year (FY 2021) levels - FY 2022 Budget Development Guidelines to inform the budget process (Attachment C) Palo Alto serves a diverse community with a broad range of unique services that adds to the significant complexity of managing a balanced budget and healthy long-range financial outlook. The demands and conflicts emerging from our vibrant economy have heightened the intensity of the “Palo Alto Process”. New analyses and data generation demands require deep dives into complex problem-solving within an engaged public process across a wide range of issues. These forecast figures present staff with the challenge of prioritizing the growing needs of the City with the long-term fiscal sustainability of these needs. BACKGROUND The Office of Management and Budget (OMB) produces a ten -year General Fund Long Range Financial Forecast (LRFF) annually. The LRFF reflects staff’s best estimates on the projected revenues and expenditures over the next ten years based on the information that is currently available. It is important to note that the LRFF is a planning document and is separate and distinct from the development of the City’s annual Operating and Capital Budgets. There are assumptions and parameters modeled in the LRFF and these assumptions are revised and refined as more information becomes available through the budget development process. The LRFF contains a comprehensive review of the costs to provide current City Council approved service levels, including current contracts, updates to salaries and benefits based on the current population of employees, and the current labor contracts in effect. Since the great recession, the City has approved many strategies to mitigate rising costs, especially the rising increase in salaries and benefits. Strategies that have been used include: a second pension tier, employees sharing in health plan cost increase s, and shifting from employer-paid member contributions to employee pick-up of a portion of the employer share for pensions. Since 2016, rounds of negotiations with bargaining units have resulted in employees not only paying their full portion of CalPERS contributions but also beginning a cost- sharing program wherein employees contribute a certain percentage of the City’s required employer pension contribution. These strategies have helped to create the financial capacity to invest proactively in the City’s Pension Trust, supporting the City’s commitments to employees while ensuring fiscal sustainability. Most recently, concessions were achieved with the deferral of salary increases in FY 2021 in the majority of units, excluding SEIU. City of Palo Alto Page 4 The City Council continues to invest in the community and approved significant improvements in June 2014 with the Infrastructure Plan (IP) in the original amount of $125.8 million with most current cost estimate of approximately $260.5 million. The largest of the IP projects in terms of cost, the New Public Safety Building budgeted at $118.0 million and as this report was developed, is planned for consideration by the City Council on February 1, 2021 (CMR 11752). The estimated annual debt service costs associated with the bond funding for the project is a long-term cost that will be evaluated by the City Council before awarding the construction contract (CMR 11665). A status report of the General Capital Improvement Fund for FY 2021 was reviewed by the City Council on January 25, 2021 (CMR 11808). This report includes a review of the potential impacts to the five-year capital improvement plan due to unknown financial impacts in the current fiscal environment. FY 2021 Adopted Budget Reductions Important to recall are the actions that the Palo Alto City Council lead as it boldly recognized the financial impacts of the pandemic and worked to address it. The City Council provided direction on May 4, 2020 (CMR 11315) to assume a conservative revenue estimate, a loss of $39 million in General Fund tax revenues, in the development of the FY 2021 budget. This reflected the severity of the current public health emergency and its impacts on the City’s financial status. The City Council reviewed the FY 2021 Proposed Operating Budget along with CMRs 11322 and 11376 and other at places materials over the course of a series of public budget hearings that took place May 11 through May 13, 2020 and provided tentative approvals, changes, and areas for further follow up. The City Council adopted a balanced budget that incorporated all feedback and changes from the budget hearings in CMR 11330 on June 22, 2020. Approximately half of the expense reductions were executed through service reductions in General Fund departments. Those adjustments are summarized below and outlined in detail in CMR 11330. The base case scenario in this forecast assumes that these service reductions persist in FY 2022 and throughout the ten-year timeframe. Public Safety: FY 2021 adjustments included an increase of $1.55 million in program revenues and a reduction of $7.3 million in expenses in the General Fund, including 33.27 full -time and 2.28 part-time staffing freezes. These actions included suspensions of specialized police units such as the traffic enforcement and investigation units to maintain minimal police patrol services and shift the priority of police services to urgent calls, lowering capacity to respond to nonurgent calls. Limited officer training, promotional testing, uniform purchases and eliminated or changed to full cost recovery non-essential programming such as school resource officers. Curtailed dispatch, communication, and emergency preparedness services, as well as emergency incident response and training and work to adopt fees to increase r evenue for first responder and ambulance subscription. Community & Library Services: FY 2021 reductions included $0.3 million in program revenues and $4.9 million in expenses in the General Fund, including 16.1 full-time and 21.02 part-time staffing freezes. These actions reduced library hours at all branches, keeping neighborhood City of Palo Alto Page 5 libraries (Children’s, Downtown, and College Terrace) open three days a week and full-service branches (Mitchell Park and Rinconada) open six days per week. This includes greater cost- recovery through changes in service delivery, charges for services, and/or limiting operating hours for facilities such as the new Junior Museum and Zoo (JMZ), community centers, open space preserves, the Children's Theatre, and the Art Center. These actions also reduced or eliminated programming such as special events, art exhibits, human services activities, and teen programs. Planning, Transportation, and Infrastructure: FY 2021 reductions included $2.1 million in program revenues and $6.1 million in expense in the General Fund, including 8.25 full-time and 1.44 part-time staffing freezes. Included were actions to reduce administration, code enforcement, front counter support, and inspection services. Understanding that this could delay services to the development community, the building inspection and plan review team was reorganized to minimize the impacts to lead times for inspections, progress on the Energy Reach Code, and the ability to meet next day inspections. The Crosstown and Embarcadero shuttle programs were eliminated, and the delivery of this service redesigned to reduce costs. Additionally, funding for tree trimming and vehicle replacement was reduced for one year and rate changes in various utility enterprise funds were suspended for the coming year(s). Internal Services & Council Appointed Officers: FY 2021 reductions included $2.9 million in operating expenses in the General Fund, including 5.9 full-time and 0.96 part time staffing freezes. Internal Services departments include the Information Technology, Human Resources, and Administrative Services Departments as well as the Council and appointed officers (City Manager, City Attorney, City Auditor and City Clerk). Reductions in these areas align with the changes in services, increasing timeframes for assistance and review in areas such as recruitments, procurements, performance reporting, and risk management. Technology solutions will be constrained to only essential contracts and systems and support equipment needs as majority of our workforce continues to work from home. The City Council, Innovation and Special Events, and Human Recourses contingency accounts were eliminated in FY 2021 on a one-time basis. The Economy National, state, regional and local economic indicators show promising third calendar quarter results and economic recovery relies on continued resumption of economic activity, a viable vaccine, and containing the spread of COVID-19. As of the development of this report, fourth calendar quarter economic indicators were not yet available; the data below presents information as of the third calendar quarter of 2020. The full economic effects of the COVID-19 pandemic and its recent resurgence is difficult to predict and becomes less certain as the new round of virus spread has led to activity restrictions in Santa Clara County and across the Bay Area, state and nation. Although Federal stimulus packages have contributed to the positive economic indicators at the end of the third quarter, two more months have passed without a new federal stimulus package as some income and business supports will expire by year end with more restrictive shelter in place orders. More restaurants and other small businesses in City of Palo Alto Page 6 Palo Alto have closed either temporarily or permanently. While there has been positive news in the last few months regarding a coronavirus vaccine, major benefits seen from the vaccine administration are not expected until the next fiscal year when distribution is widespread. Staff will continue to monitor short-term economic trends and report back to council as new information is available. According to the US Bureau of Economic Analysis, the U.S. economy’s national gross domestic product (GDP) grew by 33.1 percent in the third calendar quarter of 2020 following a record plunge of 31.4 percent in the second quarter. The increase in the third quarter reflects a surge in personal spending as efforts to reopen businesses and resume activities that were postponed or restricted due to the COVID-19 pandemic continue. The national consumer price index (CPI), as of the third calendar quarter has grown 0.2 percent and trails behind larger increases in July and August, respectively 0.6 percent and 0.4 percent. The following graphs depict the GDP and unemployment trends over the past few years. Table 1: The nation’s unemployment rate fell to 7.9 percent in the third calendar quarter, compared to a record high of 14.7 percent at the onslaught of the pandemic in April. It is expected that unemployment will remain above the pre-pandemic levels, averaging around 3.5 percent, as the labor market recovers from COVID-19 shock and signs of economic slowdown surrounding the winter resurgence of virus infections. In the California labor market, the end of October unemployment rate of 9.3 percent marks the first month since March 2020 that the State’s unemployment rate was below 10 percent and the fifth straight month it fell below the all -time unemployment rate high of 16.4 percent in April and May of 2020. The improved unemployment rates are driven by job gains in the leisure, hospitality and accommodation; food services; arts, and entertainment and professional, scientific, and technical services. These trends are still far from pre-COVID employment levels and may change in the coming month with uncertainty of COVID-19 statistics over the winter months. Bay Area job growth has been City of Palo Alto Page 7 led by the Peninsula and for the past several years. The unemployment rate for the San Francisco Peninsula improved to 6.5 percent in October 2020 compared to 7.7 percent in September 2020. At the national level, job gains in leisure and hospitality, professional and business services, retail, and construction are positive; these gains heavily rely on health orders and their impact on business. Table 2: U.S. Unemployment Rate DISCUSSION While mindful of the unprecedented circumstances the City continues to face, this staff report provides additional details to inform the City Council and to gain further direction for staff for the development of the FY 2022 Proposed budgets. The scenarios outlined in this staff report reflect the tough budget decisions the City continues to face. In addition, following these scenarios is a Base case long-range ten-year forecast. As with all forecasts, there is uncertainty regarding the revenue and expenditure estimates contained in this document. For example, General Fund revenues may exceed or fall below expectations based on changes in economic or non-economic conditions. Various cost elements can also vary from year to year. This Forecast, along with the alternative revenue scenarios, allows City Council to discuss both the short-term and long-term financial status of current service levels in the General Fund . It also informs daily policy decisions on both long-term goals and ongoing challenges. In addition, it provides the potential dollar and percent service reduction impacts associated with each model. Staff is seeking Council guidance on which financial model to use in development of the FY 2022 Proposed Budget. FY 2022 Financial Balancing Scenarios City of Palo Alto Page 8 Depending on the length and depth of this current public health emergency, the ongoing severity of the financial ramifications remain unknown. For modeling purposes, the base case assumes a moderately paced recovery with the recession continuing through FY 2027 and economically sensitive tax revenues reaching pre-COVID levels towards the end of the 10-year forecast. Based on revised information, potential timelines, travel and the recovery of the local economy, staff has prepared two alternative scenario models that reflect the range of impact if the economy experiences recovery at an earlier, moderate, and slower rate for the City’s economically sensitive tax revenues – property tax, sales tax, and TOT. Staff has provided these scenarios for the City Council to discuss and provide guidance to staff on which scenario to use to prepare the FY 2022 Proposed Budget. Inevitably, the scenario chosen will directly correlate with the level of service impacts that may be felt on top of those service impacts already felt in the FY 2021 Adopted Budget. Ultimately it is estimated that in addition to the $39 million loss in major tax revenues projected in FY 2021, these scenarios reflect additional deficits ranging between $4 million and $11 million in FY 2022. This would reflect a total reduction in service and capital investments of up to $50 million, or 22 percent of the City’s pre-pandemic General Fund. Below are options to consider as direction to staff for potential FY 2022 budget balancing actions: a) Build a FY 2022 Proposed Budget assuming Scenario A, assuming a $4 million overall General Fund reduction b) Build a FY 2022 Proposed Budget assuming Scenario B or the Base Forecast, including a $7 million General Fund reduction c) Build a FY 2022 Proposed Budget assuming Scenario C, assuming a $11 million overall General Fund reduction The financial balancing scenario that is selected will correlate with the level of service impacts that may be felt. These scenarios will assist staff in primarily preparing the FY 2022 Proposed Budget and five-year capital plan. The focus of the balancing scenarios is to guide the FY 2022 budget process. Staff has used the Scenario B as the Base Forecast to model the full, 10-year timeline that is typical for long range financial planning. While the economy changes as the world adjusts to the COVID-19 pandemic and its financial impacts, staff will continue to produce a LRFF annually in subsequent budget processes, including continual updates throughout the year . Modeling in the long term is important for planning longer term investments, including capital, debt obligations, and other liabilities. The following tables summarize the Annual One-Time Surplus/(Gap) and Net Operating Margin for the three financial balancing scenarios for FY 2022-2026 and a comparison of the FY 2022 major tax revenue for each model. Throughout each scenario, the projected net operating gaps are driven by growth in the cost to deliver current services outpacing expected revenue growth over the next five years. Details of the scenarios can be found in Attachment A. City of Palo Alto Page 9 Table 3: Financial Balancing Scenarios – Annual One-Time Surplus/(Gap) and Net Operating Margins for FY 2022 to 2026 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Cumul. Surplus/(Gap) Balancing Scenario A Net One-Time Surplus/(Gap)($476)$1,678 ($3,124)($7,719)($7,522)($8,737)($9,187) Net Operating Margin 1,678 (3,124)(4,595)197 (1,215)(450)(9,187) Balancing Scenario B (Base Case) Net One-Time Surplus/(Gap)(476)562 (6,790)(12,684)(13,488)(15,806)(17,558) Net Operating Margin 562 (6,790)(5,894)(804)(2,318)(1,752)(17,558) Balancing Scenario C Net One-Time Surplus/(Gap)(476)(700)(10,617)(17,476)(19,041)(22,807)(25,927) Net Operating Margin (700)(10,617)(6,859)(1,565)(3,766)(3,120)(25,927) Scenario A: This scenario assumes an economic recovery in which revenues rebound to pre- COVID levels within two to three years. This recovery is heavily reliant on resumption of travel to the region and return to pre-COVID level daytime population (e.g. return to in-person work for office and education employees). This scenario assumes strong consumer confidence in the economy and society feeling safe to resume to normal, pre-COVID activities. Scenario B: This scenario assumes a shelter in place order through this spring/early summer, with an economic recessionary period slowing growth once the order is lifted. This scenario also reflects impacts related to longer term social distancing requirements to continue. In this scenario, revenue levels return to pre-COVID levels in FY’s 2025 and 2026. This scenario most closely aligns with staff’s research and review of economic forecasts, including the UCLA Anderson forecast. Scenario C: This scenario assumes extended impacts associated with prolonged COVID-19 social restrictions, with revenue not returning to pre-COVID levels within the next five years. In FY 2026, total major tax revenues of $126 million are $7.0 million short of pre-COVID levels of $133 million. This reflects the net impact of property tax growth offset by the substantially lower levels of sales tax and TOT. Specifically, for sales tax and TOT, in the fifth year, FY 2026, these revenues remain approximately 10 and 45 percent below FY 2019 actuals, respectively. Annually, major tax revenues are between $7 to $29 million less than pre-COVID levels over the next five years. As outlined in the May 2020 discussion of COVID-19 fiscal scenarios (CMR 11315), the FY 2021 Proposed Budget estimated the same major tax revenues at $145.7 million, which is nearly $40 million higher than the FY 2021 Adopted Budget of $107.2 million. The below table continues this fiscal scenario planning and compares major tax revenues estimates for Scenarios A, B, and C for FY 2022 against pre-COVID actual revenue levels in FY 2019 and the FY 2021 projections. Scenario A anticipates year-over-year growth of 10 percent, or $10 million in additional City of Palo Alto Page 10 revenues. Scenario B estimates year-over-year growth of 5 percent, or an additional $5.2 million in revenues. Scenario C assumes no growth from current year projections. Table 4: Comparison of FY 2022 Tax Revenue Detail for Financial Balancing Scenarios Actual Actual Adopted as of 12/31 Projected Scenario A Scenario B (Base)Scenario C Major Tax Revenues 2019 2020 2021 2021 2022 chg vs FY19 chg vs FY21P 2022 chg vs FY19 chg vs FY21P 2022 chg vs FY19 chg vs FY21P Sales Taxes 36,508$ 30,563$ 20,500$ 25,030$ 30,420$ -17%22%28,034$ -23%12%25,920$ -29%4% Property Taxes 47,327 51,089 52,000 53,173 51,988 10%-2%51,228 8%-4%50,223 6%-6% Transient Occupancy Tax 24,937 18,553 14,900 4,830 10,170 -59%111%8,428 -66%74%6,626 -73%37% General Purpose 16,245 11,568 8,344 2,740 3,051 -81%11%2,529 -84%-8%1,988 -88%-27% Infrastructure 8,692 6,985 