HomeMy WebLinkAbout2022-06-13 City Council Agenda Packet1
City Council
Special Meeting
Monday, June 13, 2022
5:00 PM
Council Chamber & Virtual
Late Packet Report Added
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the
option to attend by teleconference/video conference or in person. To maximize public safety
while still maintaining transparency and public access, members of the public can choose to
participate from home or attend in person. Information on how the public may observe and
participate in the meeting is located at the end of the agenda. Masks are strongly
encouraged if attending in person.
HOW TO PARTICIPATE
VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at
https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center at https://midpenmedia.org.
TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at
Council meetings. Listed times are estimates only and are subject to change
at any time, including while the meeting is in progress. The Council reserves
the right to use more or less time on any item, to change the order of items and/or
to continue items to another meeting. Particular items may be heard before or after
the time estimated on the agenda. This may occur in order to best manage the time
at a meeting or to adapt to the participation of the public.
REVISED PUBLIC COMMENTS
Public Comments will be accepted both in person and via Zoom for up to three
minutes or an amount of time determined by the Chair. All requests to speak
will be taken until 5 minutes after the staff’s presentation. Written public
comments can be submitted in advance to city.council@cityofpaloalto.o rg and
will be provided to the Council and available for inspection on the City’s
website. Please clearly indicate which agenda item you are referencing in your
email subject line.
PowerPoints, videos, or other media to be presented during public comment are
accepted only by email to city.cl erk@cityofpaloalto.org at least 24 hours prior
to the meeting. Once received, the City Clerk will have them shared at public
comment for the specified item. To uphol d strong cybersecurity management
practices, USB’s or other physical electronic storage dev ices are not accepted.
2 Special Meeting June 13, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
CALL TO ORDER
SPECIAL ORDER OF THE DAY (5:00 - 5:10 PM)
1.Proclamation Recognizing Juneteenth Holiday
CLOSED SESSION (5:10 - 6:20 PM)
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
2.CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION Subject:
Miriam Green v. City of Palo Alto Santa Clara County Superior Court
Case No. 16CV300760 (One Case, as Defendant) Authority:
Government Code Section 54956.9(d)(1)
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:20 - 6:35 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of
Oral Communications period to 30 minutes.
CONSENT CALENDAR (6:35 - 6:40 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
3.Approve Minutes from the June 1, 2022 City Council Meeting
4.Approval of Contract No. C22182951 with Innovative Interfaces
Incorporated for use of its Online-Hosted Integrated Library System
(ILS) Software, Innovative Mobile App, and Implementation Services,
for a Five-Year Term and a Total Contract Not-To-Exceed Amount of
$983,388 including a Ten-Percent Contingency/Additional Services
Amount
5.Finance Committee Recommends the City Council Direct Staff to
Update the Park, Library, and Community Center Development Impact
Fee Nexus Study to Create New Fee Categories, Update the Park Land
Valuation to $17.6m, Move to a Square-foot basis for Fees Imposed on
Housing, and Conduct an Economic Feasibility Study (Including on the
Parkland Dedication Fee)
6.Utilities Advisory Commission Recommend the City Council Adopt the
2022 Annual Water Shortage Assessment Report
7.Approval of Amendment No. 2 to Contract S20176879 with Johnson
Controls Fire Protection LP, to Add to the Scope of Services and
Increase the Contract Amount by $113,466 for a New Three-year
At-Places Memo
3 Special Meeting June 13, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
Contract Total Amount Not-to-Exceed of $379,050 for the Provision of
Fire Sprinkler System Inspections and Repair Services
8.Approval of Contract Amendments to Extend Three Public -Private
Partnership Agreements Between the City of Palo Alto and
TheatreWorks, Palo Alto Players, and West Bay Opera for the use of
the Lucie Stern Community Theatre for an Additional Year
CITY MANAGER COMMENTS (6:40 - 7:00 PM)
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
9.Finance Committee Recommends Adoption of six Resolutions: 1)
Approving the Fiscal Year 2023 Wastewater Collection Utility Financial
Plan, Including Proposed Transfer, and Adopting a Wastewater
Collection Utility Rate Increase by Amending Wastewater Collection
Rate Schedules S-1, S-2, S-6 and S-7; 2) Approving the FY 2023
Water Utility Financial Plan, Including Proposed Transfer, and Adopting
a Water Utility Rate Increase by Amending Water Rate Schedules W-1,
W-2, W-3, W-4, and W-7; 3) Approving FY 2023 Gas Utility Financial
Plan, Including Proposed Transfers, and Adopting a Gas Utility Rate
Increase by Amending Gas Rate Schedules G-1, G-2, G-3 and G-10;
4)Approving the FY 2023 Electric Utility Financial Plan, Including
Proposed Transfers and Amendments to the Electric Utility Reserve
Management Practices, Amending Utility Rate Schedules E-EEC-1, E-
NSE-1, E-2-G, E-4-G and E-7-G, and Adopting an Electric Utility Rate
Increase by Amending Utility Rate Schedules E-1, E-2, E-4, E-4 TOU,
E-7, E-7 TOU and E-14; 5) Amending Utility Rate Schedules EDF-1
and EDF-2 to Increase Dark Fiber Rates 4.2 Percent; and 6)
Amending Utility Rate Schedule D-1 Increasing the Storm Water
Management Fee by 4.20 Percent per Month per Equivalent Res idential
Unit for FY 2023 (7:00 – 8:00 PM)
10.Policy and Services Committee Recommendations on Pending State
Assembly Bills 2181 (VTA) and 1944, 2449, and 2647 (Local Meeting
Procedures) (8:00 – 9:00 PM)
11.Revenue-Generating Ballot Measures (Affirmation of the Natural Gas
Utility Transfer and New Business Tax): Direction to Staff on Key Policy
Questions and Measure Characteristics, and Direction to Return with
Final Documents for Placement of Ballot Measure(s) on the November
2022 Election and a Non-Binding Resolution for Intended Use of
Business Tax Proceeds (9:00 -10:30 PM) Late Packet Report Added
Presentation
Public Letters
Public Letters
Presentation
Presentation
4 Special Meeting June 13, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for
action during this meeting’s agenda.
12.Informational Report on the City of Palo Alto 2022 Water Gas and
Wastewater Utility Standards
13.Airplane Noise from the Public Works
OTHER INFORMATION
Standing Committee Meetings
Policy & Services Committee Meeting June 14, 2022
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of t he agenda are listed below. Any
corresponding materials are appended to the end of the initial packet. If full items have been added to the Agenda,
they will be denoted with a number staring with AA, meaning Amended Agenda item.
11.Revenue-Generating Ballot Measures (Affirmation of the Natural Gas
Utility Transfer and New Business Tax): Direction to Staff on Key Policy
Questions and Measure Characteristics, and Direction to Return with
Final Documents for Placement of Ballot Measure(s) on the November
2022 Election and a Non-Binding Resolution for Intended Use of
Business Tax Proceeds (9:00 -10:30 PM) Late Packet Report Added
5 Special Meeting June 13, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
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 # 14402)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Special Orders of the Day
City of Palo Alto Page 1
Title: Proclamation Recognizing Juneteenth Holiday
From: City Manager
Lead Department: City Manager
Recognition of the Juneteenth Holiday (June 19) per the direction from the City Council on
March 7, 2022 (Minutes). This proclamation shall be brought forth annually to the City Council.
Proclamation attached.
Attachments:
• Attachment1.a: Juneteenth Proclamation 2022
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__________________________
Pat Burt
Mayor
Proclamation
JUNETEENTH FREEDOM DAY
WHEREAS, June 19th is declared as Juneteenth Freedom Day, a nationally recognized day which celebrates the
rich culture, legacy and heritage of Black and African American people;
WHEREAS, 2022 marks the 157th year of Juneteenth Freedom Day with Juneteenth being the oldest known
celebration commemorating the abolition of slavery in the United States, dating back to June 19, 1865 when Union
soldiers led by Major General Gordon Granger arrived in Galveston, Texas with news that the war had ended, freeing
the enslaved; and
WHEREAS, This was two and a half years after President Abraham Lincoln’s Emancipation Proclamation which
became official on January 1, 1863; and
WHEREAS, The U.S. Congress—between 1865 and 1870—would pass key amendments to the U.S. Constitution,
that upon ratification by each state, would profoundly change the legal status of those once enslaved. The thirteenth
amendment abolished bonded servitude. The fourteenth amendment conferred citizenship upon on those once enslaved.
Finally, the fifteenth amendment enfranchised men once held in bondage.
WHEREAS, Kamala Harris, Vice President of the United States of America—in prefatory remarks before President
Joseph Biden signed the observance of Juneteenth into Federal law in 2021—noted that “Throughout history,
Juneteenth has been known by many names: Jubilee Day, Freedom Day, Liberation Day, Emancipation Day, and
today, a National Holiday;”
WHEREAS, Today, Juneteenth Freedom Day celebrates Black and African American people’s freedom and
achievement, while encouraging continuous self-development and respect for all cultures, as it takes on a more national,
symbolic and even global perspective, to ensure the events of 1865 are not forgotten; and
WHEREAS, Palo Alto has begun the journey of addressing racial inequities and focusing on efforts to increase
diversity, equity, inclusion, and belonging as expressed in the City of Palo Alto’s Equity Mission Statement; and
NOW, THEREFORE, I, Pat Burt, Mayor of the City of Palo Alto on behalf of the entire City Council, do hereby
proclaim June 19 as Juneteenth Freedom Day, and to call upon our community to all redouble our commitment to use
our power to stamp out hate, racism, and inequities and continue the work of equity, justice, and hope.
PRESENTED: June 13, 2022
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City of Palo Alto (ID # 14489)
Office of the City Attorney
City Council CAO Report
Meeting Date: 6/13/2022 Report Type: Closed Session
Title: CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION
Subject: Miriam Green v. City of Palo Alto Santa Clara County
Superior Court Case No. 16CV300760 (One Case, as
Defendant) Authority: Government Code Section
54956.9(d)(1)
From: Lesley Milton, City Clerk
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City of Palo Alto (ID # 14490)
Office of the City Clerk
City Council CAO Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
Title: Approve Minutes from the June 1, 2022 City Council Meeting
From: Dani Kang,
Staff recommends Council to review and approve the minutes as presented.
ATTACHMENTS:
• Attachment3.a: 20220601amCCsm (PDF)
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CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 2
Special Meeting
June 1, 2022
The City Council of the City of Palo Alto met on this date in the Council
Chambers and by virtual teleconference at 5:30 P.M.
Present: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka
Absent: DuBois
Public Comment
Action Items
1. Review and Approval of 2022-2023 Work Plans for the following Boards
and Commissions: Parks and Recreation Commission, Planning and
Transportation Commission, Historic Resources Board, Architectural
Review Board and Human Relations Commission
ACTION: Approved
2. PUBLIC HEARING: Adoption of Two Ordinances Implementing the
Objective Standards Project, Including: 1) New Chapter 18.24,
Contextual Design Criteria and Objective Design Standards; 2)
Modifications to Affordable Housing (AH) Overlay District to Eliminate
the Legislative Process; 3) Changes to Remove Inconsistencies and
Redundancies, and Streamline Project Review Throughout Title 18.
MOTION: Mayor Burt moved, seconded by Council Member Filseth to
adopt two ordinances implementing the objective standards project,
including: an ordinance creating Palo Alto Municipal Code Chapter 18.24
(Contextual Design Criteria and Objective Design Standards)
(Attachment A); and an ordinance adopting related changes throughout
Title 18 (Zoning) to implement the new standards (Attachment B).
MOTION PASSED/FAILED: 5-1, Cormack No, DuBois Absent
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DRAFT ACTION MINUTES
Page 2 of 2
(Sp.) City Council Meeting
Draft Action Minutes: 06/01/2022
Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 9:46 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal
Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in
accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in
accordance with Ordinance No. 5423, the City Council found action minutes
and the video/audio recordings of Council proceedings to be the official records
of both Council and committee proceedings. These recordings are available on
the City’s website.
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City of Palo Alto (ID # 13932)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Contract No. C22182951 with Innovative Interfaces
Incorporated for use of its Online -Hosted Integrated Library System (ILS)
Software, Innovative Mobile App, and Implementation Services, for a Five -
Year Term and a Total Contract Not-To -Exceed Amount of $983,388 including
a Ten -Percent Contingency/Additional Services Amount
From: City Manager
Lead Department: IT Department
Recommendation
Staff recommends that the Council approve and authorize the City Manager or their designee
to execute the attached Contract No. C22182951 with Innovative Interfaces Incorporated
(Attachment A) for use of its online-hosted Integrated Library System (ILS) Software, Innovative
Mobile App, and Implementation Services, for a five-year term and a total not-to-exceed
amount of $983,388, which includes a 10% contingency for Additional Services in the amount of
$89,399, to be assigned via City-approved Task Order as detailed in the agreement.
Executive Summary
This agreement will enable the Library to continue using the current software and/or software
services to provide the functionality of the Library’s Integrated Library System (ILS). It will also
add use of the Innovative Mobile App, a mobile checkout function, and provide implementation
services for the app and configuration of RFID (radio frequency identification) beacons. Staff
uses the ILS to perform and manage most library transactions and operations, including
circulation of library materials (check-in and check-out items, holds management),
management of customer accounts, creation of public access to all types of library materials,
preparation of such materials for public use and statistical reporting.
Background
The average useful life of an ILS is roughly seven years. Before migrating to the current ILS
provided by Innovative Interfaces Incorporated (Innovative Interfaces), the Library installed one
system in 2005. The project and associated costs were detailed in the Library’s technology plan
completed in 2009 and reviewed by the Library Advisory Com mission. The plan recommended
the replacement of the ILS software in order take advantage of new features such as federated
search and to implement a discovery layer, features which will allow users to find a greater
number of resources or options to answer their searching terms. Innovative Interfaces’ ILS was
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City of Palo Alto Page 2
chosen for these reasons. Additionally, the ILS replacement allowed the Library to achieve the
following goals:
• Eliminate most or all in-house ILS computer hardware and software via replacement
with a cloud-based ILS service
• Address shortcomings in the existing bibliographic database system including search,
record display, and interoperability requirements with other vendors and services
• Improve the customer usability of the public access catalog to provide customizable
web-based self-service
• Improve the functionality of the circulation system
• Improve database maintenance and cataloging
• Maintain functionality of acquisition and serials services
• Provide robust reporting and integration with third -party products and services
With those goals, the current ILS system was selected in November 2014 through a public
solicitation and a contract executed in March 2015.
Discussion
Procurement Process
A request for proposals for the Library Computer System software was issued in March 2014.
An evaluation team of staff from the Library Department, IT, and a library technology
consultant evaluated proposals from five vendors.
The criteria used to evaluate the proposals were the following:
• Cost considerations
• Company viability and references
• Support and maintenance agreements
• Expertise in providing the required service
The evaluation team invited three of the five proposers to come to Palo Alto to do live
demonstrations of their systems. Along with demonst rations and references from other
libraries that currently use the respondents’ services, staff found that when taking into
consideration all criteria, Innovative Interfaces, Incorporated was found to have the best ILS
services to meet the needs of the Library.
Evaluation and award of the ILS vendor was approved in January 2015, CMR 4920. The contract
for the existing system expired in March 2022. Staff recommends that the Library services
continue using the existing ILS platform for an additional five (5) years, for a total of 10 years of
services. The primary reasons for this recommended amendment and extension include:
• Migration to a new system and subsequent staff training demands extensive resources.
The priority of Library staff is to focus on recovery from the past budget reductions and
continuing to implement services through the recov ery period. The Library has
insufficient resources to engage in changing systems while prioritizing re-opening and
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City of Palo Alto Page 3
supporting daily services.
• The existing ILS has received positive feedback regarding the ease of use and ability to
find materials quickly. Any system change will require new orientation on the part of
customers.
• Innovative Interfaces, chosen through a public process originally, has been making
efforts to keep its system updated by adapting newly developed technology. This
platform introduced three new versions and migrated customer data to cloud storage
since the City implemented it in 2015. The Mobile App allows in-stack checkout, a
convenience that customers have been requesting.
Staff will evaluate the marketplace and ILS options to assess available tools that may meet the
needs of the library and its patrons for these transaction services prior to any additional
provisions of services beyond this recommended term.
Alternatively, if the Council does not approve this amendment, or approves one under
alternative terms, staff would recommend at least a one-year extension to ensure continuity of
services before a market evaluation is completed and potentially a new system implemented.
This would significantly impact other projects as this system is required for day-to-day
operations of library services.
Resource Impact
Funds for the Fiscal Year 2022 costs have been budgeted in the Information Technology Fund.
Ongoing maintenance costs are subject to annual approriation of funds through the annual
budget process.
Breakdown of Costs: Innovative Interfaces Contract Costs
Stakeholder Engagement
The Customer Satisfaction Survey, a general assessment about library services conducted in
2018, has shown that customers were satisfied with the way they were able to find library
materials through the library online catalog. No solications for ILS-specific feedback from
customers has been done.
FY = March 1 - Feb. 28
Year 1,
FY2022
Year 2,
FY2023
Year 3,
FY2024
Year 4,
FY2025
Year 5,
FY2026
Total all
5 Years
Sierra Subscription/Decision
Center/Resource Sharing $155,060 $160,487 $166,104 $171,917 $177,934 $831,502
Mobile App - License $11,000 $11,385 $11,783 $12,196 $12,623 $58,987
Mobile App - Professional
Services (One-time) $3,500 $0 $0 $0 $0 $3,500
Total: $165,933 $168,118 $174,002 $180,092 $186,396 $893,989
Contingency for Additional Services $89,399
Grand Total w/Contingency $983,388
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Policy Implications
This recommendation does not present any changes to existing City policies.
Environmental Review
Approval of this agreement does not constitute a project under the California Environmental
Quality Act (CEQA); therefore, an environmental assessment is not required.
Attachments:
• Attachment4.a: Attachment A:
C22182951_Innovative_Interfaces_Incorporated_final_060222
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City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Page 1 of 37
CITY OF PALO ALTO CONTRACT NO. C22182951
AGREEMENT FOR PROFESSIONAL SERVICES and SOFTWARE LICENSE
(“License”)
BETWEEN THE CITY OF PALO ALTO AND
INNOVATIVE INTERFACES INCORPORATED
This Agreement for Professional Services and Software License (“License”) (this “Agreement”)
is entered into as of the 13th day of June, 2022 (the “Effective Date”), by and between the CITY
OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INNOVATIVE
INTERFACES INCORPORATED, a California corporation, located at 1900 Powell Street, Suite
400, Emeryville, CA 94608 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A. CITY intends to engage the CONSULTANT to provide continued access to and use of the
CONSULTANT’s the online-hosted Sierra Integrated Library System (ILS) Software (defined in
Section 14) and its Innovative Mobile application (“app”), as well as implementation services for
the Innovative Mobile app and RFID (collectively, 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.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution
through February 28, 2027 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
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
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City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Page 2 of 37
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 actual 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 Ninety
Three Thousand Nine Hundred Eighty Eight Dollars and Ninety Four Cents ($893,988.94 ).
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.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Eighty Nine Thousand Three Hundred Ninety Eight
Dollars and Eighty Nine Cents ($89,398.89) for the performance of Additional Services
(as defined below). The total compensation for performance of the Services, Additional
Services and any reimbursable expenses specified in Exhibit C, shall not exceed Nine
Hundred Eighty Three Thousand Three Hundred Eighty Seven Dollars and Eighty
Three Cents ($983,387.83), 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
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
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
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City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Page 3 of 37
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 CONSULTANT’s obligations in any manner regarding 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 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
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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. Notwithstanding the foregoing, a party may assign this Agreement without the other
party’s consent (i) as part of a corporate reorganization, consolidation, merger, or sale of
substantially all of its assets or capital stock; or (ii) to an Affiliate of such party provided that any
such assignment will not release the assigning party from its obligations under this Agreement.
CONSULTANT shall provide CITY with prompt notice of such corporate reorganization,
consolidation, merger, or sale of substantially all of its assets or capital stock to which this
Agreement relates, or assignment to an Affiliate, once CONSULTANT is permitted to publicly
disclose the same. CONSULTANT shall demonstrate to CITY’s reasonable satisfaction that the
assignee has the ability, capacity, experience and skill and is otherwise qualified to perform the
Agreement and the parties, and the assignee shall enter into a written assignment agreement in a
form acceptable to the CITY, pursuant to Palo Alto Municipal Code section 2.30.290(c). CITY
may terminate this Agreement if it is not reasonably satisfied with any such assignment. Any
purported assignment made without CITY’s written approval, as required under this provision,
shall be null and void.
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractor authorized by
CITY to perform work on this Project are:
SOLUS
Any third-party Hosting Provider (as defined in Exhibit A) that CONSULTANT
utilizes in performing this Agreement.
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
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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 Tom McNamara 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. CONSULTANT may designate an alternate Project Manager from
time to time by written notice to the CITY. 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 Sarah Wilson, Library Department, 1213 Newell Road, Palo Alto, CA,
94303, Telephone: 650-329-2516. 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 by written notice to the CONSULTANT.
SECTION 14. INTELLECTUAL PROPERTY; DATA. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications,
computations, models, recordings, data, calculations, documents, and other materials and
copyright interests developed under this Agreement, in any format or media, as unique to this
engagement with CITY, shall be and remain the exclusive property of CITY without restriction or
limitation upon their use. 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.
14.1 Intellectual Property Rights in the Software. CONSULTANT and/or its
licensor(s), as applicable, retain all right, title, and interest in and to the Software, further defined
as the online-hosted Software to be provided by CONSULTANT to CITY, its Authorized Users
(defined below), and public users (if applicable, as addressed in Section 14.2 below), pursuant to
this Agreement, as detailed in Exhibit A (“Scope of Services”), including without limitation all
Software (defined below) used to provide the Software and all graphics, user interfaces, logos, and
trademarks reproduced through the Software. This Agreement does not grant CITY any
intellectual property license or rights in or to the Software or any of its components or any
Documentation (defined below) except those expressly granted herein. CITY recognizes that the
Software and its components and the Documentation are protected by copyright and other laws.
“Software” means the online-hosted computer software application(s) residing on
CONSULTANT-provided servers that CONSULTANT uses to provide to CITY the Services
detailed in this Agreement, and that CONSULTANT makes digitally accessible to the CITY, its
Authorized Users, and public users (if applicable, as addressed in Section 14.2 below), via the
internet. “Documentation” means the technical publications relating to the use of the Software,
such as reference, installation, administrative and programmer or user manuals, made available by
CONSULTANT to CITY.
14.2 Grant of Right to Use the Software. Subject to the terms of this
Agreement, CONSULTANT hereby grants to CITY a non-exclusive, non-assignable license to
access and use the Software, components of its software applications, modules, and other products
for the term of this Agreement as contemplated herein. The license granted to CITY hereunder
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includes the right to provide to the CITY’s Authorized Users access to the Software in accordance
with this Agreement. “Authorized User” means the base number of persons listed in the Pricing
Exhibit holding a valid ID and password issued by the CITY pursuant to this Agreement. If the
Software provided pursuant to this Agreement consists of, or includes, public-facing
functionalities, the license granted hereunder also extends to public users to access and use the
public-facing functionalities of the Software. CONSULTANT warrants that it has the right to
provide the foregoing license to access and use the Software pursuant to this Agreement, that
CONSULTANT has obtained any and all necessary permissions from third parties to provide the
Software.
14.3 Ownership of Data; Grant of License to City Data. The parties
acknowledge and agree that CITY owns the City data, content, documents, materials and other
information, in any format or media, inputted by City, its Authorized Users or its public users,
into the Software (“City Data”); that the CITY has a right to control, access and retrieve City Data
at any time during the term of the Agreement, in computer-readable format. The CITY hereby
grants to CONSULTANT and its subcontractors, if any, the limited, non-exclusive, non-
transferable, revocable rights to access and use City Data during the term of this Agreement solely
for the purposes of performing CONSULTANT’s obligations to CITY hereunder and supporting
CITY’s use of the Software hereunder, as well as to generate aggregated, system-wide collations
of industry and business data in a non-attributed, non-identifiable manner for product improvement
and product creation that does not identify CITY or detail of its particular data, and as is otherwise
expressly permitted under this Agreement. This Agreement does not grant CONSULTANT or its
subcontractors, if any, any intellectual property license or rights in or to the City Data except those
expressly granted herein. Upon termination or expiration, if CITY will leave the Software,
CONSULTANT and CITY shall work together to provide CITY with a copy of City Data in
mutually-agreed computer-readable format(s), such service will be performed pursuant to a written
statement of work and paid for by CITY, applying CONSULTANT’s then-current rates for
daily/hourly work, as the case may be. CITY shall have the option to choose from one of several
methods to obtain a copy of City Data. Once such data has been provided to CITY,
CONSULTANT shall use, or cause to be used, industry-standard secure means of destruction or
erasure of any City Data remaining in its possession and, at the CITY’s request, certify the same.
14.4. Data Security. CONSULTANT will maintain, or cause to be maintained,
a data security program for the Software that will include reasonable administrative,
physical, technical, organizational and other security measures to protect against unauthorized
access to, or destruction, loss, unavailability or alteration of, any City Data accessed by
CONSULTANT and its subcontractors, if any, in the performance of this Agreement including
without limitation City Data processed or stored by the Software. Contractor will provide security
for its networks and all internet connections consistent with industry best practices, and will
promptly install all patches, fixes, upgrades, updates and new versions of any security software it
employs. City Data will be encrypted at rest and in transit with controlled access.
14.5. Notification of Legal Requests. CONSULTANT will immediately notify
City upon receipt of any subpoenas, service of process, litigation holds, discovery requests and
other legal requests (“Legal Requests”) related to City’s Data under this Agreement, or which in
any way might reasonably require access to City’s Data, and in no event later than 2 business days
after it receives the request. CONSULTANT will not respond to Legal Requests related to City
without first notifying City other than to notify the requestor that the information sought is
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potentially covered under a non-disclosure agreement. CONSULTANT will retain and preserve
City Data in accordance with the City’s instruction and requests, including, without limitation, any
retention schedules and/or litigation hold orders provided by the City to CONSULTANT,
independent of where the City Data is stored.
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.
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”) resulting from, arising out of the negligence, 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. For avoidance
of doubt, CONSULTANT’s indemnification obligations under this Section 16 include the
infringement indemnification provided under Section 7 (Indemnification) of Appendix 1
(Innovative Interfaces Incorporated Master Professional Services Agreement) and Section 7
(Indemnification) and Section 7 (Indemnification) of Appendix 2 (Innovative Interfaces
Incorporated Subscription License Agreement) of this Agreement.
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 16.A. LIMITATION OF LIABILITY.
16.A.1. LIMITATION OF LIABILITY OF CONSULTANT.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, IN NO EVENT
SHALL CONSULTANT BE LIABLE TO CITY, REGARDLESS OF WHETHER ANY CLAIM
IS BASED ON CONTRACT OR TORT, FOR SPECIAL, CONSEQUENTIAL, INDIRECT OR
INCIDENTAL DAMAGES OR FOR ANY LOSS OF PROFIT OR LOSS OF BUSINESS BY
CITY, EVEN IF CONSULTANT HAS BEEN ADVISED OF THE POSSIBILITY OF ANY
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SUCH POTENTIAL CLAIM, LOSS OR DAMAGE. EXCEPT AS PROVIDED IN THE
IMMEDIATELY FOLLOWING SENTENCE, IN NO EVENT SHALL THE TOTAL
AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY
EXCEED THE FEES PAID TO CONSULTANT UNDER THIS AGREEMENT IN THE
TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE DATE UPON WHICH A
CLAIM IS FIRST ASSERTED. CONSULTANT'S LIABILITY LIMIT SET FORTH HEREIN
SHALL NOT APPLY TO (1) DAMAGES CAUSED BY CONSULTANT'S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT, (2) CONSULTANT’S OBLIGATIONS TO
INDEMNIFY CITY PURSUANT TO SECTION 16 (“INDEMNITY”) OF THIS AGREEMENT,
(3) STATUTORY DAMAGES, AND (4) WRONGFUL DEATH CAUSED BY CONSULTANT.
16.A.2. LIMITATION OF LIABILITY OF CITY. CITY’S PAYMENT
OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT OF
THE COMPENSATION PROVIDED FOR IN SECTION 4 (“NOT TO EXCEED
COMPENSATION”) OF THIS AGREEMENT. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL CITY BE LIABLE,
REGARDLESS OF WHETHER ANY CLAIM IS BASED ON CONTRACT OR TORT, FOR
ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES,
INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR THE SERVICES PERFORMED IN
CONNECTION WITH 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.
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. 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 ten (10) business days of the CONSULTANT’s receipt
of such notice. Upon request by CITY Project Manager or designee, CONSULTANT will provide
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the then-current certificate(s) evidencing the insurance during the 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,
subject to the limitations of liability in Section 16.A.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. 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 (Intellectual Property; Data), 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 (Intellectual Property; Data).
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
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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.
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 represents that it is committed to promoting and improving
accessibility to enable CITY to comply with the W3C Web Content Accessibility Guidelines
Version 2.0 Level AA (WCAG 2.0 standard) and Americans with Disabilities Act ("ADA"), 42
U.S.C. 12101 et seq. and Sections 504 and 508 of the Rehabilitation Act 29 U.S.C. 701 et seq. as
those laws apply to the CITY. CONSULTANT agrees to address within a commercially reasonable
time, any complaint related to compliance accessibility of its software that has been identified and
brought to the attention of CONSULTANT.
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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 including but not limited to, proposals, quotes, invoices, reports, and public
education materials, shall be accepted by electronic means by the CITY.
(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:
(a) is not a public works contract;
(b) 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
(c) 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
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1773.3(j).
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 not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, the parties may have access to
Confidential Information (defined below). The parties will hold Confidential Information in strict
confidence, not disclose it to any third party, and will use it only in the performance of this
Agreement and for no other purpose. The parties will maintain reasonable and appropriate
administrative, technical and physical safeguards to ensure the security, confidentiality and
integrity of the Confidential Information. Notwithstanding the foregoing, the parties 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 obligations under this Agreement and for no other purpose,
provided that the parties 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 a disclosing party to a receiving party, directly
or indirectly, pursuant to this Agreement. Confidential Information excludes information that: (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 recipients possession free of any
obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
recipient from a third party without breach of any confidentiality obligation; (iv) is independently
developed by employees of recipient without any use of or access to the Confidential Information;
or (v) recipient has written consent to disclose signed by an authorized representative of the
disclosing party.
28.3. Notwithstanding the foregoing, a party may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that such party will notify the other party in writing of such order immediately
upon receipt and prior to any such disclosure (unless the party is prohibited by law from doing so),
to give the other party an opportunity to oppose or otherwise respond to such order.
28.4. A party will notify the other party 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,
the party will provide information to other party sufficient to meet the notice requirements of Civil
Code Section 1798 et seq., as applicable, as amended from time to time.
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28.5. Prior to or upon termination or expiration of this Agreement, the parties will
honor any request from the other party to return or securely destroy all copies of Confidential
Information. All Confidential Information is and will remain the property of the disclosing party
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on the receiving party.
28.6 Compliance with Subpoena or Court Order. Notwithstanding anything to
the contrary in this Section, if any Confidential Information is subject to disclosure pursuant to a
lawful subpoena or court order, a party may disclose such Confidential Information to the extent
required thereby, and such disclosure shall not be deemed a violation of this Agreement. In the
event a receiving party receives a subpoena or court order covering the disclosing party’s
Confidential Information, then prior to disclosing such information, the receiving party shall
provide written notice to the disclosing party of such subpoena or court order, if legally
permissible, as soon as possible and in no event more than seventy-two (72) hours after the
receiving party has received such subpoena or court order, in order to allow time for the disclosing
party to take legal action to prevent disclosure if the disclosing party so chooses. Nothing herein
shall require receiving party to take any action, or to refuse to disclose information, where to do
so would violate applicable law or court order.
28.7 Compliance with Public Disclosure Laws. Notwithstanding anything to the
contrary in this Section, the parties understand and agree that City is a public entity, and if any
Confidential Information or information about this Agreement or its performance is subject to
disclosure by the City pursuant to applicable open government and public records laws, including
without limitation California’s Brown Act, the California Public Records Act and Palo Alto
Municipal Code section 2.30.610, the City may disclose such information to the extent required
thereby. In the event the City receives a public records request covering the CONSULTANT’s
Confidential Information, the City shall, promptly following receipt, give notice to
CONSULTANT of such request in case CONSULTANT wishes to take legal action to prevent
disclosure if CONSULTANT so chooses. Nothing herein shall require the City to take any action,
or to refuse to release information, where doing so would violate applicable law or court order.
28.8. 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. The CITY does not waive its right to a jury trial.
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
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parties.
29.4. This Agreement, including all exhibits and appendices, 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 supersedes any click-through, click-on,
“screen wrap” or other user agreement that may appear on any CONSULTANT Software,
application or website. 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.
29.10 The parties understand and agree that City is a California public entity
subject to applicable open government and public records laws, including without limitation
California’s Brown Act, the California Public Records Act, and Palo Alto Municipal Code section
2.30.610; that the City operates in an open and public manner in accordance with applicable open
government laws; and that the City may disclose this Agreement and information about this
Agreement (except Confidential Information of Consultant, which shall be handled pursuant to
Section 28 of this Agreement regarding Confidential Information) in accordance with applicable
open government and public records laws.
29.11 All fees under this Agreement are exclusive of any applicable sales, value-
added, use or other taxes (“Sales Taxes”). It is the understanding of the parties that online-hosted
software, such as the Software provided hereunder, is not “tangible personal property” and is
therefore not taxable under Title 18 of the California Code of Regulations, Section 1502(f)(1)(C)-
(D). If this understanding should prove incorrect, CITY will be responsible for any and all
applicable Sales Taxes, not including taxes based solely on CONSULTANT’s net income. If any
applicable Sales Taxes related to the fees under this Agreement are found at any time to be payable,
and the Sales Taxes applicable to the Software provided to CITY under this Agreement are
assessed by the taxing authority against CONSULTANT, the amount may be billed by
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CONSULTANT to CITY, with supporting documentation, and shall be paid by CITY pursuant to
an amendment to this Agreement as provided for in Section 29.4 of this Agreement.
SECTION 30. EXHIBITS AND APPENDICES; ORDER OF PRECEDENCE. Each of the
following exhibits and appendices, if the check box for such exhibit or appendix is selected below,
is hereby attached and incorporated into this Agreement by reference as though fully set forth
herein. In the event of any conflict between the provisions of this Agreement for Professional
Services Software License document including Exhibits A through E as compared to the provisions
of Appendices 1 through 3, the provisions of this Agreement for Professional Services and
Software License document including Exhibits A through E shall take precedence, followed by
the provisions of Appendices 1 through 3. This Section shall take precedence in the event of a
conflict with any other covenant, term, condition, or provision of this Agreement.
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: CYBERSECURITY TERMS AND CONDITIONS
APPENDIX 1: INNOVATIVE INTERFACES INCORPORATED MASTER
PROFESSIONAL SERVICES AGREEMENT
APPENDIX 2: INNOVATIVE INTERFACES INCORPORATED
SUBSCRIPTION LICENSE AGREEMENT
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT No. C22182951 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
INNOVATIVE INTERFACES
INCORPORATED
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
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Tom Jacobson
VP, Exec Library Advocate & Strategist
SVP Library Services
Hilary Newman
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT (also referred to herein as “Innovative”) shall provide the Software and Services
(collectively, the “Services”) detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.
Task 1: Sierra Integrated Library System (ILS) Software
CONSULTANT will provide access to and use of its Sierra Integrated Library System (ILS), a
Software offering. CITY’s access to and use of the Sierra ILS Software licensed under this
Agreement includes hosting, support and maintenance.
Sierra integrates multiple workflows — eResource Management, Circulation, Cataloging,
Acquisitions, and more — into one easy to use interface to allow uninterrupted progress on day
to day initiatives or special projects, saving the customer valuable time.
Sierra gives the customer the ability to customize its workflow based on role. For example,
library staff involved in circulation as well as acquisitions can employ a persona-based
experience by creating a customized module that allows the customer to work seamlessly within
one space for efficiency. Sierra ILS includes without limitation the following features:
RESTful APIs
Sierra facilitates the connections libraries have with the communities they serve. Whether
it be finance applications, learning management systems, or any community the library
exists within, Sierra is open and can connect.
Workflow on the Go
Working seamlessly with Mobile Worklists, Sierra liberates library staff with a mobile
experience that moves library operations into the stacks and away from repetitive
material handling.
With MyLibrary! for Sierra, library patrons can access library resources, place holds,
check out digital items, and visit the customer’s library on social media all in one place
on their mobile device.
Sierra ILS includes the following functionalities:
• Cataloging – Manage bibliographic records, check statistics, load metadata
• Acquisitions – Manage orders, vouchers and create lists
• Circulation – View check-in/out and hold requests
• eResource Management – View and manage electronic journals and databases
including Open Access content
• Serials – Serials and bindery management
• Administration – Perform back office tasks, rapid update, global update, delete
records
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Task 2: Innovative Mobile App
In addition, Innovative will provide CITY and its users with access to and use of its Innovative
Mobile app, a mobile software application that provides on-the-go access to collections and
services direct from iOS or Android mobile devices. The Innovative Mobile app offers patrons
convenience, with a modern interface that’s customized for the customer’s library and, if needed,
for the customer’s entire network. CITY’s access to and use of the Innovative Mobile app
licensed under this Agreement includes hosting, support and maintenance.
Innovative Mobile is a mobile library application designed to extend the walls of the customer’s
library through advanced capabilities such as discovery, patron account access, and “Click and
Collect” which allows patrons to reserve items and then be notified when it’s time to pick up.
Sierra ILS includes without limitation the following features:
Self-Check and Contactless Pick Up
With a focus on safety and contactless service, Innovative Mobile simplifies receiving
online payments and provides low-cost patron self-service options, including a digital
library card and a self-check via barcode or RFID. In addition, a “Curbside Pickup”
option is available for patrons to reserve items in the app and be notified when it’s time to
pick up, and an “I’m Here” option to alert the library the patron is ready for pickup
curbside.
Quick and easy set up, configure in a matter of weeks
Innovative Mobile works with Sierra and Polaris public libraries and consortia today (iOS
and Android), and includes search integration with Vega Discover. In addition to an
implementation process that can be completed in weeks, the built-in features mean a
better experience once it’s live. Patrons can use linked accounts to manage accounts for
their whole family, and patrons can pay their fines through the app using the customer
library’s current fine payment service.
Customized to look like the customer’s library, and built for the customer’s patrons
Innovative Mobile is customized with each customer library’s logo, colors, even layout.
The exciting part is that patrons can customize their experience as well, deciding if they
want left to right or up and down scrolling, and 20 languages for the best possible
experience.
Innovative Mobile includes the following functionalities:
• Modern Patron Experience – Searches the full catalog, with intuitive options to
navigate available library resources and services. Compatible with iOS and
Android.
• Consortia-Friendly by Design – Templates allow individual libraries to quickly
and affordably launch a custom app connected to the larger network and with
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their local branding.
• Supplement Self-Check Hardware – Stay safe and offer options with check out
and check in via barcode and RFID in the app, plus fine pay and renewals.
Implementation services to be provided for the Innovative Mobile app are detailed below.
Tasks 3 &4: Innovative Mobile App Implementation Services Scope of Work
(“SOW”) (Task 3) including Configuration of RFID Beacons (Task 4)
CONSULTANT will provide implementation services, as detailed below, to enable the CITY
and its users to access and use CONSULTANT’s Innovative Mobile app and utilize RFID.
A. [RESERVED]
B. Implementation Services SOW
The SOW for the implementation services includes the following set of professional services:
1. Innovative Mobile App Implementation (Task 3). Innovative Services Team
(“Services Team”) will work with the CITY to configure, install, and test a customized
Innovative Mobile application (“App”) for the CITY. NOTE: Some services specified in
this Statement of Work will be performed by subcontractor/subconsultant Solus
(“Solus”), including creation of customized App for CITY, and publishing of App to
specified online app stores.
Specified work includes:
a. Project management
b. Project kickoff between Services Team and CITY
c. Creation and configuration of CITY instance on Innovative Mobile Content
Management System (“CMS”) for a single production environment
d. Custom App development
e. Publishing of App to Apple and Google app stores
f. Liaison with Solus
g. Post-implementation testing
h. Remediation of post-implementation issues found during testing
2. Configure RFID Beacons (Task 4). Services Team will work with the CITY to deliver
and configure RFID Beacons (“Beacons”) for self-check as specified in the Contract.
Specified work includes:
a. Delivery of Beacons to CITY
b. Provisioning and configuration of Beacons
c. Assisting CITY with testing and troubleshooting of Beacons
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C. CONSULTANT Services Team
The CONSULTANT’s Services Team will provide the following available for this SOW:
1. Project Manager: Responsible for coordination of schedule and App delivery with the
CITY, consultation on App configuration requirements, and consultation on available
App customization, and liaison with third party vendor Solus as necessary.
2. System Engineer: Responsible for creation of CITY configuration in the Innovative
Mobile Content Management System (CMS), and configuration of the ILS as required.
D. CITY Implementation Team
1. Technical Lead: Will be responsible for assisting with CITY responsibilities related to the
installation and any other system level duties required by CITY, and coordinating/
providing all CITY responsibilities identified in Implementation Assumptions.
E. Implementation Assumptions
1. CITY will have adequate resources available to ensure timely completion of any library
tasks outlined in the project schedule.
2. Timeline for the completion of this project will be established, through joint planning
conversations between the CITY and Innovative during the initial stage of the project.
3. CITY shall be responsible for:
a. Participating in project kickoff, and assisting in establishing project schedule
b. Providing images for App customization
c. Applying for Apple Developer account, and providing app publishing credentials
to Innovative Services team
d. Providing Services Team with required profile and configuration information, in
an App configuration questionnaire and App configuration spreadsheet to be
provided by Services Team.
e. Testing App download from Apple and Google app stores, and testing App for
proper appearance, functionality, and configuration
f. Physical installation of Beacons at CITY facilities
F. Fees and Payment Terms
Fees and payment are provided for elsewhere in this Agreement, for example and without
limitation, in Section 4 (Not to Exceed Compensation), Section 5 (Invoices), and Exhibit C
(Compensation) of this Agreement.
Included under Tasks 1 & 2: Software Maintenance and Support
1. Maintenance and Support. Innovative will offer maintenance and support on the
terms set forth herein (“Maintenance and Support”) for the latest generally available version of
the software (also referred to herein as “Software”) and for certain earlier versions in accordance
with Innovative’s support policy. Standard Maintenance and Support is included with the price
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for the annual license set forth in Exhibit C (Compensation) of this Agreement.
2. Error Response. Error descriptions (each an “Error”), the Error severity levels
and corresponding targeted response time per level are each described in the table below. The
Targeted Response Times in the table below identify the response times that Innovative will
target for the corresponding Error, however, such Targeted Response Times are not guaranteed.
Severity Description Target
Response Time
One - Site Down A major component of the software is in a non-responsive
state and severely affects library productivity or operations. A
high impact problem that affects the entire library system.
Widespread system availability, production system is down
1 hour
Two – Critical Any component failure or loss of functionality not covered in
Severity 1 that is hindering operations, such as, but not limited
to: excessively slow response time, functionality degradation;
error messages; backup problems; or issues affecting the use
of the module or the data
2 hours
Three - High Lesser issues, questions, or items that minimally impact the
work flow or require a work around
2 business days;
excludes
holidays and
weekends
Four – Routine Issues, questions, or items that don’t impact the work flow.
Issues that can easily be scheduled such as an upgrade or
patch
4 business days;
excludes
holidays and
weekends
3. Error Reporting and Diagnosis.
a. CITY (also referred to herein as “Client”) must designate a representative
as the contact that will report Errors to Innovative and be Innovative’s primary contact for the
provision of Maintenance and Support pursuant to the terms of this Agreement (such
representative is referred to herein as the “Client Contact”). When a Client Contact reports an
Error, Innovative will use commercially reasonable efforts to diagnose the root cause of the Error
(“Diagnosis”). Upon completing the Diagnosis, each Error will be classified as either a
“Warranty Error” or a “Non-Warranty Error” pursuant to Section 3.b. below. Innovative will use
commercially reasonable efforts to diagnose and repair both Warranty and Non- Warranty Errors
as described below.
b. “Warranty Errors” are all Errors that do not qualify as Non-Warranty
Errors. “Non-Warranty Errors” are Errors resulting from any of the following causes: (i) misuse,
improper use, alteration or damage of the Software; (ii) operator error; (iii) incorrect data entry
by Client; (iv) third-party software not part of the Software; (v) errors and/or limitations
attributable to Client environment; (vi) Client’s failure to incorporate any New Release (as
defined below) previously provided to it by Innovative which corrects such Error; (vii)
modification of the Software performed by Client; and (viii) technical consulting services
provided by Innovative at Client’s request (e.g., change orders, integration development, or
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configuration design and implementation), unless Client notifies Innovative of such technical
consulting services problem within the applicable warranty period set forth in the governing
statement of work, change order or agreement. Client acknowledges that the Software is intended
for use only with the software and hardware described in the Specifications provided by
Innovative from time to time, and Client will be solely responsible for its adherence thereto. The
license granted to Client pursuant to this Agreement will include, at no additional cost, a license
to use all new scheduled major releases, service pack releases, and hot fixes of the Software
offered generally by Innovative to its clients during the term of this Agreement (collectively,
“New Releases”). “New Releases” do not include new or additional modules, applications or
other software now or hereafter offered by Innovative, each of which require a separate license
and payment of additional license fees. The term “Software” will be deemed to include New
Releases. Except to the extent that Client purchases Innovative’s hosting service, additional fees
at Innovative's then-prevailing professional service rates will apply for implementation of New
Releases. (For the avoidance of doubt, as noted above, Client’s purchase of the Software
pursuant to this Agreement includes Innovative’s provision of hosting services.)
c. If the Client is hosting their Software, the Client must provide direct
network internet access to the Software, including any firewalls. Innovative requires such access
to correct Software bugs and carry out modifications of the Software for the purpose of
maintaining the Software.
4. Complimentary and Chargeable Support. Innovative will respond to all reported
Errors pursuant to Section 2 above and will use commercially reasonable efforts to resolve
Warranty Errors at no additional charge if Client has purchased and is current on its payment for
Maintenance and Support; however, Innovative may charge Client for such effort with respect to
Non-Warranty Errors according to the following process: (i) When the Client Contact reports
any Error, prior to commencing the Diagnosis for the Error, Innovative will notify the Client
Contact that the Diagnosis and repair effort will be at no charge to Client unless the reported
Error is determined to be a Non-Warranty Error, in which case only the first two hours of
Diagnosis will be at no charge; and (ii) Innovative will then commence the Diagnosis unless
instructed otherwise by the Client Contact. If more than two hours are required for the Diagnosis
of Non-Warranty Errors, then such additional Diagnosis hours will be charged to Client at
Innovative’s then-current rate for technical services. Once the Diagnosis is complete, the Client
Contact will be given the option of having Innovative proceed with repairing the Non-Warranty
Error, and, if so requested, Innovative will provide an estimate of the total cost for such effort. If
agreed to by the Client Contact, Innovative will undertake to repair the Non-Warranty Error and
charge Client for the associated technical services performed. Any additional charges will be
implemented pursuant to the Task Order provisions of Section 4 (Not to Exceed Compensation)
regarding Additional Services or pursuant to an amendment to this Agreement per Section 29.4
herein.