6,556 2,090 7,119 -18%241%5,899 -32%182%4,638 -47%122% Documentary Transfer Tax 6,923 6,903 4,700 6,875 7,135 3%4%7,137 3%4%7,013 1%2% Utility Users Tax 16,402 16,140 15,100 14,080 14,370 -12%2%14,370 -12%2%14,327 -13%2% Subtotal: Major Tax Revenues 132,097$ 123,249$ 107,200$ 103,988$ 114,083$ -14%10%109,197$ -17%5%104,109$ -21%0% Change from FY 2019 Actual (18,014)$ -14%(22,900)$ -17%(27,988)$ -21% Change from FY 2021 Prior to COVID (31,643)$ -22%(36,529)$ -25%(41,617)$ -29% Change from FY 2021 Projected 10,095$ 10%5,209$ 5%121$ 0% One-Time Net Surplus/(Gap)($3,124)($6,790)($10,617) Note: Prior to the onset of the COVID-19 pandemic, the FY 2021 Proposed Budget originally estimated $145.7M in receipts for these major tax revenues, a decline of $41.7M from current FY 2021 projections. Financial Balancing Scenario A: Two-Three Year Economic Recovery This alternative scenario depicts a cumulative net operating gap of $9.2 million over the next five fiscal years. Considering the service and capital investment reductions taken in the FY 2021 Adopted Budget, if the $9.2 million cumulative net operating gap is balanced through service reductions, this scenario would result in approximately 20 percent, or $48.2 million, overall budget reduction between FY 2021 and FY 2026. Within five years, this alternative scenario estimates that tax revenues will exceed pre-COVID levels by approximately $15 million, or 12 percent, with sales tax exceeding pre-COVID levels by 9 percent ($3 million) and TOT revenues falling short by 14 percent (-$3 million). Overall, major tax revenues will increase by 6.4 percent, from $107.2 million in the FY 2021 Adopted Bud get, to $114.1 million in FY 2022. Table 5: Financial Balancing Scenario A – Two-Three Year Economic Recovery City of Palo Alto Page 11 Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Total Revenue $209,515 $196,474 $194,271 $201,418 $211,957 $224,563 $232,809 $241,142 -6.2%-1.1%3.7%5.2%5.9%3.7%3.6% Total Expenditures $227,016 $196,950 $192,593 $204,542 $219,676 $232,085 $241,546 $250,329 -13.2%-2.2%6.2%7.4%5.6%4.1%3.6% Net One-Time Surplus/(Gap)($17,501)($476)$1,678 ($3,124)($7,719)($7,522)($8,737)($9,187) Cumulative Net Operating Margin (One-Time)($36,290) Net Operating Margin $1,678 ($3,124)($4,595)$197 ($1,215)($450) Cumulative Net Operating Margin ($9,187) Assumes that the annual shortfalls are solved with ongoing solutions and annual surpluses are spent for ongoing expenditures. Financial Balancing Forecast B: Three-Five Year Economic Recovery Scenario B is discussed later in this report and is modeled 10 years fo r the LRFF. This scenario is based on staff’s economic research that recovery will occur over a three to five-year period, with major tax revenue returning to pre-COVID in FY 2025. In FY 2026, total tax revenues will exceed pre-COVID levels by 3 percent, or approximately $5 million. At the end of the five years, assuming that the annual budget shortfalls are balanced through service reductions, this scenario would result in approximately a cumulative 25 percent, or $56.6 million, overall budget reduction between FY 2021 and FY 2026. Table 6: Financial Balancing Scenario B – Three-Five Year Economic Recovery Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Total Revenue $209,515 $196,474 $193,045 $196,532 $205,162 $216,193 $223,168 $229,605 -6.2%-1.7%1.8%4.4%5.4%3.2%2.9% Total Expenditures $227,016 $196,950 $192,483 $203,322 $217,846 $229,681 $238,974 $247,163 -13.2%-2.3%5.6%7.1%5.4%4.0%3.4% Net One-Time Surplus/(Gap)($17,501)($476)$562 ($6,790)($12,684)($13,488)($15,806)($17,558) Cumulative Net Operating Margin (One-Time)($66,327) Net Operating Margin $562 ($6,790)($5,894)($804)($2,318)($1,752) Cumulative Net Operating Margin ($17,558) Assumes that the annual shortfalls are solved with ongoing solutions and annual surpluses are spent for ongoing expenditures. Financial Balancing Forecast C: Five-Ten Year Economic Recovery The most conservative of the alternative scenarios assumes $26.0 million cumulative net operating gap. Selecting this financial balancing scenario would cumulatively result in approximately $65 million, approximately 30 percent overall budget reductions between FY 2021 through FY 2026. This alternative revenue scenario assumes that major tax revenues will increase by 2.9 percent, from $107.2 million in the FY 2021 Adopted Budget, to $104.1 million in FY 2022. Although sales tax nearly reaches pre-COVID levels in FY 2026, TOT revenues fall below pre-COVID levels by nearly $11 million, or 42 percent. More conservative growth of economically sensitive revenues is assumed with the five-year CAGR for FY 2022 through 2026 being 1.9 percent for tax revenues. It is likely that this scenario is very pessimistic and result in an extreme impact to service levels. City of Palo Alto Page 12 Table 7: Financial Balancing Scenario C – Five-Ten Year Economic Recovery Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Total Revenue $209,515 $196,474 $191,603 $191,444 $198,479 $207,816 $213,849 $218,757 -6.2%-2.5%-0.1%3.7%4.7%2.9%2.3% Total Expenditures $227,016 $196,950 $192,303 $202,061 $215,955 $226,857 $236,656 $244,684 -13.2%-2.4%5.1%6.9%5.0%4.3%3.4% Net One-Time Surplus/(Gap)($17,501)($476)($700)($10,617)($17,476)($19,041)($22,807)($25,927) Cumulative Net Operating Margin (One-Time)($95,869) Net Operating Margin ($700)($10,617)($6,859)($1,565)($3,766)($3,120) Cumulative Net Operating Margin ($25,927) Assumes that the annual shortfalls are solved with ongoing solutions and annual surpluses are spent for ongoing expenditures. Budget Balancing Options for Consideration In conclusion, the City Council has several options to consider on how to continue to address the financial impacts of COVID-19 and proactively plan for a shelter in place order extension and other impacts, and a recessionary recovery, while maintaining flexibility due to the significant number of unknowns still before us. Below are a few options to consider as directio n to the staff regarding potential FY 2022 budget balancing actions: 1) Build a FY 2022 proposed budget assuming Scenario A with a Tier 2 plan that balances Scenario B 2) Build a FY 2022 proposed budget assuming Scenario B 3) Build a FY 2022 proposed budget assuming Scenario B with a Tier 2 plan that balances no less than 50 percent of Scenario C 4) Build a FY 2022 proposed budget assuming Scenario B for FY 2022 and direct staff to reassess Scenarios A, B, and C in Fall 2021 with the Finance Committee for changes in economic conditions 5) Build a FY 2022 proposed budget assuming Scenario C The significant unknowns that the City is facing in terms of the duration and type of shelter in place restrictions continues to be a moving target, as noted above with the recent easing of the State’s Regional Stay at Home Order and related County Shelter in Place restrictions could have a positive impact on the City’s economy in the shorter term. The changes continue to be swift and being able to react in a nimble way, while priori tizing our ability to reengage services and serve this community continues to be a high priority. FY 2022-2031 Long Range Financial Forecast: Base Case The Base Case LRFF projects General Fund financials over the next ten years based on current City Council approved service levels (the “Base Case”). The following table displays the projected General Fund revenues and expenditures over the next decade and the total cumulative gap. In addition to the cumulative gap, the incremental surplus or shortfall (assuming each preceding surplus or shortfall is addressed completely with ongoing solutions in the year it appears) for each year of the forecast is included. Because it is the City’s goal to remain in balance on an ongoing basis, the incremental figure is us eful in that it shows the City of Palo Alto Page 13 additional surplus and/or shortfall attributed to a particular fiscal year. To the extent that a shortfall is not resolved, or a surplus is not expended on an ongoing basis, it is important to understand that the remaining budget gap or surplus will carry over to the following year. The hard work of the City in FY 2021 to proactively balance the budget due to estimated financial impacts from the COVID-19 pandemic is reflected in the base case; however, due to the continued public health crisis most of the major revenue categories remain well below previously forecasted levels. Although services were reduced in the FY 2021 budget, expenditures continue to increase at a rate faster than revenue through the ten -year forecast. To ensure financial stability critical choices over the next four to five years must continue to be made to prioritize spending and services the City wishes to deliver. Throughout the next 10 years, Base Forecast does not restore the approximately $20 million in service reductions that are outlined in the FY 2021 Adopted Budget Reductions section of this report. In addition, other Citywide balancing items, including the base capital transfer, are incrementally restored over a five-year period (additional details for this can be found in the Capital Improvement Fund Update and Status, CMR 11808). The $20 million in service reductions represent 10 percent of the General Fund budget when compared to the pre-COVID service levels in the FY 2020 Adopted Budget. If the $6.8 million budget gap in the FY 2022 Forecast were to be solved with further service reductions, the overall dollar and percent reduction to services will total $27 million, or approximately 12 percent, over two fiscal years. Considering all balancing solutions, service and infrastructure investment reductions will total nearly $46 million, or approximately 20 percent. The FY 2021 budget balancing strategy also included reductions in the General Fund’s capital investment, concessions in the Management and Professional employee group, and adjustments to contributions to the City’s Internal Service Funds. The General Fund’s base transfer towards capital investments continues to be held flat in the FY 2022 Forecast year. Four-year restoration of the $10.7 million reduction of the base transfer begins in FY 2023 with this investment returning pre-COVID levels in FY 2026, not adjusted for inflation. When compared to FY 2021 Adopted Budget, revenue estimates in FY 2022 remain flat; fluctuations in major tax revenues for FY 2021 are discussed in the following sections of this report. Expenditures increase by approximately 3.4 percent in FY 2022 compared to the FY 2021 Adopted Budget. The gap reflected in FY 2022 is mainly the result of increases to Salary and Benefit costs including the restoration of concessions taken by Management/Professional employees and the City's Public Safety labor Groups (Police Officers Association, Police Management Association, International Association of Fire Fighters, Fire Chief's Association) in FY 2021. Although the Forecast anticipates gaps ranging from $11.9 million to a slight budget shortfall in the tenth year of $0.3 million, the short- and long-term impacts from the current public health crisis are still unknown. Further information and analysis of the constantly changing fiscal City of Palo Alto Page 14 impacts from the health crisis will continue to inform the development of the FY 2022 Budget to proactively plan for changes and ensure a structurally balanced budget. TABLE 8: FY 2022 – 2031 Long Range Financial Forecast Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Revenue $196,474 $193,045 $196,532 $205,162 $216,193 $223,168 $229,605 $235,821 $242,126 $248,722 $255,479 $261,330 -1.7%1.8%4.4%5.4%3.2%2.9%2.7%2.7%2.7%2.7%2.3% Total Expenditures $196,949 $192,483 $203,322 $217,846 $229,681 $238,974 $247,163 $252,106 $258,383 $264,833 $268,808 $274,273 -2.3%5.6%7.1%5.4%4.0%3.4%2.0%2.5%2.5%1.5%2.0% Net One-Time Surplus/(Gap)($475)$562 ($6,790)($12,684)($13,488)($15,806)($17,558)($16,285)($16,257)($16,111)($13,329)($12,943) Cumulative Net Operating Margin (One-Time)($141,251) Net Operating Margin $0 ($6,790)($5,894)($804)($2,318)($1,752)$1,273 $28 $146 $2,782 $386 Cumulative Net Operating Margin ($12,943) Assumes that the annual shortfalls are solved with ongoing solutions and annual surpluses are spent for ongoing expenditures. TABLE 9: FY 2022 – 2031 Long Range Financial Forecast Net Operating Margin Budget Stabilization Reserve The City's Budget Stabilization Reserve (BSR) serves as the primary General Fund reserve. By policy, the BSR is maintained in the range of 15 to 20 percent of General Fund operating expenditures, with a target of 18.5 percent. Any reduction to the reserve below 15 percent requires City Council approval. At the discretion of the City Manager, any BSR balance above 18.5 percent may be transferred to the Infrastructure Reserve (IR), which was established to provide funding for maintenance and rehabilitation of the City’s capital assets. The BSR is used to fund unanticipated one-time costs as opposed to ongoing or recurring operating expenditures. The City's intent is to fund ongoing programs and services with ongoing dollars. Maintaining the BSR at 18.5 percent also provides flexibility to the City do deal with unforeseen issues that may arise. Furthermore, establishing, and following, sound fiscal reserve policies has been a strong factor in the City being rated AAA by rating agencies. Based on revenue and expense assumptions in this forecast, where expense levels outpace revenue growth, maintaining the 18.5 percent BSR target will not be achieved over the length of the 10 -year forecast without further cost reductions. City of Palo Alto Page 15 Finance Committee Requested Alternative Forecast Transfers to Infrastructure and Salaries Remain at Current Year (FY 2021) Levels Per direction by the Finance Committee at the December 15, 2020 Committee meeting, this alternative scenario assumes two changes to expense assumptions. First, that the base transfer from the General Fund to the Capital Fund to support infrastructure investments is held at the same level in FY 2022 as in the FY 2021 Adopted Budget; this removes the general CPI that is applied to this transfer. Second, salaries remain at the same level in FY 2022 as the FY 2021 Adopted Budget, regardless of current terms in labor contracts. In addition, furloughs taken by the City’s Management group sunset in FY 2021 however, all salaries remain flat. T his model assumes the same rates of increase for employee benefits as the base model, including healthcare costs, pension benefits, proactive pension contributions as per the City’s Pension Fund Policy and contract with CalPERS. This alternative forecast assumes that wage increases resume beginning in FY 2023, including step increases, merit increases, and negotiated wage adjustments in place. Additional general wage adjustments of 2.0 percent are included in each year of the Forecast for all employees in years when there is not a MOA in effect. This is consistent with prior Council direction to use the 2.0 percent increase as a forecasting model, not as a commitment to future negotiations. Table 10: Alternative Forecast – Transfers to Infrastructure and Salaries Remain at Current Year Levels Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Total Revenue $209,515 $196,474 $193,045 $196,532 $205,162 $216,193 $223,168 $229,605 -6.2%-1.7%1.8%4.4%5.4%3.2%2.9% Total Expenditures $227,016 $196,950 $192,483 $199,666 $215,383 $227,348 $236,730 $244,522 -13.2%-2.3%3.7%7.9%5.6%4.1%3.3% Net One-Time Surplus/(Gap)($17,501)($476)$562 ($3,134)($10,221)($11,155)($13,562)($14,917) Cumulative Net Operating Margin (One-Time)($52,989) Net Operating Margin $562 ($3,134)($7,087)($934)($2,406)($1,356) Cumulative Net Operating Margin ($14,917) Assumes that the annual shortfalls are solved with ongoing solutions and annual surpluses are spent for ongoing expenditures. FY 2022 Budget Development Guidelines As discussed earlier in this document, the LRFF represents the initial steps of the FY 2022 budget development process. In the FY 2019 – FY 2028 Long Range Financial Forecast presented in December 2018, staff included budget development guidelines based on the trends that were identified and the anticipated fiscal condition of the City. Due to the clear overlap of projecting the City’s fiscal condition over the next ten years and the need to shape service level expectations over the same time period, staff recommends that the inclusion of Budget Development Guidelines be incorporated into the Long Range Financial Forecast on an ongoing basis. City of Palo Alto Page 16 As the City and the County move through different phases of recovery from the COVID-19 pandemic, the City adapts operations to best support and serve the community. County Public Health Orders and State Public Health restrictions impact both the cost of delivering City services and the revenues that pay for them (both taxes and fees). Often, staff finds that it takes increased resources to deliver the same quantity of service in modified ways to ensure the safety of the community and employees This year, the FY 2022 Budget Development Guidelines are detailed in Attachment C. They are meant to reflect the anticipated fiscal condition of the City and to provide high-level budgetary direction to the organization. These guidelines will shape and inform the annual financial planning and the allocation of resources across the organization, especially in the General Fund . Further, strategic work is underway focused on a Community and Economic Recovery Strategy. On November 30, 2020 (CMR 11790) the City Council held a study session to discuss and consider areas of focus to inform and build a Palo Alto specific recovery strategy. Key to the City Council’s and staff’s fiscal and recovery planning is the important work underway to understand the fiscal implications of possible recovery scenarios. This includes the potential for City actions to affect economic recovery and associated impacts on City revenues. This, in turn, affects the level and nature of services the City can deliver to the community. When the Fiscal Sustainability Workplan (CMR 10267) was approved by the City Council on April 22, 2019 drafting a budget development policy was listed as part of the “Newly proposed or potential activities proposed to be completed”. The inclusion of Budget Development Guidelines in this, and future years’, Long Range Financial Forecast represents staff’s recommended method of addressing this referral. Pairing Budget Development Guidelines with the Long Range Financial Forecast links the anticipated fiscal condition of the organization with the necessary context regarding service delivery prioritization and resource allocation that will be further explored through the process. Including the Budget Development Guidelines with the Long Range Financial Forecast ensures that the City is able to proactively address anticipated changes in its fiscal condition through the budget process. City of Palo Alto Page 17 Conclusion The FY 2022 – 2031 Long Range Financial Forecast provides context to proactively approach th e budget constraints faced by the City over the next 10 years. Specifically, financial impacts of the COVID-19 pandemic and health orders have significantly restrained consumer spending, resulting in weakened job market, and uncertainty of how and when the economy will rebound. Although economic indicators in the past month show some promise, the surge in COVID-19 infections in the late fall reverted cities in Santa Clara County to a more restrictive “purple tier.” Positive economic trends and containment of the virus hinge of the viability of an effective vaccine and society’s ability to adapt while ensuring safety. The financial balancing scenario that is selected will have a direct impact to the level of service impacts that may be felt. All three financial balancing scenarios assume the continuation of service reductions taken in the FY 2021 Adopted Budget as well as no additional incoming resources to sustain the current expense levels through the length of the forecast. As the fiscal year progresses and as trends for this year materialize, prioritizing spending and services the City wishes to continue will be paramount in the City’s financial stability. STAKEHOLDER ENGAGEMENT The LRFF represents the beginning of the Fiscal Year 2022 budget developmen t process. As in previous years, the City Council discussion of LRFF will provide guidance to staff in the budget development process. It is anticipated that conversations with City Council and the community will occur through public budget hearings in Spring 2021. Staff will continue to bring forward updates regarding the City’s financial outlook as new information becomes available. RESOURCE IMPACT Financial implications from this report and input from the City Council will be considered in the City Manager’s development of the Fiscal Year 2022 budget. ENVIRONMENTAL IMPACT This report is not a project for the purposes of the California Environmental Quality Act. Environmental review is not required. . Attachments: • Attachment A: Long Range Financial Forecast Base Forecast and Financial Balancing Scenarios • Attachment B: FY 2022 - 2031 Long Range Financial Forecast Revenue & Expense Assumptions • Attachment C: FY 2022 Budget Development Guidelines FY 2022‐2031 General Fund Long Range Financial Forecast Revenue Table Base Forecast ATTACHMENT A Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 CAGR 10 Years Sales Taxes $30,563 $20,500 $25,030 $28,034 $30,557 $32,543 $34,170 $35,366 $36,604 $37,555 $38,532 $39,534 $40,562 7.1% Property Taxes 51,089 52,000 53,173 51,228 52,124 54,844 57,038 59,320 61,693 64,160 66,727 69,396 72,172 3.3% Transient Occupancy Tax General Purpose 11,568 8,344 2,740 2,529 2,950 4,300 4,601 4,924 5,194 5,444 5,699 5,979 6,278 ‐2.8% Infrastructure 6,985 6,556 2,090 5,899 8,849 11,628 12,442 13,312 14,045 14,719 15,411 16,166 16,974 10.0% Documentary Transfer Tax 6,903 4,700 6,875 7,137 7,246 7,451 7,701 7,965 8,245 8,543 8,853 9,195 9,553 7.4% Utility Users Tax 16,140 15,100 14,080 14,370 14,801 15,263 15,767 16,240 16,646 17,062 17,488 17,925 18,374 2.0% Other Taxes and Fines 1,172 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 0.0% Subtotal: Taxes 124,422 109,125 105,913 111,122 118,452 127,954 133,644 139,052 144,352 149,408 154,635 160,120 165,838 4.3% Charges for Services 23,557 25,418 25,418 24,934 25,087 25,629 25,928 26,235 26,552 26,878 27,214 27,560 27,878 0.9% Permits and Licenses 8,038 8,336 8,336 8,273 8,717 9,015 9,310 9,484 9,597 9,828 10,139 10,330 9,280 1.1% Return on Investments 1,419 1,100 883 852 816 789 808 831 855 880 906 936 966 ‐1.3% Rental Income 16,037 16,022 16,022 15,534 15,935 16,347 16,772 17,210 17,662 18,127 18,605 19,096 19,600 2.0% From Other Agencies 1,529 551 551 551 508 508 508 508 508 508 508 508 508 ‐0.8% Charges to Other Funds 11,099 11,992 11,992 11,364 11,743 12,042 12,285 12,368 12,375 12,573 12,788 12,998 13,325 1.1% Other Revenue 2,848 2,571 2,571 2,539 2,540 2,541 2,541 2,542 2,543 2,544 2,545 2,546 2,546 ‐0.1% Total Non‐Tax Revenue 64,526 65,990 65,773 64,048 65,345 66,871 68,153 69,179 70,092 71,338 72,704 73,973 74,104 1.2% Operating Transfers‐In 20,568 21,359 21,359 21,362 21,365 21,368 21,371 21,374 21,377 21,380 21,383 21,386 21,389 0.0% BSR Contribution (One‐Time) Total Source of Funds $209,515 $196,474 $193,045 $196,532 $205,162 $216,193 $223,168 $229,605 $235,821 $242,126 $248,722 $255,479 $261,330 Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Sales Taxes ‐32.9% 22.1% 12.0% 9.0% 6.5% 5.0% 3.5% 3.5% 2.6% 2.6% 2.6% 2.6% Property Taxes 1.8% 2.3%‐3.7% 1.7% 5.2% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Transient Occupancy Tax General Purpose ‐27.9%‐67.2%‐7.7% 16.6% 45.8% 7.0% 7.0% 5.5% 4.8% 4.7% 4.9% 5.0% Infrastructure ‐6.1%‐68.1% 182.2% 50.0% 31.4% 7.0% 7.0% 5.5% 4.8% 4.7% 4.9% 5.0% Documentary Transfer Tax ‐31.9% 46.3% 3.8% 1.5% 2.8% 3.4% 3.4% 3.5% 3.6% 3.6% 3.9% 3.9% Utility Users Tax ‐6.4%‐6.8% 2.1% 3.0% 3.1% 3.3% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5% Other Taxes and Fines 64.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Subtotal: Taxes ‐12.3%‐2.9% 4.9% 6.6% 8.0% 4.4% 4.0% 3.8% 3.5% 3.5% 3.5% 3.6% Charges for Services 7.9% 0.0%‐1.9% 0.6% 2.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.3% 1.2% Permits and Licenses 3.7% 0.0%‐0.8% 5.4% 3.4% 3.3% 1.9% 1.2% 2.4% 3.2% 1.9%‐10.2% Return on Investments ‐22.5%‐19.7%‐3.5%‐4.2%‐3.3% 2.4% 2.8% 2.9% 2.9% 3.0% 3.3% 3.2% Rental Income ‐0.1% 0.0%‐3.0% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% From Other Agencies ‐63.9% 0.0% 0.0%‐7.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Charges to Other Funds 8.1% 0.0%‐5.2% 3.3% 2.5% 2.0% 0.7% 0.1% 1.6% 1.7% 1.6% 2.5% Other Revenue ‐9.7% 0.0%‐1.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Non‐Tax Revenue 2.3%‐0.3%‐2.6% 2.0% 2.3% 1.9% 1.5% 1.3% 1.8% 1.9% 1.7% 0.2% Operating Transfers‐In 3.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% BSR Contribution (One‐Time) Total Source of Funds ‐6.2%‐1.7% 1.8% 4.4% 5.4% 3.2% 2.9% 2.7% 2.7% 2.7% 2.7% 2.3% Attachment A-1 FY 2022‐2031 General Fund Long Range Financial Forecast Expense Table Base Forecast ATTACHMENT A Expenditures & Other Uses Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 CAGR 10 Years Salary $72,958 $67,421 $67,421 $70,649 $72,862 $74,708 $76,559 $78,175 $79,814 $81,445 $83,075 $84,936 $86,317 2.5% Benefits 60,257 57,121 57,121$ 62,420 65,545 68,078 70,444 71,265 71,347 72,611 73,874 75,253 76,623 3.0% Subtotal: Salary & Benefits 133,216 124,541 124,541 133,069 138,407 142,786 147,003 149,441 151,161 154,055 156,949 160,189 162,940 2.7% Contract Services 25,360 21,953 21,953 20,710 21,220 22,147 22,747 23,365 24,003 24,658 25,334 26,031 26,748 2.0% Supplies & Material 2,710 2,975 2,975 3,027 3,102 3,194 3,289 3,387 3,488 3,592 3,699 3,809 3,922 2.8% General Expense 9,755 9,079 9,079 7,526 7,597 7,684 7,774 8,424 9,164 10,080 11,023 9,156 9,200 0.1% Rents & Leases 1,520 1,862 1,862 1,913 1,966 2,021 2,079 2,139 2,200 2,262 2,326 2,393 2,461 2.8% Facilities & Equipment 462 427 427 435 446 459 473 487 501 516 531 547 563 2.8% Allocated Charges 21,771 18,311 18,311 19,310 21,129 21,634 22,042 22,478 22,949 23,421 23,987 24,443 24,871 3.1% Total Non Sal/Ben Before Transfers 61,579 54,607 54,607 52,921 55,459 57,139 58,403 60,280 62,304 64,529 66,900 66,378 67,764 2.2% Operating Transfers‐Out 8,049 4,334 4,334 4,428 4,458 4,489 4,520 4,556 4,588 4,625 4,662 4,695 4,733 0.9% Transfer to Infrastructure ‐ Base 17,187 6,911 6,911 7,006 10,673 13,640 16,607 19,575 20,009 20,455 20,912 21,381 21,862 12.2% Transfer to Infrastructure ‐ TOT 6,985 6,556 2,090 5,899 8,849 11,628 12,442 13,312 14,045 14,719 15,411 16,166 16,974 10.0% Total Use of Funds $227,015 $196,949 $192,483 $203,322 $217,846 $229,681 $238,974 $247,163 $252,106 $258,383 $264,833 $268,808 $274,273 3.4% Expenditures & Other Uses Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Salary ‐7.6% 0.0% 4.8% 3.1% 2.5% 2.5% 2.1% 2.1% 2.0% 2.0% 2.2% 1.6% Benefits ‐5.2% 0.0% 9.3% 5.0% 3.9% 3.5% 1.2% 0.1% 1.8% 1.7% 1.9% 1.8% Subtotal: Salary & Benefits ‐0.2%‐0.2% 6.8% 4.0% 3.2% 3.0% 1.7% 1.2% 1.9% 1.9% 2.1% 1.7% Contract Services ‐13.4% 0.0%‐5.7% 2.5% 4.4% 2.7% 2.7% 2.7% 2.7% 2.7% 2.8% 2.8% Supplies & Material 9.8% 0.0% 1.7% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% General Expense ‐6.9% 0.0%‐17.1% 0.9% 1.1% 1.2% 8.4% 8.8% 10.0% 9.3%‐16.9% 0.5% Rents & Leases 22.5% 0.0% 2.7% 2.8% 2.8% 2.8% 2.9% 2.9% 2.8% 2.8% 2.9% 2.8% Facilities & Equipment ‐7.7% 0.0% 1.9% 2.5% 2.9% 3.1% 3.0% 2.9% 3.0% 2.9% 3.0% 2.9% Allocated Charges ‐15.9% 0.0% 5.5% 9.4% 2.4% 1.9% 2.0% 2.1% 2.1% 2.4% 1.9% 1.8% Total Non Sal/Ben Before Transfers 3.1% 3.1%‐3.1% 4.8% 3.0% 2.2% 3.2% 3.4% 3.6% 3.7%‐0.8% 2.1% Operating Transfers‐Out ‐46.2% 0.0% 2.2% 0.7% 0.7% 0.7% 0.8% 0.7% 0.8% 0.8% 0.7% 0.8% Transfer to Infrastructure ‐ Base ‐59.8% 0.0% 1.4% 52.3% 27.8% 21.8% 17.9% 2.2% 2.2% 2.2% 2.2% 2.2% Transfer to Infrastructure ‐ TOT ‐6.1%‐68.1% 182.2% 50.0% 31.4% 7.0% 7.0% 5.5% 4.8% 4.7% 4.9% 5.0% Total Use of Funds ‐13.2%‐2.3% 5.6% 7.1% 5.4% 4.0% 3.4% 2.0% 2.5% 2.5% 1.5% 2.0% Attachment A-2 FY 2022‐2031 General Fund Long Range Financial Forecast Revenue Table Financial Balancing Scenario A ATTACHMENT A Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 CAGR 5 Years Sales Taxes $30,563 $20,500 26,000 $30,420 $34,070 $36,455 $38,278 $39,618 2.7% Property Taxes 51,089 52,000 53,173 51,988 52,898 55,643 58,425 61,785 1.7% Transient Occupancy Tax ‐ ‐ General Purpose 11,568 8,344 2,885 3,051 3,559 5,189 5,553 5,941 6.9% Infrastructure 6,985 6,556 2,200 7,119 10,679 14,032 15,014 16,065 8.5% Documentary Transfer Tax 6,903 4,700 6,875 7,135 7,246 7,450 7,700 7,965 1.1% Utility Users Tax 16,140 15,100 14,081 14,370 14,870 15,630 16,390 17,290 1.9% Other Taxes and Fines 1,172 1,925 1,925 1,925 1,925 1,925 1,925 1,925 0.0% Subtotal: Taxes 124,422 109,125 107,139 116,008 125,247 136,324 143,285 150,589 2.6% Charges for Services 23,557 25,418 25,418 24,934 25,087 25,629 25,928 26,235 0.5% Permits and Licenses 8,038 8,336 8,336 8,273 8,717 9,015 9,310 9,484 1.4% Return on Investments 1,419 1,100 883 852 816 789 808 831 ‐0.2% Rental Income 16,037 16,022 16,022 15,534 15,935 16,347 16,772 17,210 1.0% From Other Agencies 1,529 551 551 551 508 508 508 508 ‐0.8% Charges to Other Funds 11,099 11,992 11,992 11,364 11,743 12,042 12,285 12,368 0.9% Other Revenue 2,848 2,571 2,571 2,539 2,540 2,541 2,541 2,542 0.0% Total Non‐Tax Revenue 64,526 65,990 65,773 64,048 65,345 66,871 68,153 69,179 0.8% Operating Transfers‐In 20,568 21,359 21,359 21,362 21,365 21,368 21,371 21,374 0.0% BSR Contribution (One‐Time) Total Source of Funds $209,515 $196,474 $194,271 $201,418 $211,957 $224,563 $232,809 $241,142 Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Sales Taxes ‐32.9% 26.8% 17.0% 12.0% 7.0% 5.0% 3.5% Property Taxes 1.8% 2.3%‐2.2% 1.8% 5.2% 5.0% 5.8% Transient Occupancy Tax General Purpose ‐27.9%‐65.4% 5.8% 16.7% 45.8% 7.0% 7.0% Infrastructure ‐6.1%‐66.4% 223.6% 50.0% 31.4% 7.0% 7.0% Documentary Transfer Tax ‐31.9% 46.3% 3.8% 1.6% 2.8% 3.4% 3.4% Utility Users Tax ‐6.4%‐6.7% 2.1% 3.5% 5.1% 4.9% 5.5% Other Taxes and Fines 64.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Subtotal: Taxes ‐12.3%‐1.8% 8.3% 8.0% 8.8% 5.1% 5.1% Charges for Services 7.9% 0.0%‐1.9% 0.6% 2.2% 1.2% 1.2% Permits and Licenses 3.7% 0.0%‐0.8% 5.4% 3.4% 3.3% 1.9% Return on Investments ‐22.5%‐19.7%‐3.5%‐4.2%‐3.3% 2.4% 2.8% Rental Income ‐0.1% 0.0%‐3.0% 2.6% 2.6% 2.6% 2.6% From Other Agencies ‐63.9% 0.0% 0.0%‐7.9% 0.0% 0.0% 0.0% Charges to Other Funds 8.1% 0.0%‐5.2% 3.3% 2.5% 2.0% 0.7% Other Revenue ‐9.7% 0.0%‐1.2% 0.0% 0.0% 0.0% 0.0% Total Non‐Tax Revenue 2.3%‐0.3%‐2.6% 2.0% 2.3% 1.9% 1.5% Operating Transfers‐In 3.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% BSR Contribution (One‐Time) Total Source of Funds ‐6.2%‐1.1% 3.7% 5.2% 5.9% 3.7% 3.6% Attachment A-3 FY 2022‐2031 General Fund Long Range Financial Forecast Revenue Table Financial Balancing Scenario C ATTACHMENT A Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 CAGR 5 Years Sales Taxes $30,563 $20,500 24,000 $25,920 $27,734 $29,676 $30,863 $31,943 2.1% Property Taxes 51,089 52,000 53,173 50,223 51,102 53,788 55,133 56,511 1.2% Transient Occupancy Tax ‐ ‐ General Purpose 11,568 8,344 2,508 1,988 2,319 3,256 3,745 4,007 7.3% Infrastructure 6,985 6,556 1,910 4,638 6,958 8,804 10,124 10,833 8.9% Documentary Transfer Tax 6,903 4,700 6,875 7,013 7,188 7,368 7,515 7,665 0.9% Utility Users Tax 16,140 15,100 14,080 14,327 14,543 14,760 15,020 15,320 0.7% Other Taxes and Fines 1,172 1,925 1,925 1,925 1,925 1,925 1,925 1,925 0.0% Subtotal: Taxes 124,422 109,125 104,471 106,034 111,769 119,577 124,325 128,204 1.9% Charges for Services 23,557 25,418 25,418 24,934 25,087 25,629 25,928 26,235 0.5% Permits and Licenses 8,038 8,336 8,336 8,273 8,717 9,015 9,310 9,484 1.4% Return on Investments 1,419 1,100 883 852 816 789 808 831 ‐0.2% Rental Income 16,037 16,022 16,022 15,534 15,935 16,347 16,772 17,210 1.0% From Other Agencies 1,529 551 551 551 508 508 508 508 ‐0.8% Charges to Other Funds 11,099 11,992 11,992 11,364 11,743 12,042 12,285 12,368 0.9% Other Revenue 2,848 2,571 2,571 2,539 2,540 2,541 2,541 2,542 0.0% Total Non‐Tax Revenue 64,526 65,990 65,773 64,048 65,345 66,871 68,153 69,179 0.8% Operating Transfers‐In 20,568 21,359 21,359 21,362 21,365 21,368 21,371 21,374 0.0% BSR Contribution (One‐Time) Total Source of Funds $209,515 $196,474 $191,603 $191,444 $198,479 $207,816 $213,849 $218,757 Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Sales Taxes ‐32.9% 17.1% 8.0% 7.0% 7.0% 4.0% 3.5% Property Taxes 1.8% 2.3%‐5.5% 1.8% 5.3% 2.5% 2.5% Transient Occupancy Tax General Purpose ‐27.9%‐69.9%‐20.7% 16.6% 40.4% 15.0% 7.0% Infrastructure ‐6.1%‐70.9% 142.8% 50.0% 26.5% 15.0% 7.0% Documentary Transfer Tax ‐31.9% 46.3% 2.0% 2.5% 2.5% 2.0% 2.0% Utility Users Tax ‐6.4%‐6.8% 1.8% 1.5% 1.5% 1.8% 2.0% Other Taxes and Fines 64.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Subtotal: Taxes ‐12.3%‐4.3% 1.5% 5.4% 7.0% 4.0% 3.1% Charges for Services 7.9% 0.0%‐1.9% 0.6% 2.2% 1.2% 1.2% Permits and Licenses 3.7% 0.0%‐0.8% 5.4% 3.4% 3.3% 1.9% Return on Investments ‐22.5%‐19.7%‐3.5%‐4.2%‐3.3% 2.4% 2.8% Rental Income ‐0.1% 0.0%‐3.0% 2.6% 2.6% 2.6% 2.6% From Other Agencies ‐63.9% 0.0% 0.0%‐7.9% 0.0% 0.0% 0.0% Charges to Other Funds 8.1% 0.0%‐5.2% 3.3% 2.5% 2.0% 0.7% Other Revenue ‐9.7% 0.0%‐1.2% 0.0% 0.0% 0.0% 0.0% Total Non‐Tax Revenue 2.3%‐0.3%‐2.6% 2.0% 2.3% 1.9% 1.5% Operating Transfers‐In 3.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% BSR Contribution (One‐Time) Total Source of Funds ‐6.2%‐2.5%‐0.1% 3.7% 4.7% 2.9% 2.3% Attachment A-4 FY 2022‐2031 General Fund Long Range Financial Forecast Comparison of Financial Balancing Scenarios ATTACHMENT A Net One‐Time Surplus/(Gap) Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 Cumulative Surplus/ (Gap) Balancing Scenario A ($0.5) $1.7 ($3.1) ($7.7) ($7.5) ($8.7) ($9.2) ($36.3) Balancing Scenario B (Base) ($0.5) $0.6 ($6.8) ($12.7) ($13.5) ($15.8) ($17.6) ($66.3) Balancing Scenario C ($0.5) ($0.7) ($10.6) ($17.5) ($19.0) ($22.8) ($25.9) ($95.9) ‐$30.0 ‐$25.0 ‐$20.0 ‐$15.0 ‐$10.0 ‐$5.0 $0.0 $5.0 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 MI L L I O N S General Fund Net One‐Time Surplus/(Gap) Balancing Scenario A Balancing Scenario B (Base)Balancing Scenario C Attachment A-5 FY 2022‐2031 General Fund Long Range Financial Forecast Comparison of Financial Balancing Scenarios ATTACHMENT A Net Operating Margin Projected 2021 2022 2023 2024 2025 2026 Cumulative Surplus/ (Gap) Balancing Scenario A $1.7 ($3.1) ($4.6) $0.2 ($1.2) ($0.5) ($9.2) Balancing Scenario B (Base) $0.6 ($6.8) ($5.9) ($0.8) ($2.3) ($1.8) ($17.6) Balancing Scenario C ($0.7) ($10.6) ($6.9) ($1.6) ($3.8) ($3.1) ($25.9) ‐$12.0 ‐$10.0 ‐$8.0 ‐$6.0 ‐$4.0 ‐$2.0 $0.0 $2.0 $4.0 Projected 2021 2022 2023 2024 2025 2026 MI L L I O N S General Fund Net Operating Margin Balancing Scenario A Balancing Scenario B (Base)Balancing Scenario C Attachment A-6 ATTACHMENT B Attachment B - 1 FY 2022-2031 Long Range Financial Forecast – Base Case Detailed Revenue and Expense Assumptions Detailed information related to the City’s revenue and expense assumptions used in the development of the FY 2022-2031 Long Range Financial Forecast (LRFF) for the General Fund are included below. The tabular data for this Base Case forecast, also referred to as Scenario B in the staff report, can be found in Attachment A. REVENUE ASSUMPTIONS On October 19, 2020, the City Council reviewed and discussed the preliminary Q1 FY 2021 financial status report. While this report provided a snapshot in time, uncertainty around the pandemic grows, with some revenues expected to continue to do significantly worse than originally projected, others are trending above expected levels. Tax revenues constitute approximately 60 percent of General Fund resources and in FY 2022, the forecast projects a $2.0 million, or 1.8 percent, tax revenue increase compared to the levels in the Adopted FY 2021 Budget. These tax increases are partially offset by reductions in other revenue categories. In total, revenues are anticipated to stay flat compared to the FY 2021 Adopted Budget, remaining at $197.0 million in FY 2022. The changes by revenue category, as well as the current exp ected FY 2021 status of many of the categories, are discussed in greater detail below. TABLE 11: FY 2022 – 2031 General Fund Revenue Forecast This table is available in a larger format in Attachment A. Sales Tax Sales tax receipts have seen significant declines as the City’s revenue base is dependent on many high-end goods and dining options at regional destinations, such as Stanford Shopping Center. These significant declines were partially offset by business to business sales, the one sector that outpaced other areas with 3.3 percent year-over-year growth. Based on activity and receipts for the recent quarter close, it is estimated that sales tax revenue will exceed the FY 2021 Adopted Budget by $4.5 million, or 22.1 percent, and will generate a total of $25.0 million by year -end of FY 2021. In FY 2022, sales tax is expected increase to $28.0 million, or 12.0 percent, above the Revenue & Other Sources Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 CAGR 10 Years Sales Taxes $30,563 $20,500 $25,030 $28,034 $30,557 $32,543 $34,170 $35,366 $36,604 $37,555 $38,532 $39,534 $40,562 7.1% Property Taxes 51,089 52,000 53,173 51,228 52,124 54,844 57,038 59,320 61,693 64,160 66,727 69,396 72,172 3.3% Transient Occupancy Tax General Purpose 11,568 8,344 2,740 2,529 2,950 4,300 4,601 4,924 5,194 5,444 5,699 5,979 6,278 -2.8% Infrastructure 6,985 6,556 2,090 5,899 8,849 11,628 12,442 13,312 14,045 14,719 15,411 16,166 16,974 10.0% Documentary Transfer Tax 6,903 4,700 6,875 7,137 7,246 7,451 7,701 7,965 8,245 8,543 8,853 9,195 9,553 7.4% Utility Users Tax 16,140 15,100 14,080 14,370 14,801 15,263 15,767 16,240 16,646 17,062 17,488 17,925 18,374 2.0% Other Taxes and Fines 1,172 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 0.0% Subtotal: Taxes 124,422 109,125 105,913 111,122 118,452 127,954 133,644 139,052 144,352 149,408 154,635 160,120 165,838 4.3% Charges for Services 23,557 25,418 25,418 24,934 25,087 25,629 25,928 26,235 26,552 26,878 27,214 27,560 27,878 0.9% Permits and Licenses 8,038 8,336 8,336 8,273 8,717 9,015 9,310 9,484 9,597 9,828 10,139 10,330 9,280 1.1% Return on Investments 1,419 1,100 883 852 816 789 808 831 855 880 906 936 966 -1.3% Rental Income 16,037 16,022 16,022 15,534 15,935 16,347 16,772 17,210 17,662 18,127 18,605 19,096 19,600 2.0% From Other Agencies 1,529 551 551 551 508 508 508 508 508 508 508 508 508 -0.8% Charges to Other Funds 11,099 11,992 11,992 11,364 11,743 12,042 12,285 12,368 12,375 12,573 12,788 12,998 13,325 1.1% Other Revenue 2,848 2,571 2,571 2,539 2,540 2,541 2,541 2,542 2,543 2,544 2,545 2,546 2,546 -0.1% Total Non-Tax Revenue 64,526 65,990 65,773 64,048 65,345 66,871 68,153 69,179 70,092 71,338 72,704 73,973 74,104 1.2% Operating Transfers-In 20,568 21,359 21,359 21,362 21,365 21,368 21,371 21,374 21,377 21,380 21,383 21,386 21,389 0.0% BSR Contribution (One-Time) Total Source of Funds $209,515 $196,474 $193,045 $196,532 $205,162 $216,193 $223,168 $229,605 $235,821 $242,126 $248,722 $255,479 $261,330 ATTACHMENT B Attachment B - 2 revised FY 2021 forecast. Segments contributing to this growth include restaurants and auto sales and leases. Department and furniture/appliance sales experienced declines. The FY 2021 – FY 2031 LRFF anticipates a 7.1 percent compounded annual growth rate (CAGR) through the term of the forecast, with significant growth in FY’s 2022 and 2023 as the local economy adjusts to health guidelines and restrictions caused by the pandemic. The forecast then tapers down to 2.6 percent growth annually. Property Tax Property tax revenue is the General Fund’s largest revenue source and represents approximately 25 percent total revenues. The average annual property tax growth over the last 10 years has been approximately 6.6 percent. Although not in decline, trends currently indicate a delay in timing and therefore are expected to remain flat through FY 2022 as that year will be a reflection of activity in 2020, where average and median home prices currently reflect a slight downward trend and the CPI will remain below the two percent maximum. In addition, fiscal years 2018, 2019, and 2020 included receipts of $1.4 million, $2.7 million, and $3.9 million respectively, for excess Educational Revenue Augmentation Fund (ERAF) distributions from the County of Santa Clara. ERAF