5. Ticket Management and Escalation. Innovative manages all reported issues using
a ticket management system, and provides an Internet portal for Clients to report issues. Clients
may review the status of issues reported online. When an Error is either unresolved or not
resolved in a timely fashion, the Client should contact Innovative representatives pursuant to
Innovative’s escalation policy made available on Innovative’s Internet portal.
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Included under Tasks 1 & 2: Software Hosting Services Terms and
Conditions (“Hosting Terms”)
1. Hosting Services. The following terms apply for all purposes to Client’s license
to and use of the Software under this Agreement.
2. Hosting Solution. Innovative offers clients a standard cloud-based hosting option
(the “Standard Plan”). The table below sets forth the features of the Standard Plan. This option
provides industry-leading security and monitoring at a SOC 1/SOC 2 Type 2/ISO 27001-audited
datacenter by a top-tier cloud hosting provider (the “Hosting Provider”), with the flexibility to
meet clients’ data storage, data recovery, and information security policy requirements. To meet
clients’ global hosting needs, Innovative offers hosting options in datacenters located in the
United States, Canada, United Kingdom, Ireland, Australia and the Asia-Pacific region, however,
Innovative reserves the right to increase, decrease and/or relocate its datacenters at anytime.
3. Hosting Solution System Configuration. The hosting systems are configured to
meet the solution requirements as per these Hosting Terms set forth on the Pricing Exhibit
provided in Exhibit C (Compensation) of this Agreement.
4. Security Controls.
a. Generally. Subject to the terms of the Agreement, Innovative implements
industry-recognized best practices to prevent the unintended or malicious loss, destruction or
alteration of Client’s data resident in the Software.
b. Network Systems Audit Logging. All firewall logon activity and password
changes are logged, monitored, controlled and audited. All intrusion detection and firewall log
monitoring is done through services provided by Innovative and those pertinent log files and
configuration files are retained for ninety (90) days and can be made available upon request for
audit and problem resolution, as may be required.
c. Network Monitoring. All network systems and servers are monitored
24/7/365. Innovative will monitor its systems for security breaches, violations and suspicious
(questionable) activity. This includes suspicious external activity (including, without limitation,
unauthorized probes, scans or break-in attempts) and suspicious internal activity (including,
without limitation, unauthorized system administrator access, unauthorized changes to its system
or network, system or network misuse or program information theft or mishandling). Innovative
will notify Client as soon as reasonably possible of any known security breaches or suspicious
activities involving Client’s production data or environment, including, without limitation,
unauthorized access and service attacks, e.g., denial of service attacks.
d. Audit and Security Testing. Hosting Providers perform regular security
audits and testing. Client’s may not perform own audits of hosting providers.
e. Information Security Auditing/Compliance. Innovative’s hosting providers
undergo SOC 1/SOC 2 Type 2/ISO 27001 audits each year by independent third-party audit
firms.
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f. **The 99.9% guaranteed infrastructure uptime is subject to the following
Service Level Agreement (SLA):
i. Hours of operation/exclusive remedy for service unavailability.
Innovative offers a monthly infrastructure uptime target of 99.9% of Scheduled Up-Time to
Client. Scheduled Up-Time means all of the time in a month that is not Scheduled Downtime
(defined below) or Third Party Unavailability. In the event that Innovative fails to provide Client
with 99.9% infrastructure uptime for three consecutive months, Client will be entitled to receive
a credit equal to the prorated amount of the Fees for the period in which Innovative failed to
provide such infrastructure uptime during such months upon receipt of written notice from
Client. The remedies set forth in this Paragraph (i) are the exclusive remedies of the Client for
Innovative’s failure to provide Client with 99.9% infrastructure uptime.
ii. Scheduled Downtime. Scheduled Downtime means the period of
time which Innovative or the Hosting Provider, conduct periodic scheduled system maintenance
and release updates for which Innovative will provide the Client with advance notice. Innovative
will make commercially reasonable efforts to provide Client notice of scheduled system
maintenance 48 hours in advance and notice of release updates three weeks in advance.
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Contract No. C22182951 Rev. Dec.15, 2020
Page 25 of 37
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 ___________________________________
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Contract No. C22182951 Rev. Dec.15, 2020
Page 26 of 37
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement. CONSULTANT shall provide a
detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the
notice to proceed (“NTP”) from the CITY.
Tasks/ Milestones
Commencement/Completion
as specified below
1. Sierra ILS Software including Licensing, Hosting,
Maintenance and Support
Continuation (immediate) of
Access to and Use of Sierra ILS
Software per Exhibit A a) Year 1 (from March 1, 2022 to February 28, 2023)
b) Year 2 (from March 1, 2023 to February 29, 2024)
c) Year 3 (from March 1, 2024 to February 28, 2025)
d) Year 4 (from March 1, 2025 to February 28, 2026)
e) Year 5 (from March 1, 2026 to February 28, 2027)
2. Innovative Mobile App for Sierra ILS with RFID,
including Licensing, Hosting, Maintenance and Support
Access to and Use of Innovative
Mobile App upon implementation
per Exhibit A implementation
services SOW
a) Year 1 (from March 1, 2022 to February 28, 2023)
b) Year 2 (from March 1, 2023 to February 29, 2024)
c) Year 3 (from March 1, 2024 to February 28, 2025)
d) Year 4 (from March 1, 2025 to February 28, 2026)
e) Year 5 (from March 1, 2026 to February 28, 2027)
3. Innovative Mobile App for Sierra ILS, Implementation
(Implementation Services SOW per Exhibit A)
Commencement of implementation
services to be established during the
initial stage of the implementation
SOW
4. Configure RFID Beacons Implementation
(Implementation Services SOW per Exhibit A)
To be established during the initial
stage of the implementation SOW
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the
term as provided in Section 2 (Term) of this Agreement.
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Contract No. C22182951 Rev. Dec.15, 2020
Page 27 of 37
EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and
conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be
calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for
each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks
or categories listed below, provided that the total compensation for the Services, including any specified
reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the
Agreement) do not exceed the amounts set forth 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.
BUDGET SCHEDULE
*Pricing for Sierra ILS Software is further detailed below in the Pricing Exhibit for Sierra ILS Software.
**Pricing for Innovative Mobile is further detailed below in the Pricing Exhibit Innovative Mobile.
***Pricing for Implementation Services is further detailed below in the Pricing Exhibit for Implementation Services
(Innov. Mobile App & RFID).
TASKS
NOT-TO-
EXCEED
AMOUNT
SUBTOTALS
/ TOTAL
1. Sierra ILS Software including Licensing, Hosting, Maintenance & Support*
a) Year 1 (from March 1, 2022 to February 28, 2023)*
$155,059.59*
b) Year 2 (from March 1, 2023 to February 29, 2024)* $160,486.69*
c) Year 3 (from March 1, 2024 to February 28, 2025)* $166,103.72*
d) Year 4 (from March 1, 2025 to February 28, 2026)* $171,917.35*
e) Year 5 (from March 1, 2026 to February 28, 2027)* $177,934.46*
Subtotal for Task 3 – Sierra ILS Software (5 Years)* $831,501.81*
2. Innovative Mobile App for Sierra ILS with RFID, including Licensing, Hosting,
Maintenance and Support**
a) Year 1 (from March 1, 2022 to February 28, 2023)** $11,000.00**
b) Year 2 (from March 1, 2023 to February 29, 2024)** $11,385.00**
c) Year 3 (from March 1, 2024 to February 28, 2025)** $11,783.48**
d) Year 4 (from March 1, 2025 to February 28, 2026)** $12,195.90**
e) Year 5 (from March 1, 2026 to February 28, 2027)** $12,622.75**
Subtotal for Task 2 – Innovative Mobile App (5 Years)** $58,987.13**
3. Innovative Mobile App Implementation (Implementation Services SOW
per Exhibit A)***
$1,000.00***
4. Configure RFID Beacons Implementation (Implementation Services SOW
per Exhibit A)***
$2,500.00***
Subtotal for Tasks 3 & 4 (Implementation Services, Innovative Mobile & RFID)*** $3,500.00***
Subtotal for Services (Tasks 1 – 4) $893,988.94
Reimbursable Expenses (if any): $0.00
Total for Services and Reimbursable Expenses: $893,988.94
Additional Services (if any per Section 4): $89,398.89
Maximum Total Compensation: $983,387.83
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Contract No. C22182951 Rev. Dec.15, 2020
Page 28 of 37
PRICING EXHIBIT FOR SIERRA ILS SOFTWARE
Item Item Category Qty Description Options Original
Rate
Discount Amount
Sierra Core
Bundle – Public
Sierra Cloud
Hosting
Staff User Licenses
Web OPAC Menus
(Languages)
AirPAC
Automatic SIP2
Sorter Licenses
Batch interface for
loading MARC
records
Circa Wireless
Assistant (RFID)
Circa Wireless
Inventory (RFID)
Circulation Patron
Images (Internally
Stored)
Community
Information
Database option
Electronic Serials
Invoicing
Mobile Worklists
App
OCLC Interactive
Via the Network
Online Message
Log for Batch Bib
Interface
OPAC Export
Resequence
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License - Term
1
1
100
3
1
1
1
1
1
1
1
1
1
1
1
1
1
Sierra Public Core Bundle
Sierra Cloud Hosting
Includes Cloud Hosting with
Standard Backup for Sierra
production only
Staff User Licenses
Web OPAC Menus (Languages)
AirPAC
Automatic SIP2 Sorter Licenses
Batch interface for loading
MARC records
Circa Wireless Assistant (RFID)
Circa Wireless Inventory (RFID)
Circulation Patron Images
(Internally Stored)
Community Information
Database option
Electronic Serials Invoicing
Mobile Worklists App
OCLC Interactive Via the
Network
Sierra Online Message Log for
Batch Bib Interface
OPAC Export
Resequence attached records
Languages:
Chinese
Languages2:
Russian
Languages3:
Spanish
74,636.93
32,609.12
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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Contract No. C22182951 Rev. Dec.15, 2020
Page 29 of 37
attached records
by location
Sierra Chilifresh
Subscription
Sierra Content Cafe
Subscription
Sierra ERM
Sierra Homebound
Patron / Remote
Patron
Sierra NCIP ILL
Responder
Sierra Premium API
Support
Sierra Program
Registration
Sierra SMS
Notifications - US
ONLY
Sierra Training/Test
Server Core
SISAC Checkin
Synchronize
bibliographic
locations
Unlimited SIP2
Licenses
URL checker
User Licenses for
training machine
Decision Center
Subscription
Indexing Using
Special Filing
Rules
Indexing Using
Special Filing Rules
Resource Sharing
–Returnables
(INN-Reach)
License - Term
License – Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
by location
Sierra Chilifresh Subscription
Sierra Content Cafe Subscripti...
Sierra ERM
Sierra Homebound Patron /
Remote Patron
Sierra NCIP ILL Responder
Sierra Premium API Support
Sierra Program Registration
Sierra SMS Notifications - US -
Subscription
Sierra Training/Test Server Core
SISAC Checkin
Synchronize bibliographic
locations
Unlimited SIP2 Licenses
URL checker
User Licenses for training
machine.
Decision Center
Indexing Using Special Filing
Rules
Indexing Using Special Filing
Rules
Resource Sharing –
Returnables (INN-Reach)
Chilifresh Option: Review Engine
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11,781.00
3,720.15
3,720.15
28,592.24
Total Fees (Year 1) $155,059.59
Pricing in years 2-5 includes a 3.5 % increase over the previous year’s pricing: Year 1 of 5 $155,059.59
Year 2 of 5 $160,486.69
Year 3 of 5 $166,103.72
Year 4 of 5 $171,917.35
Year 5 of 5 $177,934.46
5-Year Total: $831,501.81
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City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Page 30 of 37
PRICING EXHIBIT FOR INNOVATIVE MOBILE APP
Item Item Category Qty Description Options Original
Rate
Amount Discount
Innovative Mobile App – Sierra
License – Term
1
Innovative Mobile is a mobile library application designed to extend the walls of your library
through advanced capabilities such as discovery, patron account access, and “Click and Collect” which allows patrons to reserve items and then be notified when it’s time to pick up.
8,500.00 8,500.00 n/a
RFID Annual Subscription License - Term 5 Checkout and checkin with RFID for Innovative mobile app. Includes an installation (free) of an additional SIP2 license.
500.00 500.00 2,500.00 n/a
Total Fees (Year 1) $11,000.00 n/a
Pricing in years 2-5 includes a 3.5 % increase over the previous year’s pricing: Year 1 of 5 $11,000.00
Year 2 of 5 $11,385.00
Year 3 of 5 $11,783.48
Year 4 of 5 $12,195.90
Year 5 of 5 $12,622.75
5-Year Total: $58,987.13
n/a
PRICING EXHIBIT FOR IMPLEMENTATION SERVICES (INNOV. MOBILE APP &RFID)
Item Item Category Qty Description Options Original
Rate
Unit Price Amount
Innovative Mobile App – Implementation for Sierra
Services 1
Innovative Mobile is a mobile
library application designed to extend the walls of your library through advanced capabilities such as discovery, patron account access, and “Click and
Collect” which allows patrons to
reserve items and then be notified when it’s time to pick up.
1,000 1,000.00 1,000.00
RFID Self-Check Implementation for Polaris
Services 5 Checkout and checkin with RFID for Innovative mobile app.
Includes an installation (free) of an additional SIP2 license.
500.00 500.00 2,500.00
Total Fees $3,500.00
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Contract No. C22182951 Rev. Dec.15, 2020
Page 31 of 37
EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Service Hourly Rate
Consulting Services (remote price) $200.00
Software Development/Implementation (remote price) $250.00
Project Management (remote price) $250.00
Training (remote price) $200.00
Configuration Setup (remote price) $200.00
Design / Analysis (remote price) $250.00
Integration / Interfaces (remote price) $200.00
Testing (User Accept. Testing / Load) $250.00
Reports (remote price) $200.00
Project Transition / Close $250.00
Deployment $200.00
Travel Expense actual expense
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Contract No. C22182951 Rev. Dec.15, 2020
Page 32 of 37
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, AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE
OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS 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,
PRODUCTS/COMPLETED OPERATIONS AND FIRE
LEGAL LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$2,000,000
$2,000,000
$2,000,000
YES TECHNOLOGY ERRORS AND OMISSIONS
LIABILITY COVERAGE. THE POLICY SHALL AT A
MINIMUM COVER PROFESSIONAL MISCONDUCT
OR LACK OF REQUISITE SKILL FOR THE
PERFORMANCE OF SERVICES DEFINED IN THE
CONTRACT AND SHALL ALSO PROVIDE
COVERAGE FOR THE FOLLOWING RISKS:
(i) NETWORK SECURITY LIABILITYARISING
FROM UNAUTHORIZED ACCESS TO, USE OF, OR
TAMPERING WITH COMPUTERS OR COMPUTER
SYSTEMS, INCLUDING HACKERS, EXTORTION,
AND
(ii) LIABILITY ARISING FROM
INTRODUCTION OF ANY FORM OF MALICIOUS
SOFTWARE INCLUDING COMPUTER VIRUSES
INTO, OR OTHERWISE CAUSING DAMAGE TO
THE CITY’S OR THIRD PERSON’S COMPUTER,
COMPUTER SYSTEM, NETWORK, OR SIMILAR
COMPUTER RELATED PROPERTY AND THE DATA,
SOFTWARE AND PROGRAMS THEREON.
CONTRACTOR SHALL MAINTAIN IN FORCE
DURING THE FULL LIFE OF THE CONTRACT.
THE POLICY SHALL PROVIDE COVERAGE FOR
BREACH RESPONSE COSTS AS WELL AS
REGULATORY FINES AND PENALTIES AS WELL AS
CREDIT MONITORING EXPENSES WITH LIMITS
SUFFICIENT TO RESPOND TO THESE
OBLIGATIONS.
ALL DAMAGES $2,000,000 $2,000,000
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YES CYBER AND PRIVACY INSURANCE.
SUCH INSURANCE SHALL INCLUDE COVERAGE
FOR LIABILITY ARISING FROM COVERAGE IN AN
AMOUNT SUFFICIENT TO COVER THE FULL
REPLACEMENT VALUE OF DAMAGE TO,
ALTERATION OF, LOSS OF, THEFT,
DISSEMINATION OR DESTRUCTION OF
ELECTRONIC DATA AND/OR USE OF
CONFIDENTIAL INFORMATION, “PROPERTY” OF
THE CITY OF PALO ALTO THAT WILL BE IN THE
CARE, CUSTODY, OR CONTROL OF VENDOR,
INFORMATION INCLUDING BUT NOT LIMITED
TO, BANK AND CREDIT CARD ACCOUNT
INFORMATION OR PERSONAL INFORMATION,
SUCH AS NAME, ADDRESS, SOCIAL SECURITY
NUMBERS, PROTECTED HEALTH INFORMATION
OR OTHER PERSONAL IDENTIFICATION
INFORMATION, STORED OR TRAMSITTED IN
ELECTRONIC FORM.
ALL DAMAGES $2,000,000 $2,000,000
YES AUTOMOBILE LIABILITY, INCLUDING ALL HIRED,
NON-OWNED
BODILY INJURY
1. EACH PERSON
2. EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS
AND OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS
SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY
AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY.
I. 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.
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Contract No. C22182951 Rev. Dec.15, 2020
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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 SEND THEIR EVIDENCE OF INSURANCE AND ANY OTHER
RELATED NOTICES TO THE CITY OF PALO ALTO.
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City of Palo Alto
Information Security
Document Version: V3.0
Doc: InfoSec 110
EXHIBIT E
CYBERSECURITY TERMS AND CONDITIONS
In order to assure the privacy and security of the personal information of the City's customers and
people who do business with the City, including, without limitation, vendors, utility customers,
library patrons, and other individuals and companies, who are required to share such information
with the City, as a condition of receiving services from the City or selling goods and services to
the City, including, without limitation, the Software as a Service services provider (the
"Consultant") and its subcontractors, if any, including, without limitation, any Information
Technology ("IT") infrastructure services provider, shall design, install, provide, and maintain a
secure IT environment, described below, while it renders and performs the Services and furnishes
goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work
implicates the confidentiality and privacy of the personal information of the City's customers. The
Consultant shall fulfill the data and information security requirements (the "Requirements") set
forth in Part A below.
A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided
to the City, including connection to the City's IT systems; (b) the Consultant's operations and
maintenance processes needed to support the environment, including disaster recovery and
business continuity planning; and (c) the IT infrastructure performance monitoring services to
ensure a secure and reliable environment and service availability to the City. "IT infrastructure"
refers to the integrated framework, including, without limitation, data centers, computers, and
database management devices, upon which digital networks operate.
In the event that, after the Effective Date, the Consultant reasonably determines that it cannot
fulfill the Requirements, the Consultant shall promptly inform the City of its determination and
submit, in writing, one or more alternate countermeasure options to the Requirements (the
"Alternate Requirements" as set forth in Part B), which may be accepted or rejected in the
reasonable satisfaction of the Information Security Manager (the "ISM").
Part A. Requirements:
The Consultant shall at all times during the term of any contract between the City and the
Consultant:
(a) Appoint or designate an employee, preferably an executive officer, as the security liaison
to the City with respect to the Services to be performed under this Agreement.
(b) [RESERVED]:
(c) Have adopted and implemented information security and privacy policies that are
documented, are accessible to the City, and conform to ISO 27001 – Information Security
Management Systems (ISMS) Standards. See the following:
http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=5029
7
City of Palo Alto
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Information Security
Document Version: V3.0
Doc: InfoSec 110
(d) Conduct routine data and information security compliance training of its personnel that is
appropriate to their role.
(e) Develop and maintain detailed documentation of the IT infrastructure, including software
versions and patch levels.
(f) Develop an independently verifiable process, consistent with industry standards, for
performing professional and criminal background checks of its employees that (1) would
permit verification of employees' personal identity and employment status, and (2) would
enable the immediate denial of access to the City's confidential data and information by
any of its employees who no longer would require access to that information or who are
terminated.
(g) Provide a list of IT infrastructure components in order to verify whether the Consultant
has met or has failed to meet any objective terms and conditions.
(h) Implement access accountability (identification and authentication) architecture and
support role-based access control ("RBAC") and segregation of duties ("SoD")
mechanisms for all personnel, systems, and Software used to provide the Services.
"RBAC" refers to a computer systems security approach to restricting access only to
authorized users. "SoD" is an approach that would require more than one individual to
complete a security task in order to promote the detection and prevention of fraud and
errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of
the Services' environment design and deployment are known to the City, and (2) it has
implemented measures in accordance with industry best practices applicable to secure
coding and secure IT architecture.
(j) Provide and maintain secure intersystem communication paths that would ensure the
confidentiality, integrity, and availability of the City's information.
(k) Deploy and maintain IT system upgrades, patches and configurations conforming to
current patch and/or release levels by not later than within thirty (30) days of its date of
release. Emergency security patches must be installed within 24 hours after its date of
release.
(l) Provide for the timely detection of, response to, and the reporting of security incidents,
including on-going incident monitoring with logging.
(m) Notify the City within a commercially reasonable timeframe of detecting a security incident
that results in the unauthorized access to or the misuse of the City's confidential data and
information. Consultant will notify City once an incident is confirmed and without undue
delay. This is typically under 72 hours.
(n) Inform the City that any third party service provider(s) meet(s) all of the Requirements.
(o) Perform security self-audits on a regular basis, and provide the required summary reports
of those self-audits to the ISM on the annual anniversary date or any other date agreed to
by the Parties. Such reports are confidential and proprietary to Consultant and City shall
treat them as such including with regard to any public records request for any such report.
(p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's
performance of random site security audits at the Consultant's site(s), including the site(s)
of a third-party service provider(s), as applicable. The scope of these audits will extend to
the Consultant's and its third-party service provider(s)' awareness of security policies and
practices, systems configurations, access authentication and authorization, and incident
detection and response.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
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City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Page 37 of 37
City of Palo Alto
Information Security
Document Version: V3.0
Doc: InfoSec 110
(q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and
regulations, and the Confidential Information will be accessible only by the Consultant and
any authorized third-party service provider's personnel.
(r) Perform regular, reliable secured backups of all data needed to maximize the availability
of the Services. Adequately encrypt the City of Palo Alto's data, during transit, hosted at
rest, and the backup stage at the Vendors' environment (including Vendor's contracting
organization's environment).
(s) [RESERVED]
(t) Maintain the Confidential Information in accordance with applicable federal, state, and
local data and information privacy laws, rules, and regulations.
(u) [RESERVED]
(v) Provide Network Layer IP filtering services to allow access only from the City of Palo
Alto's IP address to the Vendor environment (primarily hosted for the City of Palo Alto).
(w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City
for the systems and services the Vendor provides to the City.
(x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions
for authentication and authorization services from the "City's environment to the Vendor's
environment," and Vendor's environment to the Vendor's cloud services/hosted
environment."
(y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct,
indirect or punitive damages whatsoever including, without limitation, damages for loss of
use, data or profits, arising out of or in any way connected with the City's IT environment,
including, without limitation, IT infrastructure communications.
(z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s
EXHIBIT “D” INSURANCE REQUIREMENTS.
Part B. Alternate Requirements: None
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City of Palo Alto (ID # 14074)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Finance Committee Recommends the City Council Direct Staff to
Update the Park, Library, and Community Center Development Impact Fee
Nexus Study to Create New Fee Categories, Update the Park Land Valuation
to $17.6m, Move to a Square -foot basis for Fees Imposed on Housing, and
Conduct an Economic Feasibility Study (Including on the Parkland Dedication
Fee)
From: City Manager
Lead Department: Community Services
Recommendation
Finance Committee and Staff recommend the City Council:
1. Approve the following recommended adjustments in the ‘Working Draft Supplement’ to
Park, Library, and Community Center Development Impact Fee Justification Study
(Attachment A) and direct staff to return to Council for approval of a ‘Final Supplement’
report:
a) Differentiate the commercial/industrial fee structure into five separate categories:
hotel, retail, office, industrial, and commercial;
b) Maintain the office density calculation of 200 square ft. per employee ;
c) Update the fee study every 4-6 years (in compliance with new state law
requirements in Assembly Bill 602 that stipulates a minimum of every 8 years);
d) Amend the ‘Working Draft Supplement’ to apply the following land valuation for use
in calculating the Park Development Impact Fees: increase the land valuation to
$17.6 million/acre based on the average of the last 5 years of underutilized Palo Alto
properties sales data; and
e) Convert residential fees to reflect a per-square-foot basis, rather than a single
amount per dwelling regardless of size.
2. Conduct an economic feasibility study on the ‘Final Supplement’ to the Park, Library, and
Community Center Development Impact Fee Justification Study and park dedication in lieu
fee.
NOTE: If Council would like the park, community center, and library fees imposed on housing t o
remain on a per-unit basis (instead of a square-foot basis as recommended by Finance
Committee on May 3, 2022), staff recommends that Council pull this item from consent and
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adopt a Final Supplement to the nexus study prior to July 1, 2022. Otherwise, the City will be
required under AB 602 to move to a square-footage basis if it makes any changes to the nexus
study after July 1, 2022.
Executive Summary
This report forwards additional work, originally directed by the City Council in 2021 as follow -up
to the 2021 Nexus Study regarding Parks, Library, and Community Center Development Impact
Fee. Staff have worked with the Parks & Recreation Commission, Finance Committee, and
consultants to review and update the six (6) additional tasks as directed by the Council. This
report reflects the Finance Committee’s unanimous motion that recommends 1) ad justments to
the current “working draft supplemental” report to the Parks, Library, and Community Center
Development Impact Fee, 2) commissioning of a feasibility study, and 3) a restructuring of fees
in alignment with current legislation that goes into effect on July 1, 2022.
The Working Draft Supplement itself is not being recommended for approval at this time. If
Council proceeds with the Finance Committee’s and staff’s recommendations, then the
following steps would occur:
• Working Draft Supplement will be amended to reflect changes approved by the Council
and a ‘Final Supplement’ report will be agenized at a later date for Council approval.
• The Final Supplement will amend the 2021 Nexus Study and serve as the basis for
implementing the changes to the impact fees as described in this staff report.
• Staff will commission an economic Feasibility Study based on the ‘Final Supplement’.
• Once the economic feasibility study is complete, staff will bring the results to Council
and recommended fee changes, including converting residential fees to reflect a per-
square-foot basis for Council review and adoption.
The discussion in this report addresses the tasks DTA completed so far in the Working Draft
Supplement that informed the Finance Committee’s recommendation and addressed the
Council’s prior direction.
Background
Under California law (AB 1600), cities can charge new development for its relative share of the
cost to fund the acquisition of land and improvements to public facilities. Impact fees are
established based on the reasonable relationship, or nexus, between impacts caused by new
development and the improvements to mitigate those impacts that will be funded by the fee.
New Nexus Study and Fees Approved in 2021
On November 8, 2019, staff released a Request for Proposals (RFP) for a Parks, Library, and
Community Center Development Impact Fee Nexus Study. DTA was determined to be the most
qualified consultant. DTA prepared a Park, Community Center, and Library Development Impact
Fee Justification Study, which provided a detailed legal framework for the imposition of impact
fees, defined the City facilities addressed in the study, illustrated the calculation methodology
used, and specified the maximum fee levels which the City could charge to new develop ment.
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On December 15, 2020, staff and DTA presented the draft study to Finance Committee (Staff
Report) to receive feedback prior to presenting to Council. Finance Committee passed a motion
to recommend that the City Council approve any adjustments to fee levels and direct staff to
return with the necessary ordinance and fee schedule updates, and the addition of a possible
tiered approach to implement the fees.
On February 23, 2021, staff and DTA presented to the Parks and Recreation Commission (Staff
Report). The Commission passed a motion with a 5-2 vote to recommend that City Council
adopt an ordinance based on study recommendations to update the City’s Park, Community
Center, and Library Impact Fee Program. Dissenting commissioners expressed concerns that the
fair market value land valuation figure seemed too low and square footage p er employee used
as demographics information seemed too high. Additionally, there was a request to see
commercial fees differentiated between retail and office space.
On April 12, 2021, staff and DTA presented the study and recommendations to the City Cou ncil,
and the Council passed a motion approving the nexus study and the fees recommended in the
study. Council also directed the Finance Committee and Parks and Recreation Commission to
review the fee structures in Fiscal Year 2022 with a focus on:
i. Updated land acquisition costs;
ii. The differentiating fee structure for retail space versus office space;
iii. An update on office density;
iv. Recommendation from the Finance Committee on the frequency these schedules
should be updated; and
v. Recommendations on if there should be changes between multi and single-family fee
structures.
The April 12th Staff Report and a Parks, Library, and Community Center Development Impact
Fee Nexus Study can be found here. Following in Table 1 are the City of Palo Alto’s current
Park, Community Center, and Library Development Impact Fees.
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Table 1: 2021 Development Impac t Fee Summary Adopted by City Council on April 12, 2021
Land Use Type Park
Community
Center Library Total Fees
Single-Family Residential
(Per Unit) $57,420 $4,438 $2,645 $64,504
Multi-Family Residential
(Per Unit) $42,468 $3,283 $1,956 $47,707
Commercial/Industrial
(Per Net New Sq. Ft.)
$16.837/
sq. ft.
$1.301/
sq. ft.
$0.776/
sq. ft.
$18.914/
sq. ft.
Hotel/Motel
(Per Net New Sq. Ft.)
$2.866/
sq. ft.
$0.222/
sq. ft.
$0.132/
sq. ft.
$3.220/
sq. ft.
*Note: Some figures may not sum due to rounding.
Follow-Up to the 2021 Nexus Study
Staff engaged DTA to prepare a follow up analysis to address the tasks from the April 12, 2021
Council motion. DTA is currently in the process of drafting a Supplement to the Development
Impact Fee Justification Study. This staff report contains DTA’s analysis that will be included in
the Final Supplement. If approved, the recommendations above will help staff and DTA move
forward on finalizing the proposed changes in the Final Supplement (see next steps described in
the Timeline section below).
Following is a discussion of each of the additional tasks requested for follow up by Council:
• Task A - Update land acquisition costs.
• Task B - Differentiate the fee structure for retail space versus office space.
• Task C - Update office density from 250 sq. ft. per employee to 190 sq. feet per
employee.
• Task D - Recommend the frequency with which these schedules should be updated.
• Task E - Evaluate whether the multi- and single-family fee categories should be divided
into multiple categories based on total square feet or some other measure.
• Task F - Evaluate options for a reduction in fees for new multi-family housing
construction for projects that exceed required percentages of below market rate
(“BMR”) units.
Working Draft Supplement to Nexus Study Reviewed by Parks and Recreation Commission
On February 22, 2022, staff and DTA presented the Working Draft Supplement to the Parks and
Recreation Commission. The Parks and Recreation Commission passed a motion approving the
methodology detailed in Tasks B, C, and E (no comment on D) of the nexus study as found in
the Working Draft Supplement. The Commission requested further study related to Task A on
land valuation costs based on realistic considerations for acquiring land, including res idential
and commercial teardown acquisition data, and to provide alternative fee calculation data
based on a) existing per unit methodology, and b) residential square footage. The following
motion was approved by a 5-0 vote:
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The Parks and Recreation Commission recommends:
1. The Finance Committee approve the methodology for points 2, 3, and 5 (no comment
on 4) of the nexus study as found in the Supplement to Park, Community Center, and
Library Development Impact Fee Justification Study (the “Study”).
2. Further study on land valuation costs based on realistic considerations for acquiring
land, including residential and commercial teardown acquisition data.
3. Provide alternative fee calculation data based on a) existing per unit methodology, and
b) residential square footage.
Discussion
On May 3, 2022 staff and DTA presented the Working Draft Supplement to the Finance
Committee. The May 3rd Staff Report can be found here. The Finance Committee passed the
following motions by a 3-0 vote:
Finance Committee recommend the City Council:
1. Approve the following recommendations from the Supplement to Park, Library, and
Community Center Development Impact Fee Justification Study:
a) Differentiate the commercial/industrial fee structure into five separate categories:
hotel, retail, office, industrial and commercial.
b) Maintain the office density calculation of 200 square ft. per employee.
c) Update the fee study every 4-6 years, in compliance with new state law requirements
in Assembly Bill 602.
2. Apply the following land valuations for use in calculating the Park Development Impact Fees
a) Increase the land valuation to $17.6 million/acre based on the average of the last 5
years of underutilized Palo Alto properties sales data.
3. Direct staff to conduct an economic feasibility study on the new nexus study and park
dedication in lieu fee.
4. To convert residential fees to reflect a per-square-foot amount, rather than a single amount
per dwelling regardless of size.
The following Discussion addresses the tasks DTA completed so far in the Working Draft
Supplement to the Development Impact Fee Justification Study that informed the Finance
Committee’s recommendation.
Differentiate Fee Structure for Retail vs Office (Task B)
Currently, the City’s Development Impact Fee structure reflects two non-residential fee categories:
commercial/industrial and hotel/motel. Staff was asked to break commercial/industrial into more
specific categories for (1) retail, (2) office space, (3) industrial; (4) other commercial. Other
commercial includes any non-residential project with a land use that does not fall under the Retail,
Office, Industrial, or Hotel/Motel categories. Table 2 show the maximum fees under the new
valuation. Finance Committee supported this change.
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Table 2: Maximum Development Impact Fee Summary using a $17.6 Million/ Acre valuation
Land Use Type Park
Community
Center Library Total Fees
Single-Family Residential
(Per Unit) $138,742 $4,438 $2,645 $145,826
Multi-Family Residential
(Per Unit) $102,613 $3,283 $1,956 $107,852
Retail
(Per Net New Sq. Ft.) $22.247 $0.712 $0.424 $23.383
Office
(Per Net New Sq. Ft.) $48.699 $1.558 $0.928 $51.185
Industrial
(Per Net New Sq. Ft.) $32.966 $1.055 $0.629 $34.649
Hotel/Motel
(Per Net New Sq. Ft.) $6.925 $0.222 $0.132 $7.279
Other Commercial
(Per Net New Sq. Ft.) $27.709 $0.886 $0.528 $29.124
Update on Office Density (Task C)
In response to the request from the Parks and Recreation Commission to evaluate a revised fee
structure with the “sq. ft. per employee” assumption reduced from approximately 250 sq. ft. to
190 sq. ft., which is the average based on supporting data from sources the PRC provided, such
as the U.S. General Service Administration’s 2012 public sector survey and a 2017 Cushman
Wakefield analysis, which indicates that the Bay Area has one of the fastest shrinking square -
foot-per-employee ratios in the country.
The CoStar data that DTA evaluated in the Study supports this adjustment as well. By isolating
office development into a separate land use category, rather than combining with retail as
outlined in the Study, the office fee calculation reflects approximately 200 sq. ft. per employee,
therefore the proposed fees outlined in Tables 4 and 5 reflect the requested office density
update.
Frequency of Nexus Study Updates (Task D)
It is generally recommended that impact fees be increased annually and that a new fee stud y
be completed every five (5) to eight (8) years to ensure that the fees are reflective of the
most current projections of future development, as well as infrastructure needs and cost
estimates. New state law requires a fee study at least once every eight years (see AB 602).
The Finance Committee recommends updating the nexus fee study every 4 -6 years, which
would meet the requirements of AB 602. Updating the nexus fee study is typically done by
retaining a consultant who specializes in drafting nexus studies and utilizing staff resources
to provide the necessary information requested and oversight of the work .
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Between updates of the nexus study, the amou nts of the fees themselves increase annually
based on the construction cost index (“CCI”) in compliance with PAMC 16.58.090. The fees
are also subject to annual approval as part of the Municipal Fee Schedule .
Update Land Acquisition Costs to Include Teardown Properties (Task A)
The original Study analyzed sales transactions of vacant land within the City over the previous
ten (10) years, as well as in the neighboring cities of Campbell, Santa Clara, Sunnyvale,
Saratoga, Mountain View, San Jose, and Los Altos. Using vacant land sales is the industry
standard for calculating the development impact fees for park facilities. Based on DTA’s
research and discussions with the City’s real estate and planning teams regarding their fair
market value analysis, a la nd valuation of $5.7 million per acre was utilized in the Study and
in the corresponding updates to the City’s Municipal Code. Feedback from the City Council
suggested that the $5.7 million per acre land valuation was too low.
Per the City’s direction, DTA examined transactions that occurred in the 12 months since
completion of the Study, finding that the average vacant land valuation per acre within the
City has increased from the $5.7 million per acre outlined in the Study to approximately $6.5
million per acre.
In cases where a city is fully built out and there are very few vacant parcels available,
alternative methodologies can be utilized to value the specific types of properties that might
be suitable for acquisition and conversion by a city into parkland. Examples of alternative
methods include an improved property on which structures could be demolished in the
future and replaced with other uses, or “teardown properties.”
On February 22, 2022, DTA was directed by the Parks and Recreation Commission
recommendation to evaluate the market value of teardown properties within the City. The City
provided DTA with a list of residential and commercial properties classified under this
designation; however, sales data for these properties was not available. After discussions with
City staff, it was decided that the assessed valuations of teardown properties were not
representative of the cost to the City of acquiring potential parkland. In lieu of data on
teardown properties, DTA analyzed sales data over the last five (5) years for “underutilized”
sites within the City that would be classified as parcels that:
▪ Are considered practically uncompetitive with respect to the needs of typical tenants;
▪ May require significant renovation; and/or
▪ Are possibly functionally obsolete.
An analysis of this data across three land uses – industrial, office, and retail – substantiated
an average sales price of approximately $17.6 million per acre had the City acquired these
properties with the purpose of converting them i nto parkland facilities. Utilizing data from
both vacant land and “underutilized” property sales, DTA determined the anticipated
increase in the Park Fees that would occur under the following two scenarios, which are
summarized in Tables 3 and 4:
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Table 3: Land Valuation Impact on Park Fees ($6.5 Million /Acre Scenario)
Table 4: Land Valuation Impact on Park Fees ($17.6 Million /Acre Scenario)
Land Use Type Current Park Fee
($5.7 M per Acre Valuation)
Proposed Park Fee
($17.6 M per Acre Valuation)
%
Increase
Single-Family Residential
(Per Unit) $57,420 $138,742
141.62%
Multi-Family Residential
(Per Unit) $42,468 $102,613
Commercial/Industrial
(Per Net New Sq. Ft.) $16.837 $40.682
Hotel/Motel
(Per Net New Sq. Ft.) $2.866 $6.925
While the land valuation of $17.6 million dollars may be based on a more realistic set of
residential and commercial teardown acquisition data, raising the current Park Impact Fee b y
141.62% may have an impact of discouraging development. The proposed fees displayed reflect
the maximum possible fee, and the City could choose to set actual fees lower than those shown
above. The Finance Committee recommended updating the land valuation to $17.6 million per
acre but conducting an economic feasibility study to examine the feasibility of fees based on
this significantly higher land valuation. Should Council approve this change, the land valuation
will become part of the updated nexus study and will be used to calculate the maximum
possible park impact fee and the separate park land in lieu of dedication fee, which is similarly
based on the cost of acquiring land for parks. A core tenant from the Finance Committee
feedback was a desire to set the nexus study based on the best and most accurate data while
acknowledging the policy choice and need to study feasibility. This two-step process, as
recommended in this report, would likely result may be setting fees below the maximum
possible level.
Conduct Economic Feasibility Study to Evaluate Feasibility of Fee Levels
As discussed above, the City needs to prepare an economic feasibility study, which is not
included in the current DTA scope of services. The feasibility study would evaluate poten tial
Land Use Type
Current Park Fee
($5.7 M per Acre Valuation)
Proposed Park Fee
($6.5 M per Acre Valuation)
%
Increase
Single-Family Residential
(Per Unit) $57,420 $62,802
9.37%
Multi-Family Residential
(Per Unit) $42,468 $46,448
Commercial/Industrial
(Per Net New Sq. Ft.) $16.837 $18.415
Hotel/Motel
(Per Net New Sq. Ft.) $2.866 $3.135
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impacts that increased fees may have on all categories of development, including housing
production and especially multi-family housing. Staff anticipates working with a consultant to
conduct this analysis reviewing the impact on all segments. Staff would report back to the
Finance Committee and Council with its findings and any recommended changes to fees once
the study is completed.
Move to a Per-Square Foot Basis for Fees Imposed on Housing (Task E)
The City’s pre-2021 fee program separated resi dential land uses into four categories – single-
family units 3,000 square feet or less, single -family units greater than 3,000 square feet,
multi-family units 900 square feet or less, and multi -family units greater than 900 square
feet.
After discussions with City staff, DTA’s 2021 Study recommended a revision to this structure,
given that the distinction between these land uses no longer reflected the types of proposed
housing currently under construction in the City and was difficult to align with unde rlying
residential data and current development industry practices. As a result, residential land use
types were reduced from four to two categories, as reflected in the fees adopted as of August
23, 2021, and illustrated in Table 1. DTA and staff contin ues to recommend this simplification
of the fee structure.
AB 602, which was recently adopted by the State Legislature and came into effect in 2022, will
require that impact fee studies adopted by the City Council after July 1, 2022, designate all
impact fee amounts imposed on housing to be charged on a per-square-foot basis. For any
updates reflected in this Working Draft Supplement approved after July 1, the per-square-foot
fee structure will be required.
The Parks and Recreation Commission requested an alternative fee calculation data based on
residential square footage, which is displayed in Table 5 below using the average square
footage of recent residential single family (2,154 square feet) and multi-family unit sales (1,255
square feet).
Table 5: Land Valuation Impact on Park Fees ($17.6 Million /Acre Scenario)
Land Valuation
/ Acre
Est. Residential
Park Fee / sq. ft.
Sample Park Fee: SFR Unit
(2,154 sq. ft.)
Sample Park Fee: MFR Unit
(1,255 sq. ft.)
$5,700,000 $28.93 $62,323 $36,317
$6,489,851 $31.64 $68,164 $39,721
$17,634,659 $69.91 $150,588 $87,752
Note: Figures are estimates and subject to change.
The Finance Committee recommended the City convert residential fees to reflect a per -square-
foot amount, rather than a single amount per dwelling regardless of size. To implement this
change, the Working Draft Supplement to the nexus study will be updated and the fee
recalculated.
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If Council would like the park, community center, and library fees imposed on housing to
remain on a per-unit basis (instead of a square-foot basis), staff recommend that Council pull
this item from consent and adopt a Final Supplement to the nexus study prior to July 1.
Otherwise, the City will be required under AB 602 to move to a square -footage basis if it makes
any changes to the nexus study after July 1, 2022.
No Changes Proposed to Current Fee Exemptions for Below Market Rate (“BMR”) Units (Task F)
In April 2021, the City Council voiced concerns about fee updates disincentivizing multi-family
residential development, and therefore negatively impacting the City’s goal of increasing the
supply of affordable housing. DTA evaluated a potential reduction or credit in park impact fees
for new multi-family housing projects in which the number of BMR units exceeds the City’s
requirements for that development. Currently, as outlined in PAMC 16.58.030, any BMR units
that exceed the minimum number required by the City’s BMR Housing Program are exempt
from park, community center, and library impact fees, so this incentive appears to already be in
place.
Municipalities take many different approaches to providing fee credits for BMR units, including:
• Reducing development impact fee obligations within the Development Agreement
between the city/county and the developer, which is a commonly utilized approach but
would be burdensome for staff to implement;
• Implementing an across-the-board fee discount for BMR units, such as giving a 50%
reduction of the fee applicable to all BMR units (whether or not they exceed the
required number); or
• Implementing an across-the-board fee exemption for BMR units (whether or not they
exceed the required number).
The Finance Committee did not recommend any changes to the existing exemption for BMR
units at this time.
Timeline
Based on Council recommendation and approval, an economic feasibility study would be
completed in FY 2023, and the results of this study would be brought forward for Finance
Committee and Council review in FY 2023. Changes to fees would be adopted via an impact fee
ordinance that would require City Council approval and formal public notice and would not
become effective until 60 days after adoption on a second reading. As the potential changes
discussed in this staff report are not anticipated to be adopted with the FY 2023 budget cycle,
the existing fee structure will remain for the time being, subject to an inflation adjustment
pursuant to PAMC 16.58.090 and Council approval.
Resource Impact
The City needs to prepare an economic feasibility study, which is not included in the current
DTA scope of services. The feasibility study would evaluate potential impacts that increased
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fees may have on all categories of development impacted by the fees, including housing . Staff
anticipates that the cost of the economic feasibility study would be in the range of $50,000 to
$75,000 and staff would request these funds during the FY2023 midyear budget process.
Development Impact Fees provide funding for capital improvements to mitigate the impacts of
new development on public services. The revenues received each year vary based on the
amount of development occurring in Palo Alto during that timeframe and impacts are subject
to the fee levels approved by the City Council. CSD will monitor revenues from the Parks,
Community Center and Library Development Impact fees and revenue adjustments will be
brought forward in the future budget processes as appropriate to recognize the projected
impacts of any fee updated and adopted by the City Council.
According to the FY 2020-21 Annual Status Report on the Development Impact Fees Schedule
(CMR #13798, January 24, 2022), a total of approximately $318,561 was collected in Park,
Community Center, and Library fees. Note that these fees were collected before the increase in
fees that went into effect on August 23, 2021.
DTA projects that the total fee revenues will increase significantly should the fee levels be
associated with the increased land valuation of $17.6 million per acre be approved and adopted
as new fees. Please see Table 6 below for more detail on projected fees. However, these are
the maximum projected revenues under the assumption that the level of development activity
is the same as FY 2020-21 and the fees based on a $17.6 million per acre land valuation are
adopted. An economic feasibility study would evaluate potential impacts increased fees may
have on development, which may result in setting the fees at a lower rate than the potential
maximums, changing the revenue projections.
Table 6: FY2020-21 and Projected Revenues1
Fee Category Total Revenues
Collected FY 2020-20212
Maximum Projected Annual Revenues
based on a $17.6 M/ Acre Valuation3
Park $219,423 $1,316,538
Community Center $70,000 $210,000
Library $29,138 $87,414
Total $318,561 $1,613,952
Notes:
1. Projected revenues are an approximation and subject to change
2. Total revenues collected reflect last available report as of period ending June 30, 2021.
3. Projected revenues do not take into consideration whether an increase in fees will
generate additional revenue or discourage new development and result in a reduction
of total fees collected.
Parkland Dedication in Lieu Fee
In some projects, a parkland dedication in lieu fee applies instead of a park impact fee. This
occurs for residential projects that require a subdivision or parcel map, and developers can
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City of Palo Alto Page 12
choose to dedicate land for parks or pay an in-lieu fee. The in-lieu fee is required for
subdivisions resulting in more than 50 parcels. (See PAMC Ch. 21.50). The fee is based on the
cost to acquire land for new parks because of housing development. Should the City change
the land valuation for the park impact fee, it should similarly update the parkland in lieu fee.
The Finance Committee recommended including the parkland dedication fee in the economic
feasibility analysis.
Stakeholder Engagement
The Community Services department presented the Working Draft Supplement to the Parks
and Recreation Commission (PRC) on February 22, 2022, for review and to the Finance
Committee on May 3, 2022.
Policy Implications
City Council has the authority to charge new development for its relative share of the cost of
specific public facilities, as calculated based on a nexus study and pursuant to state law
requirements. Council also has the authority, for policy reasons, to restructure fees based on
articulated City policies within legal limits and economic feasibility. The information provided in
this report allows Council to take the next step towards reevaluating and adjusting the City’s
Development Impact Fees for Parks, Community Centers and Libraries.
Environmental Review
The recommended actions are not considered a Project as defined by the California
Environmental Quality Act pursuant to CEQA regulation 15061(b)(3). The projects in the 2021
nexus study associated with these fees have been fully analyzed as part of the City’s 2030
Comprehensive Plan and its EIR, as well as the City’s Parks and Open Space Master Plan and its
Mitigated Negative Declaration and no further CEQA analysis is necessary.
Attachments:
• Attachment5.a: Attachment A: Consultant Report: Update on Park, Library, and
Community Center Impact Fees by DTA
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I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33
Bayland Preserve Capital Improvements Integrated Facilities 1.00
Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF)18,772 23,323 0.80 0.29 6,839
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01
Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF)1,946 2,418 0.80 0.29 709
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65
Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15
Foothills Park Capital Improvements Integrated Facilities 0.01 0.15
VI. Park and Open Space Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed
Park Development
per Acre [6]
Planning and Design
per Acre [7]Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $6,489,851 26.11 $1,406,530 $84,392 $70,327 $210,213,753 $44,548.00
Natural Open Space Acres 604.38 $64,899 604.38 $40,000 $2,400 $2,000 $66,058,156 $13,998.89
Total $276,271,909 $58,546.88
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,334 $3,245.80
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54
Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72
Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,723 $4,255.03
Parks LOS Facilities Fee Total $62,801.92
Notes:
[1]Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto.
[6]Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI).
[7]Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities.
[8]Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-1
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES ONLY TASK A)
Foothills Park Capital Improvements
Foothills Park Capital Improvements
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I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33
Bayland Preserve Capital Improvements Integrated Facilities 1.00
Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF) 18,772 23,323 0.80 0.29 6,839
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01
Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF) 1,946 2,418 0.80 0.29 709
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65
Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15
Foothills Park Capital Improvements Integrated Facilities 0.01 0.15
VI. Park and Open Space Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed
Park Development
per Acre [6]
Planning and Design
per Acre [7]Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $17,634,659 26.11 $1,406,530 $84,392 $70,327 $501,204,061 $106,213.97
Natural Open Space Acres 604.38 $176,347 604.38 $40,000 $2,400 $2,000 $133,415,475 $28,273.09
Total $634,619,536 $134,487.06
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,334 $3,245.80
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54
Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72
Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,723 $4,255.03
Parks LOS Facilities Fee Total $138,742.09
Notes:
[1]Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto.
[6]Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI).
[7]Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities.
[8]Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-2
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES ONLY TASK A)
Foothills Park Capital Improvements
Foothills Park Capital Improvements
$Rq:T
5.a
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I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33
Bayland Preserve Capital Improvements Integrated Facilities 1.00
Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF)1,849 4,200 0.44 0.16 673
Office (per 1,000 SF)13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF)3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01
Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF)192 435 0.44 0.16 70
Office (per 1,000 SF)1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF)326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.)Integrated Facilities 1.78 23.10
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza)Acres 0.05 0.65
Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15
Foothills Park Capital Improvements Integrated Facilities 0.01 0.15
VI. Park and Open Space Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed
Park Development
per Acre [6]
Planning and Design
per Acre [7]Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $6,489,851 26.11 $1,406,530 $84,392 $70,327 $210,213,759 $44,548.00
Natural Open Space Acres 604.38 $64,899 604.38 $40,000 $2,400 $2,000 $66,058,157 $13,998.89
Total $276,271,917 $58,546.88
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.)Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,335 $3,245.80
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza)Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54
Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72
Offsetting Revenues ($5,583,312)($1,183.20)
Total $47,357,098 $20,078,724 $4,255.04
Parks LOS Facilities Fee Total $62,801.92
Notes:
[1]Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto.
[6]Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI).
[7]Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities.
[8]Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-3
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS A, B, AND C)
Foothills Park Capital Improvements
Foothills Park Capital Improvements
$Rq:T
5.a
Packet Pg. 75
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33
Bayland Preserve Capital Improvements Integrated Facilities 1.00
Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF)1,849 4,200 0.44 0.16 673
Office (per 1,000 SF)13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF)3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01
Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF)192 435 0.44 0.16 70
Office (per 1,000 SF)1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF)326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.)Integrated Facilities 1.78 23.10
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza)Acres 0.05 0.65
Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15
Foothills Park Capital Improvements Integrated Facilities 0.01 0.15
VI. Park and Open Space Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed
Park Development
per Acre [6]
Planning and Design
per Acre [7]Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $17,634,659 26.11 $1,406,530 $84,392 $70,327 $501,204,075 $106,213.97
Natural Open Space Acres 604.38 $176,347 604.38 $40,000 $2,400 $2,000 $133,415,479 $28,273.09
Total $634,619,554 $134,487.06
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.)Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,335 $3,245.80
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza)Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54
Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72
Offsetting Revenues ($5,583,312)($1,183.20)
Total $47,357,098 $20,078,724 $4,255.04
Parks LOS Facilities Fee Total $138,742.10
Notes:
[1]Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto.
[6]Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI).
[7]Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities.
[8]Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-4
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS A, B, AND C)
Foothills Park Capital Improvements
Foothills Park Capital Improvements
$Rq:T
5.a
Packet Pg. 76
I. Inventory of Existing Community Center Facilities
Facility Facility Units Quantity
Cubberley Community Center Square Feet 65,046
Lucie Stern Community Center Square Feet 12,203
Mitchell Park Community Center Square Feet 15,000
Palo Alto Art Center Square Feet 23,000
Junior Museum and Zoo Square Feet 45,071
Improvements, Upgrades, and Renovations Integrated Unit 5
Building Master Plans Integrated Unit 5
II. Existing Community Center Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF)1,849 4,200 0.44 0.16 673
Office (per 1,000 SF)13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF)3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
Cubberley Community Center Square Feet 65,046 753.09
Lucie Stern Community Center Square Feet 12,203 141.28
Mitchell Park Community Center Square Feet 15,000 173.67
Palo Alto Art Center Square Feet 23,000 266.29
Junior Museum and Zoo Square Feet 45,071 521.82
Improvements, Upgrades, and Renovations Integrated Unit 5 0.06
Building Master Plans Integrated Unit 5 0.06
IV. Future Community Center Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF)192 435 0.44 0.16 70
Office (per 1,000 SF)1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF)326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
Cubberley Community Center Square Feet 753.09 9,755.01
Lucie Stern Community Center Square Feet 141.28 1,830.10
Mitchell Park Community Center Square Feet 173.67 2,249.56
Palo Alto Art Center Square Feet 266.29 3,449.33
Junior Museum and Zoo Square Feet 521.82 6,759.34
Improvements, Upgrades, and Renovations Integrated Unit 0.06 0.75
Building Master Plans Integrated Unit 0.06 0.75
VI. Community Center Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded
by Future Development Cost Per Unit
Total Facility Cost
for Future Development Cost per EDU
Cubberley Community Center Square Feet 9,755.01 $629 $6,135,363 $1,300.19
Lucie Stern Community Center Square Feet 1,830.10 $629 $1,151,029 $243.92
Mitchell Park Community Center Square Feet 2,249.56 $629 $1,414,852 $299.83
Palo Alto Art Center Square Feet 3,449.33 $629 $2,169,439 $459.74
Junior Museum and Zoo Square Feet 6,759.34 $718 $4,856,117 $1,029.10
Improvements, Upgrades, and Renovations Integrated Unit 0.75 $12,469,894 $9,350,610 $1,981.56
Building Master Plans Integrated Unit 0.75 $171,692 $128,744 $27.28
Total $25,206,155 $5,341.63
VII. Community Center Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Cubberley Community Center Square Feet 65,046 9,755.01 99,326 753.09 9,755.01 $629 $6,135,363 $1,300.19
Lucie Stern Community Center Square Feet 12,203 1,830.10 99,326 141.28 1,830.10 $629 $1,151,029 $243.92
Mitchell Park Community Center Square Feet 15,000 2,249.56 99,326 173.67 2,249.56 $629 $1,414,852 $299.83
Palo Alto Art Center Square Feet 23,000 3,449.33 99,326 266.29 3,449.33 $629 $2,169,439 $459.74
Junior Museum and Zoo Square Feet 45,071 6,759.34 99,326 521.82 6,759.34 $718 $4,856,117 $1,029.10
Improvements, Upgrades, and Renovations Integrated Unit 5 0.75 99,326 0.06 0.75 $12,469,894 $9,350,610 $1,981.56
Building Master Plans Integrated Unit 5 0.75 99,326 0.06 0.75 $171,692 $128,744 $27.28
Offsetting Revenues ($4,261,898)($903.17)
Total $12,644,820 $20,944,257 $4,438.46
Community Center LOS Facilities Fee Total $4,438.46
Notes:
[1]Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Community Center inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Community Center improvement costs provided by City of Palo Alto.
APPENDIX A-5
CITY OF PALO ALTO
COMMUNITY CENTER DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS B AND C)
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I. Inventory of Existing Library Facilities
Facility Facility Units Quantity
Children's Library (1276 Harriet) Square Feet 6,043
College Terrace Library (2300 Wellesley) Square Feet 2,392
Downtown Library (270 Forest Ave.) Square Feet 9,046
Mitchell Library (3700 Middlefield) Square Feet 41,000
Rinconada Library (1213 Newell) Square Feet 29,608
Furniture, Fixtures & Equipment Integrated Unit 5
Volumes Volumes 485,157
Technology Upgrades Integrated Unit 5
II. Existing Library Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF)1,849 4,200 0.44 0.16 673
Office (per 1,000 SF)13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF)3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
Children's Library (1276 Harriet) Square Feet 6,043 69.96
College Terrace Library (2300 Wellesley) Square Feet 2,392 27.69
Downtown Library (270 Forest Ave.) Square Feet 9,046 104.73
Mitchell Library (3700 Middlefield) Square Feet 41,000 474.69
Rinconada Library (1213 Newell) Square Feet 29,608 342.80
Furniture, Fixtures & Equipment Integrated Unit 5 0.06
Volumes Volumes 485,157 5,617.05
Technology Upgrades Integrated Unit 5 0.06
IV. Future Library Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF)192 435 0.44 0.16 70
Office (per 1,000 SF)1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF)326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
Children's Library (1276 Harriet) Square Feet 69.96 906.27
College Terrace Library (2300 Wellesley) Square Feet 27.69 358.73
Downtown Library (270 Forest Ave.) Square Feet 104.73 1,356.64
Mitchell Library (3700 Middlefield) Square Feet 474.69 6,148.81
Rinconada Library (1213 Newell) Square Feet 342.80 4,440.34
Furniture, Fixtures & Equipment Integrated Unit 0.06 0.75
Volumes Volumes 5,617.05 72,759.46
Technology Upgrades Integrated Unit 0.06 0.75
VI. Library Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded
by Future Development Cost Per Unit
Total Facility Cost
for New Development Cost per EDU
Children's Library (1276 Harriet) Square Feet 906.27 628.94$ $569,997 $120.79
College Terrace Library (2300 Wellesley) Square Feet 358.73 628.94$ $225,622 $47.81
Downtown Library (270 Forest Ave.) Square Feet 1,356.64 628.94$ $853,250 $180.82
Mitchell Library (3700 Middlefield) Square Feet 6,148.81 628.94$ $3,867,262 $819.54
Rinconada Library (1213 Newell) Square Feet 4,440.34 628.94$ $2,792,729 $591.83
Furniture, Fixtures & Equipment Integrated Unit 0.75 $500,000 $374,927 $79.45
Volumes Volumes 72,759.46 $50 $3,637,973 $770.95
Technology Upgrades Integrated Unit 0.75 $500,000 $374,927 $79.45
Total $12,696,687 $2,690.65
VII. Library Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Children's Library (1276 Harriet) Square Feet 6,043 906.27 99,326 69.96 906.27 $629 $569,997 $120.79
College Terrace Library (2300 Wellesley) Square Feet 2,392 358.73 99,326 27.69 358.73 $629 $225,622 $47.81
Downtown Library (270 Forest Ave.) Square Feet 9,046 1,356.64 99,326 104.73 1,356.64 $629 $853,250 $180.82
Mitchell Library (3700 Middlefield) Square Feet 41,000 6,148.81 99,326 474.69 6,148.81 $629 $3,867,262 $819.54
Rinconada Library (1213 Newell) Square Feet 29,608 4,440.34 99,326 342.80 4,440.34 $629 $2,792,729 $591.83
Furniture, Fixtures & Equipment Integrated Unit 5 0.75 99,326 0.06 0.75 $500,000 $374,927 $79.45
Volumes Volumes 485,157 72,759.46 99,326 5617.05 72,759.46 $50 $3,637,973 $770.95
Technology Upgrades Integrated Unit 5 0.75 99,326 0.06 0.75 $500,000 $374,927 $79.45
Offsetting Revenues ($214,779) ($45.52)
Total $1,003,195 $12,481,908 $2,645.14
Library Facilities Fee Total $2,645.14
APPENDIX A-6
CITY OF PALO ALTO
LIBRARY DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS B AND C)
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Service Factor (Residents and Employees)
Residents per Unit/**
Number of Adjusted Adjusted Persons Served EDUs per Unit/Estimated Number of
Land Use Type Persons Served*Persons Served per 1,000 Non-Res. SF per 1,000 Non-Res. SF Units/Non-Res. SF Total EDUs
Single Family 42,392 100%42,392 2.75 1.00 15,443 15,443
Multi-Family 24,992 100%24,992 2.03 0.74 12,310 9,104
Retail (per 1,000 SF)9,420 19.63%1,849 0.44 0.16 4,200,000 673
Office (per 1,000 SF)70,206 19.63%13,778 0.96 0.35 14,300,000 5,019
Industrial (per 1,000 SF)16,027 19.63%3,145 0.65 0.24 4,822,578 1,146
Hotel/Motel (per 1,000 SF)1,101 19.63%216 0.14 0.05 1,577,422 79
Total 164,138 86,372 31,465
* Source: David Taussig & Associates; U.S. Census Bureau (ACS); City of Palo Alto Comprehensive Plan Update.
** Persons Served = Residents plus 20% of Employees, customary industry practice designed to capture the reduced levels of service demanded by employees. Subject to change.
Service Factor (Future Residents and Employees)
Residents per Unit/**
Number of Adjusted Adjusted Persons Served EDUs per Unit/Estimated Number of
Single Family 6,911 100% 6,911 2.75 1.00 2,517 2,517
Multi-Family 4,074 100% 4,074 2.03 0.74 2,007 1,484
Retail (per 1,000 SF)977 19.63% 192 0.44 0.16 435,418 70
Office (per 1,000 SF)7,278 19.63% 1,428 0.96 0.35 1,482,496 520
Industrial (per 1,000 SF)1,662 19.63% 326 0.65 0.24 499,962 119
Hotel/Motel (per 1,000 SF)114 19.63%22 0.14 0.05 163,533 8
Total 21,015 12,953 4,719
* Source: David Taussig & Associates; California Dept. of Finance, Demographic Research Unit - Report E-5 May 1, 2020.
** Persons Served = Residents plus 20% of Employees, customary industry practice designed to capture the reduced levels of service demanded by employees. Subject to change.
Number of
Potential Recreation Number of Work Hours Per Weekend Days Potential Recreation Hours Percentage of
User of Facilities Hours per Work Day Days per Week Weekend Day Per Week Per Week Per Person Household Population Person Hours Employee User Percentage
Resident, non-working 10 5 10 2 70 52.38%37 NA
Resident, working 2 5 10 2 30 47.62%14 NA
Employee 2 5 0 0 10 NA 10 19.63%
City of Palo Alto Household Population 67,384
City of Palo Alto Labor Force 32,085
Employee Percentage of Household Population 47.62%
APPENDIX A-7
CITY OF PALO ALTO
EDU & EBU CALCULATION YEAR TO BUILD-OUT (2040) (INCLUDES TASKS B AND C)
Existing EDU Calculation (FY 2020)
Employment Adjustment
Factor
Future EDU Calculation (FY 2040)
Employment Adjustment
Total Hours of Potential Park, Community Center, and Library Usage per Week
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City of Palo Alto (ID # 14160)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Utilities Advisory Commission Recommend the City Council Adopt the
2022 Annual Water Shortage Assessment Report
From: City Manager
Lead Department: Utilities
RECOMMENDATION
The Utilities Advisory Commission and staff recommend the City Council adopt the 2022 Annual Water
Shortage Assessment Report.
EXECUTIVE SUMMARY
Beginning in 2022, every urban water supplier in California must conduct an Annual Water Supply and
Demand Assessment as required by California Water Code Section 10632 (a). Each urban water supplier
must also submit an Annual Water Shortage Assessment Report to the Department of Water Resources
(DWR) on or before July 1, as required by California Water Code Section 10632.1. The City’s Annual
Water Shortage Assessment Report (Tables 1-5 below) shows that planned water conservation actions
are anticipated to adequately address anticipated potable water supply shortages.
DWR will prepare a summary report on its review of the Annual Water Supply and Demand Assessment
results and provide it to the State Water Resources Control Board (State Board) by September 30 each
year. The DWR report will include water shortage information at the supplier level, as well as regional
and statewide analysis of water conditions as required by California Water Code Section 10644 (c)(1)(B).
DISCUSSION
To prepare the 2022 Annual Water Shortage Assessment Report, staff followed the procedures outlined
in its Water Shortage Contingency Plan, contained in Section 7 of the City’s 2020 UWMP. Palo Alto’s
2022 Annual Water Shortage Assessment Report uses the DWR-developed Optional Annual Assessment
Tool format. This format includes the 5 tables shown below. Staff will submit the standard tables to
DWR by July 1, 2022. “Table 1. Annual Assessment Information” (Table 1) provides required overview
information. The remaining tables project water supply and demand for FY 2023 under continuing dry
conditions, and identify shortages and actions to meet those shortages described in more detail below.
Potable Water
Palo Alto receives 100% of its potable water supply from the San Francisco Public Utilities Commission
(SFPUC) Regional Water System. “Table 2: Water Demands” (Table 2) provides a demand projection for
each month of FY 2023 while “Table 3: Water Supplies” (Table 3) provides a supply projection equal to
the voluntary monthly water budgets SFPUC provided to Palo Alto. “Table 4(P): Potable Water Shortage
Assessment” (Table 4(P)) compares projected FY 2023 demand with supply and finds that there is a
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projected shortage of 7%, or a total of 721 Acre Feet (AF), for FY 2023. This means Palo Alto is projected
to remain in Stage 1 of the Water Shortage Contingency Plan (WSCP) for cutbacks up to 10% under the
assumed dry conditions. “Table 5: Planned Water Shortage Response Actions” (Table 5) lists the demand
reduction actions Palo Alto has implemented and plans to continue to implement throughout FY 2023.
Staff estimates Palo Alto will be able to meet the shortage with the planned demand reduction actions.
Table 5 shows the planned demand reduction actions listed using the required standard drop-down
menus. Table 4(P) shows the water use reductions associated with the Table 5 demand reduction
actions, bringing the revised shortage projection to 0% in each month of FY 2023.
Palo Alto has implemented action plans in past droughts, and during each one Palo Alto residents and
businesses have collectively responded to the call for water conservation. In the recent drought of
2015-2017, Palo Alto responded to state-mandated potable water use restrictions by implementing the
water restrictions in Stage II of its WSCP. While it is not possible to determine how much of the water
conserved can be attributed to each of the specific water use reduction actions/measures imposed, the
City exceeded the 24% cumulative reduction target for the June 1, 2015 through May 31, 2016
compliance period compared to calendar year 2013. To provide the estimates in Table 5, staff used
professional judgment to develop the best available estimates showing that the implementation of the
planned demand reduction actions will reduce demand enough to meet available supply.
Council implemented the actions shown in Table 5 through the permanent water use restrictions
outlined in the Palo Alto Municipal Code Section 12.32.010 and in Stage 1 of the Water Shortage
Contingency Plan (see Council Resolution 10022, March 7, 2022). On March 28, 2022, Governor
Newsom issued Executive Order N-7-22 requiring the State Board to consider adopting emergency
regulations by May 25, 2022 that require additional actions from urban retail water suppliers. Staff
anticipates those additional actions will include requirements for urban water suppliers to submit to the
Department of Water Resources a preliminary Annual Water Supply and Demand Assessment no later
than June 1, 2022 and to implement Stage II of their Water Shortage Contingency Plans and implement,
at a minimum, the demand reduction actions associated with a water shortage level of up to 20%. For
Palo Alto, the additional water use restrictions in Stage II of Palo Alto’s Amended 2020 WSCP are:
1) Restaurants and other food service operations shall serve water to customers only upon
request.
2) Operators of hotels and motels shall provide guests with the option of choosing not to have
towels and linens laundered daily. The hotel or motel shall prominently display notice of this
option in each guestroom using clear and easily understood language.
Staff plans to submit a working draft of the Annual Water Supply and Demand Assessment to the
Department of Water Resources on or before June 1, 2022. Staff plans to submit a recommendation to
the City Council to implement Stage II of Palo Alto’s Amended 2020 Water Shortage Contingency Plan.
Additionally, Santa Clara Valley Water District’s Board called upon the County, water retailers and cities
to restrict ornamental landscape and lawn irrigation with potable water to no more than two days per
week.1 Staff plans to recommend that Council restrict irrigation of ornamental landscape and lawn with
potable water to two-days per week in Palo Alto, except as it may be required to ensure the health of
trees and other perennial non-turf plantings (see Staff Report 14324). It is important to maintain the
health of the urban canopy in Palo Alto because trees have numerous social and environmental benefits.
1 Resolution Amending Resolution No. 21-68 Rescinding Resolution 17-43, Declaring a Water Shortage Emergency
Condition Calling for Water Use Restrictions, and Urging the County of Santa Clara to Proclaim a Local Emergency.
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For this reason, potable irrigation of ornamental landscapes or lawns where irrigation benefits the
health of trees and other perennial non-turf plantings will be specifically excluded from staff’s proposed
two-day per week irrigation restriction. Table 5 includes staff’s draft proposed water use restrictions.
Once the State Board finalizes its emergency regulations, staff will return to Council if needed, with
recommendations for implementing the required additional actions.
Non-Potable Water
For non-potable recycled water, Table 2 provides the demand projection and Table 3 notes t hat there is
sufficient supply to meet Palo Alto’s non-potable recycled water demand. For that reason, the supply is
set to equal demand and there is no shortage of non-potable water projected in Table 4(NP), “Non
Potable Water Shortage Assessment”.
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Table 1. Annual Assessment Information
Annual Assessment Information (Required)
Year Covered By This Shortage Report
Start: July 1,2022
End: June 30,2023
Supplier's Annual Assessment Planning Cycle
Start Month:July
End Month:June
Data Reporting Interval Used: MONTHLY
Volume Unit for Reported Supply and Demand:
(Must use the same unit throughout)AF
Water Supplier's Contact Information
Water Supplier's Name:City of Palo Alto
Contact Name:Lisa Bilir
Contact Title:Acting Senior Resource Planner
Street Address:250 Hamilton Avenue, Palo Alto
ZIP Code:94301
Phone Number:(650)329-2543
Email Address:lisa.bilir@cityofpaloalto.org
Report Preparer's Contact Information
(if different from above)
Preparer's Organization Name:
Preparer's Contact Name:
Phone Number:
Email Address:
Supplier's Water Shortage Contingency Plan
WSCP Title 2020 Water Shortage Contingency Plan of the City of Palo Alto
WSCP Adoption Date 6/7/2021
Other Annual Assessment Related Activities
(Optional)
Activity Timeline/ Outcomes / Links / Notes
Annual Assessment/ Shortage Report Title:Optional
Annual Assessment / Shortage Report Approval Date:6/13/2022
Other Annual Assessment Related Activities:
The 2020 Water Shortage Contingency Plan of the City of Palo Alto
states that Palo Alto will utilize the BAWSCA Regional Reliability
Model to evaluate water supply availability, however, the plan also
permits the City to use SFPUC data since SFPUC is the City's sole
supplier. Specifically, the 2020 Water Shortage Contingency Plan
states: "Because Palo Alto relies on only one potable water supply
source, SFPUC RWS water, the Annual Assessment will rely on key
data inputs from the SFPUC." Palo Alto determined the best data to
use for water supply is the monthly water budgets provided by
SFPUC.
(Add rows as needed)
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= From prior tables
= Auto calculated
Use Type Start Year:2022 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total by Water
Demand Type
All Demands 1213 1105 1063 1031 810 689 648 534 650 855 1097 1080 10776
0
0
0
0
0
0
0
0
0
1213 1105 1063 1031 810 689 648 534 650 855 1097 1080 10776
All Demands Tertiary 54 53 35 22 11 2 2 11 9 24 42 50 315
0
0
0
0
54 53 35 22 11 2 2 11 9 24 42 50 315
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
0
0
0
0
Table 2: Water Demands1
Projected Water Demands - Volume3
Total by Month (Non-Potable)
1Projections are based on best available data at time of submitting the report and actual demand volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When opting to provide other than monthly volumes (bi-monthly, quarterly, or annual), please see directions on entering data for Projected Water Demand in the Table Instructions.
Notes: Potable unconstrained customer demand determined using the end-use model described in the 2020 UWMP Section 4. Non-potable unconstrained customer demand determined
based on 2020 UWMP projection.
Total by Month (Potable)
Additional
Description
(as needed)
Level of
Treatment
for Non-
Potable
Supplies
Drop-down
list
Drop-down list
May select each use multiple times
These are the only Use Types that
will be recognized by the WUEdata
online submittal tool
(Add additional rows as needed)
Demands Served by Potable Supplies
Demands Served by Non-Potable Supplies
Three years ago total demand
Four years ago total demand
Optional (for comparison purposes)
Last year's total demand
Two years ago total demand
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= From prior tables
= Auto calculated
Water Supply Start Year:2022 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Total by
Water
Supply Type
Purchased/Imported Water
San Francisco
Public
Utilities
Commission
Regional
Water
Supply
System
1132 1031 992 962 756 643 605 498 606 798 1023 1007 10054
0
0
0
0
0
0
0
0
0
1132 1031 992 962 756 643 605 498 606 798 1023 1007 10054 0
Recycled Water
Recycled
Water from
the Regional
Water
Quality
Control Plant
54 53 35 22 11 2 2 11 9 24 42 50 315
0
0
0
0
54 53 35 22 11 2 2 11 9 24 42 50 315 0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
0
Table 3: Water Supplies1
Projected Water Supplies - Volume3
Water
Quality
Drop-down
List
Total Right
or Safe
Yield*
(optional)
Additional
Detail on
Water
Supply
Drop-down List
May use each category multiple
times.These are the only water
supply categories that will be
recognized by the WUEdata
online submittal tool
(Add additional rows as needed)
Potable Supplies
Non-Potable Supplies
eAR Reported Total Water Supplies
Optional (for comparison purposes)
1Projections are based on best available data at time of submitting the report and actual supply volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When opting to provide other than monthly volumes (bi-monthly, quarterly, or annual), please see directions on entering data for Projected Water Supplies in the Table Instructions.
Notes: Palo Alto purchases 100% of its potable water from SFPUC; SFPUC declared a water shortage emergency on November 23, 2021 and provided Palo Alto with voluntary monthly water
budgets. Palo Alto supplies recycled water for irrigation of the municipal golf course, a park and some other minor applications; there is sufficient supply of recycled water to meet demand.
Total by Month (Potable)
Total by Month (Non-Potable)
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= Auto calculated
= For manual input
Table 4(P): Potable Water Shortage Assessment 1 Start Year:2022 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total
Anticipated Unconstrained Demand 1,213 1,105 1,063 1,031 810 689 648 534 650 855 1,097 1,080 10,776
Anticipated Total Water Supply 1,132 1,031 992 962 756 643 605 498 606 798 1,023 1,007 10,054
Surplus/Shortage w/o WSCP Action -81 -74 -71 -69 -54 -46 -43 -36 -43 -57 -73 -72 -721
% Surplus/Shortage w/o WSCP Action -7%-7%-7%-7%-7%-7%-7%-7%-7%-7%-7%-7%-7%
State Standard Shortage Level 1 1 1 1 1 1 1 1 1 1 1 1 1
Benefit from WSCP: Supply Augmentation 0.0
Benefit from WSCP: Demand Reduction 81 74 71 69 54 46 43 36 44 57 73 72 722
Revised Surplus/Shortage with WSCP 0 0 0 0 0 0 0 0 0 0 0 0 1
% Revised Surplus/Shortage with WSCP 0%0%0%0%0%0%0%0%0%0%0%0%0%
= Auto calculated
= For manual input
Table 4(NP): Non-Potable Water Shortage Assessment 1 Start Year:2022 Volumetric Unit Used2:AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total
Anticipated Unconstrained Demand: Non-Potable 54 53 35 22 11 2 2 11 9 24 42 50 315
Anticipated Total Water Supply: Non-Potable 54 53 35 22 11 2 2 11 9 24 42 50 315
Surplus/Shortage w/o WSCP Action: Non-Potable 0 0 0 0 0 0 0 0 0 0 0 0 0
% Surplus/Shortage w/o WSCP Action: Non-Potable 0%0%0%0%0%0%0%0%0%0%0%0%0%
Benefit from WSCP: Supply Augmentation 0.0
Benefit from WSCP: Demand Reduction 0.0
Revised Surplus/Shortage with WSCP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
% Revised Surplus/Shortage with WSCP 0%0%0%0%0%0%0%0%0%0%0%0%0%
= From prior tables
Planned WSCP Actions
1Assessments are based on best available data at time of submitting the report and actual volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly in Table 4 and make sure to use those same
columns to enter the benefits from Planned WSCP Actions. Please see directions on the shortage balancing exercise in the Table Instructions. If a shortage is projected, the supplier is
highly recommended to perform a monthly analysis to more accurately identify the time of shortage.
= From prior tables
Planned WSCP Actions
1Assessments are based on best available data at time of submitting the report and actual volumes could be different due to many factors.
2Units of measure (AF, CCF, MG) must remain consistent.
3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly in Table 4 and make sure to use those same
columns to enter the benefits from Planned WSCP Actions. Please see directions on the shortage balancing exercise in the Table Instructions. If a shortage is projected, the supplier is
highly recommended to perform a monthly analysis to more accurately identify the time of shortage.
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July 1,2022 to June 30,2023
Enter Amount
(Drop-down
List)
Select % or
Volume Unit
Start Month End Month
1 Expand Public Information Campaign Yes 135 AF July June
1 Offer Water Use Surveys Yes 32 AF July June
1 Provide Rebates on Plumbing Fixtures
and Devices Yes 32 AF July June
1 Provide Rebates for Landscape
Irrigation Efficiency Yes 32 AF July June
1 Provide Rebates for Turf Replacement Yes 32 AF July June
1 Landscape - Restrict or prohibit runoff
from landscape irrigation Yes 17 AF July June
1 Landscape - Limit landscape irrigation
to specific times Yes 17 AF July June
1 Landscape - Prohibit certain types of
landscape irrigation Yes 32 AF July June
1 Landscape - Other landscape restriction
or prohibition Yes 32 AF July June
1 CII - Other CII restriction or prohibition Yes 65 AF July June
1
Water Features - Restrict water use for
decorative water features, such as
fountains
Yes 17 AF July June
1
Other - Customers must repair leaks,
breaks, and malfunctions in a timely
manner
Yes 17 AF July June
1 Other - Require automatic shut of hoses Yes 17 AF July June
1 Other - Prohibit use of potable water for
construction and dust control Yes 17 AF July June
1 Other - Prohibit use of potable water for
washing hard surfaces Yes 32 AF July June
2 CII - Lodging establishment must offer
opt out of linen service No 45 AF July June
2 CII - Restaurants may only serve water
upon request No 45 AF July June
2 Landscape - Limit landscape irrigation
to specific days No 135 AF July June
Table 5: Planned Water Shortage Response Actions
NOTES: Table 5 shows the actions that Palo Alto plans to take based on the supply and demand assessment and that Palo Alto staff plan
to recommend to the Palo Alto City Council as a result of Executive Order N-7-22 emergency regulations; Palo Alto has 8 permanent
water use restrictions in the Palo Alto Municipal Code Section 12.32.010
https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-69362#JD_Chapter12.32; Palo Alto's Amended Water Shortage
Contingency Plan, as revised 3/7/22, Stage I, outlines 7 additional demand reduction actions. Palo Alto City Council implemented the
Stage I actions on 3/7/22. Palo Alto's Amended Water Shortage Contingency Plan, as revised 3/7/22, Stage II outlines 2 additional
demand reduction actions. Palo Alto staff plans to recommend to Palo Alto City Council to implement the 2 additional demand reduction
actions in Stage II as well as adding a 2 day per week limit on ornamental landscape and lawn irrigation, except as needed for the health
of trees and other perennial non-turf plantings. The Palo Alto City Council may approve staff's proposals or take a different action or no
action.
Add additional rows as needed
How much is action going to
reduce the shortage gap?
When is shortage response
action anticipated to be
implemented?Is action
already being
implemented?
(Y/N)
ACTIONS: Demand Reduction, Supply
Augmentation, and Other Actions.
(Drop-down List)
These are the only categories that will
be accepted by the WUEdata online
submittal tool. Select those that apply.
Anticipated
Shortage
Level
Drop-down List of
State Standard
Levels (1 - 6) and
Level 0 (No
Shortage)
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TIMELINE
California Water Code Section 10632.1 requires the Annual Water Shortage Assessment Report to be
submitted to DWR by July 1 each year.
RESOURCE IMPACT
Adoption of the 2022 Annual Water Shortage Assessment Report does not have an associated resource
impact.
STAKEHOLDER ENGAGEMENT
Staff encourages interested parties to comment or provide feedback on the draft Annual Water
Shortage Assessment Report at the Council meeting where the report will be discussed or to submit
written comments.
COMMISSION REVIEW
The 2022 Annual Water Shortage Assessment Report was presented to the UAC at its June 8, 2022
meeting. An At Place memo will be presented to the Council with the recommendation after this
meeting.
ENVIRONMENTAL IMPACT
Approval of the 2022 Annual Water Shortage Assessment Report is exempt from California
Environmental Quality Act’s (CEQA) review pursuant to Water Code Section 10652.
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City of Palo Alto (ID # 14292)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Amendment No. 2 to Contract S20176879 with Johnson
Controls Fire Protection LP, to Add to the Scope of Services and Increase the
Contract Amount by $113,466 for a New Three -year Contract Total Amount
Not-to-Exceed of $379,050 for the Pro vision of Fire Sprinkler System
Inspections and Repair Services
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or their designee to
execute Amendment No. 2 to contract no. S20176879 with Johnson Controls Fire Protection
LP, to increase the scope of services to include the repair of fire sprinkler systems at City
locations including Lot S/L, Lot J, Lot R, Lucie Stern Children’s Theater, Lucie Stern Community
Theater, Civic Center, MSC-A, MSC-C, Rinconada Pools, and College Terrace Library, and to
increase the contract amount by $113,466 for a revised three-year contract total amount not to
exceed $379,050.
Background
In May 2020, staff conducted a request for quotations (RFQ) solicitation for Fire Sprinkler
Inspections and Repairs for all City buildings. Johnson Controls Fire Protection LP (Johnson
Controls) was awarded the contract (S20176879). The Parties entered into Amendment No. 1
on June 7, 2021 SR #12083 to add contract scope and increase the not-to-exceed compensation
by $87,207, from $178,377 to a new total not-to-exceed compensation amount of $265,584.
Discussion
Johnson Controls, per the Fire Sprinkler Inspection and Repair contract, performed code -
required quarterly, annual, and five-year inspections on the fire sprinkler systems at all City
facilities in December 2021. During the inspections, Johnson Controls identified repair and
maintenance issues needing attention. Many of these issues are because components of the
fire sprinkler system are at the end of their service life and/or are corroded. The National Fire
Protection Association codes and Palo Alto Fire Department regulations require replacement of
these components. It is difficult to predict costs for repair and maintenance issues such as
these, so funds were not originally included in the base contract with Johnson Controls.
Amendment No. 2 to the contract is for the repair of fire sprinkler systems at multiple City
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facilities, so that the systems will operate as intended in the event of a fire and comply with the
codes and regulations.
Scope Overview
The purpose of this amendment is to add to the scope of services of the existing contract the
repair of fire sprinkler issues identified during code-required inspections at Lot S/L, Lot J, Lot R,
Lucie Stern Children’s Theater, Lucie Stern Community Theater, Civic Center, MSC-A, MSC-C,
Rinconada Pools, and the College Terrace Library. Work consists primarily of replacing minor
system components that are corroded, past their useful life, damaged, or missing. A detailed
scope of work is provided in the attached Amendment No. 2 to the contract.
Timeline
This project is considered urgent and is scheduled to be completed in 60 calendar days from the
date of the Notice to Proceed.
Resource Impact
Funding for the contract increase recommended in this report is available in Capital
Improvement Program projects PF-14003, University Avenue Parking Improvements, and PF-
01003, Building Systems Improvements.
Stakeholder Engagement
Stakeholder engagement is not applicable to this contract amendment.
Policy Implications
This contract amendment is in conformance with the City of Palo Alto’s Comprehensive Plan
and does not represent any changes to existing City policies.
Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) under
Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no
further environmental review is necessary.
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City of Palo Alto (ID # 14427)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Contract Amendments to Extend Three Public -Private
Partnership Agreements Between the City of Palo Alto and TheatreWorks,
Palo Alto Players, and West Bay Opera for the use of the Lucie Stern
Community Theatre for an Additional Year
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that the City Council approve and authorize the City Manager to execute
three amendments to extend the public-private partnership agreements between the City of
Palo Alto and TheatreWorks, Palo Alto Players, and West Bay Opera for cooperative use of the
Lucie Stern Community Theatre for an additional year (July 1, 2022 – June 30, 2023).
Background
The Lucie Stern Community Theatre is used by three local companies: TheatreWo rks, Palo Alto
Players, and West Bay Opera, collectively producing approximately 15 productions each year.
These partnerships provide the companies with an artistic home, an essential component of
their ongoing existence, offering stability through the up and downs of the economy during
times when cutbacks in government, foundation and corporate funding for the arts are the
national norm. In return, the companies collectively provide culturally enriching theatrical
experiences for more than 45,000 audience members annually.
TheatreWorks was founded by San Francisco Bay Area native Robert Kelley in 1970 as a theatre
arts workshop for teenage and college students. Chartered by the City to produce work that
would reflect the concerns of the community during an unsettled period in American life, the
company produced thirteen wholly original works for the stage in its first three years. When the
Mountain View Center for the Performing Arts opened in 1991, the company began producing
five main stage productions there each season, along with three productions each season at the
Lucie Stern Theatre.
Palo Alto Players became the Peninsula’s first theatre company in 1931 when a group of 100
residents gathered together to create a theatre dedicated to the Palo Alto c ommunity. Initially,
productions were held at a makeshift performance space in the Palo Alto Community House
adjacent to the train station (now MacArthur Park Restaurant). Soon after, Lucie Stern invited
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the Players to be the resident theatre company at th e Community Theatre. In 1974, the Palo
Alto Players dissolved their ties with the Parks and Recreation Department, becoming an
independent company. Since that time, the City of Palo Alto has continued to support the Palo
Alto Players with performance, rehearsal and shop space.
West Bay Opera was founded by Henry Holt in 1955. Originally called the Little Opera Guild, the
company began presenting fully staged operatic performances. Under the leadership of Mr.
Holt, who was succeeded by his wife, Maria Holt , and then by the present director, José Luis
Moscovich, West Bay Opera has grown steadily.
Discussion
Theatre Works, Palo Alto Players and West Bay Opera’s usage of the Lucie Stern Community
Theatre are covered by public-private partnership agreements, which have been in place for
decades.
Given the long history of these partnerships and the cultural benefits of providing the Palo Alto
community with a diverse range of artistic events, staff recommends that the City Council
approve a one-year extension of the existing public-private partnership, with additional
measures in place to ensure public safety at live events.
The existing agreement names TheatreWorks Silicon Valley, Palo Alto Players, and West Bay
Opera as Resident Theatre Companies of the Community Theatre, allowing them use of the
Lucie Stern Community Theatre auditorium and ancillary spaces, including rehearsal hall,
costume shop, scene shop and dressing rooms, for a term of three years (FY2018 – FY2021)
(Staff Report #9684). Council approved an amendment to extend the agreement for one
additional Fiscal Year, through FY2022 on June 14, 2021. (Staff Report #12257).
The Resident Theatre Companies do not pay rent for us e of the Community Theatre. Pre-
pandemic revenue from use of the theatre by the three Resident Theatre Companies, derived
from a $2.00 fee (in lieu of rent) for each ticket sold, plus, as of FY2020, a “Stern Theatre
Improvement Fee” of $2.00 for each ticket sold, averaged $58,000 per year over a 5-year
period. The Stern Theatre Improvement fee is collected to offset the costs of building
maintenance, enhancements, improvements, repairs and new equipment and furnishings for
the theatre facility. Live theater performances were not allowed or were limited in audience
size during most of the pandemic and as a result, the lack of ticket sales resulted in a loss of
revenue to the City from these fees.
This amendment extends the existing agreement for one additional fiscal year, through FY2023.
It also clarifies the terms in Section 24 of Article A of the agreement (“Responsibilities of the
Contractor”) related to the Resident Theatre Companies use of space at the Lucie Stern
Community Center free of charge for up to ten (10) hours per year. The current requirement
provided a range of three (3) to ten (10) free hours depending on the room size while this
amendment provides a maximum of ten (10) hours regardless of room size. This amendment
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also clarifies that the Theatre Companies may have to pay for a City facility attendant during
regularly unstaffed hours. The clarification in this amendment will help reduce any confusion
regarding the Theatre Companies use of Lucie Stern Community Center.
Stakeholder Engagement
These agreements have been coordinated with all contracting parties including the amended
clarifying language on specific terms of use.
Resource Impact
No additional City resources are required to enact the recommendations in this report, and it is
anticipated that this partnership will lead to enhanced programs over the life of the agreement.
Policy Implications
This partnership would be categorized as a public/private partnership under the City’s Public -
Private Partnership Policy (Policy 1-25: Public/Private Partnerships). Staff notes that the City
Auditor is currently finalizing an audit of the City’s nonprofit partnership agreements. The
recommendations of that audit may lead to policy changes that could be reflected in future
partnership agreements.
These partnerships are also consistent with the City’s Comprehensive Plan Policy C -1.5, which
states, “Work with Stanford University and other educational institutions, private, nonprofit,
faith-based, public community service organizations and neighborhood associations, with the
goal of enhancing the quality of life for Palo Alto’s student and residential communities.
Increase opportunities for shared use among groups in the community at different times
through public private partnerships and by developing programs, facilities and community
services that ensure safe, non-discriminatory access to community services. “
Environmental Review
Approval of the amendments attached is not a Project within the meaning of the California
Environmental Quality Act.
Attachments:
• Attachment8.a: Attachment A: TheaterWorks Silicon Valley - Theater Amendment
2
• Attachment8.b: Attachment B: West Bay Opera - Theater Amendment 2
• Attachment8.c: Attachment C: Palo Alto Players - Theater Amendment 2
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City of Palo Alto TheatreWorks Silicon Valley
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 1 of 3
AMENDMENT NO. 2 TO CONTRACT
BETWEEN THE CITY OF PALO ALTO AND
THEATREWORKS SILICON VALLEY
This Amendment No. 2 (this “Amendment”) to the Agreement For Performing Arts Services
Between the City of Palo Alto and TheatreWorks Silicon Valley (the “Contract” as defined below) is
entered into as of June 7, 2022 by and between the CITY OF PALO ALTO, a California chartered
municipal corporation (“CITY”), and TheatreWorks Silicon Valley, a California nonprofit public
benefit corporation, located at 350 Twin Dolphin Drive, Suite 127, Redwood City, CA 94065
(“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Part ies” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of theatrical productions and use of City facilities, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term of contract by
twelve months, from the original end date of June 30, 202 1 through June 30, 2023, for the
continued provision of services described in the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean the Contract titled “Agreement
for Performing Arts Services Between the City of Palo Alto and
TheatreWorks Silicon Valley,” between CONSULTANT and CITY, dated
November 10, 2018, as amended by:
i. Amendment No. 1, dated June 8, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 10 of the Contract is hereby amended to read as below. Subsections
10a. through 10d. shall remain as written in the Contract.
10. Term, Termination & Breach. This Agreement shall commence as of November 10,
2018 and shall terminate on June 30, 2023 (the “Term”). The Term of this Agreement may
DocuSign Envelope ID: 32481DEF-37B2-400D-BB6A-0C87B274A11C
8.a
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City of Palo Alto TheatreWorks Silicon Valley
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 2 of 3
be amended by mutual written agreement of the Parties to this Agreement pursuant to
Section 16 (“Amendment”).
SECTION 3. Section 24 of Exhibit A (“Responsibilities of the Contractor”) is hereby amended
to read as below:
24. Contractor may be entitled, based on availability and at the discretion of the City, to
a maximum of 10 hours of single room usage at the Lucie Stern Community Center to
use each fiscal year on a gratis basis. Single room usage that takes place outside of Lucie
Stern Community Center hours of operation may be subject to charges associated with
a facilities attendant. The 10 hours will not be applicable to Saturday afternoon/evening
venue usage, exclusive usage bookings, and is not permissible to use at any rental sites
other than the Lucie Stern Community Center. Contractor may schedule no more than
12 calendar months in advance. Contractor may rent spaces at the non-profit rates per
the Municipal Fee Schedule if their request does not fall within the 10 hour parameters.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 32481DEF-37B2-400D-BB6A-0C87B274A11C
8.a
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City of Palo Alto TheatreWorks Silicon Valley
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
THEATREWORKS SILICON VALLEY
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
DocuSign Envelope ID: 32481DEF-37B2-400D-BB6A-0C87B274A11C
Board Chair
Holly Ward
Executive Director
Phil Santora
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City of Palo Alto West Bay Opera
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 1 of 2
AMENDMENT NO. 2 TO CONTRACT
BETWEEN THE CITY OF PALO ALTO AND
WEST BAY OPERA
This Amendment No. 2 (this “Amendment”) to the Agreement For Performing Arts Services
Between the City of Palo Alto and West Bay Opera (the “Contract” as defined below) is entered
into as of June 7, 2022 by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and WEST BAY OPERA, a California nonprofit public benefit corporation,
located at 221 Lambert Ave, Palo Alto, CA 94306 (“CONTRACTOR”). CITY and CONTRACTOR are
referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of theatrical productions and use of City facilities, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term of contract by
twelve months, from the original end date of June 30, 202 2 through June 30, 2023, for the
continued provision of services described in the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean the Contract titled “Agreement
for Performing Arts Services Between the City of Palo Alto and West Bay
Opera,” between CONSULTANT and CITY, dated November 10, 2018, as
amended by:
i. Amendment No. 1, dated June 8, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 10 of the Contract is hereby amended to read as below. Subsections
10a. through 10d. shall remain as written in the Contract.