is the fund used to collect and disburse property taxes that are shifted to/from cities, the County, and special districts prior to their reallocation to K-14 school agencies. When the state shifts more local property tax than required to support schools these funds are returned and known as excess ERAF. As a result of the volatility of ERAF, it is not considered a permanent local revenue source. The FY 2021 Adopted Budget assumes $52.0 million in total property tax and is expected to grow to $53.2 million, a $1.2 million increase, by year-end which includes $3.2 million in Excess ERAF. FY 2022 is property tax is expected to remain flat and, in light of the uncertainties surrounding the continued receipt of Excess ERAF, has been reduced in the FY 2022 forecast by $1.0 million and conservatively added back in FY 2024 ($1 million annually) for the remainder for the forecast. Transfer of ownership continues to be significant driver of growth and at a macro level, it can be seen that the number of sales has been on the decline even pre -pandemic, and the growth in value, or the difference between the assessed value before the sale and the assessed value after the sale has also continued to decline. Through July 2020, the median sales price in the City of Palo Alto remained relatively flat, increasing slightly from $2.8 million to $3.0 million (Zillow.com). Transient Occupancy Tax (TOT) TOT continues to be the most significantly impacted, though revenues have improved slightly above the activity seen in April and May 2020. Currently, receipts are tracking approximately 80 percent below pre-COVID levels. As a region where business and other non-leisure travel is a driving impact, it is expected that until the virus is under control and both domestic and international travel resumes, the City will continue to experience significantly reduced TOT revenue. Rapid progression in vaccines as well as the expected opening of new hotels in Palo Alto are positive developments that will drive recovery for this tax revenue. ATTACHMENT B Attachment B - 3 Compared to the FY 2021 Adopted Budget, the FY 2021 estimate represents a decrease of 67.6 percent, or $10.1 million. Year-over-year, daily average room rates decreased by half, from $314 per day to $156 per day, while the occupancy rate has declined from 80 percent to 44 percent. According to CBRE, demand for hotel rooms nationally was down by 36.8 percent year -over-year from Q3 calendar year 2019 to 2020, and national hotel occupancy declined a corresponding 37.9 percent year-over-year. San Francisco saw a significant 84.1 loss in Revenue Per Available Room (RevPAR), the third greatest decline in the continental U.S., behind Boston and New York. San Jose saw a loss slightly greater than 70 percent from Q3 calendar year 2019 to 2020. TOT realized double digit growth in FYs 2015 and 2016 due the 2 percent rate increase (from 12 percent to 14 percent tax rate), the recovering economy, and the addition of the three large hotels. The forecast assumes that TOT revenue levels decline further by the end of FY 2021 and, as a vaccine proves to prevent the spread of COVID -19, rebounds in FY’s 2023 and 2024, with moderate growth between 4.7 to 7.0 growth for the remainder of the forecast. Utility User’s Tax (UUT) The UUT is levied on electric, gas, and water consumption, as well as on telephone usage. In total, FY 2021 revenues were budgeted at $15.1 million and is currently on target to be realized by the end of the fiscal year. Documentary Transfer Tax (DTT) In FY 2015, DTT peaked at $10.1 million. This milestone was a consequence of several large commercial transactions on Page Mill Road and in the Stanford Research Park. Since that tim e, DTT has significantly moderated, with $6.9 million earned in FY 2020. Revenue from July through October in FY 2020 is running 10.0 percent above the same period in FY 2019 and anticipates that DDT revenues will exceed the FY 2021 Adopted Budget by 46.3 percent, or $2.2 million. As in past years, this revenue source is challenging to forecast since it is highly dependent on sales volume and the mix of commercial and residential sales. The number of transactions through October 2020 (229) are running higher than those through October 2019 (186); however, the total value of these transactions has decreased by 6.0 percent. Though the Palo Alto housing market remains strong, as discussed in the Property Taxes section, residential median sales price in Palo Alto has flatlined and property turnover has increased; 1.5 to 3.9 percent annual growth is assumed over the length of the forecast. Charges for Services and Permits and Licenses Revenues in the ‘Charges for Services’ and the ‘Permits and Licenses’ categories are anticipated to be $24.9 million and $8.3 million, respectively, in Fiscal Year 2022. These amounts are approximately $0.5 million lower than the FY 2021 Adopted Budget amounts, mainly due to adjustments to revenue from new Fire Department fees discussed below. Revenues in these categories were impacted by changes in FY 2021 such as the planned opening of the newly remodeled Junior Museum and Zoo with a ticketed entry fee and membership program. ATTACHMENT B Attachment B - 4 Two new proposed fees in the Fire Department, a first responder fee (assessed on commercial insurance companies) and an ambulance subscription fee, were assumed in the FY 2021 Adopted Budget, totaling $1.9 million. These fees would cover the cost for initial response for first due engine and secure co-pay free ambulance transport, respectively. Both fees proposed by the Fire Department are still in development and have not generated revenue in FY 2021. The ambulance transport fee was discussed with the Finance Committee in December 2020 (CMR 11710) and will be brought forward to City Council for consideration and established as a new Municipal Fee. Overall, revenue estimates in these categories are primarily driven by the cost of staff to provide services to the community; therefore, revenues are impacted by the City’s personal service costs. Typically, revenue estimates and corresponding fees are increased by rates consistent with salary and benefits and general CPI trends. Staff analysis year to date estimates that annual revenue collections in these categories will remain within current budgeted levels in FY 2021. Additionally, the return of canceled or modified services due to the pandemic are still unce rtain. Revenue estimates in these categories have therefore been kept generally consistent over the forecast period. One exception to this is for Development Services activities and related revenue. Development Services fees are fully cost recoverable and the department has been modeled as cost-neutral through the forecast. Staff will analyze municipal fee revenue activity as part of the FY 2022 Budget development process and bring forward adjustments as appropriate. Return on Investment The return on investment category reflects the interest earnings on the City’s investment portfolio. This category is a combination of past investments, new investments at current market rates, and available investable cash which fluctuates seasonally and annually. Staff had anticipated the decline in interest rate would occur sooner and at a faster rate than it has occurred, so the City experienced a higher than anticipated return on investments. In addition, prudent investments further resulted in higher investment yields and earnings. The average portfolio rate of return for the first quarter of FY 2021 was 1.85 percent, a 2.0 percent average yield as of the fourth quarter of FY 2020. The revised FY 2021 interest earning forecast of $0.9 million is $0.2 million lower than the Adopted Budgeted of $1.1 million. In FY 2022, the forecast is $0.9 million which reflects the declining interest rate environment. Since the City’s portfolio is laddered over a ten-year period, each year, around 10 percent to 16 percent of investments mature that is typically reinvested at the current market rates. As a result, the City’s portfolio yield and earnings decline more gradually than the market rate declines. Rental Income Rental Income of $15.5 million primarily reflects rent paid to the General Fund from the City’s Enterprise Funds and the Cubberley Community Center. There is a slight decrease in rental income from FY 2021 to FY 2022 of $0.5 million. This decrease represents the completion of the payments from the Refuse Fund to the General Fund associated with the Landfill in FY 2021, partially offset by a 2.0 percent CPI increase. Steady growth after that reflects a 2.5 to 3.0 percent increase for this area partially offset by minor adjustments throughout the forecast. The annual increase for rental revenue is based on a review of the changes in the California Consumer Price ATTACHMENT B Attachment B - 5 Index (CCPI) in the San Francisco Bay Area from the August to August period with an slight increase in the CPI amount to account for anticipated steady economic recovery after the current health crisis is complete. It is expected that revenues will be reviewed and revised subsequent to this forecast based on updated information, typically the December to December change in the CCPI. Charges to Other Funds The main source of revenues in this category is General Fund administrative cost allocation plan charges to the Enterprise and Internal Service Funds. Internal support departments such as Administrative Services, Human Resources, and Council Appointed Offi ces provide services to Enterprise and Internal Service Funds. The costs for these services are recovered through the administrative cost allocation plan charges. The FY 2022 estimate for Charges to Other Funds of $11.4 million reflects a slight decrease of 5.2 percent from the FY 2021 Adopted Budget of $12.0 million; this is primarily attributable to fully adjusting the costs associated with the allocated charges in the Internal Support Departments to the adjustments made as part of the FY 2021 Budget. After FY 2022, growth is moderate, ranging from 0.1 percent up to 3.3 percent annual increases throughout the forecast period. Operating Transfers-in Operating Transfers-in materialize as expenses in other funds throughout the City and as a revenue in the General Fund. This budget category includes repayment of a previous loan from the General Fund to the Airport Fund, funding for police patrol in the downtown area, and the equity transfer from the Electric and Gas funds. In accordance with a methodology appr oved by the City Council in June 2009, the equity transfer is calculated by applying a rate of return on the capital asset base of the Electric and Gas funds. This rate of return is based on PG&E's rate of return on equity as approved by the California Pub lic Utilities Commission (CPUC). Under previously approved methodologies, the transfer amount is calculated based on the Utility Department’s projections from the Electric and Gas Five Year Financial Forecasts, as approved by the City Council in spring 2020. Overall, the Operating Transfers-in are estimated to remain the same as the FY 2021 Adopted Budget level of $21.74 million. This estimate does not take into account a class action lawsuit for refund of charges to gas and electrical customers that was filed against the City in October 2016. For further information, refer to the ‘Litigation’ discussion below on page 16 of this Attachment B. ATTACHMENT B Attachment B - 6 EXPENSE ASSUMPTIONS As part of developing the FY 2022 Forecast expenditure budget, the General Fund expense categories have been adjusted by removing FY 2021 Adopted Budget one-time expenses and updating major cost elements such as salary and benefits costs. The tables below display the expense forecast and when compared to the FY 2021 Adopted Budget, growth of 3.2 percent is expected in FY 2022, with growth ranging from 1.5 percent to 7.1 percent throughout the ten - year forecast. TABLE 12: FY 2022 – 2031 General Fund Expense Forecast This table is available in a larger format in Attachment A. Salary and Benefits Table 6 above (also included in Attachment A) depicts the estimated General Fund salaries and benefits costs for the next decade. Over the forecast period, the salaries and benefits costs remain relatively consistent in comparison to the total exp enditure budget. In FY 2022, salaries and benefits costs represent approximately 65 percent of the General Fund budget expenditures, similar to the FY 2021 Budget, and decrease to approximately 60 percent of total General Fund expenditures at the end of the 10-year forecast. Salary and Benefits are projected to increase $8.3 million or 6.9 percent from the prior year, from $124.5 million to $133.1 million. Discussed in the following sections, this is primarily attributable to increases in salaries ($3.1 million or 4.5 percent), pension costs ($3.1 million or 9.6 percent), and workers’ compensation ($1.1 million or 33.2 percent). Salary Consistent with the City’s salary budget methodology for recent budgets, positions are budgeted at the actual rate of pay of employees including benefits as of Fall 2020. Then, by position, salary costs are updated in accordance with applicable Memorandum of Agreements (MOA’s) between the City and its labor groups and the Management and Professional Personnel and Council Appointees Compensation Plan(s). In the prior year, the City engaged with various labor groups and successfully negotiated concessions with some of its labor groups to generate cost savings. The FY 2021 Adopted Budget includes concessions with the unrepresented Management and Professionals Group at the equivalent of a 10 percent ‘give-back’ that consists of a wage freeze, furlough, and reduced Expenditures & Other Uses Actual 2020 Adopted 2021 Projected 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 CAGR 10 Years Salary $72,958 $67,421 $67,421 $70,649 $72,862 $74,708 $76,559 $78,175 $79,814 $81,445 $83,075 $84,936 $86,317 2.5% Benefits 60,257 57,121 57,121$ 62,420 65,545 68,078 70,444 71,265 71,347 72,611 73,874 75,253 76,623 3.0% Subtotal: Salary & Benefits 133,216 124,541 124,541 133,069 138,407 142,786 147,003 149,441 151,161 154,055 156,949 160,189 162,940 2.7% Contract Services 25,360 21,953 21,953 20,710 21,220 22,147 22,747 23,365 24,003 24,658 25,334 26,031 26,748 2.0% Supplies & Material 2,710 2,975 2,975 3,027 3,102 3,194 3,289 3,387 3,488 3,592 3,699 3,809 3,922 2.8% General Expense 9,755 9,079 9,079 7,526 7,597 7,684 7,774 8,424 9,164 10,080 11,023 9,156 9,200 0.1% Rents & Leases 1,520 1,862 1,862 1,913 1,966 2,021 2,079 2,139 2,200 2,262 2,326 2,393 2,461 2.8% Facilities & Equipment 462 427 427 435 446 459 473 487 501 516 531 547 563 2.8% Allocated Charges 21,771 18,311 18,311 19,310 21,129 21,634 22,042 22,478 22,949 23,421 23,987 24,443 24,871 3.1% Total Non Sal/Ben Before Transfers 61,579 54,607 54,607 52,921 55,459 57,139 58,403 60,280 62,304 64,529 66,900 66,378 67,764 2.2% Operating Transfers-Out 8,049 4,334 4,334 4,428 4,458 4,489 4,520 4,556 4,588 4,625 4,662 4,695 4,733 0.9% Transfer to Infrastructure - Base 17,187 6,911 6,911 7,006 10,673 13,640 16,607 19,575 20,009 20,455 20,912 21,381 21,862 12.2% Transfer to Infrastructure - TOT 6,985 6,556 2,090 5,899 8,849 11,628 12,442 13,312 14,045 14,719 15,411 16,166 16,974 10.0% Total Use of Funds $227,015 $196,949 $192,483 $203,322 $217,846 $229,681 $238,974 $247,163 $252,106 $258,383 $264,833 $268,808 $274,273 3.4% ATTACHMENT B Attachment B - 7 flexible management benefits. In total, this generated savings of $3.5 million in savings citywide ($2.3 million in the General Fund). Agreements with safety groups include a deferral of wage increases for one year in the Fire Chief’s Association (FCA), Police Management Association (PMA), and Palo Alto Peace Officers’ Association (PAPOA), and deferral of wage and step increases for one year in the International Association of Fire Fighters (IAFF) Group. The savings achieved in the safety groups were used to fund retirement incentives and offset an attrition period that allows the Fire and Police Departments to delay th e separation of filled positions identified to be held vacant in FY 2021 (position freezes). As part of concessions, the City reached agreements with the management and safety groups that extend the terms of the existing Memorandum of Agreements (MOA’s) to reduce or postpone negotiated increases and other forms of compensation one year. With these extensions, agreements expire June 30, 2021 and June 30, 2022 respectively. The City has negotiated labor agreements with the Service Employees International Union (SEIU) that extends through December 2021 and anticipates developing new labor agreements with the Utilities Management and Professional Association (UMPAPA) whose contract expired June 30, 2020. The FY 2022 – 2031 forecast assumes that wage increases resume beginning in FY 2022, including step increases for employees in applicable positions, including SEIU, IAFF, and PAPOA and merit increases for Management and Professional employees. Additional general wage adjustments of 2.0 percent are included in each year of the Forecast for all employees in years when there is not a MOA in effect. This is consistent with prior Council direction to use the 2.0 percent increase as a forecasting model, not as a commitment to future negotiations. If agreements are negotiated with salary increases greater than presumed in the forecast, then expenses will increase accordingly. Benefits Pension: Pensions are budgeted based on CalPERS determined rates as of the June 30, 2019 valuation (CMR 11607) for the City’s Miscellaneous and Safety plans. The annual valuation provides estimates for the first six years of the forecast and the CalPERS Pension Outlook Tool has been used to estimate the remaining years. CalPERS determines the City’s total contributions for a given Fiscal Year as the sum of two factors: Normal Cost (NC) and Unfunded Accrued Liability (UAL). Together the NC and the UAL expressed as a percentage of payroll is the ‘blended rate’ and is used to represent total costs in the discussion below. The Normal Cost (NC) is expressed as a percentage of payroll and is paid as part of the payroll reporting process of active employees. Commonly referred to as the ‘pay-go’ cost, the NC is variable and increases or decreases directly with the salary levels of the City. It represents the necessary funding for the City to pay for employees presuming that CalPERS meets the current set of assumptions. ATTACHMENT B Attachment B - 8 In a year that CalPERS does not meet assumptions, due to plan changes, assumption changes, method changes, or plan experience (including investment gains/losses), there is an increase or decrease to the Unfunded Accrued Liability (UAL). Commonly referred to as the ‘catch-up’ cost, the UAL is expressed as a dollar amount and is calculated over an amortized period with defined annual payments, similar to a mortgage. The contributions for UAL are billed as a flat dollar amount as opposed to a percentage of payroll due to potential funding issues that could arise from a declining payroll or number of active members in the plan. However, CalPERS provides an estimated percentage of payroll for UAL to allow a consistent comparison of total costs. The decision by the CalPERS Board of Administration to lower the discount rate from 7.5 percent to 7.0 percent over three years has resulted in significant impacts to the City’s pension liability. The final year of this phase in occurred in FY 2021, reducing the rate from 7.25 to 7.00 percent. However, due to the amortization policy to ramp-up UAL gains and losses over a 5-year time period, the full impact of this change will not be realized until FY 2025. In the miscellaneous plan, total costs are projected to increase from the current 38.4 percent in FY 2021 to 41.8 percent in FY 2022. The rate steadily increases to a p eak of 43.7 percent in FY 2025 before tapering down over a two-year period to 36.2 percent in FY 2027. The decline in the outer years of the forecast is associated with various amortization factors including the pay-down of previously sustained losses due to assumption changes and benefit improvements offered to employees. CalPERS also anticipates that NC will decrease as employees