10. Term, Termination & Breach. This Agreement shall commence as of November 10,
2018 and shall terminate on June 30, 2023 (the “Term”). The Term of this Agreement may
be amended by mutual written agreement of th e Parties to this Agreement pursuant to
Section 16 (“Amendment”).
DocuSign Envelope ID: 5C8AE554-16E0-4458-8182-0D72D475F77B
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City of Palo Alto West Bay Opera
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 2 of 2
SECTION 3. Section 24 of Exhibit A (“Responsibilities of the Contractor”) is hereby amended
to read as below:
24. Contractor may be entitled, based on availability and at the discretion of the City, to
a maximum of 10 hours of single room usage at the Lucie Stern Community Center to
use each fiscal year on a gratis basis. Single room usage that takes place outside of Lucie
Stern Community Center hours of operation may be subject to charges associated with
a facilities attendant. The 10 hours will not be applicable to Saturday afternoon/evening
venue usage, exclusive usage bookings, and is not permissible to use at any rental sites
other than the Lucie Stern Community Center. Contractor may schedule no more than
12 calendar months in advance. Contractor may rent spaces at the non-profit rates per
the Municipal Fee Schedule if their request does not fall within the 10 hour parameters.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporat ed herein by this reference.
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
WEST BAY OPERA
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
DocuSign Envelope ID: 5C8AE554-16E0-4458-8182-0D72D475F77B
Jose Luis Moscovich
General Director
Dr.
Robert Schwartz
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City of Palo Alto Palo Alto Players
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 1 of 3
AMENDMENT NO. 2 TO CONTRACT
BETWEEN THE CITY OF PALO ALTO AND
PALO ALTO PLAYERS
This Amendment No. 2 (this “Amendment”) to the Agreement For Performing Arts Services
Between the City of Palo Alto and Palo Alto Players (the “Contract” as defined below) is entered
into as of June 7, 2022 by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and Palo Alto Players, a California nonprofit public benefit corporation,
located at 1305 Middlefield Road #1, Palo Alto, CA 94301 (“CONTRACTOR”). CITY and
CONTRACTOR are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of theatrical productions and use of City facilities, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term of contract by
twelve months, from the current end date of June 30, 2022 through June 30, 2023, for the
continued provision of services described in the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean the Contract titled “Agreement
for Performing Arts Services Between the City of Palo Alto and Palo Alto
Players,” between CONSULTANT and CITY, dated November 10, 2018, as
amended by:
i. Amendment No. 1, dated June 8, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 10 of the Contract is hereby amended to read as below. Subsections
10a. through 10d. shall remain as written in the Contract.
10. Term, Termination & Breach. This Agreement shall commence as of November 10,
2018 and shall terminate on June 30, 2023 (the “Term”). The Term of this Agreement may
be amended by mutual written agreement of the Parties to this Agreement pursuant to
Section 16 (“Amendment”).
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City of Palo Alto Palo Alto Players
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 2 of 3
SECTION 3. Section 24 of Exhibit A (“Responsibilities of the Contractor”) is hereby amended
to read as below:
24. Contractor may be entitled, based on availability and at the discretion of the City, to
a maximum of 10 hours of single room usage at the Lucie Stern Community Center to
use each fiscal year on a gratis basis. Single room usage that takes place outside of Lucie
Stern Community Center hours of operation may be subject to charges associated with a
facilities attendant. The 10 hours will not be applicable to Saturday afternoon/evening
venue usage, exclusive usage bookings, and is not permissible to use at any rental sites
other than the Lucie Stern Community Center. Contractor may schedule no more than
12 calendar months in advance. Contractor may rent spaces at the non-profit rates per
the Municipal Fee Schedule if their request does not fall within the 10 hour parameters.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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City of Palo Alto Palo Alto Players
Form Vers.: Aug. 5, 2019 Amendment No. 2
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
PALO ALTO PLAYERS
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
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City of Palo Alto (ID # 13661)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Finance Committee Recommends Adoption of six Resolutions: 1)
Approving the Fiscal Year 2023 Wastewater Collection Utility Financial Plan,
Including Proposed Transfer, and Adopting a Wastewater Collection Utility
Rate Increase by Amending Wastewater Collection Rate Schedules S -1, S-2, S-
6 and S -7; 2) Approving the FY 2023 Water Utility Financial Plan, Including
Proposed Transfer, and Adopting a Water Utility Rate Increase by Amending
Water Rate Schedules W-1, W-2, W-3, W-4, and W-7; 3) Approving FY 2023
Gas Utility Financial Plan, Including Proposed Transfers, and Adopting a Gas
Utility Rate Increase by Amending Gas Rate Schedules G -1, G -2, G -3 and G -
10; 4) Approving the FY 2023 Electric Utility Financial Plan, Including
Proposed Transfers and Amend ments to the Electric Utility Reserve
Management Practices, Amending Utility Rate Schedules E -EEC-1, E-NSE-1, E-
2-G, E-4-G and E-7-G, and Adopting an Electric Utility Rate Increase by
Amending Utility Rate Schedules E -1, E-2, E-4, E-4 TOU, E-7, E-7 TOU and E-14;
5) Amending Utility Rate Schedules EDF -1 and EDF -2 to Increase Dark Fiber
Rates 4.2 Percent; and 6) Amending Utility Rate Schedule D -1 Increasing the
Storm Water Management Fee by 4.20 Percent per Month per Equivalent
Residential Unit for FY 2023
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Finance Committee recommend that the City Council adopt the following:
1. For the Wastewater Collection Utility, a Resolution (Attachment A):
a. Approving the Fiscal Year 2023 Wastewater Collection Financial Plan (Linked
Document); and
b. Approving a transfer of up to $5.33 million from the Capital Improvement
Projects Reserve to the Operations Reserve in FY 2022; and
c. Increasing the Wastewater Collection Utility Rates via the Amendment of Rate
Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial
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Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and
Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial
Discharger) (Attachment A2);
2. For the Water Utility, a Resolution (Attachment B):
a. Approving the FY 2023 Water Utility Financial Plan (Linked Document); and
b. Approving a transfer of up to $13.964 million from the Capital Improvement
Program (CIP) Reserve to the Operations Reserve in FY 2022; and
c. Increasing Water Utility Rates via the Amendment of Rate Schedules W-1
(General Residential Water service), W-2 (Water Service from Fire Hydrants), W-
3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-
Residential Water Service), and W-7 (Non-Residential Irrigation Water Service)
(Attachment B2);
3. For the Gas Utility, a Resolution (Attachment C):
a. Approving the FY 2023 Gas Utility Financial Plan (Linked Document); and
b. Approving a transfer of up to $3 million from the Operations Reserve to the CIP
Reserve in FY 2022; and
c. Approving a transfer of up to $2.766 million from the Rate Stabilization Reserve
to the Operations Reserve in FY 2022; and
d. Increasing gas rates by amending Rate Schedules G-1 (Residential Gas Service),
G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large
Commercial Gas Service), and G-10 (Compressed Natural Gas Service)
(Attachment C2);
4. For the Electric Utility, a Resolution (Attachment D):
a. Approving the FY 2023 Electric Financial Plan (Linked Document); and
b. Amending the Electric Fund Reserve Management Practices (Appendix B of the
FY 2023 Electric Financial Plan), specifically amending Section 6: Electric Special
Projects Reserve, as follows:
i. Amend part e) setting the goal to commit ESP funds by the end of FY
2025; and
ii. Amend part f) setting the date to revert uncommitted funds to the
Electric Supply Operations Reserve to five years after the commitment
date (FY 2030)
c. Approving the following transfers at th e end of FY 2022:
i. Up to $15 million from the Hydro Stabilization Reserve to the Supply
Operations Reserve; and
ii. Up to $5 million from the Electric Special Projects (ESP) reserve to the
Supply Operations Reserve; and
iii. As discussed in Staff Report #11556, approve an allocation of Cap and
Trade funds up to 1/3 of REC revenue to the Cap and Trade Program
Reserve to be spent on local decarbonization programs;
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d. Approving the following rate actions for FY 2023, effective July 1, 2022
(Attachment D2):
i. Increasing retail electric rates E-1 (Residential Electric Service), E-2 (Small
Non-Residential Electric Service), E-4 (Medium Non-Residential Electric
Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service),
E-7 (Large Non-Residential Electric Service), E-7 TOU (Large Non-
Residential Time of Use Electric Service) and E-14 (Street Lights) of 5%;
and
ii. Updating to the Export Electricity Compensation (E-EEC-1) rate to reflect
current projections of avoided cost, effective July 1, 2022; c. An update to
the Net Surplus Electricity Compensation (E-NSE-1) rate to reflect current
projections of avoided cost; and
iii. Updating the Palo Alto Green program pass-through premium charge on
the Residential Master-Metered and Small Non-Residential Green Power
Electric Service (E-2-G), the Medium Non-Residential Green Power
Electric Service (E-4- G), and the Large Non-Residential Green Power
Electric Service (E-7-G) rate schedules to reflect current costs;
5. A Resolution (Attachment E) Amending Utility Rate Schedules EDF-1 and EDF-2
(Attachment E1) to increase Dark Fiber Rates 4.2 percent;
6. A Resolution (Attachment F) Amending Utility Rate Schedule D-1 increasing the Storm
Water Management Fee by 4.2 percent consistent with the applicable Consumer Price
Index.
Executive Summary
From December 2021 through April 2022, the Utilities Advisory Commission (UAC) and Finance
Committee have reviewed preliminary and proposed rate changes recommended by staff for
Fiscal Year 2023. This report summarizes the meetings that occurred, including all staff
recommendations. This comprehensive utility rates report includes separate sections for each
of the Utilities: wastewater collection, water, gas, electric, dark fiber, and storm drainage and
surface water. Estimates for retail revenue impacts are included in the FY 2023 budget
assumptions. This report outlines the actions requested, transmits the resolutions from these
reviews, and requests City Council approval and adoption. Approval of this item would result in
implementation of the finalized rates for FY 2023, beginning July 1, 2022.
Overall the proposed rate increases summarized in the chart below show that the City remains
about 9% below the overall average bill of neighboring comparable cities, ensuring a high level
of service to the community at an economical cost. The five-year financial forecasts do model a
demonstration of increased investment in various utilities including significant investment at
the Wastewater Treatment Facility as well as some placeholder assumptions for expected
investment in sustainability and climate action plan initiatives. Spec ifically, while specific grid-
modernization and electrification projects have not been included in the five -year capital plan,
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staff has included an assumption that Council-approved upgrades will start around FY 2024 or
2025 and require bond funding to complete. Staff will have better information for next year’s
Electric Financial Plan (FY 2024) once progress has been made on the grid modernization study.
Background
Wastewater Collection
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19,
2022 a recommendation that Council approve the FY 2023 Wastewater Collection Financial
Plan, including a proposed transfer of up to $5.33 million from the Capital Improvement
Projects Reserve to the Operations Reserve in FY 2022. In addition, staff recommended
increasing wastewater collection rates 3% by amending rate schedules S-1 (Residential
Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6
(Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection
and Disposal – Industrial Discharger). See Staff Report #139711 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Water
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19,
2022 a recommendation that Council approve the FY 2023 Water Utility Financial Plan,
including a proposed transfer of up to $13.964 million from the Capital Improvement Program
(CIP) Reserve to the Operations Reserve in FY 2022. Staff also recommended increasing water
distribution rates 4% by amending rate schedules W-1 (General Residential Water service), W-2
1 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=4
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(Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-
Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation
Water Service). The SFPUC is increasing its wholesale water rates by 15.9% due to the drought
and related water-purchase cutbacks, resulting in an overall water rate increase for City
customers of about 8.9%. The water commodity rate increase will be passed through to
customers starting August 1, 2022. See Staff Report #139692 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Gas
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19,
2022 a recommendation that Council approve the FY 2023 Gas Utility Financial Plan, including
proposed transfers of:
a) up to $3 million from the Operations Reserve to the CIP Reserve in FY 2022, and
b) up to $2.766 million from the Rate Stabilization Reserve to the Operations Reserve in FY
2022.
In addition, staff recommended increasing gas rates overall by 4% (a 6% distribution rate
increase) by amending rate schedules G-1 (Residential Gas Service), G-2 (Residential Master-
Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10
(Compressed Natural Gas Service). See Staff Report #138403 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Electric
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19,
2022 a recommendation that Council approve the FY 2023 Electric Utility Financial Plan,
including amending the Electric Fund Reserve Management Practices, section 6: Electric Special
Projects Reserve, as follows:
1. Amend part e) setting the goal to commit ESP funds by the end of FY 2025; and
2. Amend part f) setting the date to revert uncommitted funds to the Electric Supp ly
Operations Reserve to five years after the commitment date (FY 2030).
In addition, staff recommended the following transfers in FY 2022:
1. Up to $15 million from the Hydro Stabilization Reserve to the Supply Operations
Reserve;
2. Up to $5 million from the Electric Special Projects (ESP) reserve to the Supply Operations
Reserve; and
2 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=24
3 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=61
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3. As discussed in Staff Report #115564, approve an allocation of Cap and Trade funds up
to 1/3 of REC revenue to the Cap and Trade Program Reserve to be spent on local
decarbonization programs.
Staff also recommended the following rate actions:
1. An increase to retail electric rates E-1 (Residential Electric Service), E-2 (Small Non-
Residential Electric Service), E-4 (Medium Non-Residential Electric Service), E-4 TOU
(Medium Non-Residential Time of Use Electric Service), E-7 (Large Non-Residential
Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service) and E-14
(Street Lights) of 5% effective July 1, 2022;
2. An update to the Export Electricity Compensation (E-EEC-1) rate to reflect current
projections of avoided cost, effective July 1, 2022;
3. An update to the Net Surplus Electricity Compensation (E-NSE-1) rate to reflect current
projections of avoided cost, effective July 1, 2022; and
4. An update to the Palo Alto Green program pass-through premium charge on the
Residential Master-Metered and Small Non-Residential Green Power Electric Service (E-
2-G), the Medium Non-Residential Green Power Electric Service (E-4- G), and the Large
Non-Residential Green Power Electric Service (E-7-G) rate schedules (Linked Document)
to reflect current costs, effective July 1, 2022.
See Staff Report #139705 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Storm Drain
On May 3, 2022, Public Works staff presented the Finance Committee with a recommendation
that the City Council adopt a resolution amending Utility Rate Schedule D -1 (Storm and Surface
Water Drainage) to implement a 4.2 percent rate increase consistent with the applicable
Consumer Price Index, increasing the monthly charge per Equivalent Residential Unit by $0.64,
from $15.34 to $15.98 for Fiscal Year 2023. See Staff Report #141076 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Discussion
4 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11566.pdf
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=87
6 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/finance-
committee/2022/20220503/20220503pfcslinked.pdf#page=3
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From December 2021 through February 2022, the UAC and Finance Committee received
preliminary projections of rate increase needs for FY 2023. Based on their feedback and
updated financial information, staff brought to the UAC on March 2, 2022 and the Fin ance
Committee on April 19, 2022, various utility financial plans, transfer requests, and rate changes
recommended by staff. This report outlines the actions requested, transmits the resolutions
from these reviews, and requests City Council approval and ad option.
Attached to this report are several documents, referenced throughout the recommendation
language and the report. In addition, this report also includes links to the City’s website for all
the staff reports presented throughout the review process to the UAC, Finance Committee, and
City Council.
Staff and the Finance Committee recommend that the City Council approve the Utility financial,
proposed plans, proposed transfers and rate changes listed below.
Proposed Rate Changes and Financial Plans
Wastewater Collection Proposal
The FY 2023 Wastewater Collection Utility Financial Plan (Linked Document) includes
projections of the utility’s costs and revenues through FY 2027. The Financial Plan projects costs
to rise over the forecast horizon due primarily to increasing treatment costs related to capital
improvements and increasing operational costs at the Regional Water Quality Control Plant
(RWQCP), as well as increasing collection system and Capital Improvement Program (CIP) costs.
A 3% overall revenue increase is needed in FY 2023, and staff projects overall revenue increases
of approximately 5% will be required annually through FY 2027 to cover current and projected
costs.
One of the main drivers for the increase in the Wastewater Collection Utility’s costs (and
therefore rates) over the next several years is the cost for wastewater treatment, which is
projected to increase by about 7.7% per year from FY 2021 to FY 2027 as the City makes several
upgrades to the RWQCP. Future projects include secondary treatment upgrades as well as
replacement of the headworks facility. Beyond FY 2027 some of the upward pressure on
treatment costs is expected to be relieved, as the projected growth in treatment costs
decreases to approximately 2.3% on average annually between FY 2027 and FY 2032.
Wastewater Collection operations and CIP costs (excluding costs associated with treatment) are
projected to increase by approximately 4.2% annually from FY 2021 to FY 2027. This Financial
Plan also projects revenue reductions due to COVID-19 primarily from the Restaurant and
Commercial customer classes, with annual revenue reductions to be highest during FY 2022 at
approximately $1 million and recovering slowly through FY 2025. The total revenue reduction
included in the estimate for the Wastewater Collection utility is $2.4 million from FY 2022
through FY 2025.
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The proposed FY 2023 Wastewater Collection Utility Financial Plan includes an increase in rates
of 3% for rate schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial
Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and
S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) (Attachment A2).
The Plan also includes a proposed transfer of up to $5.33 million from the CIP Reserve to the
Operations Reserve in FY 2022. The CIP Reserve aims to stabilize uneven annual funding
associated with ongoing CIP projects that are scheduled to occur every other year, such as main
replacement projects, and is a source for one-time or immediately needed projects.
Withdrawals from the CIP Reserve for use on capital projects require Council action. See Staff
Report #13971 for more information.
The Finance Committee members had questions about how transfers between reserves
worked, as well as how Palo Alto compared to other agencies and why some were much higher
and others lower. Staff responded that it was mainly due to how much their relative treatment
plants had been upgraded. After deliberating the proposal, the three members of the Finance
Committee voted unanimously in favor of the 3% rate increase proposal put forth by staff.
Water Proposal
The FY 2023 Water Utility Financial Plan (Linked Document) includes projections of the utility’s
costs and revenues through FY 2027. Overall costs, including water purchases, operating and
capital costs are projected to rise by about 4% per year over the next several years from FY
2022 to FY 2027. Some capital projects were deferred in FY 2017 through FY 2021 leading to
lower capital costs than budgeted. Many of these deferred capital projects are anticipated to be
completed in FY 2022 and FY 2023, and a combination of funds from the Operations, CIP, CIP
Reappropriations and Commitments reserve balances are available to provide funding. The
robustness of these reserve levels has allowed the Water Utility to hold rates flat for two years
(FY 2021 and FY 2022), and will now be used to mitigate distribution rate increases (rates that
cover the cost to deliver water within the City) to under 5% annually from FY 2023 through FY
2027. This is possible despite the ongoing drought conditions and the expected impact to
water sales and revenue while still funding essential capital investments.
On November 23, 2021, the San Francisco Public Utilities Commission (SFPUC) declared a local
water shortage emergency by Resolution No. 21-01777 calling for voluntary system-wide 10%
water use reductions. SFPUC serves retail customers in San Francisco as well as Palo Alto and 25
other Wholesale Customers in the Bay Area. Wholesale Customers’ collective voluntary water
purchase cutback level is 13.7% from FY 2020 levels while Palo Alto’s voluntary water purchase
cutback level is 8% from FY 2020 levels. Because of these expected drought-related water
purchase cutbacks as well as increasing debt service for major capital projects on the Hetch
Hetchy Regional Water System, SFPUC approved a wholesale rate increase of 15.9%8, on May
10, 2022. This SFPUC commodity rate increase in addition to the City’s 4% distribution rate
7 https://sfpuc.sharefile.com/share/view/se538152342864c05bba400824a295984
8 https://sfpuc.sharefile.com/share/view/s6fc1dddfd2454f60af70efaa8bc5712f
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increase is estimated to result in an 8.9% systemwide average total increase for the City’s water
rates in FY 2023.
The proposed FY 2023 Water Utility Financial Plan includes an increase in distribution rates of
4% for rate W-1 (General Residential Water service), W-2 (Water Service from Fire Hydrants),
W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential
Water Service), and W-7 (Non-Residential Irrigation Water Service) (Attachment B2). In
addition, the Plan includes a proposed transfer of up to $13.964 million from the CIP Reserve to
the Operations Reserve in FY 2022. The CIP Reserve aims to stabilize uneven annual funding
associated with ongoing CIP projects that are scheduled to occur every other year, such as main
replacement projects, and is a source for one-time or immediately needed projects.
Withdrawals from the CIP Reserve for use on capital projects require Council action. See Staff
Report #13969 for more information.
Staff informed the Finance committee that Palo Alto received the April rate notice of SFPUC’s
15.9% increase, which translated to an estimated overall rate increase of approximately 8.9%
when combined together with the proposed 4% distribution rate increase. Finance committee
members discussed possible impacts of future drought conditions coinciding w ith higher CIP
costs, both at the SFPUC as well as Palo Alto’s distribution system, to future rate projections.
They also inquired as to whether treating wastewater to potable levels could be paid for with
water reserves, and staff stated they could look into that possibility. After deliberating the
proposal, the three members of the Finance Committee voted unanimously in favor of the 4%
distribution rate increase proposal put forth by staff.
In addition to the rate changes described above, staff also added language to the City’s W-1, W-
2, W-4 and W-7 rate schedules to align the City’s notification process about SFPUC’s commodity
rate changes with the requirements in Gov. Code Sec. 53756. While the Code permits the City’s
30 day notification of wholesale rate adjustments to be sent via the City’s regular billing
statement or by any other mailing to customers, the City’s water rate schedules currently only
offer the billing statement option. Section D of the attached W-1, W-2, W-4 and W-7 rate
schedules now includes language permitting the option to send a separate mailing, such as a
letter or postcard, to notify customers of the change, in addition to billing statement notice.
This change will apply to notice about wholesale rate increases that may occur after July 1,
2023.
Gas Proposal
The FY 2023 Gas Utility Financial Plan (Linked Document) includes projections of the utility’s
costs and revenues for FY 2023 through FY 2027. Gas utility costs are made up of supply-related
costs (30 percent of costs in FY 2021), which are collected through a supply rate that varies
monthly, and distribution-related costs (70 percent of costs in FY 2021), which are collected
through a distribution rate that is typically adjusted not more than one time per year.
Distribution rates were last increased on July 1, 2021, which resulted in a roughly 3 percent
increase in the total system average gas rate (supply plus the distribution rates).
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The City’s natural gas rates are based on the 2019 Natural Gas Cost of Service and Rates Study,
updated with current and proposed operating costs. Commodity prices have increase d
markedly in the last few months and are projected to increase by about 3% per year going
forward, although weather and/or economic forces can shift this course rapidly. Capital
Improvement Project (CIP) expenditures for the last several years were lower than normal
while the City was completing the Upgrade Downtown project, but the next phase of the Gas
Main Replacement (GMR) program will be the replacement of all Polyvinyl Chloride (PVC) mains
with Polyethylene (PE) mains. Costs are anticipated to increase due to the Gas Utility resuming
ongoing main replacement projects and the cross-bore safety verification program.
With the onset of the COVID-19 pandemic, usage amongst businesses dropped to reflect people
working and staying at home rather than going to the workplace, as well as restrictions to
business operations. Businesses have been operating at minimum staffing conditions or fully
remote during the pandemic. City of Palo Alto staff have endeavored to reduce cost increases,
and some capital project work has been moved out or restructured to keep costs from rising
too much during this time. In order to move towards full cost recovery while minimizing rate
impacts in light of pandemic-related economic challenges, staff recommends a distribution rate
increase to all customer classes of 6%, which staff estimates will result in a 4% system average
rate increase, if supply rates remain unchanged. If, after the pandemic, usage and/or spending
looks to be moving in a different direction, staff will suggest a re-balancing of rates.
The proposed FY 2023 Gas Utility Financial Plan includes an increase in distribution rates
effective July 1, 2022 and will result in a 4 percent increase to the total system average gas rate
if supply rates remain unchanged. This will be done by amending rate schedules G-1
(Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3
(Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment C2).
Additional 4 percent increases to the total system average gas rate are projected over the next
three years. See Staff Report #13840 for more information.
Committee members had questions about how future climate goals and gas usage reductions
could impact future cost, and staff stated that they were attempting to model that in future
Sustainability and Climate Action Plan (S/CAP) work. After deliberating the proposal, the three
members of the Finance Committee voted unanimously in favor of the 4% rate increase
proposal put forth by staff.
Electric Proposal
The FY 2023 Electric Utility Financial Plan (Linked Document) includes projections of the utility’s
costs and revenues through FY 2027. Staff projects costs for the Electric Utility to increase
steadily through the forecast period. Revenue increases of 5% to 6% over the forecast horizon,
along with a significant use of Hydro Stabilization and Electric Special Project Reserves in the
short term, are projected to be necessary to keep operating reserves within guideline levels.
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The rate increases are related to several factors: low hydro supply, increasing FY 2022 and FY
2023 purchase costs, increasing transmission costs over the longer term, the need for
substantial additional capital investment in the electric distribution system, and i ncreasing
operations costs due to larger contracting needs to complete electric distribution system
maintenance and capital improvement work. Operations costs are expected to increase by
about 2% to 3% per year through the forecast period, and projected capital expenses are higher
due to the rebuilding of existing underground districts, substation upgrades, the Foothills
rebuild, and utility pole replacements and line voltage upgrades.
While specific grid-modernization and electrification projects have not been included in the
five-year capital plan, staff has included an assumption that Council -approved upgrades will
start around FY 2024 or 2025 and require bond funding to complete. Staff has assumed around
$150 million in projects to be done over the course of 10 years, starting in 2025. Assuming
bonds will be utilized to fund these, staff has estimated annual payments of $3.2 million
starting in 2025, rising to $9.6 million in 2031 once multiple issuances have been completed.
This is a simplified set of assumptions intended as a placeholder, and actual costs are likely to
vary. Staff will have better information for next year’s Electric Financial Plan (FY 2024) once
progress has been made on the grid modernization study. The City is also evaluating the cost
and scope of other system resiliency projects which may increase costs and rates in the future.
As projected in the FY 2021 Financial Plan, the lack of precipitation and resulting poor reservoir
levels have increased purchase costs and necessitate the utilization of funds from the
Hydroelectric Rate Stabilization Reserve. An additional loan may be required from the Electric
Special Projects reserve to help keep the Operations Reserve above minimum guideline levels.
In addition, electric loads have been gradually decreasing and are expected to continue to
decrease in the long-term, mainly due to declining consumption in the commercial sector,
putting gradual upward pressure on rates, but also due to continuing efficiency measures.
Electrification will likely reverse some of this trend, although the pace of that impact is
uncertain at this time. Consumption is currently around 10% below long -term consumption
trends, and current models suggest that pandemic economic recovery will take place through
2022 and 2023, with electric consumption stabilizing on the long run by 2025.
Based on these projections, staff is recommending a 5% rate increase for FY 2023, effective July
1, 2022, as well as amendments to the City’s Net Energy Metering (NEM) and PaloAltoGreen
(PAG) schedules to reflect current costs (Attachment D2), as follows:
1. Retail electric rates E-1 (Residential Electric Service), E-2 (Small Non-Residential Electric
Service), E-4 (Medium Non-Residential Electric Service), E-4 TOU (Medium Non-
Residential Time of Use Electric Service), E-7 (Large Non-Residential Electric Service), E-7
TOU (Large Non-Residential Time of Use Electric Service) and E-14 (Street Lights) to be
increased by 5%;
2. An update to Net Metering Net Surplus Electricity Compensation (E -NSE-1) rate
reflecting current projections of the City’s avoided costs. Customers on the City of Palo
Alto's (CPAU) original NEM program, also called NEM 1, who have chosen to have the
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value of any annual net generation they produced over the past 12 months credited
back to their account do so under the Net Metering Net Surplus Electricity
Compensation (E-NSE-1) rate, which is calculated using the utility’s avoided costs from
the prior year. The compensation rate paid to these customers is increasing slightly
based on updated cost calculations for 2021.
3. An update to the Export Electricity Compensation (E-EEC-1) rate to reflect current
projections of avoided cost. Solar customers served by the NEM successor program, or
NEM 2 (effective after the City reached its NEM 1 cap at the end of 2017), are
compensated at the Export Electricity Compensation (E-EEC-1) rate for exported
electricity. This buyback rate also reflects the avoided cost or value of customer-
generated electricity in Palo Alto, calculated on a forward-looking basis for the
upcoming fiscal year. The compensation rate paid to these customers is decreasing
slightly, driven by a small decrease in the value of the Renewable Energy Credits (RECs)
generated by these solar systems.
4. An update to the Palo Alto Green program pass-through premium charge on the
Residential Master-Metered and Small Non-Residential Green Power Electric Service (E-
2-G), the Medium Non-Residential Green Power Electric Service (E-4-G), and the Large
Non-Residential Green Power Electric Service (E-7-G) rate schedules (Linked Document)
to reflect current costs. The revenue collected through the PAG rate premium is set to
fully recover the costs of administering the program. This charge is increasing, reflecting
an increase in the wholesale cost of Green-e certified RECs in the Western US market.
Staff is also engaging the services of consultants to review and revise the Electric Utility’s Cost
of Service study and rates. This study will examine how costs are allocated among the
residential and commercial classes and realign them if needed, and will develop cost-based
rates for several emerging groups, such as: all-electric customers, DC-fast charging facilities, and
micro-grid customers. When staff brought the COSA guidelines to the UAC, Finance and Council,
there was a directive for staff to propose residential rates to support electrification, prior to a
COSA. Staff’s response to that request is provided as Attachment D3.
More information on the electric rate proposal can be found in Staff Report #13970.
Finance Committee members had several questions regarding how the drought will affect long
term power purchases and strategies, and staff will be addressing these issues in upcoming
Integrated Resource Plan (IRP) work. After deliberating the proposal, the three members of the
Finance Committee voted unanimously in favor of the recommendations put forth by staff.
Electric – Hydroelectric Rate Adjuster information
To manage the financial impacts of the annual variability in producti on of the City’s
hydroelectric resources, and to allow for the City to maintain a lower target level for its
Hydroelectric Stabilization Reserve (HSR), the City adopted a Hydroelectric Rate Adjuster (HRA)
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mechanism effective July 1, 2018 (Staff Report #89629).
After a promising start, it’s now clear that the 2021-2022 water year will be the third straight
very dry year for California. As of April 26th, precipitation totals in Northern and Central
California are almost 20-30% below average for this time of year (after being above average
through January). Reservoir levels remain very low too – across Northern and Central California,
most reservoirs are about 30-50% below their average levels for this point in time. As a result,
Palo Alto’s hydroelectric projections for FY 2022 and FY 2023 are now very low—they are
projected to produce around 245 GWh this fiscal year, which is about 52% of the long -term
average level of hydro output, and 285 GWh in FY 2023, which is 60% of the long -term average
level
This lost output – the direct result of several dry years depleting reservoirs and drying up
groundwater supplies – will result in a supply cost impact of $8-$10 million for the City in FY
2022 and continued higher costs going into FY 2023. In addition, staff is still anticipating
utilizing most of the available HSR Reserve (Currently $15.4 million) to help offset these
continuing higher costs. As such, Staff recommends the continued use of the HRA at the
$0.013/kwh level for FY 2023. Because this rate was activated April 1, 2022 (Staff Report
#1390510), no further action is needed until the rate is either changed or de-activated by later
Council action.
Dark Fiber
Since 2007, the EDF-1 and EDF-2 rates for Dark Fiber (Attachment E1) customers have increased
annually by the annual December change in the Consumer Price Index for All Urban Consumers
(CPI-U) in the San Francisco area, as stated in their dark fiber license agreements. Based on
prior Utilities Advisory Committee and City Council direction, these rate changes are routinely
included as part of the Budget adoption process rather than in a separate staff report. This
year’s change in CPI-U was 4.2 percent, as reported by the Bureau of Labor Statistics. The City
has five customers remaining on the EDF-1 rate schedule. All other dark fiber customers are on
the EDF-3 rate schedule, which has not been modified since its inception on September 18,
2006.
Storm Water and Surface Water Drainage
On April 11, 2017, a majority of Palo Alto property owners approved a ballot measure
approving a monthly Storm Water Management Fee. This fee funds thirteen storm drainage
capital improvement projects listed in the ballot measure, enhanced maintenance of the storm
drainage system, and a variety of stormwater quality protection programs. The approved ballot
measure allows for an annual adjustment based on the Consumer Price Index (CPI) or six
percent, whichever is less. The Storm Water and Surface Drainage Rate will increase 4.2
9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2018/final-staff-report-id-8962_hydroelectric-rate-adjustment-mechanism-adoption.pdf
10 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220314/20220314pccsm-amended-final-revised-ppt.pdf#page=98
9
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percent, increasing the monthly charge per Equivalent Residential Unit by $0.64, from $15.34 to
$15.98 for Fiscal Year 2023 effective July 1, 2022, to reflect the annual CPI change. See Staff
Report #14107 for more information.
Timeline
Water and Wastewater Collection Rates
After the June 13th Public Hearing is opened and testimony from members of the public
accepted, City Council may choose to:
1. Close the hearing and take action; or
2. Close the hearing and defer action until the close of the Budget Adoption Hearing on
June 13th; or
3. Continue the hearing until the end of the Budget Adoption Hearing (should the Budget
Adoption Hearing be continued to another Council meeting), and then reconvene the
hearing, take any additional water and wastewater collection rate testimony, close the
hearing, and take action.
The latter option has been used in prior years when the Budget Adoption process has spanned
multiple City Council meetings. It is customary in such circumstances to continue to accept
written protests up until the hearing is closed. Unless written protests are filed by a majority of
affected water and wastewater customers, Council may vote on the proposed rate actions. If
approved, the water and wastewater rates will become effective July 1, 2022.
Electric, Gas, Dark Fiber and Storm Water rates, as well as Utility Financial Plans
The electric, gas, dark fiber and storm drainage rates will be considered at the June 1 3, 2022
public hearing. Should the City Council take action to approve any or all of these rates, they will
become effective July 1, 2022. The City Council will also consider changes to Financial Plans
and/or Reserve Management Policies for the wastewater collection, water, electric and gas
utilities, and should they take action to approve any or all of these Plans and/or Policie s, they
will also become effective July 1, 2022.
Resource Impact
The resource impact of the recommendations summarized in this report is the continued
financial solvency of the various Utilities and, as the City is a ratepayer, an increase to General
Fund expenses of $332,000. The estimated FY 2023 revenue impact of the recommendations in
this report would be an increase of $7.9 million in the Electric Fund. Normal year sales revenues
for the Gas Utility are projected to increase by roughly 4 percent or $1.5 million as a result of
the proposed rate increases, not including fluctuations in commodity revenue/cost. Staff
projects estimated revenue for the Water Utility in FY 2023 to increase by 8.9% overall ($3.9
million), based on the SFPUC wholesale rate increase of 15.9% (approved at the SFPUC
Commission meeting of May 10, 2022). For wastewater collection, staff projects normal year
revenues to increase by approximately 3% or $600,000 annually beginning in FY 2023 as a result
9
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of the proposed rate changes. The 4.2 percent increase in Stormwater rates is expected to
increase annual revenue to the Stormwater Management Fund by approximately $312,000. In
addition, the 4.2 percent increase in EDF-1 fiber rate is expected to increase annual revenue by
approximately $23,000. The recommendations summarized in this report are reflected in the FY
2023 Proposed Operating Budget with the exception of the Water Utility, which will require
revenue and expense adjustments to align with the final SFPUC wholesale rate increase, as that
information was not available at the time the budget was produced. These adjustments will be
brought forward for Council consideration through the annual budget process.
Utility
Systemwide Average
Rate Increase
FY 2023 Estimated
Revenue Impact
Electric 5.0% $7.9 million
Gas 4.0% $1.5 million
Water 8.9% $3.9 million
Wastewater Collection 3.0% $0.6 million
Stormwater Management 4.2% $0.3 million
Fiber 4.2% $0.02 million
Policy Implications
Policy Implications related to the proposed w astewater collection, water, gas, electric and
storm water management fee rate actions are detailed fully in the linked Finance Committee
reports.
There are no policy changes contained in the adoption of the proposed new Dark Fiber rates.
Stakeholder Engagement
The UAC reviewed preliminary financial forecasts for the Electric, Gas, Water and Wastewater
Collection utilities at its December 1, 2021 meeting (Staff Report #1365911), and the Finance
Committee reviewed the preliminary forecasts at its February 1, 2022 meeting (Staff Report
#1383912).
The UAC reviewed staff’s final recommendations for the following utili ties at its March 2, 2022
meeting:
11 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/12-01-2021-regular/id-13659.pdf
12 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220201/20220201pfcsm-final-linked.pdf#page=3
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City of Palo Alto Page 16
a. Wastewater Collection (Staff Report #1396213)
b. Water (Staff Report #1366014)
c. Gas (Staff Report #1396015)
d. Electric (Staff Report #1396116)
The UAC voted to approve staff’s proposals, each passing 4-0, with Commissioners Bowie,
Scharff and Smith absent.
The Finance Committee reviewed staff’s proposals for the following utilities at its April 19, 2022
meeting, which were all passed unanimously (3-0):
a. Wastewater Collection (Staff Report #1397117)
b. Water (Staff Report #1396918)
c. Gas (Staff Report #1384019)
d. Electric (Staff Report #1397020)
The Finance Committee reviewed staff’s proposals for the Stormwater Management rate (Staff
Report #1410721) at its May 3, 2022 meeting, which was passed unanimously (3-0).
Environmental Review
Adoption of the attached Financial Plans and budgeted transfers does not meet the California
Environmental Quality Act’s definition of a project, pursuant to Public Resources Code Section
21065 and CEQA Guidelines Section 15378(b)(4) and (5), because it is a go vernmental fiscal and
administrative activity which will not cause a direct or indirect physical change in the
13 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022-
packet.pdf#page=127
14 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022-
packet.pdf#page=75
15 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022-
packet.pdf#page=161
16 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-
advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022-
packet.pdf#page=201
17 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=4
18 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=24
19 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=61
20 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220419/20220419pfcs.pdf#page=87
21 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220503/20220503pfcslinked.pdf#page=3
9
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environment. Adoption of the proposed wastewater collection, water, gas, electric, storm
water management fee, and dark fiber rates to meet operating expenses, purchase supplies
and materials, meet financial reserve needs and obtain funds for capital improvements
necessary to maintain service is not subject to the California Environmental Quality Act (CEQA),
pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California
Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments
presented to Council, the Council incorporates these documents herein and finds that sufficient
evidence has been presented setting forth with specificity the basis for this claim of CEQA
exemption.
Attachments:
• Attachment9.a: Attachment A: Resolution for the Wastewater Collection Utility
• Attachment9.b: Attachment A2: Proposed FY 2023 Wastewater Rates
• Attachment9.c: Attachment B: Resolution for the Water Utility
• Attachment9.d: Attachment B2: Proposed FY 2023 Water Rate Schedules
• Attachment9.e: Attachment C: Resolution for the Gas Utility
• Attachment9.f: Attachment C2: Proposed FY 2023 Gas Rates
• Attachment9.g: Attachment D: Resolution for the Electric Utility
• Attachment9.h: Attachment D2: Proposed FY 2023 Electric Rates
• Attachment9.i: Attachment D3: Early Electric Rate Change Memo
• Attachment9.j: Attachment E: Resolution for the Fiber Optic Utility
• Attachment9.k: Attachment E1: Proposed Fiber Rates
• Attachment9.l: Attachment F: Resolution and Rate Schedule for the StormWater
Utility
9
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Attachment A
* NOT YET APPROVED *
6055605
Resolution No. ___
Resolution of the Council of the City of Palo Alto Approving the
FY 2023 Wastewater Collection Utility Financial Plan, Including Reserve
Transfers, and Adjusting Wastewater Rates by Amending Rate
Schedules S-1 (Residential Wastewater Collection and Disposal), S-2
(Commercial Wastewater Collection and Disposal), S-6 (Restaurant
Wastewater Collection and Disposal) and S-7 (Commercial Wastewater
Collection and Disposal – Industrial Discharger)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) assesses the financial position of its utilities
with the goal of ensuring adequate revenue to fund operations. This includes making long-term
projections of market conditions, the physical condition of the system, and other factors that
could affect utility costs, and setting rates adequate to recover these costs. It does this with the
goal of providing safe, reliable, and sustainable utility services at competitive rates. The City
adopts Financial Plans to summarize these projections.
B. The City uses reserves to protect against contingencies and to manage other
aspects of its operations, and regularly assesses the adequacy of these reserves and the
management practices governing their operation. The status of utility reserves and their
management practices are included in Reserves Management Practices attached to and made a
part of the Financial Plans.
C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of
the City of Palo Alto may by resolution adopt rules and regulations governing utility services,
fees and charges.
D. On ____, 2022, the City Council held a full and fair public hearing regarding the
proposed rate increase and considered all protests against the proposals.
E. As required by Article XIII D, Section 6 of the California Constitution and
applicable law, notice of the ________ 2022 public hearing was mailed to all City of Palo Alto
Utilities wastewater customers by _______, 2022.
F. The City Clerk has tabulated the total number of written protests presented by
the close of the public hearing, and determined that it was less than fifty percent (50%) of the
total number of customers and property owners subject to the proposed wastewater rate
amendments, therefore a majority protest does not exist against the proposal.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the FY 2023 Wastewater Collection Utility
Financial Plan.
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Attachment A
* NOT YET APPROVED *
6055605
SECTION 2. The Council hereby approves the following transfer as described in the FY
2023 Wastewater Collection Utility Financial Plan:
a. Up to $5,330,000 in FY 2022 from the Capital Improvement Projects
Reserve to the Operations Reserve.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-1 (Residential Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-1, as amended, shall become effective
July 1, 2022.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule S-2 (Commercial Wastewater Collection and Disposal) is hereby amended to read as
attached and incorporated. Utility Rate Schedule S-2, as amended, shall become effective July 1,
2022.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule S-6 (Restaurant Wastewater Collection and Disposal) is hereby amended to read as
attached and incorporated. Utility Rate Schedule S-6, as amended, shall become effective July 1,
2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is hereby
amended to read as attached and incorporated. Utility Rate Schedule S-7, as amended, shall
become effective July 1, 2022.
SECTION 7. The Council finds that the revenue derived from the wastewater rates
approved by this resolution do not exceed the funds required to provide wastewater service, and
the revenue derived from the adoption of this resolution shall be used only for the purposes set
forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 8. The Council finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor that
are not provided to those not charged, and do not exceed the reasonable costs to the City of
providing the service or product.
//
//
//
//
//
9.a
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Attachment A
* NOT YET APPROVED *
6055605
//
SECTION 9. The Council finds that the adoption of this resolution approving the FY 2023
Wastewater Financial Plan and Reserve transfers does not meet the California Environmental
Quality Act’s definition of a project under Public Resources Code Section 21065 and CEQA
Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will
not cause a direct or indirect physical change in the environment, and therefore, no
environmental review is required. The Council finds that the adoption of this resolution
changing Wastewater collection rates to meet operating expenses, purchase supplies and
materials, meet financial reserve needs and obtain funds for capital improvements necessary
to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant
to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of
Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to
Council, the Council incorporates these documents herein and finds that sufficient evidence
has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
9.a
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UTILITY RATE SCHEDULE S-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-1-1 Effective 79-1-20221
dated 97-1-202119 Sheet No S-1-1
A. APPLICABILITY:
This schedule applies to each Occupied Domestic Dwelling unit.
B.TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Service.
C. RATES:
Per Month
Each Occupied Domestic Dwelling unit ................................................................................
$44.6243.32
D.SPECIAL NOTES:
1. Any dwelling unit being individually served by a Water, Gas, or Electric Meter will be
considered continuously occupied.
2.For two or more Occupied Domestic Dwelling units served by one Water Meter, the monthly
Wastewater charge will be calculated by multiplying the current Wastewater rate by the
number of dwelling units.
3.Each developed separate lot shall have a separate service lateral to a sanitary main or
manhole.
{End}
Attachment A2
RESIDENTIAL WASTEWATER COLLECTION AND DISPOSAL
9.b
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COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-2-1 Effective 79-1-202221
dated 97-1-202119 Sheet No S-2-1
A. APPLICABILITY:
This schedule applies to all commercial establishments other than those served under Utility Rate
Schedule S-1 (Residential Wastewater Collection and Disposal), Rate Schedule S-6 (Restaurant
Wastewater Collection and Disposal) or Rate Schedule S-7 (Commercial Establishments
Wastewater Disposal – Industrial Discharger). B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Wastewater Services. C. RATES:
Quantity Rate, per 100 cubic feet (See Section D.1) .......................................................... $8.3309 D. SPECIAL NOTES: 1. The monthly charge for the quantity rate set forth in Section C of this rate schedule will be
based upon the average Water usage for the months of January, February and March, and
applied in the following July. If a Water Meter is identified as exclusively serving
irrigation landscaping, such Meter will be exempted from Wastewater charge calculations.
Customers without an applicable usage history will be rebuttably presumed to have usage
of 4.8 ccf per month until such time as such usage may reasonably be established by the
City of Palo Alto Utilities Department. 2. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in
which case Service will be governed by terms of a special agreement between the City and
the Customer.
{End}
:\\I/~ -.....;: :;.,.,,,"' PAI E CITY OF PALO ALTO
aaJ\" UTILITIES
9.b
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RESTAURANT WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-6
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-6-1 Effective 79-1-20221
dated 97-1-202119 Sheet No S-6-1
A. APPLICABILITY:
This schedule applies to all restaurants.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Services.
C. RATES:
Quantity Rates, per 100 cubic feet of monthly metered Water usage ...................................$ 12.4307
D. SPECIAL NOTES: 1. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in
which case Service will be governed by terms of a special agreement between the City and
the Customer.
{End}
9.b
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COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
– INDUSTRIAL DISCHARGER
UTILITY RATE SCHEDULE S-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-7-1 Effective 79-1-20221
dated 97-1-202119 Sheet No S-7-1
A. APPLICABILITY:
This schedule applies to any establishment requiring sampling of industrial discharges in excess
of 25,000 gallons per day, or special discharge monitoring, as defined in Rule 23, Section C.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Services.
C. RATES:
1. Collection System Operation, Maintenance, and Infiltration Inflow:
$4.1402 per 100 cubic feet of metered water use.
2. Advanced Waste Treatment Operations and Maintenance Charge:
$1.650 per 100 cubic feet of metered water use
3. $202.23196.34 per 1000 pounds (lbs) of COD (Chemical Oxygen Demand)
4. $487.58473.38 per 1000 lbs of SS (Suspended Solids)
5. $3,369.05270.92 per 1000 lbs of NH 3 (Ammonia)
6. $ 14,781.25 per 1000 lbs of toxics (chromium, copper, cyanide, lead, nickel, silver, and zinc) D. SPECIAL NOTES: 1. Water usage will be determined as defined in Rule 23, Section C. If a Water Meter is
identified as exclusively serving irrigation landscaping, such Meter will be exempted
from Wastewater charge calculations. 2. The City of Palo Alto Utilities Department may require Wastewater Metering facilities,
in which case Service will be governed by terms of a special agreement between the City
of Palo Alto and the Customer. 3. Charges for large discharges will be determined on the basis of sampling as outlined in
Utilities Rule 23, Section C. However, for purposes of arriving at an accurate flow
estimate, discharge Meters, if installed, can be utilized to measure outflow for billing
purposes. Annual charges will be determined and allocated monthly for billing purposes.