in lower cost pension plans replace employees in higher cost plans over time. In the safety plan, total costs are projected to increase from the current 65.3 percent in FY 2021 to 69.6 percent in FY 2022. Similar to the Miscellaneous plan, rates steadily increase to a level of 74.2 percent in FY 2025 before tapering in the outyears. However, the decline in the outyears of the safety plan is not as prominent due to the pay-down of a smaller benefit change. The table below shows CalPERS’ FY 2021 and FY 22 blended cost rates and CalPERS projected FY 2023 through FY 2031. These rates do not consider the employee pick-up of the employer share; that pick-up materializes as savings in the City’s pension costs. Consistent with applicable MOAs, the forecast does presume that employees in the miscellaneous plan will pick up 1 percent of the employer pension cost and that safety plan members will pick up percentages between 3 to 4 percent, depending on the year and the unit. TABLE 13: CalPERS’ Projected FY 2021-2031 Blended Retirement Rates (percentage of payroll) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Miscellaneous 38.4 41.8 43.0 43.3 43.7 40.6 36.2 35.6 35.2 34.9 34.5 Safety 65.3 69.6 72.3 73.5 74.2 73.8 73.2 71.2 70.4 69.5 68.7 Consistent with current practice, the forecast also includes supplemental contributions to the City’s irrevocable Section 115 Pension Trust (“Pension Trust Fund”). In January 2017 the City ATTACHMENT B Attachment B - 9 council authorized the establishment of a Pension Trust Fund with the Public Agency Retirement Service (PARS) (CMR 7553). Through FY 2021, a total of $32.3 million in principal contributions will have been made to the PARS Trust. Contributions were initially made on an ad-hoc basis, using one-time savings or excess revenues. In October 2018, the City Council directed staff to include in budget assumptions the NC for pension benefits at an equivalent of 6.2 percent discount rate and a transfer of the additional funding beyond CalPERS actuarial determined contribution levels to the Pension Trust Fund (CMR 9740). This practice was reinforced in the development of a Pension Funding Policy, scheduled for City Council adoption in November 2020 (CMR 11722). In this forecast, an approximate $5.1 million ($3.0 million in the General Fund) in supplemental contributions is assumed in FY 2022, relatively constant to prior year contribution levels. Approximately $49.9 million ($32.6 million in the General Fund) in supplemental contributions are assumed over the ten-year horizon. In addition to the CalPERS and supplemental Pension Trust Fund contributions, the FY 2022 – 2031 forecast assumes losses for the preliminary 4.7 percent return on investments in the period ending June 30, 2020. CalPERS completes their actuarial analysis two years in arrears by practice, so these losses were not included in the most recent actuarial valuation report and will not materialize until FY 2023. Using the CalPERS Pension Outlook Tool, and holding all other assumptions constant, the projected losses for a 4.7 percent investment return are approximately $44.4 million ($32.6 million in the General Fund). This amount will be amortized over a 20-year period with a five-year ramp up; gradually increasing from $0.5 million ($0.4 million in the General Fund) in FY 2023 to $2.5 million ($1.8 m illion in the General Fund) in FY 2027 - 2042. In the General Fund, it is anticipated the City will spend a total of $35.1 million on total pension costs in FY 2022, including both CalPERS contributions and supplemental Pension Trust Fund contributions. This is approximately $3.1 million higher than the prior year costs of $32.0 million, or a 9.6 percent increase. It is anticipated that these costs will increase to a peak of $39.6 million in FY 2025. These expenses represent approximately 15 to 18 percent of the General Fund’s total expenses. Retiree Medical: Retiree Medical is based on the most recent actuarial study prepared by Bartel Associates, which is completed every two years. The most recent study was completed in FY 2020 and presented to the City Council as part of the Fiscal Year 2021 Adopted Budget (CMR 11330). The table below details the cost to the General Fund for every year through FY 2028 based on that actuarial study. The final year represents an extrapolation of the actuarial study but are consistent with the year over year growth seen throughout the time period. Consistent with City Council direction, as recommended by staff, the City continues to budget for the full payment of the Actuarial Determined Contribution (ADC) for retiree healthcare. Since CalPERS blends active employees with pre-Medicare retirees and charges the same medical premium, even though younger employees on average consume less healthcare and thereby subsidize older employees and retirees, there is an implied subsidy that effectively lowers the funding necessary to meet the ADC. The table below excludes the implied subsidy. ATTACHMENT B Attachment B - 10 TABLE 14: FY 2022 – FY 2031 Retiree Medical General Fund Contributions (Millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 General Fund $8.8 $9.0 $9.2 $9.5 $9.8 $10.1 $10.5 $10.9 $11.2 $11.5 The City’s CERBT Trust, which contains prefunding for the City’s Other Post Employment Benefit (OPEB) liabilities, maintains a very healthy fund balance. The CERBT Trust currently has over $130 million in assets. As the City continues through the next few years, it will be important to examine impacts associated with Retiree Medical and, if financially prudent, to subsidize the City’s ADC payments with withdrawals from the OPEB CERBT Trust. That savings could possibly be used for other competing priorities, such as prepaying an additional portion of the City’s pension UAL. Healthcare: Consistent with the most recent labor agreements between the City and its bargaining units in the General Fund, the City’s contribution amounts towards medical costs for employees are based on a flat rate contribution from the City, with the employee contributing towards the remaining medical plan premium. Like salaries, healthcare costs are updated in accordance with applicable Memorandum of Agreements (MOA) between the City and its labor groups and the Management and Professional Personnel and Council Appointees Compensation Plan(s). Consistent with the prior year’s forecast, this forecast assumes an inflation factor of four percent on healthcare and two percent on dental and vision costs to the City in each year of the Forecast for all employees in years when there is not a MOA in effect. Workers’ Compensation: The budget appropriation for workers' compensation includes an estimate for claims incurred and reserves for current filings at an 85 percent confidence level, based on actuary studies completed by Bickmore. In recent periods, claims costs have been trending up. In FY 2020, expenditures increased by $1.3 million or 26 percent from $5.1 million to $6.4 million from the prior year, exceeding budgeted levels and requiring additional allocations to departments to offset expenses and ensure a positive fund balance. Actuary estimates completed in August 2019 informed FY 2021 budget levels of $5.7 million ($3.8 million in the General Fund). As part of cost reduction strategies in FY 2021, department allocations for workers' compensation were reduced by $625,000, from $5.7 million to $5.1 million, with costs offset by fund balance. More recent actuary estimates completed in August 2020 project higher than expected levels for FY 2021 at $6.5 million ($4.3 million in the General Fund). The fund balance cannot support this expense level, and staff anticipates bringing forward any necessary corrective actions in a subsequent budget process. Estimates for FY 2022 are $6.8 million ($4.5 million in the General Fund), representing a $1.6 million increase ($1.1 million in the General Fund) or 33.2 percent increase over the Adopted FY 2021 Budget of $5.1 million ($3.4 million in the General Fund). Estimates for workers' compensation increase in the forecast at rates consistent with general CPI increases. ATTACHMENT B Attachment B - 11 Contract Services This forecast assumes contract services of $20.7 million in FY 2022, reflecting a 5.7 percent decrease from the FY 2021 Adopted budget of $22.0 million. This decrease is driven primarily by the removal of one-time costs adopted in FY 2021 including funding for legal dispute resolutions and funding to address COVID recovery efforts. These decreases are partially offset by a 2.0 percent CPI cost increase in FY 2022 based on a review of the changes in the California Consumer Price Index (CCPI) in the San Francisco Bay Area from the August to August period. Steady growth after that reflects a 2.5 to 2.8 percent increase for this area partially offset by minor adjustments throughout the forecast. The annual increase in the CPI amount to account for anticipated steady economic recovery after the current health crisis is complete. It is expected that the estimated CPI increases will be substituted with department base budget requests as part of the FY 2022 budget process. Supplies and Materials The FY 2021 Adopted Budget for the General Fund included $3.0 million for Supplies and Materials, which is anticipated to increase slightly by a 2.0 percent CPI cost increase in FY 2022 based on a review of the changes in the California Consumer Price Inde x (CCPI) in the San Francisco Bay Area from the August to August period in FY 2022. Steady growth after that reflects a 2.5 to 3.0 percent increase for this area partially offset by minor adjustments throughout the forecast. The annual increase in the CPI amount to account for anticipated steady economic recovery after the current health crisis is complete. It is expected that the estimated CPI increases will be substituted with department base budget requests as part of the FY 2022 budget process. General Expense This category includes costs for travel and meetings, telephone and non-city utilities, contingency accounts, bank card service charges, and subsidies and grants provided through the Human Services Resource Allocation Program (HSRAP). These figures do not include General Expenses for the Cubberley Lease, which is explained in further detail below. The FY 2021 Adopted Budget of $9.1 million included $1.8 million in a Budget Uncertainty Reserve that has been removed in FY 2022 and accounts for the reduction to $7.5 million in FY 2022. That reduction is partially offset by a 2.0 percent CPI cost increase in FY 2022 based on a review of the changes in the California Consumer Price Index (CCPI) in the San Francisco Bay Area from the August to August pe riod in FY 2022. The annual increase in the CPI amount to account for anticipated steady economic recovery after the current health crisis is complete. It is expected that the estimated CPI increases will be substituted with department base budget requests as part of the FY 2022 budget process. General Expense - Cubberley Lease: In FY 2015, the City and Palo Alto Unified School District (PAUSD) agreed to an extension of the Cubberley lease by five years starting January 1, 2015 and expiring December 31, 2019. On October 7, 2019, Council directed Staff to negotiate with PAUSD to extend the lease agreement an additional five years, though December 31, 2024 (CMR 10730). A new Cubberley lease was approved by the City Council on June 23, 2020 (CMR 11460). The new lease is for a smaller portion of the Cubberley site and has a correspondingly lower base rent payment, as detailed in a report on June 15, 2020 (CMR 11386). As part of the original lease ATTACHMENT B Attachment B - 12 agreement, the City Council approved creation of a fund for Cubberley infrastructure improvements. The new lease continues an annual $1.9 million transfer to the Cubberley Property Infrastructure Fund. Therefore, the $1.9 million is classified as an Operating Transfer Out which is discussed in further detail below. With the Cubberley infrastructure funds set aside, the FY 2021 Budget funded $3.7 million for Cubberley Lease payments; this includes extended child daycare sites and associated utility costs. For planning purposes, it is assumed that the current agreement will continue during the entire Forecast period. Rents and Leases The Rents and Leases expense category for FY 2022 is estimated to remain relatively consistent to prior-year levels of $1.9 million. This category includes the lease agreement for Development Services staff at locations outside City Hall (285 Hamilton and 526 Bryant). A new lease agreement for the Development Services office location at 526 Bryant Street was approved by the City Council on December 15th (CMR 11426), limiting the space to the basement level. This will be included in the development of the FY 2022 budget, reducing Development Services rent by approximately $400,000, from $1.4 million to $1.0 million. As expenses for rent for Development Services are adjusted, a corresponding revenue adjustment will be made to ensure Development Services maintains cost recovery levels. Including the reductions to Development Services lease costs, the rent category will be reduced by approximately 21.0 percent from FY 2021 to FY 2022. Steady growth after that reflects a 2.7 to 2.9 percent increase for this area partially offset by minor adjustments throughout the forecast. Facilities and Equipment The Facilities and Equipment expense category is expected to increase from the FY 2021 Adopted level of $427,000 to $435,000 in FY 2022. This budget category includes subscription payments for equipment such as public safety radios as well as other non-capital equipment. Steady growth after that reflects a 2.5 to 3.0 percent increase for this area partially offset by minor adjustments throughout the forecast. Allocated Charges Allocated Charges represent expense allocations by the City’s Enterprise and Internal Service Funds for services and products they provide to General Fund departments. The FY 2021 Adopted Budget for the General Fund included $18.3 million for these expenses, including utilities usage, general liability insurance, technology costs, vehicle equipment maintenance and replacement costs and other charges. The FY 2022 allocated charges in the Forecast update the revenues and expenses for these various allocations based on the information available at the time of the Forecast development. FY 2022 is anticipated to experience an increase of 5.5 percent to a total of $19.3 million. This change is primarily due to general CPI and rate increases applied to various charges. ATTACHMENT B Attachment B - 13 Operating Transfers Out Operating Transfers Out include transfers from th e General Fund to Debt Service Funds, the Technology Fund, and various other funds but excludes transfers to the Capital Improvement Fund, which are detailed in the following Transfer to Infrastructure section. Transfers to debt service funds began reflecting debt issued to fund the renovation of the golf course in FY 2021 and these payments continue throughout the term of the forecast. The FY 2021 Adopted Budget included Operating Transfers Out of $4.3 million. This was lowered by $185,000 from initial FY 2021 estimates based on the transition to License Plate Reader (LPR) parking enforcement in the Residential Preferential Parking (RPP) program eliminating the need for the one-time operating subsidy transfer from the General Fund to the Residential Parking Permit (RPP) fund to cover an operating deficit. In FY 2022, Operating Transfers Out are anticipated to increase to $4.4 million as a result of standard annual cost escalators of transfers between the General Fund and the Electric and Technology funds. Transfer to Infrastructure During the development of the FY 2021 budget, uncertainties from COVID -19 were anticipated to significantly decrease TOT revenues, which represents a significant portion of the General Fund transfer to Capital Improvement Fund. The anticipated impact was reflected in the FY 2021 adopted General Fund transfer to the Capital Improvement Fund, which was $11.6 million and comprised of $5.0 million base transfer including interest earnings and $6.6 million from TOT revenue generated through an additional voter-approved 3.5 percentage point TOT increase. Incremental TOT increases from the voter-approved rate increase and new hotels are dedicated to the Capital Improvement Fund to support the 2014 Council Infrastructure Plan, consistent with City Council direction. Transfers from TOT revenues in FY 2021 are currently projected to decrease further to $2.1 million before increasing in FY 2022 to $5.9 million and steadily increasing to previous levels over the next five years. This budget category also includes the separate $1.9 million transfer to the Cubberley Property Infrastructure Fund, described earlier in this document. The Cubberley transfer remains consistent throughout this Forecast despite the sunset date of the current lease in FY 2024 for Cubberley to capture the anticipated costs. Committed Additions The Committed Additions included in the 2022 -2031 Long Range Financial Forecast account for anticipated operating and maintenance (O&M) costs in the years they are anticipated to materialize in the General Fund. Anticipated O&M costs begin once capital projects are completed in the 2021-2026 Capital Improvement Plan (CIP). Costs can vary from project to project, depending on what was previously budgeted for a facili ty and generally include, but are not limited to, costs for fixtures and equipment to outfit a new or expanded facility; custodial, landscaping, and maintenance services; utilities; and additional staff to support operations at the facility. As capital projects are completed and come online, the anticipated O&M expenses would be reflected in the Operating budget. ATTACHMENT B Attachment B - 14 A majority of O&M costs anticipated for 2022-2026 are for the New Public Safety Building (FY 2024; $355k), Highway 101 Pedestrian/Bicycle Overpass (FY 2022; $100k), and the Library Automated Material Handling Project (FY 2023; $45k). The assumed O&M costs for the Highway 101 Pedestrian/Bicycle Overpass project is a preliminary estimate for the anticipated costs of the maintenance agreement between the City and Caltrans. O&M costs for projects related to parking have not been included in the General Fund forecast, because it is assumed that parking fees in separate parking funds will be collected to support the O&M costs for these projects. However, depending on funding needs, loans between funds to support investments and operating costs may be needed. There are also a number of capital projects that are included in the five-year CIP that do not have an O&M estimate, either because the full scope of the projects has not yet been defined, or the projects require an initial study in order to establish the full scope of the project. These projects and their subsequent O&M costs would generally fall under the category of Assumptions Not Included in the Forecast which are detailed further below in this document. TABLE 15: FY 2022 – FY 2031 Committed Additions (Millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 General Fund $100K $148K $507K $522K $537K $554K $570K $587K $605K $623K ASSUMPTIONS NOT INCLUDED IN FORECAST It should be noted that this Forecast does not include several potential impacts to the FY 2022 projected budget and the out years of the Forecast. Below is a list of a few items not included. This is not intended to be a comprehensive list nor in any priority order. Labor negotiations: The City has extended agreements with safety units by one year, through June 30, 2022. These safety units are the Palo Alto Peace Officers Association (PAPOA), the International Association of Fire Fighters (IAFF), Fire Chiefs Association (FCA), and Palo Alto Police Management Association (PAPMA). Additionally, the City extended the Management and Professional agreement by one year, through June 30, 2021. Agreements with the Service Employees International Union (SEIU) extends through 2021 and new labor agreements are anticipated with the Utilities Management and Professional Association (UMPAPA) whose contract expired June 30, 2020. The Base Case Forecast models only