{End}
~,,,~
-.....;: ;..,--
Iii! ~ CITY OF PALO A. LTO
aaJ\" UTILITIES,
9.b
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Attachment B
6056604
* NOT YET APPROVED *
Resolution No.__________
Resolution of the Council of the City of Palo Alto Approving the
FY 2023 Water Utility Financial Plan and Reserve Transfer, and
Increasing Water Rates by Amending Rate Schedules W-1
(General Residential Water Service), W-2 (Water Service from
Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential
Master-Metered and General Non- Residential Water Service),
and W-7 (Non-Residential Irrigation Water Service)
R E C I T A L S
A.Each year the City of Palo Alto (“City”) regularly assesses the financial position of its
utilities with the goal of ensuring adequate revenue to fund operations. This includes making
long-term projections of market conditions, the physical condition of the system, and other
factors that could affect utility costs, and setting rates adequate to recover these costs. The
City does this with the goal of providing safe, reliable, and sustainable utility services at
competitive rates. The City adopts Financial Plans to summarize these projections.
B.The City uses reserves to protect against contingencies and to manage other aspects of
its operations, and regularly assesses the adequacy of these reserves and the management
practices governing their operation. The status of utility reserves and their management
practices are included in Reserves Management Practices attached to and made part of the
Financial Plans.
C.Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City
of Palo Alto may by resolution adopt rules and regulations governing utility services,
fees and charges.
D.On , 2022, the City Council held a full and fair public hearing regarding the
proposed rate increase and considered all protests against the proposals.
E.As required by Article XIII D, Section 6 of the California Constitution and applicable law,
notice of the 2022 public hearing was mailed to all City of Palo
Alto Utilities water customers by ____, 2022.
F.The City Clerk has tabulated the total number of written protests presented by the
close of the public hearing, and determined that it was less than fifty percent (50%) of
the total number of customers and property owners subject to the proposed water
rate amendments, therefore a majority protest does not exist against the proposal.
The Council of the City of Palo Alto does hereby RESOLVE, as follows:
9.c
Packet Pg. 126
Attachment A
6056604
SECTION 1. The Council hereby adopts the FY 2023 Water Utility Financial Plan.
SECTION 2. The Council hereby approves a transfer from the Capital Improvement Program
Reserve to the Operations Reserve of up to $13,964,000 in FY 2022 as described in the FY 2023
Water Utility Financial Plan.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-1 (General Residential Water Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule W-1, as amended, shall become effective July 1,
2022.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached
and incorporated. Utility Rate Schedule W-2, as amended, shall become effective July 1,
2022.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-3 (Fire Service Connections) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W-3, as amended, shall become effective July 1, 2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is
hereby amended to read as attached and incorporated. Utility Rate Schedule W-4, as
amended, shall become effective July 1, 2022.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule W-7, as amended, shall become effective
July 1, 2022.
SECTION 8. The City Council finds as follows:
a. Revenues derived from the water rates approved by this resolution do not exceed
the funds required to provide water service.
b. Revenues derived from the water rates approved by this resolution shall not be used
for any purpose other than providing water service, and the purposes set forth in
Article VII, Section 2, of the Charter of the City of Palo Alto.
c. The amount of the water rates imposed upon any parcel or person as an incident of
property ownership shall not exceed the proportional cost of the water service
attributable to the parcel.
9.c
Packet Pg. 127
Attachment A
6056604
SECTION 9. The Council finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor
that are not provided to those not charged, and do not exceed the reasonable costs to the City
of providing the service or product.
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
9.c
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Attachment A
6056604
//
SECTION 10. The Council finds that the adoption of this resolution approving the Financial
Plan and Reserve transfers does not meet the California Environmental Quality Act’s
(CEQA) definition of a project under Public Resources Code Section 21065 and CEQA
Guidelines Section 15378(b)(5), because it is an administrative governmental activity which
will not cause a direct or indirect physical change in the environment, and therefore, no
environmental review is required. The Council finds that the adoption of this resolution
changing water rates to meet operating expenses, purchase supplies and materials, meet
financial reserve needs and obtain funds for capital improvements necessary to maintain
service is not subject to the California Environmental Quality Act (CEQA), pursuant to
California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of
Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented
to Council, the Council incorporates these documents herein and finds that sufficient
evidence has been presented setting forth with specificity the basis for this claim of CEQA
exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
________________________________ ________________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
________________________________ ________________________________
Assistant City Attorney City Manager
________________________________
Director of Utilities
________________________________
Director of Administrative Services
9.c
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GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-1-1
A. APPLICABILITY:
This schedule applies to separately metered single-family residential dwellings receiving Water
Service from the City of Palo Alto Utilities.
B.TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Services.
C. RATES:
Per Meter
Monthly Service Charge: Per Month
For meters 5/8-inch to 1 inch .................................................................................... $ 20.2521.06
For 1 1/2 inch meter .................................................................................................. 65.4068.02
For 2-inch meter ........................................................................................................ 101.17105.22
For 3-inch meter ........................................................................................................ 214.44223.02
For 4-inch meter ........................................................................................................ 381.37396.63
For 6-inch meter ........................................................................................................ 780.79812.03
For 8-inch meter ........................................................................................................1,436.571,494.04
For 10-inch meter ......................................................................................................2,271.202,362.05
For 12-inch meter .......................................................................................................2,986.603,106.07
Per Hundred
Cubic Feet
Volumetric Rates: (To be added to Service Charge, applicable to all pressure zones.) Per Month
Commodity Rate:
Water Delivery Charge from SFPUC ......................................................................... $4.104.72-5.13
Distribution Rate:
Tier 1 usage ........................................................................................................................$2.562.67
Tier 2 usage (All usage over 100% of Tier 1) .......................................................................5.976.21
Attachment B2 9.d
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GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-1-2
Drought Surcharges (deactivated):
A drought surcharge will be added to the Customer’s applicable commodity rate for Tier 1 and Tier
2 Water usage when the City Council has determined that a Water reduction level is in effect for the
City as described in Section D.43. The drought surcharges in the table below are measured in dollars
per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Tier 1 0.20 0.43 0.64
Tier 2 0.58 1.21 1.85
Temporary Service – Developers
Temporary unmetered service to residential
subdivision developers, per connection ........................................................................ $6.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Commodity Rate
The Commodity Charge is based on the water delivery rate per the San Francisco Public
Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term
Contract. The Commodity Charge will be passed through automatically via periodic rate
adjustments to account for increases in wholesale water charges, as well as inflation. The
pass-through period will be effective for fiscal years 2020 through 2024, inclusive.
Customers will be provided notice of any adjustments via their billing statements or by any
other mailing by CPAU to the customer’s regular billing address.
9.d
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GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-3 Effective 7-1-202219
dated 7-1-20198 Sheet No W-1-3
3. Calculation of Usage Tiers
Tier 1 Water usage shall be calculated and billed based upon a level of 0.2 ccf per day
rounded to the nearest whole ccf, based on Meter reading days of Service. As an
example, for a 30-day bill, the Tier 1 level would be 0 through 6 ccf. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
4. Drought Surcharge
During period of Water shortage or restrictions on local Water use, the City Council may,
by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the drought surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
9.d
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WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-2-1
A. APPLICABILITY:
This schedule applies to all Water taken from fire hydrants for construction, maintenance, and
other uses in conformance with provisions of a Hydrant Meter Permit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Service.
C. RATES:
1. Monthly Service Charge.
METER SIZE
5/8 inch ........................................................................................................................... 50.00
3 inch ........................................................................................................................... 125.00
2. Volumetric Rate: (per hundred cubic feet)
Commodity Rate:
Water Delivery Charge from SFPUC ................................................................ $4.104.72-5.13
Distribution Rate: .................................................................................................................$3.613.76
4. Drought Surcharges (deactivated):
A drought surcharge will be added to the Customer’s applicable Commodity rate when the City
Council has determined that a Water reduction level is in effect for the City as described in
Section D.65. The drought surcharges in the table below are measured in dollars per hundred
cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.26 0.53 0.77
D. SPECIAL NOTES:
9.d
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WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-2-2
1. Monthly charges shall include the applicable monthly Service Charge in addition to usage billed at
the commodity rate.
2. The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility
Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The
Commodity Charge will be passed through automatically via periodic rate adjustments to account
for increases in wholesale water charges, as well as inflation. The pass-through period will be
effective for fiscal years 2020 through 2024, inclusive. Customers will be provided notice of any
adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular
billing address.
3. Any person or company using a hydrant without first obtaining a valid Hydrant Meter Permit shall
pay a fee of $50.00 for each day of such use in addition to all other costs and fees provided in this
schedule. A hydrant permit may be denied or revoked for failure to pay such fee.
4. A Meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a
prerequisite to the issuance of a permit and Meter(s). A charge of $50.00 per day will be added for
delinquent return of hydrant Meters. A fee will be charged for any Meter returned with missing or
damaged parts.
5. Any person or company using a fire hydrant improperly or without a permit, or who draws Water
from a hydrant without a Meter installed and properly recording usage shall, in addition to all other
applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code.
6. During period of Water shortage or restrictions on local Water use, the City Council may, by
resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level.
While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought
surcharge is to recover revenues lost as a result of reduced consumption.
{End}
9.d
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FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-3-1
A. APPLICABILITY:
This schedule applies to all public fire hydrants and private fire Service connections.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Service.
C. RATES:
1. Monthly Service Charges
Public Fire Hydrant .................................................................................................... $5.00
Private Fire Service:
2-inch connection .......................................................................................................$4.174.34
4-inch connection .......................................................................................................25.8126.85
6-inch connection ....................................................................................................... 74.9677.96
8-inch connection .......................................................................................................159.74166.13
10-inch connection .....................................................................................................287.27298.77
12-inch connection .....................................................................................................464.02482.59
2. Commodity (To be added to Service Charge unless Water is used for fire extinguishing or
testing purposes.)
Per Hundred Cubic Feet
All water usage .......................................................................................................... $10.00
D. SPECIAL NOTES:
1. Service under this schedule may be discontinued if Water is used for any purpose other
than fire extinguishing or testing and repairing the fire extinguishing facilities. Using
hydrants and fire Services for other purposes is illegal and will be subject to the
commodity charge as noted above, fines, and criminal prosecution pursuant to the Palo
Alto Municipal Code.
2. For a combination Water and fire Service, the Water Service schedule shall apply.
9.d
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FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-3-2
3. Utilities Rule and Regulation No. 21 provides additional information on Automatic Fire
Services.
4. Repairs and testing of fire extinguishing facilities are not considered unauthorized use of
Water if records and documentation are supplied by the Customer.
{End}
9.d
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RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-4-1
A. APPLICABILITY:
This schedule applies to Water Services to non-residential buildings, and multi-family residential
dwellings served through a Master-Meter.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Service.
C. RATES:
Per Meter
Monthly Service Charge Per Month
For 5/8-inch meter .................................................................................... $ 17.7118.42
For 3/4-inch meter .................................................................................... 23.6724.62
For 1-inch meter .................................................................................... 35.5937.02
For 1 ½-inch meter .................................................................................... 65.4068.02
For 2-inch meter .................................................................................... 101.17105.22
For 3-inch meter .................................................................................... 214.44223.02
For 4-inch meter .................................................................................... 381.37396.63
For 6-inch meter .................................................................................... 780.79812.03
For 8-inch meter ....................................................................................1,436.571,494.04
For 10-inch meter ....................................................................................2,271.202,362.05
For 12-inch meter ....................................................................................2,986.603,106.07
Per Hundred
Cubic Feet
Volumetric Rates: (to be added to Service Charge, applicable to all pressure zones) Per Month
Commodity Rate:
Water Delivery Charge from SFPUC ......................................................$ 4.104.72-5.13
Distribution Rate: ........................................................................................... 3.613.76
Drought Surcharges (deactivated):
9.d
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RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-4-2
A drought surcharge will be added to the Customer’s applicable commodity rate when the City
Council has determined that a Water reduction level is in effect for the City as described in Section
D.32. The drought surcharges in the table below are measured in dollars per hundred cubic feet
(ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.26 0.53 0.77
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Commodity Rate
The Commodity Charge is based on the water delivery rate per the San Francisco Public
Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term
Contract. The Commodity Charge will be passed through automatically via periodic rate
adjustments to account for increases in wholesale water charges, as well as inflation. The
pass-through period will be effective for fiscal years 2020 through 2024, inclusive.
Customers will be provided notice of any adjustments via their billing statements or by any
other mailing by CPAU to the customer’s regular billing address.
3. Drought Surcharge
During period of Water shortage or restrictions on local Water use, the City Council may,
by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the drought surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
9.d
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NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-7-1
A. APPLICABILITY:
This schedule applies to non-residential Water Service supplying dedicated irrigation Meters.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Services.
C. RATES:
Per Meter
Monthly Service Charge Per Month
For 5/8-inch meter .................................................................................... $ 17.7118.42
For 3/4-inch meter .................................................................................... 23.6724.62
For 1-inch meter .................................................................................... 35.5937.02
For 1 1/2 inch meter .................................................................................... 65.4068.02
For 2-inch meter .................................................................................... 101.17105.22
For 3-inch meter .................................................................................... 214.44223.02
For 4-inch meter .................................................................................... 381.37396.63
For 6-inch meter .................................................................................... 780.79812.03
For 8-inch meter ....................................................................................1,436.571,494.04
For 10-inch meter ....................................................................................2,271.202,362.05
For 12-inch meter ....................................................................................2,986.603,106.07
Per Hundred
Cubic Feet
Volumetric Rates: (to be added to Service Charge, applicable to all pressure zones) Per Month
Commodity Rate:
Water Delivery Charge from SFPUC ...............................................$ 4.104.72-5.13
Distribution Rate: ........................................................................................... 5.505.72
9.d
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NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-7-2
Drought Surcharges (deactivated):
A drought surcharge will be added to the Customer’s applicable commodity rate when the City
Council has determined that a Water reduction level is in effect for the City as described in Section
D.32. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.53 1.25 2.02
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Commodity Rate
The Commodity Charge is based on the water delivery rate per the San Francisco Public
Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term
Contract. The Commodity Charge will be passed through automatically via periodic rate
adjustments to account for increases in wholesale water charges, as well as inflation. The
pass-through period will be effective for fiscal years 2020 through 2024, inclusive.
Customers will be provided notice of any adjustments via their billing statements or by any
other mailing by CPAU to the customer’s regular billing address.
3. Drought Surcharge
During period of Water shortage or restrictions on local Water use, the City Council may,
by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the drought surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
9.d
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Attachment C
* NOT YET APPROVED *
6055597
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the Fiscal
Year 2023 Gas Utility Financial Plan, Including Proposed Transfers,
and Increasing Gas Rates by Amending Rate Schedules G-1
(Residential Gas Service), G-2 (Residential Master-Metered and
Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-
10 (Compressed Natural Gas Service)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) regularly assesses the financial position of
its utilities with the goal of ensuring adequate revenue to fund operations, including reserves.
This includes making long-term projections of market conditions, the physical condition of the
system, and other factors that could affect utility costs, and setting rates adequate to recover
these costs. It does this with the goal of providing safe, reliable, and sustainable utility services
at competitive rates. The City adopts Financial Plans to summarize these projections.
B. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of
the City of Palo Alto may by resolution adopt rules and regulations governing utility services,
fees and charges.
C. On ____, 2022, the City Council heard and approved the proposed rate increase
at a noticed public hearing.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the FY 2023 Gas Utility Financial Plan.
SECTION 2. The Council hereby approves the transfer of up to $2.766 Million from
the Rate Stabilization Reserve to the Operations Reserve, and up $3 Million from the
Operations Reserve to the CIP Reserve, as described in the FY 2023 Gas Utility Financial Plan
approved via this resolution.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-1, as amended, shall become effective July 1, 2022.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall
become effective July 1, 2022.
9.e
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Attachment A
* NOT YET APPROVED *
6055597
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-3, as amended, shall become effective July 1, 2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective
July 1, 2022.
SECTION 7. The City Council finds as follows:
a. Revenues derived from the gas rates approved by this resolution do not exceed the
funds required to provide gas service.
b. Revenues derived from the gas rates approved by this resolution shall not be used
for any purpose other than providing gas service, and the purposes set forth in
Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 8. The Council finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor
that are not provided to those not charged, and do not exceed the reasonable costs to the City
of providing the service or product.
SECTION 9. The Council finds that approving the Financial Plan does not meet the
California Environmental Quality Act’s (CEQA) definition of a project under Public Resources
Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative
governmental activity which will not cause a direct or indirect physical change in the
environment, and therefore, no environmental assessment is required. The Council finds that
changing gas rates to meet operating expenses, purchase supplies and materials, meet financial
reserve needs and obtain funds for capital improvements necessary to maintain service is not
subject to the California Environmental Quality Act (CEQA), pursuant to California Public
Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec.
15273(a). After reviewing the staff report and all attachments presented to Council, the
Council incorporates these documents herein and finds that sufficient evidence has been
presented setting forth with specificity the basis for this claim of CEQA exemption.
//
//
//
//
//
9.e
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Attachment A
* NOT YET APPROVED *
6055597
//
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Assistant City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
9.e
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RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-1 Sheet No G-1-1
dated 7-1-20201 Effective 7-1-20212
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from City of Palo Alto
Utilities:
1. Separately-metered single-family residential Customers.
2.Separately-metered multi-family residential Customers in multi-family residential
facilities.
B.TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:Per Service
Monthly Service Charge: ...............................................................................................$10.8911.54
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2.Cap and Trade Compliance Charge ............................................ $0.00-$0.25
3. Transportation Charge ................................................................. $0.00-$0.
1525
4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge:....................................................................................... $0.52905607
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1.Commodity (Monthly Market Based) .......................................... $0.10-2.00
2.Cap and Trade Compliance Charge ............................................. $0.00-$0.25
3. Transportation Charge ................................................................. $0.00-$0.1525
4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge:.............................................................................................
............................................................................................................$1.35261.4
338
O CITYOF
PALO ALTO
UTILITIES
Attachment C2 9.f
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RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-2 Sheet No G-1-2
dated 7-1-20201 Effective 7-1-20212
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse
gases produced in the burning of natural gas. The Carbon Offset Charge will change in
response to changing market conditions, changing sales volumes and the quantity of
offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges
will fall within the minimum/maximum ranges set forth in Section C. Current and historic
per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and
Transportation Charges are posted on the City Utilities website.1
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effective
from November 1 to March 31. When the billing period includes use in both the Summer
1 Monthly gas and commodity and volumetric rates are available here, or by visiting
https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
9.f
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RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-3 Sheet No G-1-3
dated 7-1-20201 Effective 7-1-20212
and the Winter periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates for each period. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms
per day during the Summer period and 2.0 therms per day during the Winter period,
rounded to the nearest whole therm, based on meter reading days of service. As an
example, for a 30 day bill, the Tier 1 level would be 20 therms during the Summer period
and 60 therms during the Winter period months. For further discussion of bill calculation
and proration, refer to Rule and Regulation 11.
{End}
9.f
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RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-1 Effective 7-1-20212
dated 7-1-20201 Sheet No G-2-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto
Utilities:
1. Commercial Customers who use less than 250,000 therms per year at one site.
2. Master-metered residential Customers in multi-family residential facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ...........................................................................................$100.85106.90
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ........................................... $0.00-0.25
3. Transportation Charge ................................................................. $0.00-$0.1525
4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge: .................................................................................................. $0.6948
7365
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and
Trade Compliance Charge will change in response to changing market conditions, retail sales
volumes and the quantity of allowances required.
9.f
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RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-2 Effective 7-1-20212
dated 7-1-20201 Sheet No G-2-2
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases
produced in the burning of natural gas. The Carbon Offset Charge will change in response to
changing market conditions, changing sales volumes and the quantity of offsets purchased
within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges
will fall within the minimum/maximum ranges set forth in Section C. Current and historic
per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and
Transportation Charges are posted on the City Utilities website.1
{End}
1 Monthly gas and commodity and volumetric rates are available here, or by visiting
https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
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LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-1 Effective 7-1-20212
dated 7-1-20201 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto
Utilities:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: $461.43489.12
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ...................................................... $0.00-0.25
3. Transportation Charge .......................................................................... $0.00-
$0.1525
4. Carbon Offset Charge ........................................................................... $0.00-$0.10
Distribution Charge: .....................................................................................................$0.68797292
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as calculated
under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
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LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-2 Effective 7-1-20212
dated 7-1-20201 Sheet No G-3-2
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance
with the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases
produced in the burning of natural gas. The Carbon Offset Charge will change in response
to changing market conditions, changing sales volumes and the quantity of offsets
purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto,
accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges
will fall within the minimum/maximum ranges set forth in Section C. Current and historic
per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and
Transportation Charges are posted on the City Utilities website.1
2. Request for Service
A qualifying Customer may request service under this schedule for more than one account
or meter if the accounts are located on one site. A site consists of one or more contiguous
parcels of land with no intervening public right-of- ways (e.g. streets).
3. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule.
{End}
1 Monthly gas and commodity and volumetric rates are available here, or by visiting
https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
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COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-1 Effective 7-1-20212
dated 7-1-20201 Sheet No. G-10-1
A. APPLICABILITY:
This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) fueling
station at the Municipal Service Center in Palo Alto.
B. TERRITORY:
Applies to the City’s CNG fueling station located at the Municipal Service Center in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ...............................................................................................$68.2172.30
Per Therm
Supply Charges:
Commodity (Monthly Market Based) ................................................................ $0.10-$2.00
Cap and Trade Compliance Charges .............................................................. $0.00 to $0.25
Transportation Charge ................................................................................... $0.00-$0.1525
Carbon Offset Charge ........................................................................................ $0.00-$0.10
Distribution Charge .......................................................................................................$0.01130120
D. SPECIAL CONDITIONS
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted
for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill statement, the bill
amount may be broken down into appropriate components as calculated under Section C.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for delivery at
PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the
state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to
cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will
change in response to changing market conditions, retail sales volumes and the quantity of
allowances required.
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COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-2 Effective 7-1-20212
dated 7-1-20201 Sheet No. G-10-2
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced
in the burning of natural gas. The Carbon Offset Charge will change in response to changing market
conditions, changing sales volumes and the quantity of offsets purchased within the Council-
approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for
delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall
within the minimum/maximum range set forth in Section C. Current and historic per therm rates
for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are
posted on the City Utilities website.1
{End}
1 Monthly gas and commodity and volumetric rates are available here, or by visiting
https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
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Attachment D
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
*Yet to be Passed*
Resolution No. ____
Resolution of the Council of the City of Palo Alto Approving the Fiscal
Year 2023 Electric Utility Financial Plan and Reserve Transfers, Amending the
Electric Utility Reserves Management Practices and Amending Utility Rate
Schedules E-1 (Residential Electric Service), E-2 (Residential Master-Metered
and Small Non-Residential Electric Service), E-2-G (Residential Master-
Metered and Small Non-Residential Green Power Electric Service), E-4
(Medium Non-Residential Electric Service), E-4-G (Medium Non-Residential
Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use
Electric Service), E 7 (Large Non-Residential Electric Service), E-7-G (Large Non-
Residential Green Power Electric Service), E-7 TOU (Large Non-Residential
Time of Use Electric Service), E-14 (Street Lights), E-NSE (Net Surplus
Electricity Compensation Rate), and E-EEC (Export Electricity Compensation)
R E C I T A L S
A.Each year the City of Palo Alto (“City”) regularly assesses the financial position of
its utilities with the goal of ensuring adequate revenue to fund operations. This includes making
long-term projections of market conditions, the physical condition of the system, and other
factors that could affect utility costs, and setting rates adequate to recover these costs. It does
this with the goal of providing safe, reliable, and sustainable utility services at competitive rates.
The City adopts Financial Plans to summarize these projections.
B.The City uses reserves to protect against contingencies and to manage other
aspects of its operations, and regularly assesses the adequacy of these reserves and the
management practices governing their operation. The status of utility reserves and their
management practices are included in Reserves Management Practices attached to and made
part of the Financial Plans.
C.Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the
City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and
charges.
D.On June __, 2022, the City Council heard and approved the proposed rate
increase at a noticed public hearing.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the FY 2023 Electric Utility Financial Plan.
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Attachment A
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
SECTION 2. The Council hereby approves amendments to Section 6 (Electric Special
Projects Reserve) of the Electric Utility Reserves Management Practices to read as attached and
incorporated.
SECTION 3. The Council hereby approves the following transfers to be made by the
end of FY 2022, as described in the FY 2023 Electric Utility Financial Plan:
a. Approve a transfer of up to $15 million from the Hydro Stabilization Reserve to the
Supply Operations Reserve;
b. Approve a transfer of up to $5 million from the Electric Special Projects (ESP) reserve
to the Supply Operations Reserve; and
c. Approve an allocation of up to $1 million from the Cap and Trade Program Reserve to
be allocated to local decarbonization programs); and
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-1 (Residential Electric Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-1, as amended, shall become effective July 1, 2022.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2 (Residential Master-Metered and Small Non-Residential Electric Service) is
hereby amended to read as attached and incorporated. Utility Rate Schedule E-2, as amended,
shall become effective July 1, 2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2-G (Residential Master-Metered and Small Non-Residential Green Power
Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule
E-2-G, as amended, shall become effective July 1, 2022.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4 (Medium Non-Residential Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-4, as amended, shall become effective July
1, 2022.
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4-G (Medium Non-Residential Green Power Electric Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall
become effective July 1, 2022.
SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4 TOU (Medium Non-Residential Time of Use Electric Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule E-4 TOU, as amended,
shall become effective July 1, 2022.
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Attachment A
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 (Large Non-Residential Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-7, as amended, shall become effective
July 1, 2022.
SECTION 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7-G (Large Non-Residential Green Power Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become
effective July 1, 2022.
SECTION 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 TOU (Large Non-Residential Time of Use Electric Service) is hereby amended
to read as attached and incorporated. Utility Rate Schedule E-7 TOU, as amended, shall become
effective July 1, 2022.
SECTION 13. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-14 (Street Lights) is hereby amended to read as attached and incorporated.
Utility Rate Schedule E-14, as amended, shall become effective July 1, 2022.
SECTION 14. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-NSE (Net Surplus Electricity Compensation Rate) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-NSE-1, as amended, shall become effective
July 1, 2022.
SECTION 15. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-EEC-1 (Export Electricity Compensation) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-EEC-1, as amended, shall become effective July 1, 2022.
SECTION 16. The Council makes the following findings:
a. The revenue derived from the adoption of this resolution shall be used only for the
purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
b. The fees and charges adopted by this resolution are charges imposed for a specific
government service or product provided directly to the payor that are not provided
to those not charged, and do not exceed the reasonable costs to the City of providing
the service or product.
//
//
//
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Attachment A
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
SECTION 17. The Council finds that approving the Financial Plan and Reserve transfers
does not meet the California Environmental Quality Act’s (CEQA) definition of a project under
Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an
administrative governmental activity which will not cause a direct or indirect physical change in
the environment, and therefore, no environmental assessment is required. The Council finds that
changing electric rates to meet operating expenses, purchase supplies and materials, meet
financial reserve needs and obtain funds for capital improvements necessary to maintain service
is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public
Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a).
After reviewing the staff report and all attachments presented to Council, the Council
incorporates these documents herein and finds that sufficient evidence has been presented
setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Assistant City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
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UTILITY RATE SCHEDULE E-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-1-1 Sheet No E-1-1
dated 7-1-20198 Effective 7-1-20192022
A. APPLICABILITY:
This Rate Schedule applies to separately metered single-family residential dwellings receiving
Electric Service from the City of Palo Alto Utilities.
B.TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total
Tier 1 usage
$0.0854708
339
$0.0542904971 $0.0046900447 $0.1444513757
Tier 2 usage
Any usage over Tier 1
0.11858115
69
0.0800807351 0.0046900447 0.2033519367
Minimum Bill ($/day) 0.34473283
D.SPECIAL NOTES:
1.Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Calculation of Usage Tiers
Tier 1 Electricity usage shall be calculated and billed based upon a level of 11 kWh per
day, prorated by Meter reading days of Service. As an example, for a 30-day bill, the
Tier 1 level would be 330 kWh. For further discussion of bill calculation and proration,
refer to Rule and Regulation 11.
{End}
RESIDENTIAL ELECTRIC SERVICE
O CITYOF
PALO ALTO
UTILITIES
Attachment D2
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RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL ELECTRIC
SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-1 Sheet No E-2-1
dated 7-1-20198 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to the following Customers receiving Electric Service from the City
of Palo Alto Utilities:
1. Small non-residential Customers receiving Non-Demand Metered Electric Service; and
2. Customers with Accounts at Master-Metered multi-family facilities.
B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total
Summer Period
$0.121511185
5
$0.0927608551
$0.0046900447
$0.2189620853
Winter Period
0.0871508502
0.0617105675
0.0046900447
0.1535514624
Minimum Bill ($/day)
0.87778359
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use in both the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
O CITYOF
PALO ALTO
UTILITIES
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RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL ELECTRIC
SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-2 Sheet No E-2-2
dated 7-1-20198 Effective 7-1-202219
3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a maximum Demand Meter will be installed as promptly as is practicable and
thereafter continued in service until the monthly use of energy has fallen below 6,000
kWh for twelve consecutive months, whereupon, at the option of the City, it may be
removed.
The maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A
thermal-type Demand Meter which does not reset after a definite time interval may be
used at the City's option.
The billing Demand to be used in computing charges under this schedule will be the
actual maximum Demand in kilowatts for the current month. An exception is that the
billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual maximum Demand of such Customers between the hours of noon and 6 pm on
weekdays.
{End}
O CITYOF
PALO ALTO
UTILITIES
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RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-G-1 Sheet No E-2-G-1
dated 7-1-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate Schedule applies to the following Customers receiving Electric Service from the City
of Palo Alto Utilities under the Palo Alto Green Program:
1. Small non-residential Customers receiving Non-Demand Metered Electric Service; and
2. Customers with Accounts at Master-Metered multi-family facilities.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Palo Alto
Green
Charge Total
Summer Period
$0.12151118
55
$0.09276085
51
$0.004690
0447
$0.007500
60
$0.226462
1453
Winter Period
0.087150850
2
0.061710567
5
0.0046900
447
0.0075006
0
$0.161051
5224
Minimum Bill ($/day)
0.87778359
2. 1000 kWh Block Purchase Option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Total
Summer Period
$0.12151118
55
$0.09276085
51
$0.004690
0447
$0.218962
0853
Winter Period
0.087150850
2
0.061710567
5
0.0046900
447
0.1535514
624
Minimum Bill ($/day)
0.87778359
Palo Alto Green Charge (per 1000 kWh block) $7.506.00
O CITYOF
PALO ALTO
UTILITIES
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RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-G-2 Sheet No E-2-G-2
dated 7-1-202119 Effective 7-1-202221
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use in both the Summer
and Winter Periods, usage will be prorated based upon the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits
(RECs) to match 100% of the energy usage at the facility every month, or for the
purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the
production of renewable energy, increase the financial value of power from renewable
sources, and create a transparent and sustainable market that encourages new
development of wind and solar power.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any
time, in writing, a change to the number of blocks they wish to purchase under the Palo
Alto Green Program.
O CITYOF
PALO ALTO
UTILITIES
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RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-G-3 Sheet No E-2-G-3
dated 7-1-202119 Effective 7-1-202221
4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a maximum Demand Meter will be installed as promptly as is practicable and
thereafter continued in service until the monthly use of energy has fallen below 6,000
kWh for twelve consecutive months, whereupon, at the option of the City, it may be
removed.
The maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer-s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A
thermal-type Demand Meter which does not reset after a definite time interval may be
used at the City's option.
The billing Demand to be used in computing charges under this schedule will be the
actual maximum Demand in kilowatts for the current month. An exception is that the
billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual maximum Demand of such Customers between the hours of noon and 6 pm on
weekdays.
{End}
O CITYOF
PALO ALTO
UTILITIES
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MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-1 Sheet No E-4-1
dated 7-1-20198 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Secondary Electric Service for Customers with
a maximum Demand below 1,000 kilowatts. This Rate Schedule applies to three-phase Electric
Service and may include Service to master-metered multi-family facilities or other facilities
requiring Demand-metered Service, as determined by the City.
B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $4.524.41 $25.8424.50 $30.3628.91
Energy Charge (per kWh)
0.1096010536 0.0206101865 0.0046900447 0.1349012848
Winter Period
Demand Charge (per kW) $2.822.75 $17.1016.22 $19.9218.97
Energy Charge (per kWh)
0.0791307634 0.0206101865 0.0046900447 0.1044309946
Minimum Bill ($/day) 18.137917.2742
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
0 CITY OF
PALO ALTO
UTILITIES
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MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-2 Sheet No E-4-2
dated 7-1-20198 Effective 7-1-202219
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a Maximum Demand Meter will be installed as promptly as is practicable and
thereafter continued in Service until the monthly use of energy has fallen below 6,000
kWh for twelve consecutive months, whereupon, at the option of the City, it may be
removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A
thermal-type Demand Meter which does not reset after a definite time interval may be
used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual Maximum Demand of such Customers between the hours of noon and 6 pm on
weekdays.
4. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option of installing applicable
Metering to calculate a Power Factor. The City may remove such Metering from the
Service of a Customer whose Demand has been below 200 kilowatts for four consecutive
months.
0 CITY OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-3 Sheet No E-4-3
dated 7-1-20198 Effective 7-1-202219
When such metering is installed, the monthly Electric bill will include a “Power Factor
Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to
the computation of any primary voltage discount. The Power Factor Adjustment is
applied by increasing the total energy and Demand charges for any month by 0.25
percent (0.25%) for each one percent (1%) that the monthly Power Factor of the
Customer’s load was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt
hours to kilovolt-ampere hours consumed during the month. Where time-of-day
Metering is installed, the monthly Power Factor shall be the Power Factor coincident with
the Customer's Maximum Demand.
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any City of Palo Alto full-
service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage
profile.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better
suited to the Customer's electrical requirements, as determined in the City’s sole
discretion. The City retains the right to change its line voltage at any time after providing
reasonable advance notice to any Customer receiving the discount in this section. The
Customer then has the option to change his system so as to receive Service at the new
line voltage or to accept Service (without voltage discount) through transformers to be
supplied by the City subject to a maximum kilovolt-ampere size limitation.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection
D(7)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
0 CITY OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-4 Sheet No E-4-4
dated 7-1-20198 Effective 7-1-202219
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.3) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators,
but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
0 CITY OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-1 Sheet No E-4-G-1
dated 7-1-202119 Effective 7-1-20221
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Secondary Electric Service for Customers with a
maximum Demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green
Program. This Rate Schedule applies to three-phase Electric Service and may include Service to
Master-metered multi-family facilities or other facilities requiring Demand metered Service, as
determined by the City.
B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES: 1. 100% Renewable Option:
Commodity Distribution Public Benefits
Palo Alto Green Charge Total
Summer Period
Demand Charge (per kW) $4.524.41 $25.8424.50
$30.3628.91
Energy Charge (per kWh)
0.1096010536
0.0206101865
0.0046900447 0.00750060
0.1424013448
Winter Period
Demand Charge (per kW) $2.822.75 $17.1016.22
$19.9218.97
Energy Charge (per kWh)
0.0791307634
0.0206101865
0.0046900447 0.00750060
0.1119310546
Minimum Bill ($/day) 18.137917.2742
O CIT Y OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-2 Sheet No E-4-G-2
dated 7-1-202119 Effective 7-1-20221
2. 1000 kWh Block Purchase Option:
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $4.524.41 $25.8424.50 $30.3628.91
Energy Charge (per kWh) 0.1096010536 0.0206101865 0.0046900447 0.1349012848
Palo Alto Green Charge (per 1000 kWh block) $7.506.00
Winter Period
Demand Charge (per kW) $2.822.75 $17.1016.22 $19.9218.97
Energy Charge (per kWh) 0.0791307634 0.0206101865 0.0046900447 0.1044309946
Palo Alto Green Charge (per 1000 kWh block) $7.506.00
Minimum Bill ($/day) 18.137917.2742
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill statement,
the bill amount may be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has
dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the
O CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 168
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-3 Sheet No E-4-G-3
dated 7-1-202119 Effective 7-1-20221
option of the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A
thermal-type Demand Meter, which does not reset after a definite time interval, may be
used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual Maximum Demand of such Customers between the hours of noon and 6 PM on
weekdays.
4. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option of installing applicable
Metering to calculate a Power Factor. The City may remove such Metering from the
Service of a Customer whose Demand has dropped below 200 kilowatts for four
consecutive months.
When such Metering is installed, the monthly Electric bill will include a “Power Factor
Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to
the computation of any primary voltage discount. The Power Factor Adjustment is
applied by increasing the total energy and Demand charges for any month by 0.25
percent or (1/4) for each one percent (1%) that the monthly Power Factor of the
Customer’s load was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-
hours to kilovolt-ampere hours consumed during the month. Where time-of-day
Metering is installed, the monthly Power Factor shall be the Power Factor coincident with
the Customer's Maximum Demand.
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full-service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
O CITYOF
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UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-4 Sheet No E-4-G-4
dated 7-1-202119 Effective 7-1-20221
6. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits
(RECs) to match 100% of the energy usage at the facility every month, or for the
purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the
production of renewable energy, increase the financial value of power from renewal
sources, and creates a transparent and sustainable market that encourages new
development of wind and solar.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any
time, in writing, a change to the number of blocks they wish to purchase under the Palo
Alto Green Program.
7. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better
suited to the Customer's electrical requirements, as determined in the City’s sole
discretion. The City retains the right to change its line voltage at any time after providing
reasonable advance notice to any Customer receiving the discount in this section. The
Customer then has the option to change the system so as to receive Service at the new
line voltage or to accept Service (without voltage discount) through transformers to be
supplied by the City subject to a maximum kilovolt-ampere size limitation.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection
D(8)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue Meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
O CITYOF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-5 Sheet No E-4-G-5
dated 7-1-202119 Effective 7-1-20221
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.3) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue Meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators,
but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
O CITYOF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-1 Sheet No E-4-TOU-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This voluntary Rate Schedule applies to Demand metered Secondary Electric Service for
Customers with Demand between 500 and 1,000 kilowatts per month and who have sustained
this level of usage for at least three consecutive months during the most recent 12 month period.
This Rate Schedule applies to three-phase Electric Service and may include Service to Master-
Metered multi-family facilities or other facilities requiring Demand-metered Service, as
determined by the City. In addition, this Rate Schedule is applicable for Customers who did
not pay power factor adjustments during the last 12 months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW)
Peak $2.712.61 $8.898.44 $11.6011.05
Mid-Peak 0.9795 8.898.44 9.869.39
Off-Peak 0.9795 8.898.44 9.869.39
Energy Charge (per kWh)
Peak $0.1002209642 $0.0206001864 $0.0046900447 $0.1255111954
Mid-Peak 0.1264712142 0.0206001864 0.0046900447 0.1517614453
Off-Peak 0.0772107451 0.0206001864 0.0046900447 0.1025009763
Winter Period
Demand Charge (per kW)
Peak $1.571.53 $9.539.04 $11.1010.57
Off-Peak 1.571.53 9.539.04 11.1010.57
Energy Charge (per kWh)
Peak $0.1226811781 $0.0206001864 $0.0046900447 $0.1479714092
Off-Peak 0.1051610113 0.0206001864 $0.0046900447 0.1304512425
0 CITY OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-2 Sheet No E-4-TOU-2
dated 7-1-201918 Effective 7-1-202219
Commodity Distribution Public Benefits Total
Minimum Bill ($/day) 18.137917.2742
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement,
the bill amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods
SUMMER PERIOD (Service from May 1 to October 31):
Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays)
Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays)
6:00 p.m. to 9:00 p.m.
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
WINTER PERIOD (Service from November 1 to April 30):
Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays)
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
SEASONAL RATE CHANGES: When the billing period includes use in both the
Summer and the Winter periods, the usage will be prorated based on the number of days
in each seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Demand Meter will be installed as promptly as is practicable and
0 CITY OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-3 Sheet No E-4-TOU-3
dated 7-1-201918 Effective 7-1-202219
thereafter continued in Service until the monthly use of energy has fallen below 6,000
kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it
may be removed.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the
designated time periods as defined under Section D.2.
4. Power Factor Adjustment
Time of Use Customers must not have had a power factor adjustment assessed on their
Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt
hours to kilovolt-ampere hours consumed during the month, and must not have fallen
below 95% to avoid the power factor adjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should
be subject to power factor adjustments, the Customer will be removed from the E-4-TOU
rate schedule and placed on another applicable rate schedule as is suitable to their
kilowatt Demand and kilowatt-hour usage.
5. Changing Rate Schedules
Customers electing to be served under E-4 TOU must remain on said Rate Schedule for a
minimum of 12 months. Should the Customer so wish, at the end of 12 months, the
Customer may request a Rate Schedule change to any applicable City of Palo Alto full-
service Rate Schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better
suited to the Customer's electrical requirements, as determined in the City’s sole
discretion. The City retains the right to change its line voltage at any time after providing
reasonable advance notice to any Customer receiving the discount in this section. The
Customer then has the option to change his system so as to receive Service at the new
line voltage or to accept Service (without voltage discount) through transformers to be
supplied by the City subject to a maximum kilovolt-ampere size limitation.
0 CITY OF
PALO ALTO
UTILITIES
9.h
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MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-4 Sheet No E-4-TOU-4
dated 7-1-201918 Effective 7-1-202219
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection
D(7)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue Meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more
of the non-utility generators on the Customer’s side of the City’s revenue Meter
are not operating, the Maximum Demand will be reduced by the sum of the
Maximum Generation of those non-utility generators, but in no event shall the
Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
0 CITY OF
PALO ALTO
UTILITIES
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MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-5 Sheet No E-4-TOU-5
dated 7-1-201918 Effective 7-1-202219
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
0 CITY OF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-1 Sheet No E-7-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to Demand Metered Service for large non-residential Customers
with a Maximum Demand of at least 1,000KW per month per site, who have sustained this
Demand level at least 3 consecutive months during the last twelve months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (kW) $5.165.03 $27.0625.66 $32.2230.69
Energy Charge (kWh) 0.1147610932 0.0005900053 0.0046900447 0.1200411432
Winter Period
Demand Charge (kW) $2.962.89 $14.9414.16 $17.9017.05
Energy Charge (kWh) 0.0759707238 0.0005900053 0.0046900447 0.0812507738
Minimum Bill ($/day) 51.569649.1139
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
O CITYOF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-2 Sheet No E-7-2
dated 7-1-201918 Effective 7-1-202219
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the summer
and in the winter periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Request for Service
Qualifying Customers may request Service under this schedule for more than one
Account or one Meter if the Accounts are on one site. A site, for the purposes of this Rate
Schedule, consists of one or more Accounts which cover contiguous parcels of land with
no intervening public right-of-ways (e.g. streets) and which have a common billing
address.
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has fallen
below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of
the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A thermal-
type Demand Meter which does not reset after a definite time interval may be used at the
City's option.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual Maximum Demand of such Customers between the hours of noon and 6 pm on
weekdays.
O CITYOF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-3 Sheet No E-7-3
dated 7-1-201918 Effective 7-1-202219
5. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option to install applicable
Metering to calculate a Power Factor. The City may remove such Metering from the
Service of a Customer whose Demand has been below 200 kilowatts for four consecutive
months.
When such metering is installed, the monthly Electric bill shall include a “Power Factor
Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to
the computation of any primary voltage discount. The power factor adjustment is applied
by increasing the total energy and Demand charges for any month by 0.25 percent
(0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load
was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt
hours to kilovolt-ampere hours consumed during the month. Where time-of-day
Metering is installed, the monthly Power Factor shall be the Power Factor coincident with
the Customer's Maximum Demand.
6. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
7. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a particular line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better
suited to the Customer's electrical requirements, as determined in the City’s sole
discretion. The City retains the right to change its line voltage at any time after providing
reasonable advance notice to any Customer receiving the discount in this section. The
Customer then has the option to change his system so as to receive Service at the new
line voltage or to accept Service (without voltage discount) through transformers to be
supplied by the City subject to a maximum kVA size limitation.
O CITYOF
PALO ALTO
UTILITIES
9.h
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LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-4 Sheet No E-7-4
dated 7-1-201918 Effective 7-1-202219
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection
D(8)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue Meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.4) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue Meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators,
but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
O CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 180
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-5 Sheet No E-7-5
dated 7-1-201918 Effective 7-1-202219
Section 2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
O CITYOF
PALO ALTO
UTILITIES
9.h
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LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-1 Sheet No E-7-TOU-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This voluntary Rate Schedule applies to Demand Metered Service for non-residential
Customers with a Maximum Demand of at least 1,000KW per month per site, who have
sustained this Demand level at least 3 consecutive months during the last twelve months. In
addition, this Rate Schedule is applicable for Customers who did not pay power factor
adjustments during the last 12 months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW)
Peak $3.243.11 $9.088.62 $12.3211.73
Mid-Peak 0.990.97 9.088.62 10.079.60
Off-Peak 0.990.97 9.088.62 10.079.60
Energy Charge (per kWh)
Peak $0.1192111356 $0.0005900053 $0.0046900447 $0.1244911856
Mid-Peak 0.1501114299 0.0005900053 0.0046900447 0.1553914799
Off-Peak 0.0921208776 0.0005900053 0.0046900447 0.0974009276
Winter Period
Demand Charge (per kW)
Peak $1.511.47 $7.567.17 $9.078.63
Off-Peak 1.511.47 7.567.17 9.078.63
Energy Charge (per kWh)
Peak $0.0799707619 $0.0005900053 $0.0046900447 $0.0852508119
0 CITY OF
PALO ALTO
UTILITIES
9.h
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LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-2 Sheet No E-7-TOU-2
dated 7-1-201918 Effective 7-1-202219
Off-Peak 0.0686406540 0.0005900053 0.0046900447 0.0739207040
Minimum Bill ($/day) 51.569649.1139
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement,
the bill amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods
SUMMER PERIOD (Service from May 1 to October 31):
Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays)
Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays)
6:00 p.m. to 9:00 p.m.
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday
All day Saturday, Sunday, and holidays
WINTER PERIOD (Service from November 1 to April 30):
Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays)
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and
the Winter periods, the usage will be prorated based on the number of days in each seasonal
period, and the charges based on the applicable rates therein. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
3. Request for Service
O CIT Y OF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-3 Sheet No E-7-TOU-3
dated 7-1-201918 Effective 7-1-202219
Qualifying Customers may request Service under this schedule for more than one Account or one
Meter if the Accounts are on one site. A site, for the purposes of this Rate Schedule, consists of
one or more Accounts which cover contiguous parcels of land with no intervening public right-
of-ways (e.g. streets) and which have a common billing address.
4. Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive
months, a Demand Meter will be installed as promptly as is practicable and thereafter continued
in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve
consecutive months, whereupon, at the option of the City, it may be removed.