modest increases to salaries in years where there is not a contract. This region’s competition for a qualified workforce remains a significant pressure on the City’s anticipated salary costs. Capital Infrastructure Plan: As referenced earlier, the June 2014 Council approved Infrastructure Plan of $125.8 million in projects was based on construction and design costs with data from 2012. As construction costs have increased and the City is required to pay prevailing wages, the Infrastructure Plan’s funding status has shifted. The FY 2021 Adopted Capital Budget anticipated that these projects would cost $260.5 million. ATTACHMENT B Attachment B - 15 Grade Separation: The City is currently in the process of determining the number and type of grade separations to pursue. Therefore, the financial impacts remain difficult to define. Additionally, it may make sense to undertake a coordinated area plan for transit in the downtown area to synchronize with the grade separation process. Costs for these items are not included in this forecast. Measure B funds were expected to be a significant portion of the funding for grade separation but at the November 12, 2020 Valley Transpor tation Authority (VTA) Policy Advisory Committee meeting there was a presentation of the Measure B Base Case in which all funding through the ten-year forecast was allocated to BART Phase II instead of allocated to member cities by project category, as initially planned. This decision would result in an annual revenue impact of approximately $1.3 million for the next ten years. Parks Master Plan: The Parks Master Plan was finalized in 2017; however, when approved it identified a need to develop a funding strategy and this is still in process. As such, this Forecast does not yet contemplate the necessary investments to fully execute this plan. Racial Equity Work: The Race & Equity Framework and action plan was approved in June 2020 (CMR 11441) and corresponding funding is available in FY 2021. The Council Ad Hoc committee is continuing to bring forward recommendations to help further the City’s race and equity priorities. As Council provides direction, projects may emerge that require additional funding. These will be brought forward through the budget process. Foothills Nature Preserve Opening to Non-Residents: In November 2020, the City Council approved opening Foothills Nature Preserve to the general public (CMR 11706), lifting the resident-only access restriction. Opening Foothills Nature Preserve to the general public is likely to increase usage at the Nature Preserve, which will impact Community Service Department (CSD) resources. The magnitude of impacts depends on the level of increased use. S taff will monitor these impacts and have discussed with the City Council both the need for budgetary adjustments and an entry fee at the January 19, 2021 meeting. Other Capital Improvement Projects: Ongoing discussion on major projects that may impact this fund such as the Roth building, Public Safety Building, or Rail Grade Separation, are not factored into the Forecast. City owned assets operated by non-profit organizations: This Forecast does not include any additional capital or operating investments for the Avenidas Senior Center (beyond the current $5 million pledge), the Palo Alto History Museum, the Ve ntura Child Care Center, the Junior Museum and Zoo, nor the Sea Scout Building. As costs around potential capital or operating investments for these assets solidify, staff will return to City Council to address them as appropriate. Cubberley Community Center Concept Plan: The City is in the process of designing a Cubberley Community Center Concept Plan; however, costs to implement that concept plan in excess of the ATTACHMENT B Attachment B - 16 dedicated Cubberley infrastructure funding included in the existing agreement between the PAUSD and the City are not assumed in this Forecast. Loans for special projects: From time to time the City’s General Fund will assist other City operations with modest cash flow loans to bridge fiscal years. For example, the City provided over $3 million in loans to the Airport Fund as it works to secure significant grant funding from the Federal Aviation Administration (FAA) for capital improvement costs. As of the FY 2020 Adopted Budget, the Airport Fund has begun to pay back the loan to the General Fund . As mentioned in the Committed Additions section, the Base Case presumes that the parking funds will be able to sustain the ongoing operating and maintenance costs of new parking related capital infrastructure. However, these additions and other initiatives may need financial support from the General Fund to ensure they are fully implemented. Additional loans from the General Fund are not assumed in this Forecast. Legislative Updates: Various actions at the state and federal level that could impact the City of Palo Alto have not been incorporated into this forecast due to the changing context and uncertainty of the quantitative impacts of potential legislative changes. This includes the Cadillac Healthcare Tax at the federal level, property tax changes at a state level, and state -level efforts focused on the provision of affordable housing. Property Tax changes may be impacted by a state level ballot measure, Proposition 19 approved in November 2020. As uncertainty regarding the potential impact of various legislative initiatives is clarified, appropriate adjustments will be identified and brought forward as part of the development of the FY 2021 Operating Budget. Tax revenue alignment with updated Comprehensive Plan: The City Council recently completed updating its Comprehensive Plan, including the potential fiscal impact of various land use scenarios. The fiscal impact of this plan and various land use scenarios are not factored into this Forecast. Litigation: As any organization, the City continues to face legal claims against it for various transactions and occurrences. The City currently has active litigation that may result in costs to the City for dispute resolution. The City Attorney is of the opinion that a loss is reasonably possible for some of these cases however legal proceedings remain ongoing. The City continues to be self-insured and holds some reserves for many of these matters, however, staff have also worked to proactively begin to reserve additional funds for risk associated with dispute resolution with approximately $1 million appropriated as part of FY 2021 Adopted Budget. Changes in the local, regional, and national economy: This Forecast assumes a moderately growing local economy. Any changes may have positive or negative impacts on economically sensitive revenues such as Sales Tax and the Transient Occupancy Tax. Attachment C – FY 2022 Budget Development Guidelines 1)Develop a structurally balanced budget that brings ongoing revenues and expenses into alignment. Develop a plan for any structural imbalance to ensure that the City maintains it fiscal sustainability over the short, medium, and long‐term. 2)Allocate one‐time resources for one‐time needs rather than committing one‐time resources to ongoing services. Examine appropriate uses of revenue surpluses that exceed forecasted levels including planning for recession needs. 3)Ensure appropriate resource allocation for City Council’s existing priorities. 4)Focus on business process redesign to enhance quality, flexibility, and cost‐effectiveness of service delivery (include examining opportunities to streamline, simplify, reorganize, and reallocate resources to avoid duplication of effort). 5)Explore alternative service delivery models (such as partnerships with non‐profits or other public/private sector groups) to minimize overlap, maximize cost share, and effectively use resources. 6)Continue to thoroughly analyze non‐personnel/equipment/other costs, such as contract services, for cost savings opportunities. 7)Explore the expansion of existing revenue sources or the addition of new revenue sources, including the alignment of existing charges for services and the opportunity to establish new fees, when appropriate. 8)Continue to analyze and prioritize resource augmentations, seeking to offset augmentations with reductions elsewhere for net‐zero impacts to the budget whenever possible. FY 2022 Budget Development Guidelines City of Palo Alto (ID # 11968) City Council Staff Report Report Type: Action Items Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: 2021 Legislative Guidelines Adoption (Citywide & Utilities) & Recommendations on Other Legislation Title: Policy and Services Committee Recommendation that City Council Approve the 2021 Legislative Guidelines; Utilities Advisory Commission Recommendation that City Council Approve the 2021 Utilities Legislative Guidelines; and Discussion and Direction on Pending State Legislation From: City Manager Lead Department: City Manager Recommendation Staff recommends that the City Council: 1. Approve the City’s 2021 Legislative Guidelines as recommended by the Policy and Services Committee on December 8, 2020, and 2. Approve the 2021 Utilities Legislative Policy Guidelines as recommended by the Utilities Advisory Committee on November 4, 2020; and 3. Discuss and direct staff or the legislative advocate on specific bills pending in the State Legislature. Background On December 8, 2020, the Policy and Services Committee received a presentation from staff and the City’s State and Federal legislative advocates regarding previous and upcoming potential legislation and programs. Additionally, the Policy and Services Committee discussed the draft Citywide Federal and State Legislative Guidelines. The guidelines, as recommended by the Committee are included in Attachment A. The redlined version of the guidelines can be found within the staff report that went to Policy and Services Committee (ID 11720). The recommended guidelines closely mirror previous guidelines and also include recent referrals to the Policy and Services Committee including police reform. The Policy and Services Committee recommended Council approve these Legislative Guidelines with a 2-1 vote. On November 4, 2020, the Utilities Advisory Commission (UAC) discussed and recommended Council approve the 2021 Utilities Legislative Guidelines, found in Attachment B. CITY OF PALO ALTO City of Palo Alto Page 2 Discussion The City has a long-standing legislative program to ensure that potentially impactful State and Federal legislation is identified and analyzed by staff, that (as needed) the City takes advocacy positions, and that the City’s advocacy positions are made known to legislators and the public, as appropriate. The legislative program is guided by the Advocacy Process Manual. In addition to this manual, the City maintains a Council-approved set of Legislative Guidelines for the City as a whole and for the Utilities Department, as noted below. These guidelines are revised and approved annually. Legislative Guidelines The Legislative Guidelines enhance and add context to the City Council’s overarching priorities and guide staff and the City’s legislative advocates on issues that arise during the legislative session. The guidelines are updated each year to address new and evolving issues relevant to Palo Alto. The guidelines are not rank-ordered and are intentionally reasonably broad, rather than specifically narrow or tailored, to allow for a flexible and quick response. The guidelines are not specific direction on any given piece of legislation. Instead, they act as a means by which staff and the City’s advocates can respond to State and Federal government action without returning to the City Council each time a bill is introduced or amended. The guidelines were last approved by the City Council on January 13, 2020 (ID 10772). Process Manual The Advocacy Process Manual is for internal use only, to inform Ci ty staff, City Council, City contractors, and Commission members how to proceed regarding legislative advocacy. The manual was last approved by City Council on January 13, 2020 (ID 10772). The manual, along with the City’s Legislative Guidelines (once adopted), are public through the City’s Intergovernmental Affairs web portal (https://www.cityofpaloalto.org/gov/city_information/intergovernmental_affairs.asp ). Utilities Department Legislative Guidelines Additionally, because of the unique and heavily regulated nature of the Utilities Department, specific utilities legislative guidelines are reviewed and recommended by the Utilities Advisory Commission for City Council’s approval. The City Manager’s Office works closely with staff in the Utilities Department to coordinate the City’s entire legislative portfolio. City Council last approved the Utilities Department’s legislative guidelines on January 13, 2020 (ID 10772). Other Recommendations The City Council may wish to take an advocacy position on one or more bills pending in the State Legislature and provide direction to staff or the City’s legislative advocate. Resource Impact There is no direct resource impact associated with approving the Legislative Guidelines. Actions taken through the process of tracking legislation related to implementing the City Council’s City of Palo Alto Page 3 policies and goals could have impacts on the City’s assets and resources in the future and will be noted at such time. Stakeholder Engagement The City’s and the Utilities Department’s Legislative Guidelines were informed through an internal and external stakeholder process involving gaining information from City Council referrals, internal departments, State and Federal advocates, various trade associations, and the Northern California Power Agency joint action agency. Additionally, both sets of draft guidelines were reviewed and discussed at noticed, public hearings. Environmental Review This report is not a project for the purposes of the California Environmental Quality Act; an environmental review is not required. Attachments: • Attachment A-Citywide Legislative Guidelines • Attachment B-Utilities Legislative Guidelines 2021 The City of Palo Alto’s 2021 Federal and State Legislative Guidelines Page 1 of 3 These Guidelines reflect and activate the City Council’s priorities; they do not supplant them. They work to guide staff and our legislative advocates on issues that are important to the Council, and fairly likely to become a legislative issue. These Guidelines are not rank ordered and are meant to allow for a flexible and quick response by staff and advocates, without the need to return to Council to seek guidance. The Guidelines work in conjunction with the City Council approved Advocacy Process Manual. The below Foundational Principles represent the ideals that form the core of the City’s policy agenda. The legislative guidelines all rise from and strengthen our four foundational principles: 1. Protect local revenue sources and prevent unfunded mandates 2. Protect, seek, and increase funding for programs, projects, and services 3.Protect and increase local government discretion. Oppose items that preempt or reduce the authority or ability of local government to determine how to effectively operate local programs, services, activities, and governance. 4. Protect the health and safety of the community The Legislative Guidelines create the framework for organizing the City’s policy interests, while guiding staff and contracted lobbyists in their advocacy efforts on behalf of the City. The items below provide direction for the City’s efforts when addressing reasonable government actions. Transportation The City supports government action that: •Deters single occupancy drivers and alleviates local traffic congestion •Supports local and regional public transportation •Regulates technology that diverts traffic into residential neighborhoods •Provides funding for rail grade separations, rail efficiency improvements, and other means of reducing the local impacts of regional transportation systems Environmental The City supports government action that: •Reduces GHG emissions •Reduces airplane noise, health impacts, and/or airplane emissions •Promotes residential and vehicle electrification programs Attachment A The City of Palo Alto’s 2021 Federal and State Legislative Guidelines Page 2 of 3 • Promotes the use of renewable resources, water conservation, and the flexible use of existing resources • Supports a statewide ban on polystyrene containers and packaging materials • Provides opportunities for staff to work with the San Francisquito Creek Joint Powers Authority and other regional stakeholders in efforts to improve the creek’s watershed and floodplain • Supports efforts to protect local communities from sea level rise and other impacts of climate change Financial The City supports government action that: • Supports the long-term stability of CalPERS and the ability of local governments to mitigate and manage with flexibility its pension obligations • Protects the funding levels of City services • Provides for COVID-19 related expenses and revenue losses • Supports the continued deductibility of tax-exempt municipal bonds and the restoration of Advance Refunding of Tax-Exempt Municipal Bonds Public Employment The City supports government action that: • Preserves local government’s ability to manage its own employment issues, including, but not limited to hiring, evaluating, disciplining, and/or terminating and negotiating collective bargaining agreements with employees’ representatives Technology The City supports government action that: • Supports reasonable regulatory efforts surrounding policies regarding cybersecurity, drones, shared mobility services, returning to Obama-era net neutrality regulations, and smart city initiatives Housing The City supports government action that: • Supports reasonable housing policies that recognize local autonomy to maintain the local public process and preserve local government’s ability to determine land use policies and development standards The City of Palo Alto’s 2021 Federal and State Legislative Guidelines Page 3 of 3 • Provides funding for (a) affordable housing and (b) infrastructure (such as parks, utilities, roads, and transit) required to support the increased housing production • Fosters reasonable ratios between jobs and housing • Supports the development and implementation of efficient and environmentally sustainable land use and building practices Police The City supports government action that: • Supports efforts which seek to modify policing services, including but not limited to alternative public safety models and funding to address community mental health issues, expansion of requirements regarding police data, and rules regarding prior employment information transparency. Other The City supports government action that: • Updates, implements, and refines processes, services, and programs affecting the City. This includes, but is not limited to, public safety reform efforts and streamlining reporting mandates • Protects individual privacy and allows the City to safeguard customer information • Provides for the equal treatment of all individuals • Allows the City to support the collaborative work of regional partners, trade associations, other local governments and organizations, and Joint Powers Authorities Approved by the Utilities Advisory Commission on November 4, 2020 Approved by City Council on XX, 2021 Utilities Legislative Policy Guidelines: 2021 Update City of Palo Alto Utilities Department (CPAU) staff will use the below guidelines as well as the City’s guidelines to help determine any advocacy position or action on Utilities-related issues. Formal advocacy, such as submitting written letters or comments and meeting with policymakers and/or staff, requires the approval of the Utilities Director or his designee. 1.Seek to preserve local government flexibility, discretion, accountability, and oversight of matters impacting utility programs, services, activities, and rates. Oppose action that could hamper or minimize this flexibility or discretion. 2.Where possible, seek funding and program incentives. 3.Advocate for reasonable government action with minimal customer impact that allows for flexibility and implementation feasibility. 4.Advocate for locally-designed conservation or efficiency programs. Support reasonable State conservation or efficiency requirements that consider local populations, environment, and resources. 