The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated
time periods as defined under Section D.2. 5. Power Factor Adjustment
Time of Use Customers must not have had a power factor adjustment assessed on their Service
for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-
ampere hours consumed during the month, and must not have fallen below 95% to avoid the
power factor adjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should be
subject to power factor adjustments, the Customer will be removed from the E-7-TOU rate
schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand
and kilowatt-hour usage.
6. Changing Rate Schedules
Customers electing to be served under E-7 TOU must remain on said Rate Schedule for a
minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer
may request a Rate Schedule change to any applicable City of Palo Alto full-service Rate
Schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
7. Primary Voltage Discount
O CIT Y OF
PALO ALTO
UTILITIES
9.h
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LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-4 Sheet No E-7-TOU-4
dated 7-1-201918 Effective 7-1-202219
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered,
but the City is not required to supply Service at a particular line voltage where it has, or will
install, ample facilities for supplying at another voltage equally or better suited to the Customer's
electrical requirements, as determined in the City’s sole discretion. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any Customer
receiving the discount in this section. The Customer then has the option to change his system so
as to receive Service at the new line voltage or to accept Service (without voltage discount)
through transformers to be supplied by the City subject to a maximum kilovolt-ampere size
limitation.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e),
applies to Customers that have a non-utility generation source interconnected on the
Customer’s side of the City’s revenue Meter and that occasionally require backup power
from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the
non-utility generators on the Customer’s side of the City’s revenue Meter are not
operating, the Maximum Demand will be reduced by the sum of the Maximum
Generation of those non-utility generators, but in no event shall the Customer’s
Maximum Demand be reduced below zero.
O CIT Y OF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-5 Sheet No E-7-TOU-5
dated 7-1-201918 Effective 7-1-202219
(2) If the non-utility generation source does not operate for an entire billing cycle, the
standby charge does not apply and the Customer shall not receive the Maximum Demand
credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in
the event of an interruption in utility Service and which are not used to offset Customer
electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
O CIT Y OF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-1 Sheet No E-7-G-1
dated 7-1-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Service for large non-residential Customers who
choose Service under the Palo Alto Green Program. A Customer may qualify for this Rate
Schedule if the Customer’s Maximum Demand is at least 1,000KW per month per site, who have
sustained this Demand level at least 3 consecutive months during the last twelve months.
B. TERRITORY:
The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Commodity Distribution Public Benefits
Palo Alto Green Charge Total
Summer Period
Demand Charge ( per kW) $5.165.03 $27.0625.66 $32.2230.69
Energy Charge (per kWh) 0.1147610932 0.0005900053 0.0046900447 0.00750060 0.1275412032
Winter Period
Demand Charge (per kW) $2.962.89 $14.9414.16 $17.9017.05
Energy Charge (per kWh) 0.0759707238 0.0005900053 0.0046900447 0.00750060 0.0887508338
Minimum Bill ($/day) 51.569649.1139
O CIT Y OF
PALO ALTO
UTILITIES
9.h
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LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-2 Sheet No E-7-G-2
dated 7-1-202119 Effective 7-1-202221
2. 1000 kWh Block Purchase Option:
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $5.165.03 $27.0625.66 $32.2230.69
Energy Charge (per kWh) 0.1147610932 0.0005900053 0.0046900447 0.1200411432
Palo Alto Green Charge (per 1000 kWh block) $7.506.00
Winter Period
Demand Charge (per kW) $2.962.89 $14.9414.16 $17.9017.05
Energy Charge (per kWh) 0.0759707238 0.0005900053 0.0046900447 0.0812507738
Palo Alto Green Charge (per 1000 kWh block) $7.506.00
Minimum Bill ($/day) 51.569649.1139
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand Meter will be installed as promptly as is
O CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 188
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-3 Sheet No E-7-G-3
dated 7-1-202119 Effective 7-1-202221
practicable and thereafter continued in Service until the monthly use of energy has
dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the
option of the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if the Customer’s load is
intermittent or subject to fluctuations, the City may use a 5-minute interval. A
thermal-type Demand Meter which does not reset after a definite time interval may be
used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual Maximum Demand of such Customers between the hours of noon and 6 PM on
weekdays.
4. Request for Service
Qualifying Customers may request Service under this schedule for more than one
Account or one Meter if the Accounts are at one site. A site, for the purposes of this Rate
Schedule, consists of one or more Accounts which cover contiguous parcels of land with
no intervening public right-of-ways (e.g. streets) and which have a common billing
address.
5. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option of installing applicable
Metering to calculate a Power Factor. The City may remove such Metering from the
Service of a Customer whose Demand has dropped below 200 kilowatts for four
consecutive months.
When such Metering is installed, the monthly Electric bill shall include a “Power Factor
Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to
the computation of any primary voltage discount. The power factor adjustment is applied
by increasing the total energy and Demand charges for any month by 0.25 percent or
(1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load
was less than 95%.
O CIT Y OF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-4 Sheet No E-7-G-4
dated 7-1-202119 Effective 7-1-202221
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-
hours to kilovolt-ampere hours consumed during the month. Where time-of-day
Metering is installed, the monthly Power Factor shall be the Power Factor coincident with
the Customer's Maximum Demand.
6. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile
7. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits
(RECs) to match 100% of the energy usage at the facility every month, or for the
purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the
production of renewable energy, increase the financial value of power from renewal
sources, and creates a transparent and sustainable market that encourages new
development of wind and solar.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any
time, in writing, a change to the number of blocks they wish to purchase under the Palo
Alto Green Program.
8. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered, but the City is not required to supply Service at a qualified line voltage where it
has, or will install, ample facilities for supplying at another voltage equally or better
suited to the Customer's Electrical requirements, as determined in the City’s sole
discretion. The City retains the right to change its line voltage at any time after providing
reasonable advance notice to any Customer receiving the discount in this section. The
Customer then has the option to change the system so as to receive Service at the new
line voltage or to accept Service (without voltage discount) through transformers to be
supplied by the City subject to a maximum kilovolt-ampere size limitation.
9. Standby Charge
O CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 190
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-5 Sheet No E-7-G-5
dated 7-1-202119 Effective 7-1-202221
a. Applicability: The standby charge, subject to the exemptions in subsection
D(9)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue Meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.3) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue Meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators,
but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
O CIT Y OF
PALO ALTO
UTILITIES
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LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-6 Sheet No E-7-G-6
dated 7-1-202119 Effective 7-1-202221
{End}
O CIT Y OF
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STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-14-1 Sheet No. E-14-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to all street and highway lighting installations, which CPAU elects to
operate and maintain.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
Per Lamp Per Month
Class A: CPAU supplies
electricity and switching service
only.
Lamp Rating:
High Pressure Sodium Vapor Lamps
100 watts 6.215.91
200 watts 11.4610.91
250 watts 14.0813.41
310 watts 17.4216.59
400 watts 22.4321.36
O CIT Y OF
PALO ALTO
UTILITIES
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STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-14-2 Sheet No. E-14-2
dated 7-1-201918 Effective 7-1-202219
Per Lamp Per Month –
Class C: CPAU supplies
electricity and switching and
maintains lighting system,
including lamps and glassware.
Lamp Rating:
Mercury-Vapor Lamps
400 watts 35.8334.12
High Pressure Sodium Vapor Lamps
70 watts 32.9731.40
100 watts 34.5532.90
150 watts 37.1735.40
250 watts 42.4240.40
Light Emitting Diode (LED) Lamps
70 watts-equivalent 29.4828.08
100 watts-equivalent 30.6829.22
150 watts-equivalent 31.7730.26
250 watts 34.7833.12
D. SPECIAL CONDITIONS:
1. Type of Service: This Rate Schedule applies to series, multiple, and single lamp street
lighting systems to which CPAU delivers Service at secondary voltage. Unless a variation is
approved by CPAU in its sole discretion, Service to street lighting systems will be delivered
at 120/240 volts, three-wire, single-phase or 120/208 volt three-wire, single phase from
star-connected poly-phase lines. Single phase service from 480-volt sources will be available
in certain areas at CPAU’s discretion. All voltages stated herein are nominal, and reasonable
variations may occur. New lights will normally be installed as multiple lamp systems with a
single Service point or single lamp with and individual Service point.
2. Point of Delivery: Delivery will be made to the Customer's system at a Service point or at
points designated by CPAU. CPAU will furnish the Service connection to one point for each
O CIT Y OF
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UTILITIES
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STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-14-3 Sheet No. E-14-3
dated 7-1-201918 Effective 7-1-202219
lamp or group of lamps, provided the Customer has designed the system to include the
minimum number of delivery points. CPAU will make all underground connections to
CPAU’s system at the Customer's expense.
3. Switching: CPAU will perform switching (on CPAU's side of the points of delivery) at no
Charge, provided there are at least 10 kilowatts of lamp load on each circuit separately
switched, including all lamps on the circuit whether served under this Rate Schedule or not.
An extra charge of $2.50 per month will be made for each circuit separately switched unless
such switching installation is made for CPAU's convenience.
4. Annual Burning Schedule: The rates in this Rate Schedule apply to lamps which will be
turned on and off once each night in accordance with a regular burning schedule approved by
CPAU and not exceeding 4,100 hours per year.
5. Maintenance: The Class C rates in this Rate Schedule include all labor necessary for
replacement of glassware, including inspection and cleaning. Maintenance of glassware by
CPAU is limited to standard glassware that is commonly used and manufactured in
reasonably large quantities, as determined by CPAU in its sole discretion. The Class C rates
include maintenance of circuits between lamp posts and of circuits and equipment in and on
the posts, provided these are all of good standard construction as determined by CPAU.
CPAU in its sole discretion may decline to grant Class C rates for maintenance of systems
with non-standard glassware, or inadequate circuitry and equipment. Class C rates applied to
any agency other than the City of Palo Alto also include painting of posts with one coat of
good ordinary paint, as determined by CPAU to be needed to maintain good appearance.
Maintenance does not include replacement of posts damaged by third parties or acts of
nature.
6. System Owned In-Part by CPAU: If CPAU agrees to a Customer’s request for CPAU to
install, own, or maintain any portion of the lighting fixtures, supports, and/or interconnecting
circuits, the Customer shall be responsible for an extra monthly Charge of one and one-fourth
percent of CPAU's contribution to the cost of the street lighting system.
7. Rates For Lamps Not on this Rate Schedule: In the event a Customer installs a lamp which is
not represented on this Rate Schedule, CPAU will prepare an interim rate reflecting CPAU's
estimated costs associated with the specific lamp. This interim rate will serve as the effective
rate for billing purposes until the new lamp rating is added to Rate Schedule E-14.
{End}
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UTILITIES
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EXPORT ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-EEC-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-EEC-1 Sheet No.E-EEC-1
dated 7-1-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate Schedule applies in conjunction with the otherwise applicable Rate Schedules for each
Customer class. This Rate Schedule may not apply in conjunction with any time-of-use Rate
Schedule. This Rate Schedule applies to Customer-Generators as defined in Rule and Regulation 2
who are either not eligible for Net Energy Metering or who are eligible for Net Energy metering but
elect to take Service under this Rate Schedule.
B. TERRITORY:
Applies to locations within the service area of the City of Palo Alto.
C. RATE:
The following buyback rate shall apply to all electricity exported to the grid.
Per kWh
Export electricity compensation rate $0.10451078
D. SPECIAL CONDITIONS
1. Metering equipment: Electricity delivered by CPAU to the Customer-Generator or received by
CPAU from the Customer-Generator shall be measured using a Meter capable of registering the
flow of electricity in two directions (aka “bidirectional meter”). The electrical power
measurements will be used for billing the Customer-Generator. CPAU shall furnish, install and
own the appropriate Meter.
2. Billing:
a. CPAU shall measure during the billing period, in kilowatt-hours, the electricity delivered
and received after the Customer-Generator serves its own instantaneous load.
b. CPAU shall bill the Customer-Generator consumption charges for the electricity delivered
by CPAU to the Customer-Generator based on the Customer-Generator’s applicable Rate
Schedule.
c. In the event the electricity generated exceeds the electricity consumed and therefore is
received by CPAU, the Customer will receive a credit for all electricity received by
CPAU at the buyback Rate designated in section C above.
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O CITYOF
PALO ALTO
UTILITIES
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NET METERING NET SURPLUS ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-NSE-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-NSE-1 Sheet No.E-NSE-1
dated 07-01-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate Schedule applies to eligible residential and small commercial Net Energy Metering
Customers who, at the end of an annual settlement period, as described in Rule 29, are Net Surplus
Customer-Generators of electricity who elect to receive monetary compensation as such preference
is indicated on the net surplus electricity election form. This Rate Schedule only applies to
Customers who participate in Net Energy Metering, and does not apply to Customers that take
service under the City’s Net Energy Metering Successor Rate, as each of these terms are defined in
Rule and Regulation 2.
B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides electric service.
C. RATES:
Per kWh
Net Surplus Electricity Compensation rate $0.10260992
D. SPECIAL CONDITIONS
1. Net Surplus Electricity Compensation Rate eligibility shall be determined as specified in Rule
29. Net surplus electricity, as specified in Rule 29, if applicable, will be multiplied by the above
compensation rate to determine the Customer’s annual net surplus electricity compensation
stated in dollars.
2. Additional terms, conditions and definitions govern Net Energy Metering Service and
Interconnection, as described in Rule 29.
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O CIT Y OF
PALO ALTO
UTILITIES
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MEMORANDUM
DATE: March 2, 2022
SUBJECT: Evaluation of Implementing an All-Electric rate prior to COSA
Executive Summary
During the Finance Committee (CMR 13544 1) and City Council (CMR 13546 2) meetings to review and
recommend guidelines for an Electric Cost of Service Analysis (COSA), set to commence in FY 2022 and
anticipated for completion in FY 2023, the Finance Committee passed the following motion:
Direct staff to study options for an interim modification to (residential electric) tiers that would
support electrification, and return to the Utilities Advisory Commission, the Finance Committee and
City Council at a future date.
Setting rates without a COSA in place can be responsibly accomplished through implementation of a pilot
rate; staff recommends against using that mechanism. This conclusion was drawn after reviewing the
City’s adopted and published COSA (CMR 68573) and evaluating the resource impacts and technical and
operational challenges of developing a pilot rate.
Discussion
Palo Alto’s Rate-setting Process
Palo Alto’s rates are designed to collect revenues sufficient to cover the cost to serve each customer or
customer group. It is industry practice to periodically perform a COSA to ensure that a utility’s rates meet
this requirement. Proposition 26 (2010) amended the California Constitution, which defines all
government-imposed charges, including electric rates, as taxes requiring voter approval, unless certain
exceptions are met. Cost-based electric rates may be adopted by the City Council. The COSA helps the
utility ensure that rates represent the cost to serve customers.
Council-adopted COSA Guidelines
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2021/20211005/20211005pfcs.pdf
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-agendas-minutes/2021/11-
november/20211101pccs-amended.pdf
3 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2016/final-
staff-report-id-6857_electric-utility-financial-plan-and-rate-changes.pdf
Attachment D3
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The Electric Utilities’ last published COSA and was approved by City Council on June 13, 2016 (CMR 69324).
In preparation for that study, Council adopted a set of guidelines (CMR 6061 5) including:
“For this cost of service study, and to the extent feasible, energy charges should be based on existing
rate structures. This includes: a tiered rate design structure for residents.”
Prior to the study, Palo Alto’s residential rates had three tiers. The results of the study indicated a
reduction in the number of tiers from three to the current two was necessary to adequately reflect the
cost to provide service. Based upon an analysis of median residential baseload energy use, the daily
allowance of energy per household allocated for the first tier was increased from 10 kwh/day to
11kwh/day.
Alternative rate structures, such as a uniform/single-tier rate structure, were not addressed in the report,
nor was the creation of different classes of residential customer (such as all-electric or Electric Vehicle
(EV) specific rates).
The Utilities Department is planning to update the COSA model, commencing in FY 2022 and completing
the work in FY 2023. Several options for residential rates will be evaluated including: (1) whether better
or alternative cost allocation methods could be utilized, (2) whether tiered rates should be changed
(increased, lowered, or condensed to a single tier), and (3) whether multiple rate options could be
available to customers within a rate class (residential, etc.) while still maintaining adequate and equitable
revenue collection for the rate class as a whole.
Pilot Rate Option
It is possible to create a separate rate for customers pursuing electrification under a ‘pilot’ or test-case
program. Pilot rates are designed to study the impact of the rate design on customer behavior.
Resource Constraints
Implementing rate changes will require staff time and resources. Staff estimates three to four months
needed to analyze and determine new rates, configuration, design and testing of the billing system,
customer service training, and outreach.
This resource need will be in direct competition for the need to complete an updated COSA. It is
anticipated this effort will take two to three months followed by three months to analyze, design configure
and test new rates. These changes will also require staff resources for billing system changes, customer
outreach, etc. Dividing work on these two tasks will lengthen the time to complete the COSA.
Technical and Operational Constraints
. Typically an all-electric rate or electric vehicle rate would encourage customers to consume more
electricity in off-peak vs. on-peak hours. Since Palo Alto does yet have time of use or interval metering,
that kind of study is infeasible at this time.
4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2016/6932-
merged.pdf
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2015/final-
staff-report-id-6061_adoption-of-design-guidelines-for-electric-cost-of-service-analysis.pdf
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Many administrative challenges exist for a pilot rate study. Determining customer eligibility for a pilot rate
(such as not having a gas meter, EV ownership, etc.) will be difficult. Additional administrative challenges
such as managing caps on participation (pilot rates are limited in size), monitoring pilot vs. non-participant
behaviors, and making sure there are no unanticipated revenue changes arising from rate switching are
require a significant investment of staff time.
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Attachment E
* NOT YET APPROVED *
6056632 1
Resolution No. _________
Resolution of the Council of the City of Palo Alto Adopting a Dark
Fiber Rate Increase and Amending Rate Schedules EDF-1 (Dark Fiber
Licensing Services) and EDF-2 (Dark Fiber Connection Fees)
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as attached and
incorporated. Utility Rate Schedule EDF-1, as amended, shall become effective July 1, 2022.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as attached and
incorporated. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2022.
SECTION 3. The Council finds that the revenue derived from the adoption of this
resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of
the City of Palo Alto.
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Attachment E
* NOT YET APPROVED *
6056632 2
SECTION 4. The Council finds that the adoption of this resolution increasing dark fiber
rates by the Consumer Price Index to meet operating expenses, purchase supplies and
materials, meet financial reserve needs and obtain funds for capital improvements necessary to
maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to
California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of
Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to
Council, the Council incorporates these documents herein and finds that sufficient evidence has
been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Assistant City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
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DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-1 Effective 07-01-20221
dated 7-01-20210 Sheet No. EDF-1-1
A.APPLICABILITY:
This rate schedule applies to customer accounts established prior to September 18, 2006, unless the customer elects
to apply the EDF-3 rate to the entire customer account. This rate applies to Fiber Optic services from the City of
Palo Alto Utilities (CPAU) pertaining to the City's network (Backbone and associated connections).
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and land owned or leased by the City.
C.FEES:
1.DARK FIBER BACKBONE LICENSE FEES:
The values or ranges for each of these price components are shown below:
(1) Fiber Price………………………………………………………………. $432.32414.72/FM/month
(2) Quantity discount ……………………………………………………… $0 to $59.84/FM/month
(3) Buffer tube discount……………………………………………………….. $0 to $59.84/FM/month
(4) Route length discount…………………………………………………….. $0 to $77.80/FM/month
(5) Ring topology discount………………………………………………………$0 to $23.94/FM/month
(6) Length of term discount…………………………………………………… $0 to $46.80/FM/month
Minimum Backbone License Fee
$653.86627.24/month
Project Minimum Backbone Fees apply to any project proposal signed after September 18, 2006 in which
the project connects with the Backbone.
Description for Discounts:
Quantity discount: based on an array of discounts for quantities of fiber licensed on a specific path.
Buffer tube discount: discount for numbers of full buffer tubes licensed on a specific path.
Route length discount: based on the route length licensed on a specific project.
Ring topology discount: The ring topology discount for customers contracting for complete rings.
Term discount: based on an array of discounts for contracts greater than one and less than ten years.
2.DARK FIBER LATERAL CONNECTION FEES:
Customer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules
and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the
Licensee shall pay an annual Drop/Custom Cable Management Fee based on the follow per foot fees:
(1) Drop Cable Management Fees (for the first 12-Fibers) …………………………… $0.03-$0.08/ft/month
(2) Custom Cable Management Fees (for the first 12-Fibers)……………………….. $0.420/ft/month
(3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) $0.08/ft/month
Minimum Drop or Custom Cable Management Fees .................................................. $323.08309.93/month
Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006.
Attachment E1
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DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-2 Effective 07-01-20221
dated 7-01-20210 Sheet No. EDF-1-2
3. EARLY TERMINATION FEES:
If the Licensee chooses to terminate for convenience the License Agreement or the term of any project
under the License Agreement, then the Licensee shall pay the applicable termination payment as specified
in this schedule or in the License Agreement, as provided below.
Unless otherwise provided in the License Agreement, the Licensee shall pay a termination fee in one of the
following amounts, whichever is less:
• Annual fee of the contract year that the Licensee chooses to terminates in full without term
discounts, or
• Remaining fees of the project term as indicated in the License Agreement.
D. SPECIAL NOTES:
1. All fees must be paid to the City in accordance with the terms of the Dark Fiber License Agreement, the
customer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations.
2. All fees and minimum charges are subject to Consumer Price Index (CPI) adjustments, to be applied
annually, except as defined by Section D.3 of this Rate Schedule. Discounts will not be modified by
changes to CPI.
3. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the
San Francisco-Oakland-San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor
Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the
December CPI in the year rates last changed. In the event that the change between December CPI’s
indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the
upcoming year. Future rate changes will take the last year of change as the new base year for purposes of
calculation.
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DARK FIBER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE EDF-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-2-1 Effective 7-01-20221
dated 7-01-20210 Sheet No. EDF-2-1
A. APPLICABILITY:
This schedule applies to all connections, expansions, and upgrades to the City's Dark Fiber network (Backbone).
B. TERRITORY:
All territory within the incorporated limits of the City and land owned or leased by the City.
C. FEES:
1. ADVANCE ENGINEERING FEES:
Advance engineering (AER) fees must be paid to start the engineering process and are non-refundable. The
fees will be credited against the estimated project cost prior to the collection of the project construction
fees.
(1) Commercial/Industrial AER minimum fee ..................................................................... $1032990.00
(2) Special conditions (requiring expert assessment) ........................................................... By Estimate
2. ESTIMATED SERVICE CONNECTION AND RECONFIGURATION FEES
All estimated service connection and reconfiguration fees must be paid prior to the scheduling of any
construction or reconnections to the City's Dark Fiber network.
(1) Service connection (Interconnection) fee ...................................................... By Estimate
(2) Reconfiguration Fees ..................................................................................... By Estimate
Labor rates are subject to change as stated in the Utility Rate Schedule C-1.
D. NOTES:
1. The Customer is responsible for the installation and maintenance of all ducts and pathways from the facility to
the property line in compliance with City of Palo Alto Utilities Rules and Regulations and contract agreements.
2. The City shall not be held liable for delays or interruptions in service, but will make reasonable efforts to
provide timely continuous service.
3. All fees are subject to Consumer Price Index (CPI) adjustments, to be applied annually. The CPI adjustment
will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-
San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is
calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last
changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is
required, a change to rate schedules may not be made for the upcoming year. Future rate changes will take the
last year of change as the new base year for purposes of calculation.
{End}
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Attachment F
*Not Yet Passed*
6056633
Resolution No. ______
Resolution of the Council of the City of Palo Alto Amending Utility Rate
Schedule D-1 (Storm and Surface Water Drainage) to Increase the Storm
Water Management Fee by 4.2% Per Month Per Equivalent Residential Unit
for Fiscal Year 2023
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in accordance with
sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as
amended, shall become effective July 1, 2022.
SECTION 2. The Council finds that this rate increase is being imposed to offset the effects
of inflation on labor and material costs pursuant to the annual inflationary fee escalator provision
of the Storm Water Management Fee ballot measure, which was approved by a majority of Palo
Alto property owners on April 11, 2017.
SECTION 3. The Council finds that the revenue derived from the authorized adoption
enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the
Charter of the City of Palo Alto.
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Attachment F
*Not Yet Passed*
6056633
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SECTION 4. The Council finds that the adoption of this resolution changing the Storm
Water Management Fee to meet operating expenses, purchase supplies and materials, meet
financial reserve needs and obtain funds for capital improvements necessary to maintain service
is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public
Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a).
After reviewing the staff report and all attachments presented to Council, the Council
incorporates these documents herein and finds that sufficient evidence has been presented
setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________
Assistant City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Director of Administrative Services
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GENERAL STORM AND SURFACE WATER DRAINAGE
UTILITY RATE SCHEDULE D-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-2022
Supersedes Sheet No.D-1-1 dated 7-1-2021 Sheet No. D-1-1
A. APPLICABILITY:
This schedule applies to all Storm and Surface Water Drainage Service, excepting only those
users and to the extent that they are constitutionally exempt under the Constitution of the
State of California or who are determined to be exempt pursuant to Rule and Regulation 25.
B. TERRITORY:
Inside the incorporated limits of the city of Palo Alto and land owned or leased by the City.
C. RATES:
Per Month:
Storm Water Management Fee per Equivalent Residential Unit (ERU) .......................... $15.98
D. SPECIAL NOTES:
1. An Equivalent Residential Unit (ERU) is the basic unit for computation of storm
drainage fees for residential and non-residential Customers. All single-family
residential properties shall be billed the number of ERUs specified in the following
table, based on an analysis of the relationship between impervious area and lot size for
Palo Alto properties.
RESIDENTIAL RATES (Single-Family Residential Properties
PARCEL SIZE (sq.ft.) ERU
<6,000 sq.ft. 0.8 ERU
6,000 - 11,000 sq.ft. 1.0 ERU
>11,000 sq.ft. 1.4 ERU
All other properties will have ERU's computed to the nearest 1/10 ERU using the
following formula:
No. of ERU = Impervious Area (Sq. Ft.)
2,500 Sq. Ft.
2. For more details on the Storm Water Management Fee, refer to Utilities Rule and
Regulation 25.
{End}
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City of Palo Alto (ID # 14477)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Policy and Services Committee Recommendations on Pending State
Assembly Bills 2181 (VTA) and 1944, 2449, and 2647 (Local Meeting
Procedures)
From: City Manager
Lead Department: City Manager
Recommendation
The Policy & Services Committee recommends that the City Council discuss recommendations
on pending legislation regarding governance of Valley Transportation Authority (Assembly Bill
2181) and meeting procedures for local governing bodies (Assembly Bills 1944, 2449, and 2647)
and provide direction to staff on the City’s advocacy positions.
Background
The Policy and Services Committee received updates on federal and state legislation on March
8, 2022 (CMR 14117; Minutes) and May 10, 2022 (CMR 14379; Minutes). The motions passed
were as follows:
March 8, 2022 Motion:
Consider supporting Senate Bill 1100 to conduct orderly meetings.
(3-0, passed unanimously)
❖ Support and encourage legislation for all participants to participate in remote meetings
even during non-emergencies.
(Passed, 2-1)
May 10, 2022 Motion:
❖ Support Assembly Bill 1944, Assembly Bill 2449, and Assembly Bill 2647 that allow
virtual meetings, remote participation, and encourage adoption of technology.
(Passed, 2-1)
❖ C. Support Assembly Bill 2181 Santa Clara Valley Transportation Authority: board of
directions.
(Passed, 2-1)
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City of Palo Alto Page 2
B. Support with amendments Assembly Bill 1737 Children’s camps: local registration and
inspections.
(3-0, passed unanimously)
The items with a ‘’ denote those motions that passed 2-1 and are the subject of this current
staff report focused on pending State legislation for the full City Council to discuss the City’s
position. The unanimous items will be brought to Council as a Consent report for the City
Council to consider.
Discussion
As mentioned above, the bills for City Council discussion as a follow up to the Policy and
Services Committee meetings are:
- Assembly Bill 2181 (Santa Clara Valley Transportation Authority: board of directors)
- Assembly Bill 1944 (Local Government: open and public meetings)
- Assembly Bill 2449 (Open meetings: local agencies: teleconferences)
- Assembly Bill 2647 (Local government: open meetings)
The Policy and Services Committee recommended support for each of these bills, but the votes
were not unanimous. Thus, the bills are being brought forward to the City Council to consider
whether to support the bills, support with amendments, oppose the bills, or oppose unless
amended for each one. A description of each bill, current status, and timeline is included in
Attachment A.
Specific to AB 2181, there have been a variety of opinions on th is bill from different
municipalities. The City of Campbell supported the bill while the City of Morgan Hill and City of
Mountain View opposed the bill. The City of Mountain View’s opposition letter is included in
this report as Attachment B for reference.
Staff and the City’s state legislative advocate from Townsend Public Affairs will be present at
the City Council meeting to address questions.
Timeline and Resource Impact
Staff would submit the letters on behalf of the City upon direction from the Cit y Council on
these bills. As mentioned in Attachment A, the bills will be heard by variou s committees in the
coming weeks.
Attachments:
• Attachment10.a: Attachment A: Townsend Updated State Legislation Memo June
2022
• Attachment10.b: Attachment B: Mountain View - AB 2181 - Oppose Unless
Amended - Sen Transportation Committee
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State Capitol Office ▪ 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383
Federal Office ▪ 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555
Southern California Office ▪ 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215
Central California Office ▪ 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax (949) 476-8215
Northern California Office ▪ 300 Frank Ogawa Plaza • Suite 204 • Oakland, CA 94612 • Phone (510) 835-9050 • Fax (510) 835-9030
MEMO
To: Ed Shikada, City Manager
Chantal Cotton Gaines, Deputy City Manager
From: Christopher Townsend, President, Townsend Public Affairs, Inc.
Niccolo De Luca, Vice President
Andres Ramirez, Senior Associate
Carly Shelby, Legislative Associate
Date: June 1, 2022
Subject: Updated Memo relating to state legislation on public meetings and the Santa
Clara Valley Transportation Authority (AB 2181)
SUMMARY
Townsend Public Affairs, Inc. (TPA) has prepared this updated report for the City of Palo Alto as
we move forward in the 2022 Legislative session. This memo highlights four pieces of legislation
that were discussed in the Policy and Services Committee and deal with public meetings and the
Santa Clara Valley Transportation Authority. The city can take a position of support, oppose, or
watch. The analysis below is based off text of the legislation, committee analysis, discussions
with Members, and others.
Assembly Bill 1944 (Lee) Local Government: open and public meetings
Last amended: May 25, 2022
Status: The bill passed out of the Assembly on a vote of 44-12 with 22 abstentions. Its now in the
Senate and will be scheduled for its first Senate policy committee hearing which has not yet been
set.
Focus of the legislation: Allows members of a legislative body of a local agency to use
teleconferencing without identifying each teleconference location in the notice and agenda of the
meeting or proceeding, and without making each teleconference location accessible to the public.
This measure sunsets on Jan. 1, 2030.
Argument in Support: A coalition including the Urban Counties of California, the Rural County
Representatives of California, the California State Association of Counties, the Association of
California Healthcare Districts, the Association of California School Administrators, the California
Association of Public Authorities for IHSS, and the League of California Cities, in support, write,
“AB 1944 represents an important modernization to the Brown Act that protects local elected
officials’ location when participating from a non-public, remote location, while improving access
to members of the public via a teleconferencing option.
“As you know, local agencies subject to the Brown Act were able to utilize remote participation for
elected officials and for the public during the COVID-19 public health crisis. Those processes
worked well, allowing for local agencies to continue to conduct the public’s business in a safe
manner. In fact, many of our local agencies report increased participation and interaction with
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2
members of the public who would otherwise have been unable to access such meetings as a
result. At the same time, the ability for local elected officials to participate remotely without having
to share the address of their whereabouts allowed them to do so without risking their own well-
being and that of their families and neighbors.
“While authority to maintain remote participation continues after the approval of last year’s AB
361 (R. Rivas), based on public health recommendations at the time, this authorization of remote
participation by local elected officials, as well as members of the public, is slated to sunset at the
end of 2023. Developing a long-term framework for remote participation is a critical update of the
Brown Act. We have learned during the pandemic that such participation is effective, transparent,
and encourages participation from a broader component of the public than was anticipated.
“These positive effects on the conduct of the public’s business would suggest that the conditions
outlined in AB 1944 are both reasonable and appropriate to incorporate into our post-pandemic
practice of delivering open and public meetings.”
Argument in Opposition: A coalition including the California News Publisher’s Association, the
American Civil Liberties Union, the First Amendment Coalition, the Howard Jarvis Taxpayers
Association, Californians Aware, the Leadership Counsel for Justice and Accountability, the
Society for Professional Journalists Los Angeles, the Orange County Press Club, and the National
Writers Union of Southern California, in opposition, writes, “…we must respectfully oppose AB
1944 (Lee), which would make a fundamental change to the Brown Act, enshrining government
officials’ ability to teleconference from private locations not identified or accessible to the public.
While temporary accommodations may be necessary, such as to address public health needs
during the COVID-19 pandemic, this bill would abolish longstanding democratic protections that
require public meetings be held in public venues where government officials can be seen and
engaged by the public.
“Further, this bill would change the Brown Act’s requirement that a quorum be present during a
teleconference, allowing government bodies to vote to allow themselves to teleconference from
outside the jurisdiction, indefinitely and without justification. While this bill includes some
provisions that may expand access for members of the public who wish to participate, the cost to
democratic principles and public protection is too great…
“AB 1944 as written, would allow a body to vote to govern themselves with a teleconference
scheme that does not require members to identify the location from which they are taking the
meeting, nor make that location accessible to the public. Without disclosing the locations, they
are participating from there is no mechanism to ensure that a quorum of members, or any
members, are within the jurisdiction about which they are making decisions
Assembly Bill 2449 (Rubio) Open meetings: local agencies: teleconferences
Last amended: May 23, 2022. One of the amendments includes ending these provisions by
January 1, 2028.
Status: The bill passed out of the Assembly on a vote of 65 - 4 with 9 abstentions. Its now in the
Senate and will be scheduled for its first Senate policy committee hearing which has not yet been
set.
Focus of the legislation: Allows members of a legislative body of a local agency to use
teleconferencing without identifying each teleconference location in the notice and agenda of the
meeting, and without making each teleconference location accessible to the public, if at least a
quorum of the members of the body participates in person.
Argument in support: Three Valleys Municipal Water District, sponsor of this measure, writes,
“As part of his response to the COVID-19 pandemic, Governor Newsom originally issued a series
of Executive Orders to expand public access to meetings of local agencies by suspending some
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of the restrictions on teleconferencing. The effect was an expanded use of teleconferencing for
meetings of the legislative body, resulting in enhanced public access and increased participation
by the public.
“The expiration of the Executive Orders immediately gave way to the new AB 361, essentially
allowing for the teleconference provisions detailed in the Executive Orders to continue during a
period of emergency declaration. However, once an emergency declaration has ended, local
agencies will again be required to comply with antiquated provisions of existing law, making it
potentially more difficult to hold meetings of the legislative body by teleconference. While current
law does allow for “teleconference locations” under normal circumstances, it requires various
actions to be taken at the teleconference locations and fails to recognize in the digital age that a
teleconference location is wherever there is a person with a computer, a tablet, or even a mobile
phone.
“AB 2449 will eliminate the previously existing concept of teleconference locations and will revise
notice requirements to allow for greater public participation in teleconference meetings of local
agencies. The bill does not require teleconferencing, rather it modernizes existing law to ensure
greater public participation in meetings of the legislative bodies of local agencies who choose to
utilize teleconferencing. Similarly, in acknowledgement of the critical importance of maintaining
transparency and accountability, the bill requires that a quorum of the governing body be
physically present at a clearly identified meeting location for all public meetings.”
Argument in opposition: A coalition including the California News Publisher’s Association, the
ACLU California Action, the First Amendment Coalition, the Howard Jarvis Taxpayers
Association, Californians Aware, the Leadership Counsel for Justice and Accountability, and the
Society for Professional Journalists Los Angeles, in opposition, writes, “If enacted, AB 2449 would
fundamentally alter the Brown Act by providing express authorization to members of legislative
bodies to teleconference into public meetings from private locations not identified or accessible
to the public at any time, without a compelling reason. While temporary accommodations may be
necessary, such as during the COVID-19 public health emergency, this bill would excise the
longstanding democratic protection afforded by requiring the entire legislative body to directly face
the public. We must be mindful before making substantial changes to the laws that have ensured
democracy at the local government level for generations. There are many examples of remote
meetings increasing public participation in many respects, but there are still many lessons to learn
as we continue to move out of the COVID-19 pandemic…
“To be clear, we support increased public access, such as the provisions of this bill that increase
remote participation for the public; however, AB 2449, as written, ties that expanded access to
removal of existing requirements for those who have sought and agreed to public service in local
government. We greatly appreciate that the bill has incorporated many of the provisions that were
the result of discussion on AB 339 (Lee) & AB 361 (R. Rivas) last year, including requiring
members to be on camera, providing telephonic access for those who do not have stable internet,
addressing technological disruptions, and others. However, those bills differed in that AB 339
sought to only expand access for the public, and AB 361’s allowances for legislative bodies are
confined to states of emergency and required a vote every 30 days to continue.
“We are also very glad to see that a quorum must be in the same physical location with the public
in this bill, but it is essential to narrow the circumstances in which members outside of the quorum
can participate remotely, so that the same members cannot avoid physically appearing without
circumstances that justifies limiting the public’s access to the member who is supposed to be
serving their interests.”
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Assembly Bill 2647 (Levine) Local government: open meetings
Last amended: April 19, 2022
Status of the Legislation: The bill passed out of the Assembly on a vote of 62-0 with 16
abstentions. Its now in the Senate and will be scheduled for its first Senate policy committee
hearing which has not yet been set.
Focus of the legislation: Allows writings that have been distributed to members of a legislative
body of a local agency less than 72 hours before an open meeting to be posted online to satisfy
specified requirements of the Brown Act.
Argument in support: The League of California Cities, sponsor of this bill, writes in support,
“Recently the Third District Court of Appeals held that posting meeting documents online does
not satisfy this requirement of the Brown Act, and that local governments must place physical
copies of the document in a designated office open to the public. Requiring physical access at a
public location as the only way to satisfy the Brown Act could impair the conduct of the people’s
business. Without a legislative solution, the Court’s decision requires local agencies to keep an
office open to the public during evenings and/or weekends when a writing is distributed to a local
agency’s legislative body. Alternatively, the local agency would have to withhold late breaking
information from the legislative body until an office is open which could impact the ability of a
legislative body to be best informed with less time to consider additional information.
“This measure would clarify that writings distributed to the majority of a local legislative body less
than 72 hours before a meeting can be posted online if physical copies are made available for
public inspection at the beginning of the next regular business hours at a public office or
designated location. By reducing delays, the public and the community will be better informed to
engage in the meeting with the flexibility and transparency this measure provides. This change
would advance meaningful public access to government information.”
Argument in opposition: There is no argument in opposition, or any opposition listed.
Assembly Bill 2181 (Berman) Santa Clara Valley Transportation Authority: board of
directors
Last amended: May 2, 2022
Status: The bill passed out of the Assembly on a vote of 69-2 with 7 abstentions. Its now in the
Senate and will be scheduled for its first Senate policy committee hearing which has not yet been
set.
Focus of the legislation: This legislation seeks to make changes to the Board of the Santa Clara
Valley Transportation Authority (VTA), including:
1) Specifies that the government of VTA shall be vested in a board of directors that shall consist
of 12 voting members, as follows:
a) Two representatives of Santa Clara County, who shall be appointed by the president of
the board of supervisors with board of supervisors’ approval by at least a four-fifth vote,
consistent with both of the following requirements:
i) One representative shall be a nonelected community member with expertise in
financing and accounting.
ii) One representative shall be a nonelected community member with expertise
infrastructure management, construction management, or project management.
b) Five representatives of the City of San Jose, who shall be appointed by the mayor of the
City of San Jose with city council approval, consistent with the following:
i) At least two representatives shall be city council members or the mayor of the City of
San Jose.
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ii) At least two representatives shall be nonelected community members who, to the
extent possible, have expertise, experience, or knowledge relative to transportation
issues.
iii) The mayor of the City of San Jose shall appoint at least one representative who uses
public transit as their primary mode of transportation.
c) Five representatives of the cities in the county, other than the City of San Jose, elected in
a manner consistent with the following:
i) At least two representatives shall be nonelected community members who, to the
extent possible, have expertise, experience, or knowledge relative to transportation
issues.
ii) At least two representatives shall be city council members or mayors of the cities in
the county, other than the City of San Jose.
iii) To the extent possible, each regional group, as provided for by the agreements among
the cities in the county, other than the City of San Jose, shall be represented on the
board of directors by a representative elected pursuant to this bill.
iv) The representatives shall be elected through the following ranked choice voting
process:
(1) VTA shall develop an application process.
(2) To be eligible to be selected, a candidate shall complete an application and submit
the application to VTA.
(3) VTA shall create one ranked choice ballot that includes only those candidates that
submitted complete applications.
(4) The city council of each city in the county, other than the City of San Jose, shall in
a public forum, rank those candidates using the ranked choice ballot and submit
the ranked choice ballot to VTA by a date determined by VTA.
(5) VTA shall count the ranked choice ballots submitted pursuant to (4) above.
v) Provides that if a representative who is elected as a city council member or mayor of
a city in the county, other than the City of San Jose, no longer serves in that capacity
as a city council member or mayor, the representative may continue to serve on the
board of directors until their term on the board of directors expires, unless as otherwise
specified.
2) Specifies that in addition to the 12 voting members of the VTA Board, VTA’s Board may
include ex officio nonvoting members from regional transportation or governmental bodies.
3) Requires VTA to ensure that representatives of a single city do not compose most of the board
of directors.
4) Provides that a representative appointed or elected pursuant to this bill shall serve a four-year
term and may be reappointed without limitation.
5) Specifies that VTA shall implement guidelines for the removal for cause of a representative
appointed or elected to the Board.
6) Removes, as of January 1, 2024, the provision in existing law that provides that the term of
office for each director shall be two years and until the appointment and qualification of their
successor, and specified vacancy requirements.
7) Specifies that this bill shall become operative on July 1, 2023.
Argument in Support: There is no formal support.
Per the author, “Valley Transportation Authority provides essential public transit options that help
get Santa Clara County’s two million residents to and from work, school, and home. However,
three Civil Grand Jury Reports over the last 17 years have concluded that VTA’s governance
structure is a root cause of the agency’s poor performance and is in need of structural reform. AB
2181 delivers this structural reform by transitioning the current board—a rotating group of 12
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elected officials and 6 alternates in Santa Clara County—to a 12-member hybrid board composed
of both elected officials and qualified members of the public. This bill honors local control by
building in flexibility, while prioritizing both regional accountability and equity in using a regional
ranked choice voting process. The new VTA board members would be selected by city and county
officials in a transparent public process, ensuring that expertise related to transportation,
infrastructure or project management, and budgetary expertise are represented on the board. A
more experienced, transparent, and regionally focused VTA Board will be better positioned to
meet Santa Clara County’s complex transportation needs.”
Argument in Opposition: There is no formal opposition.
Per the most recent Grand Jury report, “The Grand Jury concluded that today, more so than in
2004 or 2009, the VTA Board is in need of structural change to enable it to better protect the
interests of the County’s taxpayers and address the many complex challenges presented by
emerging trends in transportation, rapidly evolving technology and the changing needs of Silicon
Valley residents. The Grand Jury recommends several changes to the governance structure and
operations of the VTA Board which will improve the Board’s ability to effectively perform its
important oversight and strategic decision-making functions.”
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City of Palo Alto (ID # 13983)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Revenue -Generating Ballot Measures (Affirmation of the Natural Gas
Utility Transfer and New Business Tax): Direction to Staff on Key Policy
Questions and Measure Characteristics, and Direction to Return with Final
Documents for Placement of Ballot M easure(s) on the November 2022
Election and a Non -Binding Resolution for Intended Use of Business Tax
Proceeds
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION
Staff recommends that the City Council:
1) Review and discuss additional information provided to inform decision-making on two
potential ballot measures for voter consideration as part of the November 2022 election
a) affirmation of the natural gas utility transfer and b) new business tax:
a. Analysis of comparison agencies and impact of potential tax offsets
b. Summary polling results of the third and final round of polling.
2) Direct staff to return to the City Council on June 20 with completed documents for
placement of a ballot measure on the November 2022 election for affirmation of the
natural gas utility transfer as outlined in Attachment D and summarized in Table 2.
3) Direct staff to return to the City Council with completed documents for placement of a
ballot measure on the November 2022 election for a new business tax with the
following refinements:
a. Recommended “Key Policy Questions” as summarized in this report to be
reflected in the ordinance;
b. Recommended final tax rate not to exceed $0.10/sq ft per month
c. Characteristics as outlined in summary Table 3 or as amended per Council
determination.
4) Review the draft non-binding Resolution to inform the public of Council’s intentions
regarding the use of Business Tax proceeds if passed by voters (Attachment C) and
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affirm content or direct staff to make revisions. Staff will return to the City Council with
a final Resolution for Council adoption on June 20.
Please note staff expect to release a supplemental memorandum on June 9 that will transmit
the summary results of the 3rd round of polling, the draft ordinance for a new Business Tax, and
a draft resolution to inform the public of Council’s intentions regarding use of Business Tax
proceeds.
EXECUTIVE SUMMARY
The information provided in the following staff report represents several months of work
exploring potential ballot measure options for voter consideration during the November 2022
election to maintain high quality City services at fiscally sustainable levels. The two ballot
measure proposals under review seek to address the City’s long-term structural budget issues
through new revenue, in order to enhance priority services to the community, prepare for the
future, and help build on Palo Alto’s services as community needs evolve and grow.
Over the last six months, staff and consultants organized a series of conversations about the
City’s budget and fiscal sustainability efforts, holding several focus groups, informational
sessions, online surveys, mailed surveys and polls to hear from residents and businesses about
these potential ballot measures. As this has been an iterative process with the City Council, the
steps taken to date respond to feedback received in many ways (Table 1 below). Adjustments
based on feedback seek to provide balanced revenue measures that continue to further the
City’s interest in investing for the future while also recognizing the importance of business to
the community.
TABLE 1: Community and Stakeholder Business Tax Structure Feedback
Feedback Recommended Adjustments
Implementation /
Timing
• Retrospective or prospective
• Staff recommends that any tax and offsets/credits be assessed
retrospectively
• Not the right time – that businesses need to recover from the
economic impacts of the pandemic.
• Tax and offsets/credits for calendar 2023 would be due in early
2024
• Two-year phase in is included in Council’s 4/25 direction
Square Footage
Calculation
• Multiple locations and/or facilities
• See staff’s recommendation to calculate multiple locations
and/or facilities in the aggregate
• Residential property
• See staff’s recommendation to exclude living areas (apartments
and bedrooms) but to include all common areas where
commercial services are provided
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Feedback Recommended Adjustments
Exemptions /
Offsets
• Vacant property
• See staff’s recommendation to consider an offset for vacant
property
• Hotel exemption or offset
• See staff’s financial impact for an offset for TOT Remittal
Annual CPI • Without a cap, the CPI would continually increase.
• 5% cap on CPI is included Council’s 4/25 direction
Sunset
• Lack of specified end date, coupled with no CPI cap, is viewed as
problematic.
• Not included in Council direction
Spending Plan
• A plan should be developed that specifies how business tax revenue
will be spent
• See CMR 13571 on 4/18 for draft spending plan; non-binding
resolution regarding use of potential Business Tax Proceeds will
be released on June 9th in a supplemental memo
Through this staff report, staff is seeking direction on key policy questions and the final tax
structure. Policy questions for Council consideration and direction for the ordinance are:
effective date and timing of tax assessment; treatment of vacant property for tax assessment;
calculation of square feet for a business with multiple locations and/or facilities; inclusion of
residential property/use in calculation of square feet; calculation of square feet for a property
management type business; and, offset/credit allocation. The report outlines staff
recommendations and alternatives on these policy questions for City Council decision-making.
In addition, based on Council direction, a draft resolution outlines spending priorities for the
use of business tax proceeds if passed by voters and include:
- New/enhanced services, specifically investment in public safety services
- Investment in train crossing safety, and transportation
- Investment in affordable housing and unhoused services
- Investment in economic development support through support of University Avenue
and California Avenue streetscapes and placemaking work.
The schedule anticipates Council discussion on June 13 and June 20 with a series of proposed
actions related to the two proposed revenue measures. These actions allow the City to meet
requirements set forth by the Registrar of Voters to place items on the ballot for November
2022. Actions include:
June 13 City Council Meeting:
- Receive and review results of third and final round of polling
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- Review and provide direction on draft full ballot language and ballot questions for
potential ballot measure(s)
- Review and provide updates on additional analysis, comparisons, policy questions and
calculations for additional offsets/credits
- Provide final refining direction to staff for official action at the June 20 meeting
June 20 City Council Meeting:
- Final Approval of November 2022 Ballot Measure(s) for voter consideration
There has been tremendous value in the input and feedback gained to date, provided by both
residents and businesses. The staff report outlines engagement activities completed since April.
The feedback has been critical to this process. Notably, in May, staff held another facilitated
focus group with businesses, and feedback was considered in preparing the draft ordinance and
key policy questions for Council consideration.
BACKGROUND
On April 18 and 25, 2022, the City Council continued discussions exploring revenue generating
ballot measures for the November 2022 election (CMR 13571, packet p. 162). This meeting
followed the March 28, 2022 Finance Committee meeting (CMR 13981, packet p. 3), where the
Committee recommended affirmation of the current Gas Uti lity Transfer; business tax
characteristics, including exemptions, rates, an adjustment based on CPI, and phase -in; and
recommendation to Council to proceed with the third round of polling.
The April 25th report to Council summarized the tax framework for the proposed business tax
and measure to affirm the gas funds transfer. The report also included results of the outreach
efforts of the Community and Stakeholder Engagement Plan and results of the second round of
polling. The following is Council’s direction to staff on April 25th:
Direct staff to continue work regarding potential ballot measures for voter consideration
during the November 2022 election, including execution of the third round of polling,
drafting of ballot questions and the full ballot measure text in accordance with the following
characteristics:
1) Continue to pursue a ballot measure seeking to affirm the natural gas utility transfer, at
the current rate of up to 18% of natural gas utility gross receipts as outlined in Table 2 in
the staff report;
2) Continue to pursue a ballot measure seeking to establish a new Business Tax based on
square footage with the following characteristics:
a) Tax is determined based on a business’s square footage in Palo Alto,
b) Tax rate of $0.10/sq. ft. per month or $0.12/sq. ft. per month,
c) Tax rate to increase by the CPI, capped at 5% per annum with excess CPI carrying
over to future years,
d) Two-year phase-in provision: reduced rate of 50% in the year of initiation of the tax,
and the full rate to be charged in the second year (initiation date to be refined later),
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e) No sunset
f) Exemptions for the following:
i) Grocery stores (requires a given % of sq ft of food sales to qualify as a grocery)
ii) Seasonal businesses operating less than 90 days
iii) First 5,000 square feet
g) Direct staff to evaluate the impacts of allowing an offset for hotels based on
remittance of TOT
h) Direct staff to research offsets for businesses based on remittance of sales & use tax
where the point of sales has discretion and is designated in Palo Alto.
i) Confirm that the City’s Business Registry program will continue to operate and be
required for all businesses except as exempted by the program ordinance.
j) Direct staff to draft a non-binding resolution to inform the public of Council’s
intentions regarding the use of Business Tax proceeds,
i) Explore through polling regarding the use of Business Tax Proceeds: funds would
be used for grade separation and rail safety, affordable housing and homeless
programs, public safety, and improvements to University and California Avenue
business districts
The Summary of Prior Work on Potential Revenue Generating Ballot Measures can be found in
Attachment F.
DISCUSSION
The City Council has been systematically evaluating and refining two potential ballot measures
since June 2021, and previously since 2016. Specifically, because of rising costs and needs for
affordable housing and the expected significant investment in transportation infrastructure for
safe train crossings, the Council was reviewing a potential tax measure for the November 2020
election. In recognition of the onset of a worldwide pandemic, this work was placed on pause
until June 2021 when the discussions were resumed. Below and attached are continued
information to assist the Council in its decision makin g as it considers two potential ballot
measures to place before the voters. As part of this action, staff has outlined remaining
information as requested by the City Council on April 25, 2022, or as included in the original
Ballot Measure workplan.
Staff is seeking the following actions from the Council:
1) Approval of a ballot question and ordinance language for a potential measure that
would affirm the current practice of transferring proceeds from the natural gas utility to
the General Fund. Staff will return to Council on June 20, 2022, with final documents for
approval.
2) Approval of a ballot question and direction on initial draft ordinance language for a
potential measure that would implement a new Business Tax, including direction on:
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o “Key Policy Questions” summarized below and as drafted in the attached
ordinance
o A final tax rate
o Revisions to characteristics as outlined in summary Table 3, and
o The draft resolution for intended use of tax proceeds if passed by voters.
Staff will return to Council on June 20, 2022 with final documents for approval.
In order to assist the Council in these decisions, the outline below identifies the additional
information in this report and intended to be provided in a supplemental report that will be
published on June 9th. Following this outline is a high-level summary of the timeline between
now and the November 2022 election.
1) Measure to Affirm Natural Gas Funds Transfer
• Draft Ballot Question and Ordinance (Attachment D)
2) New Business Tax
• Summary of Additional Analysis (Attachment A): Financial impacts of tax
offsets/credits for hotel tax and sales & use tax, & Analysis of tax impacts compared
to neighboring jurisdictions
• Draft Ballot Question, Initial Draft Ordinance & Key Policy Questions (Attachment B)
• Draft Resolution Identifying Intended Spend of Tax Proceeds (Attachment C)
3) Stakeholder Engagement
• Updates to fiscal sustainability community engagement (Polling results will be
brought forward on June 9th in a late packet memorandum once this work is
complete)
• Community Feedback Survey (Attachment E)
• Ongoing community feedback and focus groups (Attachment F)
4) Resource Impacts
• Summary of costs to date
• Estimated election costs
5) Timeline
The following documents will be provided in a supplemental late packet memorandum to be
issued no later than Thursday, June 9, 2022:
• Third and final round of polling results from FM3
• Attachment B, Initial Draft Ordinance for a New Business Tax
• Attachment C, Draft resolution identifying intended spend of business tax proceeds
Summary Timeline
Below is a summary timeline of the remaining components for consideration of and potentially
placement of a ballot measure(s) for voter consideration on the November 2022 election. Most
significantly, the Council must ensure their consideration and vo te for placement of a
measure(s) is completed in time for submittal to the County Registrar of Voters (ROV) by the
due date of August 12, 2022. Key components of information to be sent to the ROV is below,
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specific due date for each component can be found in the “TIMELINE” section later in this
report.
The City Council will adopt a resolution (which does not become a part of the ballot) calling a
local election and sending the measure or measures to the County Registrar of Voters. Lastly, if
chosen, the Council may adopt a resolution communicating intentions for use of proceeds for a
successful Business Tax measure.
Measure to Affirm Natural Gas Funds Transfer
Natural Gas Funds Transfer: Ballot Question and Ordinance (Attachment D)
For decades, Palo Alto gas ratepayers have funded contributions to the City’s General Fund to
support a variety of City programs and services, including police protection, fire and e mergency
medical services, local parks, community centers and libraries. Most municipal utilities in
California make similar transfers to help fund government services. Investor-owned utilities also
collect ratepayer funds that are paid to the cities where they operate, typically in the form of
franchise fees or taxes.
In 1950, Palo Alto voters approved the use of some rate revenues for City services via an
amendment to the City’s Charter. Since then, California law has evolved through a series of
statewide initiatives and court decisions governing how cities set and impose charges for the
services they provide. In FY 2021 the Santa Clara Superior court held that a portion of Palo
Alto’s annual transfer of funds from the gas utility was a tax that required voter approval to
continue. Both sides have appealed, and City leaders believe it is prudent to seek voter
affirmation that the City may continue its current and longstanding general fund transfer.
The draft ballot question and ordinance are attached in Attachment D.
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TABLE 2: Summary of Affirmation of Natural Gas Transfer
Purpose • Affirm the City’s past practice of annually transferring from the
natural gas utility (established in City charter in the 1950’s)
Disposition
of Revenue • Allocated to the General Fund for general government purposes
Calculation
• Measured by gross revenue of the natural gas utility
• Projected cost of the transfer included in the City’s retail natural gas utility
rates as a cost of providing gas services
Rate
• Transfer up to 18% of the gross revenues of the natural gas utility
• No change in natural gas utility rates, confirmation of the City’s past and
current practice
Council
Authority • Council may decide to transfer a lesser amount from voter approved levels
After the court decision in 2021, the City began setting aside the disputed funds pending
resolution of the legal challenge. As a result of this action and revenues shortfalls resulting from
the pandemic-related economic contraction, service reductions were made across the
organization – including fire and emergency services, police protection, library hours, and
community center programs. One-time federal relief funds mitigated some of these cuts.
As part of the FY 2023 Proposed Operating Budget, staff included a recommended allocation of
projected one-time excess funds to restore services previously eliminated. These include areas
such as police officers, fire services, support for the City’s community centers, children’s theater
productions, library hours, and support for the City’s current and long-range planning efforts.
Voter approval through this ballot measure can help sustain ongoing funding of these services,
should future Councils so direct.
New Business Tax
Business Tax Summary of Analysis (Attachment A)
The City Council directed staff in their April 25, 2022 meeting to research and evaluate the
impacts of business tax offsets for hotels and designated sales and use tax point of sale. Staff’s
research and analysis includes:
• Sales and use tax revenues where the reporting business designates the place where the
principal negotiations are carried on resulting in the City of Palo Alto as the point of sale.
• Transient occupancy tax (TOT) revenues.
To provide the Council with additional context for consideration and evaluation of the proposed
business tax rates and offsets, staff reviewed the City’s possible top five business tax payors to
determine the range of annual business tax to be paid as currently constructed.
Detailed discussion and financial impact analysis for the two business tax offsets and the
possible top five business tax payors can be found in Attachment A.
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Potential Top Five Business Tax Payors
Using the CoStar real estate database and a variety of other online real estate resources, staff
researched and analyzed the potential top five business tax payors in the City and also surveyed
surrounding cities for their top five business tax payors to calculate the range of tax these
businesses would possibly pay if they were to operate in the City of Palo Alto.
In comparing Palo Alto’s range of annual square footage tax for the top five business payors
with other agencies, the low end of the tax range, $0.3 million, aligns with the cities of
Mountain View and East Palo Alto, using Palo Alto’s proposed rates. In contrast, on the high
end of Palo Alto’s range, the top business tax payor is estimated to pay $1.7 million in annual
business tax. If Mountain View’s top business tax payor were to operate in Palo Alto, this
business would pay approximately $7.3 million in business tax, assuming the monthly $0.12 per
square foot rate.
Financial Impact of Business Tax Offset for Sales & Use Tax
Council directed staff to research a potential offset for businesses that designate Palo Alto as
the point of sale for remittal of sales and use tax. Based on this review, the potential annual
business tax offset ranges between $1.3 million and $3.0 million across all businesses. When
fully implemented, the monthly $0.10 per square foot rate is estimated to generate gross
receipts of $22 million; this offset would reduce estimated gross receipts to range betwee n
$20.7 million and $19.0 million. Similarly, the monthly $0.12 per square foot rate is estimated
to generate gross revenues of $26 million; this offset would reduce estimated gross receipts to
a range of $24.7 million to $23 million.
Financial Impact of a Business Tax Offset for TOT or “Hotel Tax” Remittal
Council directed staff to evaluate the impacts of an offset for hotels based on TOT remittals.
Previously, staff had modeled a full exemption for business tax remittance for hotels. TOT is
imposed by the City and is paid by individuals staying at hotels within the City. Attachment A
details staff’s calculation of the financial impact of this offset, assuming a two -year phase in
beginning January 1, 2024, through FY 2028. After the two-year implementation, the potential
TOT Business Tax offset ranges from $1.4 million to $1.8 million through FY 2028. Based on
these calculations and compared to projected TOT revenue, hotels operating in the City will
effectively offset their Business Tax obligation if every $1 in TOT receipts offsets every $1 in
Business Tax liability; one hotel would only be able to offset approximately 50 percent of their
Business Tax obligation with this credit and would be responsible for the remaining tax liability.
Estimated business tax revenues totaling $22 million (monthly $0.10/sf) and $26 million
(monthly $0.12/sf) included the hotel exemption. This offset would not change these estimated
totals since remittance of TOT is higher than the estimated business tax to be paid.
Business Tax: Ballot Question, Initial Draft Ordinance, & Key Policy Questions (Attachment B)
As directed by Council in April, staff has prepared an initial draft of a potential ordinance
creating a new Business Tax (Attachment B). This ordinance, in outline form, was posted to the
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City’s webpage along with a blog post and discussed as part of a recent focus group to solicit
feedback from stakeholders. Although substantially complete there remain some policy
questions for the Council’s consideration which are highlighted below. Otherwise, the draft
was prepared based on the most recent direction and outline of terms in the table below as
directed by the Council and informed by feedback from stakeholder engagement.
TABLE 3: Summary of Business Tax Characteristics
Purpose Allocated to the General Fund for general government purposes, without a
sunset
Calculation Measured by square feet
Rate
• $0.10/sq ft/mo or $0.12/sq. ft. per month
• 2-year phase in
• 5% CPI cap, excess carrying over to future years
• Penalties and interest to be assessed for non-compliance
• Continue current Business Registry Certificate Program for all eligible
businesses
Exemptions
The following would be exempt from payment of the tax
• First 5,000 square feet of all businesses
• Grocery or Supermarket stores
• Seasonal businesses operating less than 90 days
Offset/
Credit
Qualifying businesses may apply annually to the Tax Administrator to offset up
____% of the business’s Business Tax obligation as follows
• Remittance of hotel tax receipts, aka Transient Occupancy Tax (TOT)
• Remittance of sales & use tax designated by a point or place of sale that has
discretion
• Vacant space
Council
Authority
Designate authority for the City Council to adjust rates or other provisions in
any manner that does not increase the tax.
Policy questions for Council consideration and direction that are stipulated in the draft
ordinance are highlighted below. Direction from Council either affirming staff’s
recommendation or amending is an important part of the Council’s d ecision making as part of
this item. This direction will be included in a final revised full text ordinance for the Council’s
final vote and direction if the Council desires to place this on the ballot for voters’
consideration.
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A) Effective date and timing of tax assessment
• Recommendation: Staff recommends that the tax and any offset/credits be assessed in a
retrospective manner, no less frequently than once a quarter. For example, the tax
assessment including any offsets for the January-March period would be due within 30
days of the close, or April 1-April 30. Tax remittance would be determined delinquent if
received on or after May 1. Council may choose the effective date of the tax itself; staff
recommends a date no earlier than January 2023 and as stated before, does not expect
to be able to administer the tax until January 2024 should voters affirm this measure in
November 2022. This means that taxes incurred during calendar year 2023 would be
due in a lump sum in early 2024.
• Alternatives: Annual prospective assessment: the tax would be assessed and due within
the first 30 days of the tax year and would cover the tax for the coming 12 months. For
example, the tax assessed in January 2021, would be for the period of January 2021
through December 2021. Offsets could either 1) be estimated for the same 12-month
period and reconciled based on actuals, or 2) reflect actual receipts from the prior 12
month period. A prospective assessment alleviates the risk that a business could leave
Palo Alto part way through the year without paying the appropriate tax for the partial
year of operations. However, the stable data that a retrospective assessment affords
coupled with a quarterly billing to mitigate the risk of tax leakage during a final year of
operation balances the options.
B) Treatment of vacant property for tax assessment
• Recommendation: Staff recommends that the tax be established to address vacant
property in the following ways:
o Vacant property shall not be assessed as part of the tax. Businesses that own or
control (lease) square footage that they are not using would report that vacant
square footage and apply for an offset/credit.
“Vacant” is to mean a severable portion of the physical location that a business is
operating, such as an entire floor, a building, or a portion of a floor with independent
entrance/exits, that is free from any use, fixtures, furniture, and equipment, and is
available for immediate use by a new tenant.
• Alternatives: Staff explored whether the tax ordinance could be applied to all square
feet that are currently owned or controlled by a business, regardless of whether in
active use. Staff does not recommend this approach because the proposed Business Tax
uses square footage as a measure of taxable business activity in Palo Alto. Vacant and
unused square footage does not correspond to business activity.
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C) Calculation of square feet for a business with multiple locations and/or facilities
• Recommendation: Staff recommends that should a business operate at multiple
locations, the calculation of square feet be the aggregate of all locations in Palo Alto.
This situation may apply to various types of activity, including large corporate campuses
with multiple buildings and addresses of operation, as well as smaller operations that
may operate locations in various shopping centers. In any of these instances, the total
square footage of all locations of the business would be aggregated, the aggregate of
any offsets would be applicable, as well as the first 5,000 square feet of the aggreg ate
total would be applied once to the aggregate total as opposed to each individual
location.
• Alternatives: Square feet could be calculated by each individual facility. In this instance,
if a business has three locations of 7,000 square feet each, the bu siness would be taxed
on 6,000 square feet instead of 16,000 square feet. Staff will develop definitions and
standards for determining businesses with common ownership that are truly separate.
D) Shall residential property/use be included in the calculation of square feet?
• Recommendation: Staff considered businesses that are engaged in the activity of
providing residential property for rent and businesses that provide housing in
conjunction with services (such as assisted living and other congregate housing
facilities). Staff recommends that the calculation of square footage exclude actual living
areas (such as apartments and bedrooms) but include all common areas and areas
where commercial services are provided, or administration occurs. Therefore,
businesses such as apartments or congregate living facilities would be taxed on the
square feet of common areas, administrative offices, and areas where services are
provided; areas solely for individual or family sleeping/living/cooking/hygiene would be
excluded.
• Alternatives: All square feet of a residential property business, including those facilities
with square footage solely used for individual or family sleeping/living/cooking/hygiene
could be included in the calculation of square feet for assessment of th e tax. This action
would likely increase the estimated gross receipts from levels provided to the Council
thus far, as staff has been excluding any residential property in calculations based on
prior direction for assessment on commercial activities. Another alternative could be to
simply exempt all residential property including common areas which would result in
the near exemption of all apartment operations as well as likely assisted living facilities
businesses. Other cities do include businesses such as apartments or property
owners/managers in their tax calculations, however, it is typically based on number of
units, total lease revenues, or headcount of staff employed by the business.
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E) Calculation of square feet for a property management type business: commercial
developer, property manager, etc.
• Recommendation: Staff recommend that a property manager’s tax obligations relating
to unleased developments or multitenant buildings partially occupied by property
management functions be limited to the space occupied by administrative offices and
operations.
• Alternative: Alternatively, the property management business’ tax obligation could
include the “common” areas or “services areas” that are unlikely to be assigned to a
specific lessee. The draft ordinance currently requires proportioning common space
among tenants, unless assigned to a specific business. In either case, only one business
would be responsible for tax associated with a given building space.
F) Offset/Credit Allocations
• Recommendation: Staff recommend that any offset/credit be able to adjust the business
tax assessment within the following parameters:
o Sales & Use Tax receipts 2:1 ratio: every $2 of eligible sales & use tax received
would offset $1 of business tax liability up to 75% of the tax liability.
o All other, such as TOT receipts or vacant space 1:1 ratio: for every $1 of hotel tax
remitted, $1 of business tax liability would be offset
• Alternative: For the Sales & Use or TOT offsets, Council could choose a different ratio or
cap than the staff recommendation above.
Business Tax: Resolution Identifying Intended Use of Tax Proceeds (Attachment C)
As outlined in April 2022 and directed by the Council on April 25, 2022, is preparing a draft
Resolution that the Council may choose to adopt in parallel with the placement of a potential
Business Tax on the November 2022 ballot. The Resolution will be published late-packet on
June 9. Currently proposed as a general tax, the priority uses of funds is not legally binding,
however, is a form of communication clearly identifying the intended uses of any tax proceeds
generated. The City Council has successfully honored its representations to voters with respect
to the change in the Transient Occupancy Tax rate (hotel tax), with all proceeds from a rate
change approved in 2014 and another in 2018 being dedicated to investment and completion
of the City Council 2014 approved Infrastructure Plan . TOT receipts have funded major projects
such as the new Public Safety Building, Bike & Pedestrian Plan, and the new parking garage in
the California Avenue district. Based on the Council direction, this draft Resolution will include
the following spending priorities:
- New/enhanced services, specifically investment in public safety services
- Investment in train crossing safety, and transportation
- Investment in affordable housing and unhoused services
- Investment in economic development support through support of University Avenue
and California Avenue streetscapes and placemaking work.
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STAKEHOLDER ENEGAGEMENT
The Ballot Measure Workplan integrates stakeholder engagement through constituent polling
and extensive direct stakeholder outreach. Staff as gained valuable input and feedback to date
from the City Council, Finance Committee, community members, and the business community.
Per City Council direction, the City has engaged with FM3 to perform polling, Lew Edwards
Group for stakeholder engagement planning, and the Public Dialog Consortium (PDC) for
stakeholder engagement.
Updates to fiscal sustainability community engagement
Since April, staff continue to implement the various tenants of the community and stakeholder
engagement plan. In the last two months, staff have updated the Fiscal Sustainability
Webpage, engaged in Community group information presentations, and hosted a focus group
for feedback on the draft ordinance. In addition, staff have publishe d blog posts, provided
online information and continued to make the survey responses available. Lastly the City did
complete a third round of polling. Polling results will be brought forward in a late packet
memorandum on June 9.
The Fiscal Sustainability: A Community Conversation webpage was updated for the most
current actions by the City Council as well as the documents that have been released to date.
Most notable, a blog post issued May 19, 2022 here as well as the posting of a community
information presentation here and the draft ordinance for the public’s review here were
provided. Staff have been reaching out to large community groups offering to provide an
informational presentation on the Fiscal Sustainability Plan including its nexus with the FY 2023
Budget process, with the presentation linked above.
Ongoing community feedback and focus groups (Attachment F)
On May 19, 2022, staff held another facilitated focus group with businesses, spe cifically to
receive feedback on the draft ordinance that was provided in advance of the meeting.
Attachment F is a memo from the Public Dialogue Consortium (PDC) summarizing this
conversation. Feedback from this group was considered in preparing the dra ft ordinance. There
was significant discussion in this focus group on how various types of space would be taxed,
including commercial leased space, unused space, vacant space listed for lease, and residential
leased space. There was discussion of offsets, the measurement of square footage, the
treatment of businesses with multiple locations, and the treatment of buildings with multiple
businesses. Staff have worked to incorporate feedback in the draft ordinance and in the key
policy questions for Council direction above.
Community Feedback Survey (Attachment E)
The fiscal sustainability survey has remained open and the updated results are included in
Attachment E. As of June 1, 2022, over 433 respondents had engaged with this feedback tool
assisting staff in crafting both the priorities in the FY 2023 Proposed Budget as well as the
priority areas for investment should a tax measure pass. The community feedback is
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summarized in Attachment E and remains in line with feedback provided prior to April 7, 2022.
Only 39 new responses were received between April 7th and June 1st.
RESOURCE IMPACT
Staff and Consultant Resource Impacts
Implementation of this workplan to develop a revenue generating local ballot measure has and
continues to require significant resources that include internal staff, consultant expertise, and
stakeholder engagement. This initiative has required an average of the equivalent of
approximately two full time dedicated staff positions, however, in recent months and at
present have presented a significant increase in staffing resources including significant focused
executive support from multiple members of the Executive Leadership Team. This has impacted
progress on other projects as this work has been prioritized over others.
The City Council appropriated funding for this activity as part of the FY 2022 Preliminary 1st
Quarter and subsequent actions. Through Council approved budget amendments of $270,400,
additional resources supporting this major project include:
▪ Community & Stakeholder Engagement: Lew Edwards Group, $101,695 Council
approved on 11/15/2021, CMR 13626
▪ Public Opinion Polling: Fairbank, Maslin, Maullin, Metz & Associates (FM3), $113,500
Council approved on 4/4/2022, CMR 14078
▪ Outside Legal Counsel: Javis Fay LLP, $25,000
▪ Miscellaneous printing and mailing
Ballot Measure Placement Resource Impact
The Santa Clara County Registrar of Voters (ROV) estimates that placing two measures on the
November 2022 election ballot will cost approximately $172,000, or $86,000 each; this is
revised from the initial estimate of $80,000 per six page measure based on new fees as
published by the ROV. When combined with the planned Councilmember elections and
assuming two ballot measures, the total estimated cost is $333,000 for the November 2022
election. Appropriation for these funds was brought forward in the FY 2023 Proposed Budget
at the prior estimate of $320,000, depending on the final direction, staff may need to
appropriate additional funds.
Ballot Measure Revenue Generation Resource Impact
The revenue generated by a potential ballot measure will be directly impacted by the structure
and rates approved by the City Council. The revenue estimates are summarized below:
▪ Affirmation of the Gas Utility Transfer: $4 million
This would affirm the current practice of inclusion of this expense in the development of
gas utility rates and would not increase gas rates beyond existing forecasted changes.
Current gas utility rates for residential customers remain below comparators such as
PG&E. Additional information on gas rate comparisons can be found in the FY 2023 Gas
Utility Financial Plan.
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▪ Business Tax: approximately $19 to $26 million gross revenues, annually
The total gross revenue will depend on the rate of taxation as well as the offsets/credits
and exemptions the Council decides to include. This overall would establish a new tax
and revenue to the City’s General Fund where they can be spent on any general
government purposes. That decision will be made each year by the sitting Council,
however, examples of priority investments are outlined in the draft resolution in
Attachment C as directed by the City Council. Administrative costs to collect and
implement the tax will impact available funds for spend and administrative expenses are
estimated to range between $500,000 and $1 million depending on the tax.
TIMELINE
Ballot Measure(s) Workplan Timeline
June 2022
Council:
- Receive and review results of third and final round of polling
- Review and provide direction on draft full ballot language and ballot
questions for potential ballot measure(s)
- Review and provide updates on additional analysis, comparisons, policy
questions and calculations for additional offsets/credits
- Provide final refining direction to staff for official action at the end of June
Staff Work:
- Finalize documents for Council approval
- Continue to provide and support community group information sessions
Council June 20, 2022:
- Final Approval of November 2022 Ballot Measure(s) for voter consideration
August 2022
Staff work:
- Language submitted to Santa Clara County Registrar of Voters including:
o Ballot question(s) (a clear, accurate statement that describes what the
measure will do, not to exceed 75 words) (Due August 12, 2022)
o Full text of the measure(s) (Due August 12, 2022)
o Impartial analysis of the measure prepared by the City Attorney (Due
August 23, 2022)
o Arguments for & against (Due August 16, 2022, rebuttal due August 23,
2022)
November
2022 Election
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ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in the
CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or
reasonably foreseeable indirect physical change in the environment.
.
Attachments:
• Attachment11.a: Attachment A - Business Tax Research and Analysis
• Attachment11.b: Attachment B - [placeholder]
• Attachment11.c: Attachment C - [placeholder]
• Attachment11.d: Attachment D - Ballot Measure Affirming Gas General Fund
Transfer
• Attachment11.e: Attachment E - Summary of Online Survey Responses
• Attachment11.f: Attachment F - Report from PDC re Addtl Focus Groups
• Attachment11.g: Attachment G - Summary of Prior Work on Potential Revenue
Generating Ballot Measures
• Attachment11.h: Attachment H - [placeholder]
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ATTACHMENT A
Square Footage Business Tax Additional Research and Analysis
Through the City of Palo Alto’s exploration of a potential business tax, on April 25, 2022 (CMR 14316),
the City Council directed staff to continue pursuit of a ballot measure to establish a square footage
business tax and to research and evaluate the impacts of allowing the following business tax offsets:
1) Transient occupancy tax (TOT), and
2) Sales and use tax revenues where the reporting business designates the City of Palo Alto as the
point of sale.
Using the CoStar database (referenced and presented in detail on November 8, 2021, CMR 13687, p.
115), this attachment presents research and analysis for the City’s possible top five business tax payors
that includes the dollar range of revenue, percent of total revenue these businesses may potentially pay
in business tax, and comparisons with the top five business tax payors in surrounding agencies. This
attachment includes:
1) Top Five Business Tax payors
• Comparison to surrounding agencies
2) Business Tax revenue impact, including scenarios/options for:
• Potential offset TOT remittal
• Potential offset for designated point of sale for sales and use tax offset
Potential Top Five Business Tax Payors
To provide the City Council with additional context for consideration of a potential business tax
measure, staff researched and analyzed the potential top five business tax payors in the City and
surveyed surrounding agencies to order of magnitude for the proposed Business tax. This research and
analysis is presented in Table A1: Possible Top Five Business Tax Payors – Palo Alto and Other Agencies.
Using the CoStar database and internet searches, staff calculated the City’s possible top five business tax
payors, should this proposed measure be passed by voters. In Palo Alto, the Business tax assessment for
each of the five businesses is estimated to range between $320,000 and $1.4 million based on the
monthly $0.10 per square foot, and between $380,000 to $1.7 million based on the $0.12 per square
foot monthly rate. Additionally, the proposed Business tax assessed on the top five businesses account
for 20 percent of total estimated Business tax revenues. In Palo Alto, the square footage for these
businesses ranges from 270,000 to 1.2 million square feet in size.
To provide additional context, staff surveyed surrounding cities that shared local or economic
similarities such as types of businesses that operate within that city, basis for tax and how the tax is
calculated, and/or whether the tax was modernized via recent tax measure. The Tax Range, shown in
the second column of Table A1 calculates the tax range for the top five businesses, based on Palo Alto’s
current proposed Business tax rate structure. This table includes the following information:
• Square Footage Tax Range: the range of tax each of the top five business tax payors in Palo Alto
other surveyed cities would pay, under the current business tax proposal.
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ATTACHMENT A
• Other Agency Tax Range / Estimated Rate per Square Foot: the range of tax each of the top five
business tax payors in other cities pay; the estimated rate per square foot, based on the range
of tax each of the top five businesses pay and estimated building size.
• Percent of Total Business Tax Revenue / Total Top Five: percent of total business tax revenue
remitted by top five payors and total amount remitted.
• Estimated Building Size: based on real estate data base searches
• Total Annual Business Tax: FY 2021 business tax revenue reported by the surveyed city. FY 2021
is Mountain View’s second year of a three-year implementation of the 2018 business tax
measure. Table A1 assumes the amounts for a full year.
Calculations in Table A1 assume:
• Full monthly tax rate of $0.10/sf and $0.12/sf after two-year phase in
• Exemptions that are currently proposed by Council (5,000 square feet, grocery stores)
• Calculated tax before possible offsets for transient occupancy tax and/or remittance of sales and
use tax point of sale
Table A1: Possible Top Five Business Tax Payors – Palo Alto and Other Agencies
Square Footage
Tax Range
(Palo Alto Rates)
Other Agency
Tax Range / Est.
Rate per SF
% of Total BT
Revenue /
Total Top 5 Est. Bldg. Size
Total Annual
Business Tax
Palo Alto
Square Footage $0.3M-$1.7M n/a 20% / $4.3M-
$5.2M 270K-1.2M sf $22M - $26M
Mountain View (a)
Employee Headcount $0.2M-$7.3M $0.2M-$4.0M
$0.55-$4.40/sf 77% / $4.8M 170K-5.1M sf $6.3M
East Palo Alto
Business Tax
Gross Receipts $137K-$2.0M $13K-$0.4M
$0.26-$0.50/sf 49% / $0.6M 119K-1.4M sf $1.2M
Parcel Tax (b) $0.2M-$0.3M $0.4M-$0.5M
$2.50/sf 100% / $1.7M 165K-213K sf $1.7M
San Jose (c) n/p $0.2M (cap) %n/p / $0.8M n/p $70M
Notes:
(a) 2018 measure included a three-year implementation. FY 2021 is the second year of implementation; amount presented
assumes fully implemented tax.
(b) Top four parcel tax payors were provided.
(c) San Jose uses Employee Headcount as tax basis, Number of Rental Units (housing) and Square Footage (commercial
landlords). The general business tax has a $166,311.35 cap; six businesses pay this cap amount.
n/p = Not Provided
To compare the proposed business tax structure to other agencies, staff researched real estate
databases for the estimated square footage for the possible top five square footage business tax payors
for the City’s and other agencies. The estimated business tax to be paid by each of the top five
businesses was calculated using the business tax structure detailed in Council’s April 25th motion,
excluding possible hotel and/or sales and use tax offsets. If passed by the voters in November 2022, Palo
Alto’s top five businesses would pay a range between $0.3 million to $1.7 million, which would
represent approximately 20 percent of total business tax revenue.
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ATTACHMENT A
In comparison, the top five business tax payors of Mountain View pay between $0.2 million to $4.0
million, which comprise approximately 77 percent of total business tax revenue. If Mountain View’s top
five business tax payors were to operate in Palo Alto under the current proposed square footage tax
structure, these businesses would pay a range between $0.2 million and $7.3 million. While the low end
of the range is consistent with Mountain View’s business tax, based on Palo Alto’s rates, the high end of
the range ($1.7 million) is 75 percent lower than Mountain View’s top payor would be taxed using Palo
Alto’s rates ($7.3 million). As a percentage of total business tax revenue, 20 percent of Palo Alto’s
estimated annual business tax revenue is from the top five payors, while 77 percent of Mountain View’s
annual business tax revenue is from their top five payors.
Staff also compared the proposed business tax with East Palo Alto’s business tax and parcel tax. Using
Palo Alto’s proposed business tax structure, the ranges the top five business tax payors and four parcel
tax payors in East Palo Alto would pay are similar, between $0.3 million and $2 million. As a percentage
of total business tax revenue, close to 50 percent of East Palo Alto’s business tax revenue is derived
from their top five payors; this is 30 percentage points higher than Palo Alto’s estimate.
Financial Impact of Business Tax Offset for Sales & Use Tax
The City Council directed staff to research a potential offset for businesses based on remittance of sales
and use tax where the point of sale is designated in Palo Alto. The California Department of Tax and Fee
Administration (CDTFA) highlights key sections of the Revenue and Taxation Code that discusses sales
and use tax law. In addition to typical “brick and mortar” sales tax imposed on goods sold directly to
consumers, equipment and products sold to businesses, regardless of whether the business purchasing
the good is located within the boundaries of the City, are also subject to sales tax. The business to
business segment includes categories such as office and electronic equipment, business services, and
leasing activities. According to the Sales Tax Digest Summary for Calendar 2021 Q4 (CMR 14262), close
to 30 percent of the City’s total sales tax revenue is attributed to business to business activity. In
comparing this to the statewide and San Francisco Bay Area percent of total sales tax, the City’s business
to business segment is approximately 13 percentage points higher than the state and 7 percentage
points higher than the San Francisco Bay Area (see Attachment A, Chart 1). Chart 7 and Chart 8 in this
report provides a break down and analysis of the percent change for the business to business section by
comparing to other cities in Santa Clara County and by geographic area in the City.
Staff and the City’s sales tax consultant reviewed data for the fourth quarter of calendar year 2021 by
reviewing estimated business to business sales and use tax for all businesses with a sales tax permit.
Based on this review and as summarized in Table A2, the potential annual business tax offset ranges
between $1.3 million to $3.0 million across all businesses. When fully implemented, the monthly $0.10
per square foot rate is estimated to generate gross revenues of $22 million; this offset would reduce
estimated gross receipts to range between $20.7 million and $19 million. Similarly, the monthly $0.12
per square foot rate is estimated to generate gross revenues of $26 million; this offset would reduce
estimated gross receipts to a range of $24.7 million to $23 million.
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ATTACHMENT A
Table A2: Business Tax Offset for Designated Point of Sale Sales and Use Tax
Estimated Annual
Business Tax Range of Offset
Net Annual Business Tax
Revenue
Monthly $0.10/sf $22M $1.3M-$3.0M $19M-$20.7M
Monthly $0.12/sf $26M $1.3M-$3.0M $23M-$24.7M
Based on staff’s calculation of the possible top five business tax payors and compared to this sales tax
data analysis, should the City Council elect to include a business tax offset that is based on a business
operator that has the discretion on where the reporting business designates the place where the
principal negotiations are carried on resulting in the City of Palo Alto as the point of sale, the top five
business may be eligible to offset in part or in full their business tax liability. As noted in the policy
questions in the staff report, the Council may choose to adjust the level of offset/credit by establishing
an overall cap (e.g. a business may offset business tax up to 75 percent of the business tax liability),
and/or a ratio of sales and use tax remittance to offset Business Tax (e.g. $2 of sales & use tax offsets $1
of business tax). If instituted, a threshold or ratio may lessen the impact of the offsets on gross business
tax receipts.
Financial Impact of Business Tax Offset for Transient Occupancy Tax (TOT) or “Hotel Tax” Remittal
During the April 25th meeting, Council directed staff to evaluate the impacts of an offset for hotels based
on TOT remittance (Council meeting minutes). Previously, staff had modeled a full exemption for
business tax remittance for hotels. An individual staying at hotels within the City, referred to as a
transient, is subject to a 15.5 percent TOT that is imposed by the City and based on the hotel rate paid
by the transient (PAMC 2.33.020). Within the past decade, voters have approved two ballot measures
(2014, 2018) to increase the TOT rate to support the 2014 Infrastructure Plan.
Staff presented the Finance Committee with analysis and the potential financial impact regarding an
exemption for hotels and grocery stores (CMR 13981). The aggregate estimated business tax revenue
from hotels, based on CoStar data previously presented to Council is presented below. This calculation
assumes the first 5,000 square feet is exempt and applies a monthly rate of $0.10 and $0.12 per square
foot.
Table A3 below calculates the financial impact of the TOT remittance offset assuming a two-year phase
in beginning January 1, 2024, should the business tax be approved by voters in November 2022. Also
assumed in the below calculation is the exemption for the first 5,000 square feet, calculations for both
monthly rates of $0.10 and $0.12 per square foot, and an annual 3 percent CPI beginning July 1, 2026.
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ATTACHMENT A
Table A3: Business Tax Offset for Transient Occupancy Tax Remittance
Assumes Business Tax is imposed beginning January 1, 2024, over a two-year phase in, and assumes an
annual 3% CPI beginning January 1, 2026.
FY 2024 FY 2025 FY 2026 FY 2027* FY 2028
Est. Annual Business Tax
Monthly $0.10/sf $360 $1,080 $1,440 $1,480 $1,520
Monthly $0.12/sf $430 $1,290 $1,720 $1,770 $1,830
TOT Revenue** $23,580 $27,900 $28,820 $29,700 $30,830
*3% CPI begins July 1, 2026 to align CPI calculation with fiscal year
**Source: LRFF Base Case (January 10, 2022, CMR 13800)
Based on CoStar data previously presented to Council (CMR 13875, Attachment A) and after the two-
year implementation, the potential TOT Business Tax offset ranges from $1.4 million to $1.8 million
through FY 2028. Based on these calculations and compared to projected TOT revenue, while the
majority of the hotels operating in the City will effectively offset their Business tax obligation, there is
one hotel that will only be able to offset their Business tax obligation by half.
Based on the City’s Long Range Financial Forecast (LRFF) that was transmitted to the Council on January
10, 2022 (CMR 13800), business and other leisure/non-leisure travel has experienced significant
reductions in recent years due to public health orders, travel restrictions, and diminishing business and
personal travel plans resulting from the pandemic. TOT revenues sharply declined from pre-pandemic
levels of $25.6 million in FY 2019 to a low of $4.9 million in FY 2021. The FY 2023 Proposed Budget
estimates TOT revenues to be $18.2 million. As public health conditions improve and travel resumes and
with the opening of two Marriott hotels in FY 2021, TOT revenue is anticipated to recover and grow,
however the FY 2023 estimate remains to be approximately 30 percent lower than pre-pandemic
revenue levels of FY 2019. Based on the LRFF base case scenario, TOT revenue is expected to return to
pre-pandemic levels within two or three fiscal years (FY 2024 and FY 2025).
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PLACEHOLDER
Attachment B: Draft Business Tax Ordinance and Ballot Question
This attachment is expected to be released on June 9th in a supplemental report.
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PLACEHOLDER
Attachment C: Draft Non-Binding Resolution Regarding
the use of Potential Business Tax Proceeds
This attachment is expected to be released on June 9th in a supplemental report.
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Attachment D
Draft – Not Yet Approved
Ballot Measure Affirming Gas General Fund Transfer
Ballot Question
Shall the measure affirming the City of Palo Alto’s existing and
decades-old practice of annually transferring no more than 18%
of the gross revenues from the City’s natural gas utility
(generated by the City’s retail natural gas rates) to its general
fund to support general city services such as libraries; climate
change reduction; transportation; police, fire, emergency
medical, and 9-1-1 response; providing approximately $7 million
annually in existing revenues until ended by voters, be adopted?
YES
NO
Ordinance
Chapter 2.28 “Fiscal Procedures” of the Palo Alto Municipal Code is hereby amended by adding Section
2.28.185 as follows:
Section 2.28.185 Gas Utility Transfer
Each fiscal year the City Council may transfer from the gas utility to the general fund an amount equal to
18% of the gross revenues of the gas utility received during the fiscal year two fiscal years before the
fiscal year of the transfer. At its discretion, the City Council may decide to transfer a lesser amount. The
projected cost of the transfer shall be included in the City’s retail gas rates as part of the cost of
providing gas service.
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ATTACHMENT E
Summary of Responses to Online Community Feedback Survey
Status update, June 1, 2022
Starting February 15, 2022, the City provided an online feedback form regarding the City’s Fiscal
Sustainability efforts. Community members could rank their priorities for community services, provide
suggestions for additional service priorities, and pose questions about the City’s fiscal sustainability
efforts and revenue measures.
As of June 1, 2022, the Fiscal Sustainability Community Conversation survey may still be accessed.1
Survey Contents
Community members were asked the following questions:
The City of Palo Alto is engaging the community around long-term fiscal sustainability and community
priorities. Below are some of the key priorities Palo Alto residents have historically identified as key to
their quality of life. Please give us your feedback by ranking the following priorities from 1 to 8, with “1”
being the most important. We will review all comments to ensure that the City continues to address the
community’s priorities in its long-range planning.
1. Priorities to be ranked:
• Expanding City Services
• Maintaining basic services
• Improving services such as longer library hours
• Adding public safety services such as police, fire and emergency medical
• Investing in community-owned assets like roads and community centers
• Funding affordable housing and homeless services
• Repairing streets/roads
• Maintaining after school/summer youth programs
2. Suggestions for additional service priorities:
3. I have the following questions:
Survey Responses
There were 433 responses as of June 1, 2022 (242 online survey responses and 191 mailed survey
responses). The most highly ranked priorities for the survey respondents were “Maintaining basic
services,” “Repairing streets / roads,” “Investing in community-owned assets,” “Adding public safety
services such as police, fire, and emergency medical,” and “Funding affordable housing and homeless
services,” as shown in Table 1. Table 1 shows the percentage of respondents who ranked each priority
first, second, or third.
1 https://us.openforms.com/Form/07db0c33-8339-497b-839b-6aab75e1f635
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ATTACHMENT E
Table 1: Percentage of Survey Respondents Ranking Each Priority First, Second, or Third
There were 142 respondents who submitted suggestions for additional service priorities or additional
comments and questions via the online survey. The complete comments are included at the end of this
attachment, but in summary:
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ATTACHMENT E
• 44 respondents wrote comments supporting funding for Lucie Stern Theatre facilities and
staffing. Of these, 3-5 appeared to be duplicate submittals.
• 20 comments related to investments in various other types of City infrastructure
• 15 comments related to increasing policing, including code enforcement and traffic
enforcement
• 14 comments related to climate action, with a couple of comments opposing City action.
• 6 comments related to affordable housing or homeless services, with a couple of comments
expressing concern about setting affordable housing goals or homeless services.
• Other respondents wrote comments related to traffic safety, traffic congestion, road
maintenance, parking, expanding bicycle infrastructure and other alternative transportation
options, climate change (both in favor of and opposing action), electric grid reliability, fiber
internet, zoning, affordable housing, employee pension costs, community and human services,
and other topics.
There were 105 respondents to the mailed version of the survey who submitted additional comments or
questions. The complete comments are included at the end of this attachment, but to summarize:
• 21 comments related to infrastructure, with an emphasis on roads
• 14 comments focused on increased traffic enforcement, code enforcement, or policing in
general.
• 8 comments related to sustainability (climate change, tree canopy, alternative transportation)
• Other respondents wrote comments related to airplane noise, affordable housing, the animal
shelter, recreation services, fiber to the home, library hours, utility services, zoning, and service
levels in general.
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ATTACHMENT E
Comments from Online Survey
The following comments were submitted in response to the two open-ended survey questions for the online version of the survey.
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
1
Reducing pension and retirement benefit expenses
Switching to a 24/7 mental health crisis team approach like cahoots
using mental health and social workers. Police are only needed if there
is a threat of violence which is rarely the case. We could save so much
money with this approach.
Fiber to the Home; Undergrounding utilities as promised so many years
ago. Increasing police response to gangs stealing from stores - there
doesn't seem to be much effort here at all.
New Animal Shelter
This survey is poorly written. Most people want all of the above. But I
also want. to see ways to save money. We seem to be adding more
and more administrators and fewer people who actually perform the
work of caring for the city. Do we really need another assistant to the
City Manager? We need a new animal shelter which we could have
had for a fraction of the cost of the bike bridge. Increasing library
hours is so cheap - why isn't this a given? Let's get the police up to fill
strength - 79 officers and then decide to get more. The poor showing
of the police with only 59 officers does not mean that 79 is not
enough, esp. if we outsource mental health calls.
2
Support our downtown retail and business operations. They provide
the revenues needed to provide all services. They also provide the
vibrancy we all value.
Why does the Council not support businesses? We need them to
support our hotels, frequent our retailers, and provide quality jobs.
Why is the Council wanting to tax businesses now with a business tax
AND with a district tax?
Why doesn't the Council incentivize housing development by a
reduction its fees and an offer to expedite the permitting processes
instead of keeping those as the worst in the area and adding more
taxes to try and add housing itself?