5.Inform state and federal policymakers about CPAU’s current programs, services, goals, and reporting requirements. 6.Oppose unnecessary, unreasonable, impractical, or costly rates or mandates. 7.Collaborate with and support the efforts of regional agencies and associations whose goals align with ours. 8.Advocate for fair cost allocation and support the principle of beneficiary pays. 9.Support efforts to maintain or improve the security and reliability of our infrastructure. 10.Support government action that cost effectively reduces greenhouse gas emissions. 11.Promote locally-designed residential and commercial electrification programs. 12.Support government action allowing CPAU to maintain customer confidentiality. Attachment B City of Palo Alto (ID # 11999) City Council Staff Report Report Type: Action Items Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: PTC Vacancy Recruitment Title: Provide Direction on the Recruitment for an Unfinished Term on the Planning Transportation Commission due to a Resignation From: City Manager Lead Department: City Clerk Recommendation Staff is requesting direction from Council regarding the timeline for filling a vacant position due to a resignation on the Planning and Transportation Commission, with a partial term ending December 15, 2021. Two proposed options are: 1. Include the additional vacancy in the current recruitment period. Interviews are scheduled for February 10, 2021 and appointments will occur on February 22, 2021. 2. Proceed with a special recruitment period for the vacant position, which will run for 2 weeks with a proposed application deadline of February 23, 2021. Background On December 14, 2020, the Council directed Staff to extend the recruitment for the Historic Resources Board and Planning and Transportation Commission. The City Clerk’s Office established a new application deadline of Wednesday, January 27, 2021. This recruitment is expected to fill two (2) expiring positions on the Planning and Transportation Commission, with four-year terms ending December 15, 2024. On January 13, 2021, Staff received a resignation from a Planning and Tran sportation Commission member whose term expires December 15, 2021. With the addition of the vacancy left by the resignation, the current positions needing to be filled on the Planning and Transportation Commission are two (2) with four-year terms ending December 15, 2024 and one (1) with a partial term ending December 15, 2021. As of the January 27, 2021 application deadline, the City has received ten (10) applications for the Planning and Transportation Commission, including the two incumbents. City of Palo Alto Page 2 Discussion The current recruitment was advertised on the City’s website, social media, and inclusion in the weekly Council Packet GovDelivery e -mail notifications. The City Council is scheduled to hold interviews for vacant positions on the Planning and Transport ation Commission and the Historic Resources Board on Wednesday, February 10, 2021. Appointments to these positions are scheduled for February 22, 2021. City of Palo Alto (ID # 11874) City Council Staff Report Report Type: Informational Report Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: 2nd Transmission Corridor Update Title: Informational Update on Progress Toward a Second Transmission Line Corridor Connecting the City of Palo Alto Electric Distribution System to the Pacific Gas & Electric Transmission Grid From: City Mana ger Lead Department: Utilities Recommendation This report is provided for the Council’s information and no action is required. Executive Summary The purpose of this report is to update the City of Palo Alto Council on the status of and next steps for a second transmission line corridor connecting the City of Palo Alto (City) electric distribution system to the Pacific Gas & Electric (PG&E) transmission grid. After many years of negotiations with Stanford, SLAC National Accelerator Laboratory (SLAC), and the Department of Energy (DOE) for a 60 kilovolt (kV) electric transmission line interconnection between the 230kV corridor serving SLAC along the western side of Palo Alto and the 115kV corridor serving the City in eastern Palo Alto, the parties have been unable to reach agreement. Moving forward, the City will focus on a new 115kV electric transmission line between the City and PG&E from the southeast corridor (the Project). Background The City of Palo Alto’s electric distribution system is connected to Pacific Gas and Electric Company’s (PG&E) transmission grid via three 115 kV transmission lines. Although three lines would normally provide redundancy and back-up power delivery, all three lines run in a common corridor on the bay side of the City, a corridor that is near the Palo Alto Airport. The common corridor and proximity to an airport means that the City’s power supply is susceptible to single events that can affect all three lines, as happened in February of 2010 when a small aircraft hit the power lines resulting in a city-wide power outage for over 10 hours. To minimize these possibilities and increase resiliency, it is in the City’s interest to find a physically diverse connection for power supply to the City. Staff has been investigating options for an alternative connection to the transmission grid for many years. CITY OF PALO ALTO City of Palo Alto Page 2 Following the February 2010 plane crash and subsequent city-wide outage, Council included the goal to evaluate alternative electric transmission line sources in its priorities for 2011 (Staff Report No. 1497, March 21, 2011). Also, in March 2011, Council adopted a guideline and implementation plan item to evaluate interconnection options to the Cit y to increase service reliability and lower delivery costs. Council adopted this guideline and implementation plan as part of the City’s updated Long-term Electric Acquisition Plan (LEAP) (Resolution 9152, Staff Report No. 1317). Now, absent the ability to interconnect the City at SLAC, staff has come to the preliminary conclusion that the optimal interconnection option at this juncture is a connection between the City’s Adobe Creek electric substation and the PG&E Ames substation. Although this connection is at the same transmission voltage level as the City’s existing interconnection, and therefore does not offer a reduction in electric transmission costs, it does significan tly increase reliability and resiliency. Discussion The City’s three existing electric power connection points share a common corridor that begins at PG&E’s Cooley Landing and Ravenswood switching stations northeast of the City, and feed into the City’s Colorado Power Station near Highway 101 and Colorado Avenue. The additional, new interconnection point being studied would be between the City’s Adobe Creek electric station near Highway 101 and San Antonio Road, and PG&E’s Ames switching station to the southeast. Although these three PG&E stations share the same 115kV transmission system backbone in the Eastern Peninsula, Ames has its own electrically protected incoming line. More importantly, this new corridor from Ames is separated geographically from the existing power feed corridor into the City from the northeast. Implementing this new option will require professional analysis of the performance of the California Independent System Operator (CAISO) system serving Palo Alto based on the latest regional transmission reliability assessment. This will be followed by independent power flow analysis and further definition of the long-term need to reliably serve the City of Palo Alto’s electric load. CPAU has appropriated funds (the “Feasibility Study Funds”) from its Electric Infrastructure Fund – EL-06001 and its consulting budgets to conduct these evaluations. Summary of Feasibility Studies Analysis of CAISO system - Each year the CAISO conducts a transmission planning process to identify potential system limitations and opportunities for reliability improvements. The latest performance of the CAISO system serving Palo Alto is captured in the most recent 2020 -2021 Transmission Planning Process (TPP) reliability assessment encompassing CAISO and all its transmission providers – available in the Fall of each year. The next TPP for 2021-2022 begins in February 2021. As the transmission system does not change very often, the City’s consultant will review the 2020-2021 TPP, to arrive at recommendations for this next TPP on the City’s behalf. City of Palo Alto Page 3 Load Flow Study - Although no new electric customer loads would be added to the regional electric grid as a result of the Project, the City will commission an updated Load Flow Study to determine potential Project impacts on PG&E’s system. The Load Flow Study will analyze various normal and fault condition scenarios to show the impacts of the proposed Project on regional power reliability and quality, and to identify if this new interconnect location serves the City’s long-term need of a more resilient and reliable power sourcing configuration. Next Steps Although the initial indicators are that the proposed interconnection is feasible and could provide for the City’s current and forecasted electric load, much work remains to move the Project forward. In particular: (a) Update the Project by reviewing the CAISO’s 2021-2022 TPP preliminary reliability assessment and provide comments on the CAISO analysis in September 2021. (b) The successful completion of the Project will require approval from CAISO due to the ‘extreme event’ of the potential of losing all the City’s power in that existing common corridor. The fact that total loss of power to the City has happened in 2010 will support this request but is not a guarantee o f success in this time of wide-reaching Public Safety Power Shutoffs. There are many other competing projects. The scope of work for the remainder of FY 2021 will be preparation leading up to a formal Request Window Application for Project consideration in October 2021 through the CAISO 2021-2022 TPP. Resource Impact The City is estimated to spend approximately $50,000 for the initial study portion of the Project. The study will assess the performance of the CAISO system serving Palo Alto based on the latest regional transmission reliability assessment. Funding is available in the FY 2021 Electric CIP project EL-06001 (230 kV Electric Intertie). Additional estimated costs with the next steps of project evaluation will include: • $50,000 for PG&E to perform a study assessing the impacts of the interconnection to its system, which would include laying the groundwork for additional electrical protection requirements required as a result of the proposed Project; • $50,000 for fine-tuning the City’s studies; and • $500,000 for the detailed evaluation and preliminary design for the Project In the event CAISO approves and the City proceeds with the Project, the total construction cost to the City is estimated at $7-10 million. The cost to PG&E is estimated at $10-15 million. An early proposed in-service date would be in 2026. Completing the required land use, legal and environmental analysis and regulatory approvals will also impact that estimate. Attachments: • Attachment A: Transmission Line Diagram SUE .:01LLEr LAI IC t_ E IFGftE NEW PROPOSED FROM ADOBE CREEK TO AIMS CITY gip_ L LTU 115KV TRANSMISSION WITH PG&E UTILIT S, j ENT INTERCONNECTION ELECTR -0 ERINIG EXISTING 115KV LINE City of Palo Alto (ID # 11909) City Council Staff Report Report Type: Informational Report Meeting Date: 2/8/2021 City of Palo Alto Page 1 Summary Title: City of Palo Alto Local Hazard Mitigation Plan Annual Report 2020 Title: City of Palo Alto Local Hazard Mitigation Plan Annual Report 2020 From: City Manager Lead Department: Office of Emergency Services Background The Federal Disaster Mitigation Act of 2000 (DMA) requires all cities, counties, and special districts to adopt a Local Hazard Mitigation Plan (LHMP) as a best practice to identify natural hazards and then to develop mitigation strategies to reduce risk to the community. An adop ted LHMP also allows a jurisdiction to receive disaster mitigation funding from the Federal Emergency Management Agency (FEMA). The DMA provides that a local agency may adopt a Local Hazard Mitigation Plan or participate in the preparation of and adopt a Multi- Jurisdictional Hazard Mitigation Plan. Between 2016 and 2017, The City of Palo Alto participated in the Santa Clara County multi- jurisdictional planning process that resulted in a Countywide Local Hazards Mitigation Plan (LHMP). The County contracted with TetraTech, Inc, a provider of emergency management consulting services, to facilitate the development of the County-wide plan. This multi- jurisdictional plan was approved by the State of California and the Federal Emergency Management Agency and the Palo Alto Annex to this plan was adopted by the City Council on 16 October 2017. The County Plan may be found here – Volume 1: https://emergencymanagement.sccgov.org/sites/g/files/exjcpb261/files/For%20Partners/Local- Hazard-Mitigation-Plan-LHMP-Vol-1.pdf Volume 2: https://emergencymanagement.sccgov.org/sites/g/files/exjcpb261/files/For%20Partners/Local- Hazard-Mitigation-Plan-LHMP-Vol-2.pdf The Palo Alto specific plan and planning process may be found here: City of Palo Alto Page 2 https://www.cityofpaloalto.org/services/public_safety/plans_and_information/lhmap.asp Prior to this, the City of Palo Alto published Local Hazard Mitigation Plans in conjunction with the Santa Clara County’s Office of Emergency Services in 2012 and 2005. The Local Hazard Mitigation Plan is a companion document to the City’s Threats and Hazards Identification and Risk Assessment (THIRA) Plan that describes not only natural hazards but also Technological and Intentional hazards that pose a risk to our community. Discussion One component of the plan maintenance cycle is an annual progress review of each mitigation project in the LHMP. OES leads this annual review by soliciting updates from each department that has responsibility for one or more projects and develops the final annual report. OES maintains project status in a mitigation planning database provided by TetraTech as part of their contract with the County. Projects listed in this report were developed by both internal and external stakeholders during the plan development process. For their status, projects are either on-going (no definitive beginning or end), in progress (some progress has been made this calendar year), no progress (no progress made this calendar year), or completed. Attachments: • CityOfPaloAlto LHMP Annual Report 2020 To: City Manager From: OES Chief The Office of Emergency Services provides this Local Hazard Mitigation Plan (LHMP) annual report as of December 2020 to share the progress the City has made on LHMP projects over the past twelve months. The City Council approved the current version of the LHMP on 16 October 2017. The LHMP is updated every five years as required by the Federal Emergency Management Agency (FEMA) which makes Palo Alto eligible for federal grant funding following a declared emergency. The point of contact for this effort is Nathan Rainey, OES Coordinator, Nathaniel.rainey@cityofpaloalto.org, 650-617-3197. Kenneth Dueker, J.D. Chief, Office of Emergency Services Approval: Ed Shikada City Manager SANTA CLARA COUNTY OPERATIONAL AREA HAZARD MITIGATION PLAN PROGRESS REPORT Reporting Period The reporting period for this progress report is 01-01-2020 through 12-11-2020. Background This is an annual update of the City of Palo Alto Local Hazard Mitigation Plan. This update also meets annual certification requirements for Palo Alto’s floodplain management and Community Rating System (CRS) program. The City of Palo Alto and participating local cities and districts developed a hazard mitigation plan to reduce risk from all hazards by identifying resources, information, and strategies for risk reduction. The federal Disaster Mitigation Act of 2000 requires state and local governments to develop hazard mitigation plans as a condition for federal disaster grant assistance. To prepare the plan, the participating planning partners organized resources, assessed risks from natural hazards, developed planning goals and objectives, reviewed mitigation alternatives, and developed an action plan to address probable impacts from natural hazards. By completing this process, these jurisdictions maintained compliance with the Disaster Mitigation Act, achieving eligibility for mitigation grant funding opportunities afforded under the Robert T. Stafford Act. Volume I of the County plan provides the analysis of natural hazards for the Operational Area,. It provides the content that informs the Palo Alto LHMP. It can be viewed on-line at: https://emergencymanagement.sccgov.org/sites/g/files/exjcpb261/files/For%20Partners/Local- Hazard-Mitigation-Plan-LHMP-Vol-1.pdf, The Palo Alto LHMP, which articulates our local natural hazards and mitigation activities can be viewed online at: http://cityofpaloalto.org/civicax/filebank/documents/61523. Purpose The purpose of this report is to provide an update on the implementation of the m itigation initiatives identified in the Palo Alto Annex of the Santa Clara County Hazard Mitigation Plan . The objective is to ensure that there is a continuing planning process that will keep the Santa Clara County Operational Area Hazard Mitigation Plan d ynamic and responsive to the needs and capabilities of the City of Palo Alto and stakeholders. Summary Overview of the Plan’s Progress The performance period for the Santa Clara County Operational Area Hazard Mitigation Plan became effective on 12-19-2017, with the final approval of the plan by FEMA. The initial performance period for this plan will be 5 years, with an anticipated update to the plan to occur before 09-19-2022. As of this reporting period, January to December 2020, the performance period for this plan is considered to be 13% complete. The Palo Alto Santa Clara County Operational Area Hazard Mitigation Plan has targeted 38 hazard mitigation actions to be pursued during the 5 - year performance period. As of the reporting period, the following overall progress can be reported: ● 17 out of 38 initiatives (45%) reported progress toward completion. ● 4 out of 38 initiatives (11%) reported no action taken. ● 5 out of 38 initiatives (13%) are completed. ● 12 out of 38 initiatives (32%) indicated work is conducted as an ongoing capability. ● 0 initiatives were removed due to elimination of a program. Review of the Action Plan Table 2 reviews the action plan, reporting the status of each initiative. TABLE 2 ACTION PLAN MATRIX Action Taken? Timeline Priority Changed? Comment (Describe progress or changed priority) Status City of Palo Alto PA-1 - Develop a comprehensive flood control plan for San Francisquito Creek to minimize the risk of flooding. No Long Term (5+yrs.) No The city, in conjunction with the SFCJPA, has developed and is now implementing the flood control plan for the San Francisquito Creek. It includes a downstream (lower reach) component as well as an upstream (upper reach) component. The downstream component, the San Francisquito Creek East of Highway 101 project was completed in December 2018. As a result, the creek can contain flows greater than 9,600 CFS. Completed PA-2 - San Francisquito Creek Upper Reach Flood Reduction and Ecosystem Restoration Project. Replacing the Existing Pope/Chaucer Street Bridge and widen the creek at 5 locations to allow 7,500 CFS to pass (approximately the 70-year storm event). Yes Long Term (5+yrs.) No The Final EIR was certified in September 2019. The project now needs to be designed, obtain permits and construction funds to commence. It will not likely commence prior to 2022. SFCJPA and VW submitted a planning application to Palo Alto in August. Similar to Newell Road Bridge, the project will need approvals from ARB. No date has been set, but possibly will be scheduled in January 2021. The partner agencies continue to working through the funding mechanisms to complete the construction of the project. In Progress Replacing Pope / Chaucer Street Bridge will need to be coordinated with Newell Road Bridge construction and can occur only after the downstream work has been completed. PA-3 - Newell Road Bridge Replacement Project to increase the flows that pass under the bridge from 6,600 CFS to 7,500 CFS. Yes Short Term (<5yrs.) No The EIR was certified and preferred alternative was selected on June 1, 2020. Staff has been working Caltrans to secure additional funding for the design and right- of-way, these were approved on August 5, 2020. But these have not been programmed. We hope to complete the process in 2020 to complete the design in 2021. We are also working with Caltrans to secure construction funding for FFY 21/22 but this may not be feasible and construction may need to be delayed to FFY 22/23. In Progress PA-4 - San Francisquito Creek Upper Reach Flood Reduction and Ecosystem Restoration Project. The purpose of the project is to detain excess runoff generated from storms that exceed 70-year storm event. Yes Short Term (<5yrs.) No This project is part of PA-2 - The Upper Reach of San Francisquito Creek. The Final Environment Impact Report was certified in September 2019. The Upper Reach Flood Reduction project is to be located within Stanford property. SFCJPA awarded a contract to a consultant in fall 2020 to commence the study that will ultimately determine if detention is feasible upstream In Progress PA-5 - Matadero Creek Storm Water Pump Station Improvements. No Short Term (<5yrs.) No Project is completed. Completed PA-6 - Storm Drain System Replacement and Rehabilitation Yes Other, please specify No Public Works completed the Loma Verde Avenue Trunk line improvements in October 2020. The project upsized an existing 36-inch to a minimum of 48-inches to increase flows that drain into the new Matadero Creek pump station. As part of this project segment of the existing pipe along Louis Road were replaced to improve capacities. We also intend to rehabilitate the 6-ft by 6-ft box culver over Oregon Expressway in December 2020. Ongoing Capability PA-7 - Recycled Water Pipeline Expansion Project to expand the recycled water purple pipeline within South Palo Alto towards Stanford Research Park Yes Long Term (5+yrs.) No An agreement has been established with Valley Water to fund reverse osmosis facility to improve recycled water salinity to enable this project. Reverse osmosis facility is under development. Economics of recycled water project is also under development. In Progress PA-8 - Continue to maintain good standing and compliance in the NFIP and maintain the Community Rating System Class to provide higher CRS premium discounts. Yes Short Term (<5yrs.) No CRS Site Visit occurred on July 21 2020, Public Works submitted a package to the CRS specialist for review, comment and Ongoing Capability approval. The resubmittal is under review but goal is to maintain the CRS rating of 6. PA-9 - Complete the Strategy to Advance Flood protection, Ecosystems and Recreation (SAFER) San Francisco Bay Draft Feasibility Report to identify potential strategies for sea level rise adaptation flood protection and other benefits. No Long Term (5+yrs.) No San Francisquito Creek Joint Powers Authority released a Public Draft Feasibility Report in June 2019. http://sfcjpa.org/wp- content/uploads/2019/08/SAFER-Bay-Palo- Alto-Public-Draft-Feasibility-Report-June- 2019.pdf Completed PA-10 - Construct new Public Safety Building to mitigate current risks to public safety essential services Yes Long Term (5+yrs.) No The project was bid in fall 2020, but the bids were rejected for technical reasons. It is being rebid, and construction is expected to begin in spring 2021. The new completion date is estimated for summer 2023. In Progress PA-11 - Rebuild Fire Stations 3 and 4 to mitigate current risks to essential services . Yes Short Term (<5yrs.) No Fire Station 3 rebuild is nearly complete. Fire Station 4 design will begin spring 2020. In Progress PA-12 - Continue seven-year cycle for high priority tree trimming to reduce impacts of falling branches and other tree related damages to public and personal property. Yes Long Term (5+yrs.) No A contract extension was awarded to continue pruning of street trees and park trees on the seven-year cycle. The contract expires on June 30, 2021. A new contract will be executed following June 2021 to continue the maintenance of city trees. Ongoing Capability PA-13 - Replace the Baylands Tide Gate Yes Long Term (5+yrs.) No Planning Application is underway, the Palo Alto provided comments to the Draft Mitigate Negative Declaration (MND) on October 15, 2020. This is anticipated to be a 4 year project, but with work only occuring between September 1 - January 31 due to enviromental restrictions. In Progress PA-14 - Consider the use of alternative energy sources for critical infrastructure (essential facilities, key resources) Yes Long Term (5+yrs.) No Palo Alto entities continue to explore the use of alternative forms of energy to offset vulnerabilities of carbon based fuels. Palo Alto OES was awarded a grant to purchase a solar powered trailer capable of storing 100mWH of energy to be used at critical facilities. In addition, the City has included a Proposed Key Action "Increase energy resilience by assessing opportunities for local distributed energy resources, energy storage, microgrid installations, and home- to-grid" in the draft 2020 Sustainability and Climate Action Plan, which will go to Council for approval in mid - 2021. Ongoing Capability PA-15 - Implement Wastewater Long-Range Facilities Plan Yes Other, please specify No The Regional Water Quality Control Plant (RWQCP) has been successfully implementing the long-range facilities plan since 2012. The capital improvements to RWQCP facilities are guided by this master plan and funded through the City's Capital Improvement Program (CIP) funds. Ongoing Capability Projects recently completed include replacement of the existing solids handling facilities. In early 2021 the City will award a contract to rehabilitate existing primary sedimentation tanks and go out for bid on secondary outfall pipeline. RWQCP will also update the design of the secondary treatment plant to remove nutrients in the future. PA-16 - Conduct a feasibility analysis concerning the continued use of water reservoirs in the Foothills region. Yes Short Term (<5yrs.) No The Consultant contract was terminated in October 2019. Staff evaluated the parts of the analysis completed by the Consultant. The approach was to move forward with replacing a key tank (Corte Madera) in critical condition. The an alysis of the remaining two tanks and replacement costs was done by staff. Currently, this staff analysis is being reviewed by management, and final decisions will be forthcoming in 2021. In Progress PA-17 - Consider construction of a new water reservoir in the low lying areas of Palo Alto. Yes Short Term (<5yrs.) No This project is tied to PA-16. The Financial Analysis of Dahl and Park Reservoir Replacement Options will be finalized in February 2021. This report will provide recommendations whether Dahl and Park tanks should be relocated to the low lying areas of Palo Alto. In Progress PA-18 - Rebuild and Reconfigure Electric System in Stanford Hospital/Mall Area to increase reliability during emergencies Yes Short Term (<5yrs.) No This project is in progress. The project estimate and construction drawings are completed. The project is delayed pending completion of installation of hardware by Stanford University. Once this is complete, Palo Alto Utilities upgrades can begin. No Progress Reported PA-19 - Install Fiber Optic Service to Monte Bello Reservoir to improve public safety communications along Skyline Drive Yes Short Term (<5yrs.) No The City contracted with Magellan to develop a Utilities specific fiber optic network (SCADA,protection, AMI, traffic signals, ect., and Emergency communications for OES),with the ability to expand to fiber to the node or fiber to the home in the future. There are four phases to this project and the City awarded all four phases to Magellan; however, agreements covering each phase must be approved, w ith the work completed and accepted by the Council before the City decides whether to proceed with the next phase. Phase 1 should be complete in early 2021. http://cityofpaloalto.org/civicax/filebank/doc uments/77770. In Progress PA-20 - Convert overhead utility lines to underground transmission. Installation of new underground electric, communication, and cable television systems in Electric Underground Districts 46 and 47 Yes Short Term (<5yrs.) No District 47 is completed. Poles have been topped above the AT&T lines. AT&T will remove the poles once they completed their work. District 46. Project is mid-way through completion - Underground cables are being installed - above ground poles will In Progress be moved in May 2021 and project is estimated to be complete in June 2021. PA-21 - Construct a second electrical transmission interconnection to PG&E using a new corridor. Yes Long Term (5+yrs.) No Stanford and SLAC decided against participating in establishing a new intertie with Palo Alto. Palo Alto Utilities is pursuing a new option and has contracted with a consultant to obtain the California Independent System Operator’s (CAISO) approval for a transmission project to construct a 115kV circuit from Palo Alto Adobe Creek Substation to PG&E Ames Substation. In Progress PA-22 - Construct a second water interconnection from Palo Alto Utilities to Stanford Hospital Yes Short Term (<5yrs.) No A second water interconnection exists to the Stanford Hospital. Palo Alto Utilities is coordinating an agreement with Stanford Hospital and Stanford University on the use of this second interconnect. The second water interconnection remains in place, but the agreement is still under negotiation. In Progress PA-23 - Connect Palo Alto to adjacent Public Safety agencies' Public Safety Answering Points (PSAPs) by Fiber Yes Long Term (5+yrs.) No Palo Alto Police Department (PAPD) is in discussions with the City of Mountain View and Los Altos on creating a fiber connection between PSAPs. Palo Alto Office of Emergency Services has provided initial recommendations for the PAPD to consider. No Progress Reported PA-24 - Implement a Public Safety Wireless Data Network Yes Long Term (5+yrs.) No Palo Alto Utilities solicited via an RFP for vendors to install a pilot network of 10 nodes but had no responses to the RFP. This project is nested with a larger effort to consider Fiber to the Node (FTN) within the City. Following this, Palo Alto OES attempted a public / private partnership with CMU Moffet Field to compete for Federal grant funding, but was ultimately unsuccessful. The project is currently on hold pending decisions by Palo Alto Utilities on how to move this project forward. No Progress Reported PA-25 - Conduct a Hydrology Study on Buck-Eye Creek for flood protection and erosion control at Foothills Park No Short Term (<5yrs.) No The study was completed and sent to the Palo Alto City Council on May 29, 2018. Here is the link to the study and the Council staff report: https://www.cityofpaloalto.org/civicax/fileb ank/documents/65118 Completed PA-26 - Develop a Baylands Comprehensive Conservation Plan Yes Short Term (<5yrs.) No A draft plan is complete. It was undergoing CEQA review, however, the CEQA work was temporarily stopped when the pandemic started. Work resumed in November 2020, and should be completed by early Spring 2021. In Progress PA-27 - Address hazardous fuels and reduce structural ignitability in the Foothills region in accordance with the Community Wildfire Protection Plan and Foothills Fire Management Plan Yes Other, please specify No Palo Alto provides annual funding for wildfire mitigation activities in accordance with the Foothills Fire Management Plan. The City continues to work annually with the Santa Clara County Fire Safe Council under a three year contract to reduce fuel load in the WUI and protect the Page Mill evacuation route. In addition, Palo Alto Fire Department conducts annual WUI home inspections each Spring to assist homeowners to reduce structural ignitability. Ongoing Capability PA-28 - Encourage creation by Foothills Residents of a Firewise Ready Community Yes Short Term (<5yrs.) No OES conducted a neighborhood meeting of the Laurel Glen neighbors with PAFD, PAPD, CSD Open Space Rangers and the Santa Clara County Fire Safe Council in June 2019 in which we encouraged the formation of a Firewise Community. The Santa Cruz and Santa Clara Counties experienced wildfires in August 2020 that became federal disasters. During these incidents Palo Alto Public Safety officials met with neighborhood leaders to discuss the WUI safety of the residents in this area of Palo Alto. There has not been interest by this neighborhood to form a FireWise community. In Progress PA-29 - Consider a policy for Seismic Retrofitting of earthquake prone structures Yes Short Term (<5yrs.) No In 2016, the City contracted a study of building types with a high seismic risk within Palo Alto. Following this study, the City Council was to direct the staff to develop policy recommendations to No Progress renovate these structures. No progress has made on this item due to reduced resources and other emerging priorties. PA-30 - Develop a Policy for Sea-Level Rise considerations (what actions should the City take) No Short Term (<5yrs.) No The City of Palo Alto City Council adopted a Sea Level rise policy on 18 March 2019. https://www.cityofpaloalto.org/civicax/fileb ank/blobdload.aspx?t=71340.78&BlobID=7 0115 Completed PA-31 - Develop a post-disaster Community Long-term Recovery Plan Yes Short Term (<5yrs.) No OES has drafted a framework document that is at a 50% level of completion. OES plans to continue this planning process in conjunction with the Santa Clara County OEM as they develop a County-based recovery plan, and plans to involve the Planning and Development Services department in this effort. The 2020 COVID crisis delayed the advancement of this topic. The City implemented a partial recovery strategy for economic impacts resulting from the COVID shutdown; the City will continue to build from this experience and the existing working draft to develop a stronger framework, when the County restarts its planning efforts. In Progress PA-32 - Conduct public education that raises awareness of Palo Alto threats and hazards and improves community resilience Yes Other, please specify No The 2020 COVID crisis significantly impacted our ability to provide the activities associated with this project. However, the City of Palo Alto implemented a very robust Ongoing Capability Public Information campaign across a range of communications platforms to outreach to the Palo Alto community. In September, Palo Alto OES also initiated a monthly virtual training/presentation program to continue to raise awareness and increase preparedness throughout the community. PA-33 - Maintain Storm Ready Community designation Yes Other, please specify No OES maintains this certifications through annual activities and requirements set by the Storm Ready program. Ongoing Capability PA-34 - Improve Palo Alto Fire Department ISO rating Yes Short Term (<5yrs.) No The Fire Department is pursuing an improved ISO rating; the PAFD has a rating of 2 but is pursuing a corrective action plan to inspect 100% of and correct water supply (hydrant) issues. The department released a three year contract for these inspection services and currently the Department has completed 2 years of hydrant inspections. They have not pursued a new audit due to the lack of an additional reserve Type 1 engine. E64 was taken out of service after a crash on 8/4/19 and not been replaced. Based on preliminary calculations that may be enough to keep us from the points necessary to reach ISO 1 rating. We will revisit when we are able to replace the reserve Type 1 engine. In Progress PA-35 - Maintain Building Effectiveness Grading Schedule classification of 1 Yes Other, please specify No BEG of 1 has been maintained by Building Inspectors. Ongoing Capability PA-36 - Where appropriate, support retrofitting, purchase or relocation of structures located in high hazard areas and prioritize those structures that have experienced repetitive losses Yes Short Term (<5yrs.) No The City does not currently have a policy to purchase or relocate repetitive loss structures. Additionally, sizable portions of the City are located in high hazard areas where relocation is not feasible. Retrofitting of properties is encouraged for those properties that may be impacted by floods, earthquakes, and wildfires. See also PA-29. Additionally, the City has adopted the most current State building code, which enhances the standard of new construction. Ongoing Capability PA-37 - Integrate the hazard mitigation plan into other plans, ordinances and programs that dictate land use decisions within the community Yes Other, please specify No The Palo Alto Comprehensive Plan recently finalized in 2017 integrates the LHMP in the Safety Element. The Safety Element informs land use planning by describing the natural hazards faced by the Palo Alto community. Additionally, the new Sea Level Rise policy (PA- 30) also integrates the LHMP. Additionally, the City of Palo Alto Sustainability and Climate Action planning take into account land use decisions. Ongoing Capability PA-38 - Actively participate in the plan maintenance protocols outlined in Volume 1 of the hazard mitigation plan. Yes Short Term (<5yrs.) No OES is in compliance with the stated maintenance protocols. Ongoing Capability Changes That May Impact Implementation of the Plan The City of Palo Alto was heavily impacted economically by the Coronavirus pandemic in 2020. Fortunately, no mitigation projects in this plan were affected by these impacts. Public review notice The contents of this report are considered to be public knowledge and have been prepared for total public disclosure. Copies of the report may be provided to the governing boards of all planning partners and to local media outlets. The report, once approved by the Palo Alto City Manager, will be available online on the OES website. Any questions or comments regarding the contents of this report should be directed to: City of Palo Alto OES, 650-617-3197 or lhmp@cityofpaloalto.org Next Plan Update Palo Alto OES will provide a review and update of the Local Hazard Mitigation Plan in January 2022. SCHEDULE of MEETINGS THIS IS A COURTESY NOTICE ONLY. MEETING DATES, TIMES, AND LOCATIONS ARE SUBJECT TO CHANGE. Almost all Palo Alto Council and some Standing Committee meetings are cablecast live on Channel 26. If there happens to be concurrent meetings, one meeting will be broadcast on Channel 29. The agendas for most meetings can be accessed by clicking on “Agendas/Minutes/Reports” on the home web page. Persons with disabilities who require auxiliary aids or services in using City facilities or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (voice) or 329-1199 (TDD), ada@cityofpaloalto.org. Listening assistive devices are available in the Council Chambers. Sign language interpreters will be provided upon request with 72 hours advance notice. Please advise the City Clerk's Office (650-329-2571) of meetings or changes by 3:00 p.m. on Wednesdays for inclusion in the following week’s schedule. 1/28/2021 UNTIL FURTHER NOTICE ALL MEETINGS WILL BE VIRTUAL USING ZOOM SATURDAY, JANUARY 30 Annual City Council Retreat, 9:00 AM MONDAY, FEBRUARY 1 Sp. City Council Meeting, 5:00 PM TUESDAY, FEBRUARY 2 Finance Committee Meeting, 7:00 PM WEDNESDAY, FEBRUARY 3 Utilities Advisory Commission Meeting, 4:00 PM THURSDAY, FEBRUARY 4 Architectural Review Board Meeting, 8:30 AM MONDAY, FEBRUARY 8 Sp. City Council Meeting, 5:00 PM TUESDAY, FEBRUARY 9 Policy & Services Committee Meeting, 7:00 PM WEDNESDAY, FEBRUARY 10 Planning & Transportation Commission Meeting, 6:00 PM THURSDAY, FEBRUARY 11 Historic Resources Board Meeting, 8:30 AM Human Relations Commission Meeting, 7:00 PM TUESDAY, FEBRUARY 16 Finance Committee Meeting, 7:00 PM THURSDAY, FEBRUARY 18 Architectural Review Board Meeting, 8:30 AM City/School Liaison Committee Meeting, 8:30 AM Public Art Commission Meeting, 7:00 PM MONDAY, FEBRUARY 22 Sp. City Council Meeting, 5:00 PM TUESDAY, FEBRUARY 23 Parks & Recreation Commission Meeting, 7:00 PM