4 Law enforcement to reduce property crime
5
Please focus on managing the City and prioritize its citizens.
Thanks for the survey.
6
Providing actionable resources to Eichlers to help with green related
retrofitting - for instance, I can’t find a non-gas powered boiler for my
radiant heating!
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
7
I would also encourage the City to scrub the budget and eliminate some
unnecessary items that cost too much. In my neighborhood, I can
mention the Ross Road street "improvement" that cost a lot, did not do
anything and created a lot of controversy.
Also we should aim to make projects less expansive, the pedestrian
overpass for 101 at the Baylands should not have costed more than
$10M, also the Mitchell Park community center should not have costed
as much and taken so long. The city needs to learn how to manage
these projects better.
8 Finish work at Shoreline Park
9 Close Churchill Ave Caltrain intersection. It is too dangerous for
pedestrians and bikes and cars!!!
10 providing access to Foothills park to mountain bikes through
Arastradero and create one bike trail (single track) in Foothill park
11
Stop forcing green energy initiatives on the residents, making it more
and more expensive to live in PA. These should be put to a vote by
residents, not forced by city council members who think more of
themselves in how they can get national publicity than supporting the
residents.
12
This should be at the top of the list:
Funding city's future obligations in terms of pensions, etc. I have heard
that we haven't funded these obligations anywhere near sufficiently.
What is the city doing to fund the future generous pensions that we
owe?
13
Delete the commercial zoning requirement, density, and height
requirements on most parcels along El Camino. Especially near
transportation.
Especially for affordable housing.
Increase zoning and density along Alma. Especially for affordable
housing .
14 As a subset re public safety, consider installation of additional speed
limit signage in our residential neighborhoods.
15
Please improve bicycle infrastructure! I see many others biking as I do
for transportation, but I often don’t feel safe next to cars on the main
road.
16 Preparing for flooding risk.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
17
Dealing with the City has become onerous. 10 years ago, staff were
responsive with fewer regulations to navigate. 10 years later, and
everything has become complicated - you need high-cost permits for a
generator or to get solar. You have fill out forms which are returned for
minor issues. Just cut out the red tape - please. And enforce city
regulations on leaving trash cans out, safety in walking downtown
(arrest people).
18 Affordable housing is a huge problem and we need better solutions.
19 It was a waste of taxpayer’s money for so-called improvement of Ross
Road.
20 Addressing climate change Is each city department maximizing each budgeted dollar?
21
A. The item, Maintaining basic services, should include preparing for
climate change, especially sea level rise, more frequent droughts and
global warming.
B. The item, Investing in community-owned assets ... , should include
providing broadband, i.e. fiber optic, internet service to the premises.
C. The item, Expanding City Services, should include providing better
intra-city commuter options to reduce the need for individually owned
cars.
D. The item, Repairing streets/roads, should include adding new bike
lanes and upgrading existing lanes to provide safe use.
22 Law enforcement
23 Free shuttle system
24 Increased policing and enforcement of traffic laws such as parking and
speed laws
25
Improved street signage and efficient street lighting.
Encourage CalTrans to improve El Camino road surface !
Consider levy of small city tax on all residents -- sliding scale based on
income, not to exceed $100 / year.
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Written
Comment
# Suggestions for additional service priorities: I have the following questions:
26
I recommend increasing police services to contain burglaries from
homes and businesses. Such crime must be addressed.
I emphatically do not recommend increasing fire services. They are
more than adequately funded and should be reduced to provide any
needed emergency medical services.
I would have given public safety services a higher ranking, but since fire
services was included it was given a lower priority.
27
Don’t just fix the potholes on El Camino redo the street material with a
mix of tires and asphalt to make them more resilient to the wear and
tear. Also can you please pay attention to Barron Park Streets they are
looking like very undeveloped countries
The Barron park section of el Camino is a disaster
28 City-funded housing and transportation services for seniors.
29
Putting electrical wires underground.
Replacing large lawn areas with native shrubs (but leaving areas for kids
to play).
30 Reduction of city management salaries. Find a hungry person to do it for
a fair price.
31
Why is Lucie Stern Community Center so underinvested compared to
Cubberley Community Center? It's a beautiful indoor + outdoor space
(and home to three award-winning performing arts companies that
Palo Alto should be proud to claim as its own!) that can benefit many
more community members, especially during COVID-19, if repairs and
upgrades are made to the facilities.
32
Make it more difficult for developers/speculators to demolish livable
housing to replace it with huge homes that are often not occupied. This
is why housing has become unaffordable. Increase incentives to
remodel/rehab existing housing stock. Build affordable/low income
housing in Palo Alto Square (not sure who owns that). Stop billionaires
from buying up multiple neighborhood houses and taking them out of
the housing market. Decrease the number of ghost houses.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
33
Do not spend any money on public art until all the potholes in the city
are fixed.
How much money is CPA spending on the fiber-optic project? Why is it
building this service when fiber optic is already being provided by
AT&T and Comcast?
Why is a fire engine dispatched along with an ambulance for every
emergency call?
34 Grade Separation on the SP tracks. You can't keep all the people happy
all the time. Subsidized Solar Roof plan for residents.
35 Ease traffic congestion and provide more parking.
36
First category above (expanding...) is too vague to be useful.
Cubberley should get sustained attention and investment, leading to
purchase from the school district and total renovation, funded by long
term bonds. It is a huge opportunity for the future and a pretty ugly
testimonial to our confused process and thinking in the present.
How do we compare to MV, RWC, Sunnyvale in per capita spending on
various categories. Can we find places where we are overspending
this way?
37 Nothing about utilities here. Improving the utility function is a very high
priority.
38
Missing from the list: RESTORE cut funding for multi-modal transportation projects, including foot-powered transportation safety, especially at
identified safety trouble spots on school commute routes. Before you "Add" public safety services, you need to restore what the city cut. The
item should read, "RESTORE public safety services." The survey language is not an honest representation of where we are and w hat adding funds
will really do. Restoration of cut services is not "adding" or "expanding" them. These are misleading options. What are "basic services", if not
police, fire, road repair, etc. Utilities? Waste collection? Street cleaning? Arborist? What? The average citizen won't know this. This second item
is vague and, in context of the rest of this list especially, requires explanation. This is a poor beginning to a listening exercise. I filled out the
priorities so the survey would let me go beyond this page. My prioritization is meaningless because the options you offer are inaccurate and
vague. My top priority, mentioned above, is not even on the list. How does one prioritize without understanding current budget constraints and
the cost of these items? Too little background information to understand trade-offs and make informed choices. So...what do you really mean?
Are we talking about restoration of cut services or adding services above the levels we previously had? Be more clear.
Additional Feedback: See above.
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Written
Comment
# Suggestions for additional service priorities: I have the following questions:
39
The City of Palo Alto has been doing mayor improvements in certain
areas, Loma Verde and Ferne, Charleston from Middlefield to El Camino
and beyond but nothing has been done in the Circles, I had asked for a
(ONE) STOP sign at the corner of Carlson Rd (coming from Charleston)
and Redwood Circle, a very dangerous outlet from my Carlson Circle
because of lack of view and speed on Redwood Circles and nothing has
been done, while there are bumps on streets that don't really need
them and gardens in crossroads that make them more dangerous for
pedestrians and children on bikes.
There is no police patrol near schools, example Fairmeadow. Very little
patrol on Alma and around the dangerous railroad crossing on Churchill.
Cars drive at 60 plus miles per hour on Alma.
Also Alma is a shame with trash cans all week long. I have to remove my
trash cans after they are serviced or somebody complains (I am 80 years
old, by myself) and Alma has trash cans always by the street that looks
terrible.
Why every neighborhood in Palo Alto does not get the same service?
Louise, Ferne, Amarillo ( the road finish on Louise and Amarillo is a
shame, already dirty, inadequate and I bet very expensive, it is
confusing a total waste of money), Loma Verde and Professor Ville get
all the improvements while the Circles get nothing, only high speed
cars and even School Busses cut from Alma at full speed on Lindero
and Redwood Circle. Why are there so much road construction on
Charleston and Alma (almost daily) and Alma in South Palo Alto. This is
just the beginning of my questions, I have gone to city meetings and I
was never chosen to talk.
I have to also say that the police department was great during my
husband long illness, for about three years, they came to our house to
lift him from the floor, they took him to the hospital, they were always
helpful, and correct. Thanks to them.
40
I am concerned about the conflict between cars and bikes on the
Bryant Street Bike Boulevard between Embarcadero and downtown.
We have been promised a traffic circle and or other measures for
slowing cars. What is the status of the traffic circle at Kingsley and
Bryant Street?
41 Add more police budget to make the residents feel safe.
42 Decide what to do with Cubberley
43
Public safety is by far the highest priority. Besides "police, fire and
emergency medical", additional measures for improving public safety
will also be important, e.g., community watch, using technology to
improve automated surveillance...
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
44
Properly funding the trust funds for retiree pensions and medical
benefits should be higher than all the priorities you've listed above.
That's the most critical element in achieving fiscal sustainability. The
fact that you left this off your list really worries me.
We're seeing a big uptick in crime, and many minor crimes are not
followed up on by the police, leading citizens to stop reporting all of
these incidents. Thus, I believe that the current crime statistics
undercount the true problem. Job #1 for our local government should
be maintaining order and taking actions that discourage crime.
As I mentioned in suggestions above, I still can't believe cities like Palo
Alto have made promises to retirees (pensions and medical benefits)
that are not fully funded. This is a time bomb that will come back to
bite us later on, causing a big decrease in non-essential services. I
recommend we tackle this problem responsibly.
45 More funding for adult community classes
46 Traffic enforcement.
Improve tree program - natives
47 Get a nighttime curfew for planes out/into SFO, like San Jose.
48
You'll never be able to build enough new housing in our built-out city to
even make a dent in housing costs, let alone make it 'affordable.' Don't
further bankrupt the town in this futile endeavor. Every additional
housing unit does not bring in the revenue to cover the cost of its
increased services.
49
Stop digging up the Charleston/Arastradero corridor every year! You
keep working on it, wasting money, causing traffic jams - and make it
harder to drive and bike (yes, I do both).
50
Funding for task force to identify and eliminate local zoning regulations
blocking dense housing development.
Increasing mass transit options.
What percentage of emergency services are for police vs other
emergency departments?
51
I believe that all City of Palo Alto efforts related to climate change
should be terminated. The existing programs will have no measurable
impact on CO2 levels in the atmosphere, but will have measurable and
adverse impact on the city's fiscal health. Those people who work in
the programs can be re-directed to higher priorities, which I rank above.
52 We also need to find funds to work on climate change
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Written
Comment
# Suggestions for additional service priorities: I have the following questions:
53
I would like to understand how the city is measuring current program
effectiveness and estimating cost effectiveness of new programs. For
example, it's hard to know if we need to spend more on
police/fire/medical unless we know how well those services are
currently performing now and how much it would cost to make them
better buy some increment.
Also, many of these questions seem to assume the conclusion. For
example, "Funding affordable housing and homeless services" is a
solution, while, "increase housing affordability and reduce
homelessness" is the goal. You can increase housing affordability by
reducing building restrictions, no additional funding required. And are
there any proven cost effective programs for reducing homelessness?
What is the formal measurement process the city is using in evaluating
service levels and cost effectiveness of potential improvements?
54
For the Lucie Stern Community Theater:
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern
Community Theater
55
City-owned facilities such as Lucie Stern Center are important assets and
need to be maintained as much as libraries or fire stations. This is more
valuable in my view than building a new police building.
Many of the above priorities are overlapping!
56
I specifically think Palo Alto should invest in our grid. It's a durable
community asset, and it supports our sustainability goals through
electrification.
57
It's difficult for me to rank these needs, one over the other......however I
would put funding improvements to the Lucy Stern Theater near the top
since it adds immeasurably to the quality of life in Palo Alto
Is it possible to sponsor a volunteer position for theater maintenance
with cooperation from Avenidas who has a rooster of engaged,
talented seniors?
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
58
Abilities United used to have a therapy pool that people with disabilities
and seniors could use. They no longer have that and Palo Alto could
really use a good hot therapy pool. It could be open to the public, and
not just disabled and senior people. There is such a big senior
population in this town and I don’t understand why there’s not more
facilities for seniors. Why don’t we have a functioning animal shelter?
Why doesn’t the city take better care of the streets and roads? Why
doesn’t the city take better care of the existing parks and facilities? We
don’t need another gym.
Why don’t we have a functioning animal shelter? Why doesn’t the city
take better care of the streets and roads? Why doesn’t the city take
better care of the existing parks and facilities?
59
I am particularly concerned about Lucie Stern Theatre. It is in dire need
of maintenance (e.g. seats, plumbing..), facilities upgrade (better
ventilation), and personnel to oversee its operation.
60 G
61 Lucie Stern Theatre1
62 We have beautiful community areas (Lucie Stern) that desperately need
funding. Please budget for maintaining the resources we have!
63
Addressing traffic congestion and noise pollution. Establishing and
Strictly enforcing noise controls from motorcycles and speeding cars at
night.
Having the Palo Alto police use their already extensive funds in
patrolling at night and break-in prevention tactics.
Maintenance of our public spaces and freeway corridors - our streets
and freeways are embarrassingly broken and dirty
These issues have become a major concern in the safety and quality of
life for us residents.
How are the current taxes and funds being utilized? How much is going
toward paying administrative overhead and city officials salaries vs
actual community services?
What is the effectiveness score of our police and city administrators
enforcing and implementing safety, noise control, community services,
infrastructure maintenance and clean streets?
64
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern
Community Theater
65
I am a resident of Stanford, not Palo Alto. But I would like to urge you
to adequately support the Lucie Stern Theater. Brian White, 881
Tolman Dr, Stanford.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
66
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern
Community Theater
Add more funds to the Children's Theatre to keep a vibrant community
treasure that helps our youth and builds self confidence
67
Lucy Stern Community Center Theatre needs maintenance. Further a
city employee needs to be assigned to oversee the theatre. This facility
is 100 years old and is showing its age and lack of recent maintenance.
68
Restore and repair the Lucie Stern theatre. It provides an important and
necessary cultural center for this university town. It's a legacy that
needs to be maintained and cared for.
69
I suggest that city staff opportunities for training regarding interaction
with citizens be made available. On two occasions, I attempted to get
answers to questions: (1) regarding marking parking spaces so drivers
would take up one instead of two spaces; and (2) repair of sidewalks.
The responses from city staff were inadequate, in my opinion. On
another occasion, when underground power was being installed in the
residential area south of University Avenue, communication from the
individual coordinating the operation was adequate. I think the quality
of communication should be less varied.
When will the overhead power lines be taken down, now that power is
delivered underground?
70 Refurbish Lucie Stern Theater
Move ahead on rebuilding Cubberley Community Center
71
Lucy Stern Theater is a vital resource for our well-respected, top-quality
community opera and theater companies, West Bay Opera and Palo
Alto Players, but it has been sadly neglected for many years, and is in
desperate need of plumbing, heating, and lighting upgrades, as well as
both basic maintenance and ongoing care.
72
Lucie Stern facility is in particular need of upgrade, having been around
for a century.
Seems that #1 and #3 in my choices have some overlap.
Affordable housing needs developer and probably city tax
incentives/subsidies. Might be a different type of investment than
other items
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
73
Allocate funding through the Capital Improvement Project for Lucie
Stern Community Theater facility upgrades.
Restore a theatre facilities manager position for the Lucie Stern
Community Theatre.
74
Palo Alto should invest in either a major remodel of Lucie Stern Theater
or build a new theater. The theater is worn out, its technology is
obsolete making it difficult for our wonderful theater companies to
work there, and it is too small. TheatreWorks won a Tony and many of
their performances are in Mountain View where they built a wonderful
new theater some years ago. We must invest in Palo Alto's wonderful
theater talent!
75
Attend to the need of maintenance of the Lucy Stern Theater and
Community Center. This is a gem and must be preserved. Many people
are affected by the opportunities presented here.
Put it in the budget.
76
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern
Community Theater
Arts are important to this - any! - community, and the 100 year old Lucie
Stern Theater is a landmark that deserves more respectful treatment
than it's currently getting. Those of us who produce those arts - plays
and operas for example - need your help.
77 Some of these categories appear to overlap. This means that answers
won’t be accurate.
78
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades and restore a theatre
facilities manager position for the Lucie Stern Community Theater.
79
Upgrading the Palo Alto electrical grid so that Electric cars, Electric
space heating and water heating can be adequately served. Perhaps
even finishing the promise to underground utilities while upgrading
them.
Let’s NOT build a Gym.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
80
Please keep in mind the needs of older citizens who no longer can get
around easily. The Downtown Library, for just one example, is one thing
that needs to be kept available to us.
81 Magical Bridge Playground maintenance, Lucie Stern Theater sets and
infrastructure, summer music concerts
82
Provide funding to maintain and upgrade the Lucy Stern complex.
Wiring and plumbing does age and wear out and no longer comply with
code. That can place its very existence in jeopardy.
83
Lucie Stern Theater and Community Center are most definitely in need
of upgrades. Please put funds toward these very valuable community
assets.
84
The school programs through Explore Online are not convenient for
double working parents from a timing perspective. Can we check how
population mix for parents have changed and adapt to it?
Are there reports on current state of infrastructure, crime rates etc.
which help understand current investment in defensive/maintenance
activities and what’s the right mix?
85
Who is benefitted by the after-school and summer youth programs?
Are lower income families appropriately subsidized for these
programs? Is the city working on solutions to the problem of people
living in RVs around the city? Why do I never see traffic law
enforcement any more - speeding and red light running with impunity,
creating dangerous situations for kids and adults?
86
Community assets such as the Lucie Stern Theatre have been allowed to
atrophy through lack of maintenance & cutting necessary staffing like
the theatre facilities manager. It should be much more of a priority to
preserve the city's heritage and existing facilities and services than to
constantly be on looking for new ways to spend tax revenue on splashy
& politically trendy new programs.
87 Repair & improve Lucie Stern theater & the Children’s Theater.
88 Repairs and improvements to Lucie Steen Community Theater are much
needed
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
89
The city needs to spend money rehabing Lucie Stern, rather than spend
money on street striping and building concrete barriers in middle of
streets.
There are a number of items that I consider VERY VERY low priority.
Hard to make them all a 10. Comments: city services - do not need any
more, think about reducing them. Long library hours - is this needed?
Funding homeless services - look how great the city did with the
Opportunity center. People were to stay there for a max of 2 years.
Residents do not want to/ do not plan to move. Maintaining after
school programs - is this a role for city or for PAUSD
90
3.5 Fiber internet Seeing an increasing number of homeless roaming around our
residential streets. What are we doing about it? Not sure why that’s
happening, but feel like there should be more planning and action
around that on a local, state and national level. More specifically I
worry about the mentally ill roaming my neighborhood where my kids
are. We spend so much $$ (mortgage and taxes) to live here that it
boggles the mind that the homeless can too and I can’t figure out 1.
why this is happening more so in the last few months, 2. There seems
to be no plan and 3. Why should we just accept all homeless people
who come? Does anyone have any good actionable ideas and the
ability to execute on those ideas?
91
Repair/Upgrade existing buildings especially:
Build New Animal Shelter
Maintain and upgrade Lucy Stern Theatre
Why are talking about new initiatives when we haven't taken care of
existing buildings and programs? We have no need of a new gym until
the Animal Shelter is improved and Lucy Stern Theatre Repairs and
Maintenance is insured. Why aren't the bathrooms at Lucy Evans
Interpretive Center open to hikers? Mt. View has bathrooms available
in the Baylands. We have them - we just don't want to maintain them.
92 Repairing, renovating city buildings, parks. Lucie Stern Center should be
made more friendly for its demographic -- over 60.
Why aren't we pushing back more on ABAG for its over the top
housing requirements for our City?
93
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern
Community Theater
Why are you pursuing a city gym facility over upgrading a community
jewel like the Lucie Stern Community Theater?
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
94
Lucie Stern theatre is in wretched condition. As a volunteer crew chief
for both Palo Alto Players and West Bay Opera I'm aware of the many
problems we face trying to put on a production. Broken seats,
insufficient lighting and electrical. Also rodent problems and filthy
catwalks for the follow spot operators.
If Palo Alto can fund a bike bridge that serves 100s, can't they fund a
theatre that serves
thousands?
95
I believe that public safety services are the most important. If the city is
not safe, people actually move out instead of moving into Palo Alto.
The reason why Palo Alto is such a desirable place is that it's safe for
families. Thank you so much for all the work that the police have been
doing.
96
The Lucie Stern Community Theater is in need of repair. For example,
the seats don't stay up, which is a hazard for people with less mobility.
There are also problems with the plumbing, heating, and lighting
systems.
Please allocate funding through the Capital Improvement Project (CIP)
for Lucie Stern Community Theater facility upgrades.
In addition, please restore a theatre facilities manager position for the
Lucie Stern Community Theater.
97
We would like more affordable options for renting space to conduct non
profit events such as bonsai shows. We'd like to be able to sell bonsai
to help fund the rental but the City of Palo Alto's interpretation of the
ruling regarding non profits and fundraising has made it quite
expensive.
I also like the idea I've heard of a city recreation center. I've been to rec
centers in other states that are really fantastic facilities with large lap
pools, climbing walls, racket ball facilities, etc. Wish we had something
like that here and affordable.
98 Improve Lucie Stern Auditorium.
99 Finish intended improvements to Park-Wilkie Bike Boulevard When will we learn what citizens cared most about?
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
100
With the important things above, it seems like the City has enough on
its plate. I have not done any home renovations, but neighbors who
have say the process is very inefficient.
Does the City consider reducing/modifying programs that do not work
well; make decisions based on some sort of representative user
feedback;?
Thanks for trying
101 Funding for adaptation to climate change
102 With pressure from the state to expand the population the city will
need to focus on maintaining service levels.
103
Why don't City workers work five days a week? Why were they
recently given more holidays? Why is the City Council seemingly more
concerned about
accommodating City employees than looking after the interests and
needs of Palo Alto residents? City Council members need to recognize
that they
owe a fiduciary duty not to City employees, or their unions, but City
residents.
104
Businesses have significant responsibility to fund housing. The jobs they
create causes the demand for new housing (which is always more
expensive than depreciated housing) and infrastructure to support
population growth (transportation, resources, schools, etc.,)
Parks and recreational spaces need to be supported.
How can we get the very wealthy businesses, including Stanford
University to pay for the value of the benefits they receive by being
here?
105
While local efforts to reduce carbon emissions and sustainability are to
be commended, I would NOT invest more in this area. Palo Alto is not
responsible for the environment alone, and the effort needs to be more
widespread to be effective. As a city, Palo Alto needs to focus on itself
first and foremost.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
106
Lucie Stern facilities especially the Theatre needs total do-over. The
toilets are ridiculously too small for a capacity theatre. The pavement is
dangerous to walk on when it is raining There is no inside access to
handicapped readily available without going outside to go down to the
lower door (ripe for being sued). There needs to be brick framework
near the front door built up as I watched an 80 year old stumble but
fortunately agile so able to stop from a serious fall. For a city with the
wealth of PA it is disgracefully maintained. Gorgeous though it may be
from the outside, the inside is tatty and downright rundown. Need
expertise to have a first rate theatre and children's theatre plus the
other rooms.... Do retain its charm but have a contest of architects and
do it now. I will gladly work to achieve this.
Why can't Theatreworks or the Players use the toilets int he Children's
theatre when they are open as well as all the other toilets, whether
there is a wedding or not.
107
Lucie Stern Theatre is in great need of upgrading. One major problem is
the need for additional bathrooms at this Community Center. When the
theatre is in full attendance and there is a wedding or other event there
are only 2 bathrooms for about 400 people to use at a 15 minute
intermission. We need more bathrooms here and in particular we need
to add gender neutral bathrooms so that women have equal access.
108 Improve Lucie Stern theatre.
109
The libraries should be consolidated into two locations, Mitchell Park
and Rinconada. Although controversial, this would free up money to
improve service at the two locations.
Building a new gym should not be given any priority. It was not being
considered until John Arrillaga offered a large donation. Now that his
gift is no longer available, and he won't be managing the project, the
idea should be postponed indefinitely.
110 Repairing, renovating city buildings, parks. Lucie Stern Center should be
made more friendly for its demographic -- over 60.
Why aren't we pushing back more on ABAG for its over the top
housing requirements for our City?
111
Allocate funding through the Capital Improvement Project (CIP) for
Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern
Community Theater
Why are you pursuing a city gym facility over upgrading a community
jewel like the Lucie Stern Community Theater?
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
112
Lucie Stern theatre is in wretched condition. As a volunteer crew chief
for both Palo Alto Players and West Bay Opera I'm aware of the many
problems we face trying to put on a production. Broken seats,
insufficient lighting and electrical. Also rodent problems and filthy
catwalks for the follow spot operators.
If Palo Alto can fund a bike bridge that serves 100s, can't they fund a
theatre that serves
thousands?
113
I believe that public safety services are the most important. If the city is
not safe, people actually move out instead of moving into Palo Alto.
The reason why Palo Alto is such a desirable place is that it's safe for
families. Thank you so much for all the work that the police have been
doing.
114
The Lucie Stern Community Theater is in need of repair. For example,
the seats don't stay up, which is a hazard for people with less mobility.
There are also problems with the plumbing, heating, and lighting
systems.
Please allocate funding through the Capital Improvement Project (CIP)
for Lucie Stern Community Theater facility upgrades.
In addition, please restore a theatre facilities manager position for the
Lucie Stern Community Theater.
115
We would like more affordable options for renting space to conduct
non profit events such as bonsai shows. We'd like to be able to sell
bonsai to help fund the rental but the City of Palo Alto's interpretation
of the ruling regarding non profits and fundraising has made it quite
expensive.
I also like the idea I've heard of a city recreation center. I've been to rec
centers in other states that are really fantastic facilities with large lap
pools, climbing walls, racket ball facilities, etc. Wish we had something
like that here and affordable.
116 Improve Lucie Stern Auditorium.
117 Finish intended improvements to Park-Wilkie Bike Boulevard When will we learn what citizens cared most about?
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
118 With the important things above, it seems like the City has enough on
its plate. I have not done any home renovations, but neighbors who
have say the process is very inefficient.
Does the City consider reducing/modifying programs that do not work
well; make decisions based on some sort of representative user
feedback;?
Thanks for trying
119 Funding for adaptation to climate change
120 With pressure from the state to expand the population the city will
need to focus on maintaining service levels.
121
Why don't City workers work five days a week? Why were they
recently given more holidays? Why is the City Council seemingly more
concerned about
accommodating City employees than looking after the interests and
needs of Palo Alto residents? City Council members need to recognize
that they
owe a fiduciary duty not to City employees, or their unions, but City
residents.
122
Businesses have significant responsibility to fund housing. The jobs they
create causes the demand for new housing (which is always more
expensive than depreciated housing) and infrastructure to support
population growth (transportation, resources, schools, etc,)
Parks and recreational spaces need to be supported.
How can we get the very wealthy businesses, including Stanford
University to pay for the value of the benefits they receive by being
here?
123
While local efforts to reduce carbon emissions and sustainability are to
be commended, I would NOT invest more in this area. Palo Alto is not
responsible for the environment alone, and the effort needs to be more
widespread to be effective. As a city, Palo Alto needs to focus on itself
first and foremost.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
124
Lucie Stern facilities especially the Theatre needs total do-over. The
toilets are ridiculously too small for a capacity theatre. The pavement is
dangerous to walk on when it is raining There is no inside access to
handicapped readily available without going outside to go down to the
lower door (ripe for being sued). There needs to be brick framework
near the front door built up as I watched an 80 year old stumble but
fortunately agile so able to stop from a serious fall. For a city with the
wealth of PA it is disgracefully maintained. Gorgeous though it may be
from the outside, the inside is tatty and downright rundown. Need
expertise to have a first rate theatre and children's theatre plus the
other rooms.... Do retain its charm but have a contest of architects and
do it now. I will gladly work to achieve this.
Why can't Theatreworks or the Players use the toilets int he Children's
theatre when they are open as well as all the other toilets, whether
there is a wedding or not.
125
Lucie Stern Theatre is in great need of upgrading. One major problem is
the need for additional bathrooms at this Community Center. When
the theatre is in full attendance and there is a wedding or other event
there are only 2 bathrooms for about 400 people to use at a 15 minute
intermission. We need more bathrooms here and in particular we need
to add gender neutral bathrooms so that women have equal access.
126 Improve Lucie Stern theatre.
127
The libraries should be consolidated into two locations, Mitchell Park
and Rinconada. Although controversial, this would free up money to
improve service at the two locations.
Building a new gym should not be given any priority. It was not being
considered until John Arrillaga offered a large donation. Now that his
gift is no longer available, and he won't be managing the project, the
idea should be postponed indefinitely.
128 : El Camino Real and certain intersections need to be upgraded.
: It can take a LONG time to get through Palo Alto at times on El
Camnino and lights need to be better coordinated or in sync.
1) When will road repair be done around Palo Alto in 2022/23?
2) Fiber - this is being discussed, but when will it be rolled out? And
have we thought of coordinating with other cities around us? Why go
piecemeal when working with adjoining cities on a larger scale can cut
costs.
129
Expenditures and scope of each of the above priorities as well as
duration of time to achieve goals.
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
130
Continuing to reduce our carbon footprint should be a high priority.
Completing (the initiatives we've undertaken to reduce the risk of
flooding along San Francisquito Creek should be a high priority. My
sense is that there's friction between the city's Development office and
homeowners / contractors which I think is unfortunate and should be
addressed; I wonder if we're being "over regulated." Water
conservation will be increasingly important. Balancing growth vs traffic
congestion and citizen quality of life is an ongoing challenge, my sense is
that we over prioritize growth. Ensuring that our recyclables are
actually recycled and not simply shipped to low income locations
around the world is a responsibility we all share; "zero waste" only
works if the outcome of recycling is truly zero on the broadest / global
scale.
131 Fix the building permit issuance process. I am only hearing how awful it
is from everyone
132
Of course the effectiveness of our basic services, street repairs, and public services (especially fire/polce/emergency) are extremely important
and should be supported as needed. Once those are reasonably sound, street repairsI would like to see Palo Alto learn from the Los Altos
downtown model which seems to prioritize a healthier, more balanced, flexible business model that offers its citizens a richer interaction and
connection with the community. I often shop in Los Altos for the fabric store, knitting shop, bakery, bookstore, pet store, s kate shop, etc. It is
difficult that PA is larger and has several shopping areas--T&C, Midtown, downtown, and Cal Ave, but looking at these resources from a
comprehensive perspective--which perhaps you have done--would be a useful embedded/ongoing process. Expanding resources for our high
school teens is a rich area to explore--a space where teens can play games, eat, make music, study, take classes, etc. would be a tremendous
addition. The MP teen space might be successful for younger ones but it doesn't capture the needs of our older teens. Perha ps we need to find
someone who is interested in being a benefactor in the vein of Anne Wojcicki (https://www.bizjournals.com/sanjose/news/2014/07/16/anne-
wojcicki-makes-it-official-im-behind-los.html)? I am afraid if we leave the market to dictate the business offerings--especially on California Ave--
we will see a continued decline in utility of, connection with, and income from our downtown businesses.
What are the basic services? How does the distribution of our funds compare with other comparable and vibrant cities --eg, what percentage of
the budget goes to youth programs, safety, road repairs, etc.?
133 What is the city's growth plan
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ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
134 Palo alto and the county, state and country need to disallow foreign
realestate investment. It is not acceptable that non US citizens
determine what gets developed. This leads to homelessness and barren
cities without amentities citizens need.
The entire basis of the cities revenues is built on hotel taxes and no
one uses hotels but AirBnB. We need to restructure the finances so
that sound reliable income streams can fund basic services reliably.
The pandemic taught us that travel and tourism is completely optional.
Something more stable such as sales tax or property tax is required.
Energy taxes may also be required.
135 Stop water fluoridation. It's a toxin and proved to lower baby's IQ.
Please repair the gap of side walks. I tripped and took a fall and injured.
136 gigabit municipal fiber to every house
137 Improve electrical infrastructure
Don’t spend money on fiber services
138
Recognize that the Palo Alto demographic is heavily older toward the
north, younger toward the south. concentrate services accordingly.
Make sure services needed by the older folk are easily accessible to
them in the north (like a downtown library, senior center, retail, etc.
139
The Palo Alto Children's Theatre used to do plays with large casts,
frequently with musicians playing, and no member of the cast or crew
or musicians paid 1 cent to take part. They all worked together to enrich
the community with the entertainment they provided. And our
theaters need some repair, updating.
140 Increase city density, walkability and public transportation,
deprioritizing cars and prioritizing people.
141
Congratulations on adding an employee to deal with gas leaf blower
violators and the people that hire them. This will give us the most bang
for the buck and greatly benefit our community. Next up are all of the
wonderful programs the city provides for youths. Extending library
services is part of this. Kids (and adults too) need a quiet place to go to.
Keep up the good focus on mask-wearing!
142 Investing into sustainability programs. It's going to be all the matters in
a decade or so.
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ATTACHMENT E
Comments from Feedback Mailer
The following comments were submitted in response to the comments section of the mailed version of the survey with a
perforated tear-off postcard to mail back to the City.
Written
Comment # Comment
1 Continue working on Airplane noise solutions
2 Traffic safety: Too many drivers ignore stop signs.
3 1 - Dramatically reduce pollution footprint
4 Just tarmacing street doesn't clear bumps under it. Bad for backs! S.P. Alto, Middlefield
5 The one about "community-owned assets" is very confusing.
6 More street lights in neighborhood
7 Finish putting utility wires underground across all Palo Alto
8 Build trash-to-energy converter @ Baylands
9 My granddaughter is a TEACHER and can't afford to live here most important teacher housing is no
the very unacceptable answer
10 What about sustainability. 0.5) What about green initiatives & sustainability
11 The condition of many roads in Palo Alto is terrible
12 What about code enforcement?
13 The rest are so nebulous, it's impossible to make a intelligent choice
14 We need CITY-FUNDED TREE service!
15 We should allow Castilleja to build & grow
16 Top city priorities should be: police/paramedics (emergency response), utilities (public works)
17 Animal shelter/spaying
18 What does our #6 above really mean?
19 More pickleball courts!
20 Sustainability, climate change plans etc.
21 We live in a safe community, housing is a crisis. Allow more housing!
22 On the supply side by greater public ownership, i.e. public banking, ISP etc.
Comment on services: ALL DEMAND SIDE!!!
23
Fix the police! Fire the violent officers who cause the City to be sued!!! No pensions.
Comments on Services:
Expanding City Services - More mental health services
Adding public safety... - improve training and better screening of the police recruits
24 Foothill Park - take it back!
25 1 - Create more parks & open areas in this crowded city
26 We need to invest in making Palo Alto a more quitable place to live for everyone.
27 I am concerned about the judge who said utilities profits to general fund is a tax!
28 1 - prep for/mitigate/reduce climate change
29 Repair all non-working street intersection cameras
30 Stop leaf blowers (noise pollution
31 Bike friendly improvement and good tree health/canopy
32 Remove overhead utility lines
33 PLEASE SUPPORT THE AIRPORT. THANK YOU.
34
There are far more important city services than fiber-in-the-home!
Comments on Services:
Expanding City Services - How is this different from all that follow?
Investing in comm..., funding homeless..., improving services...., repairing streets - how are these
different?
35 REAPIRA STREETS – POLICE
36 POLICE LEAF BLOWERS!!!! Bring down sound pollution
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ATTACHMENT E
Written
Comment # Comment
37 Especially, longer hours @ Children's Library. Whose expansion was supported thru PALF!
38 We are very disappointed w/ these questions. They are so vague. For example what does expanding
services mean? What's the difference between #7 and #4 for roads?
39 Issues like crime + roads - which you ignore for libraries. Who uses a library?
40 Lucie Stern Community Center needs attention please.
41 Investing in community owned assets like community centers - particularly Lucie Stern
42 Why to roads appear twice on the list? Please define basic services versus city services.
43
Add speedbumps, reduce speeding cars.
What does expanding City services mean?
Community owned assets are already great.
City has already great work in affordable housing and homeless service area.
Put up speed limit signs.
Reduce residential and personal safety crimes (for police)
44 No to expanding City services and funding affordable housing and homeless services.
Stop police radio encryption (Number 1 - more transparency)
45 Fix Churchill bike lanes at Alma
46 Install smart meters and help with solar installs
If you want to known "improvement needed?" why "maintain?"
47 The City needs to address excessive noise from airplanes. Fun this! Top priority!
48 More active policing. Less value futurism
49 Expanding project safety net to include mental health services for adults + youth
50 1 - Fiber to the home from City Muni Internet
51 Please preserve Cal Ave as a No-Car area
52
#1 Priority: Traffic safety kids/teen bike safety - much more police vigilance needed.
Comments on services:
Cut down semis + tractor trailers off our streets!!!
Road safety standards have decreased appallingly in 3-5 years
53 1 - Fix the railroad level crossings!
54 NOT "defund" but "redesign" w/ social services
55 Maintain tree + flower beds on corners (like the 70's + 80's)
56 These streets are the worse/El Camino need ASAP atten
57 Resolve/improve traffic problem on El Camino & Embarcadero - Alma, etc.
58 Resume shuttle
59 Emergency vehicles are very noisy on Middlefield. Cut back on sirens - only use when absolutely
necessary. Residences are affected by noise level.
60 I value & appreciate services that are currently provided. Thank you.
61 Please less construction! It obstructs traffic
62 WORK ON OPPOSING THE NEW IDEA OF ALLOWING 4 HOUSES ON A 50x100 Sq.ft.std LOT
63 Comments on Services:
Maintaining basic services - roads
64 Stop the stack & pack housing, you only get so many people. Get homeless off the street rehab
programs
65 Lack of P.A. employees & using contractors has lead to lack of a or terrible service. Are the plans to
hire people instead.
66 Stop racism - no firmament action
67 Cubberley
68 How many existing City positions are currently unfilled?
69 Castilleja? Why?
Palo Alto takes too long to make decisions on everything.
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ATTACHMENT E
Written
Comment # Comment
70 Don't add new things, first improve existing services. Reduce costs, simplify.
Programs like Citywide yard sale are excellent.
71 Please maintain service at College Terrace Library.
72 Removing the entrance fee to Foothills Park!
73 Invest in prepaid questionnaire returns
74 Public safety number 1 always; streets and roads number 2
75 Keep libraries open 7 days a week
(down arrow) police support
76 Getting rid of gas powered leaf blowers - priority for climate change, pollution, and public health.
Specifically repair and preservation at Lucy Stern
77 Please please improve the dumping of things in streets/yards, especially El Camino
78 Don't we already have public safety? How about "improve"
Funding - esp homeless services
79 Should not group public safety services together - need more police not fire.
80 The liquid amber trees are dangerous. They need to be trimmed or replaced. Esp. dangerous for
people on the street walking
81 3 - More concerts in the park
82
#1 Priority - Airplane noise needs to go!! Quality of life has suffered!!
Comments on Services
Tree maintenance-city trees
83
Please do what you can to stop the release of feral cats in any community
Comments on Services
Maintaining basic service - unnecessary waste of water for lawns is of great concern. Runoff is
noticeable on a daily basis.
Expanding City services - such as processing permits and timely inspections.
84
The roundabouts and islands built, e.g. along Ross Rd., are incompetently designed and constitute a
danger to the public, cyclists especially.
Comments on Services
Maintaining basic services - sewage, utilities, street sweeping
85 All of the above are important!
86 Pay attention to traffice airplane over the city. Residents should be informed and have input in
projects like Rinconada park that seems to a big budget and not aesthically fitting in the park.
87 El Camino is in terrible condition south of Stanford! Please fix.
88 Enforce codes with fines. Need more housing. Crack down on short-term (<30 day) rental of homes
(400+ AirB+B homes)
89 Skip the BS about airplane noise or close PA Airport
90
When it rains, the sewers/drains get backed up and flood sidewalks, it has been happening for years -
when will this get fixed??
Unclog street drains! Downtown South Forest Ave odd #s side of street
91 Diverse training in case of earthquakes for elders in different languages
92
Midtown trees removed; not replaced
Restore basic services first
improving services - tree services
tree planting and maintenance in midtown
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ATTACHMENT E
Written
Comment # Comment
93 Please do not continue to increase utility rates. Do not start charging for electricity based on time of
day usage.
94 Mental health programs. Make a natural swimming place in Foothill Park or Arastradero - instead of
only concrete swimming pools.
95 Please crack down on crime.
96 PAPD and City often unresponsive and inefficient
97 City people need to answer the phones
98 What are basic services and how are these different than city services??
This survey can help you better if you explained "basic" and "city" services, thank you
99 Support Cal Ave & Downtown businesses. Bring them back to life!
100 Please subsidize and make utilities rates lower
101 Maintain the City, beautiful look and keep it clean.
102 As a downtown business owner, I see the homeless
103 I realize this is not under city jurisdiction, but something needs to be done! It seems there is nothing
more dire than repairing El Camino Real!
104 Invest in smart traffic sensors to reduce idling and cut emissions by 20% or more.
105 Ensure drinking water (tap water) quality.
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ATTACHMENT F
1
May 27, 2022
To: Ed Shikada, City Manager
Fr: Public Dialogue Consortium
Re: Business and Community Stakeholder Focus Group Report – Update
On March 18, 2022 we submitted a report on the five focus groups that were conducted
to date, noting that two additional community engagement events were in the “next
steps” planning stage. This report provides a summary and analysis of those two events.
Outreach and Recruitment
Similar to the initial focus groups, staff compiled a comprehensive list of Palo Alto
stakeholders consisting of business groups, employers, and community groups and
organizations, and conducted outreach utilizing multiple platforms to invite participants
to the two events. For the Public Listening Session, invitations were sent via email to
community groups and organizations throughout Palo Alto, with efforts to be as
inclusive as possible. For the final Focus Group, invitations were targeted to the business
community, specifically the Chamber of Commerce, Palo Alto Research Park and
Shopping Center, and the Silicon Valley Leadership Group. Note: an additional Focus
Group was scheduled for the business community, but was cancelled due to lack of
attendance.
A list of the participants for these two events is included at the end of this report.
Public Listening Session/Focus Group 6 (March 29, 2022)
Eight people participated in this session. Instead of treating it as a public listening
session, as originally planned, we chose to facilitate it as a focus group discussion,
essentially making this event the sixth focus group in a series of seven. Six of the
participants self-identified as a “resident” or “community member;” two participants
self-identified as representatives of the business community.
The purposes of this session mirrored the purposes of the prior focus groups. Part one
established the context for the focus group, including introductions, the agenda, and
outcomes. Part two consisted of a staff presentation on the City’s Fiscal Sustainability
Strategy, including revenue trends and services, and the two ballot measures under
consideration. In addition, staff presented the following recommendations made by the
Finance Committee at their March 28 meeting:
1. Placement of affirmation of current Gas Utility Transfer at 18% of gross receipts
to be used on current uses
2. Placement of a Business License Tax (BLT) with the following characteristics:
a) Exemption for Hotels, groceries (requires % of sq. ft. of food sales),
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ATTACHMENT F
2
seasonal businesses operating less than 90 days
b) Exemption for first 5,000 sq. ft., requiring registration for all in the BRC
program
c) Propose escalating rate over 3 years (begin 2024) at $0.12 / sq. ft./mo., at
$0.15, and $0.20, then CPI capped at 6% per annum with excess CPI
carrying over to future years
3. Recommend the City Council direct staff to proceed with a third round of polling
based on Finance Committee and Council feedback
Results
• BLT: Participants expressed mostly support for the BLT, with the consensus being
that the “tax is a good idea” given “the needs of the community” and the fact
that “most other communities have one.” Participants did request a forecast of
the projected revenue from the BLT and the Gas Funds Transfer. Two concerns
were expressed about the BLT: (1) The proposed CPI adjustment and the lack of
a sunset or end date will be an onerous burden on businesses, and (2) This is not
the right time for a new tax given the recovery from COVID and the uncertain
economic environment.
• Gas Funds Transfer: Participants expressed unanimous support for this measure,
noting that passing the measure will not impact rates while failure to pass it
would result in service cuts.
• Essential City Services: Participants identified transportation infrastructure,
affordable housing, and climate change as priority services.
• Finance Committee Recommendations: The only comment made in response to
the recommendations was that basing the BLT on square footage would likely
lead some businesses to seek out “creative” ways to avoid paying it.
Focus Group 7 (May 19, 2022)
This focus group was composed of 16 participants who self identified as members or
representatives of the business community.
The focus of this session was markedly different from the prior focus groups.
Specifically, the purpose was to elicit input and feedback on the administrative design of
the potential BLT measure based on the direction that the City Council provided at their
meetings on April 18 and 25. A key component of the staff presentation was a draft BLT
implementation ordinance, which documented and codified Council’s direction (copy
attached here). The draft was distributed to the participants prior to the meeting and
was the primary focus of the session. Following staff’s presentation of the draft
ordinance, participants were asked to respond to the following questions:
• What clarifying questions, if any, do you have for staff?
• What City aspects of implementation are important to you, your company, or
your organization?
• What feedback do you have on the draft implementation ordinance language for
the business license tax?
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3
Results
Participants and staff had a robust and detailed discussion of the draft ordinance. Based
on our professional judgment, we would characterize the discussion as a healthy give-
and-take of mutual learning and clarification. The focus group was focused on
administration of a potential business tax if it is put on the ballot and passed. As a result,
while participants did not express any of the concerns about the BLT that we heard in
the prior focus groups (i.e. CPI cap, no sunset, not the right time for a new tax, and the
need for a funding plan), it was understood they still held these concerns. The discussion
focused on the following questions and answers.
Participant question: Would square footage not being utilized be included in the
calculation of the business tax?
Staff response: Council is still considering how to tax space that is not leased or
rented.
Participant question: Are there any specifics regarding the use of the funds for "general
government purposes"?
Staff response: Proceeds would go to the general fund. Council plans to adopt a
resolution to identify specific uses of a BLT, although this is nonbinding. Priorities
identified for a resolution include new and enhanced services for public safety,
affordable housing and unhoused services, investment in downtown corridors,
and investment in safe rail crossings.
Participant question: How is commercial real estate property taxed? Would the owner of
buildings and spaces who lease to other businesses be taxed in addition to the
businesses that lease space? This seems like it would lead to double taxation.
Staff response: The intent needs to be clarified when the ordinance is adopted.
Participant question: Some businesses in the research park do not have leases but they
sublease. They have a city permit to build a building, and then sublease to another
entity. When subleased, the sublease tenant would then pay the BLT. But what
happens/who pays during the time the space is available for sublease? Who pays the
BLT? It is unclear who pays if the owner/builder of the building is waiting to find a
tenant.
Staff response: If the owner is defined as a business, the business owner would
be liable for the BLT until it is leased. Council is still considering how to tax space
that is listed for lease.
Participant comment: For those who own a building are reducing the amount of space
they use, and are looking for a tenant to lease the rest this could make a difference on
the acceptability/ viability of the BLT to the business community. We need to know this
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4
right away. We would be in favor of exempting space that is listed for lease and is
vacant.
Participant question: There are multiple ways to measure square footage. Who
determines what measurement type to use?
Staff response: The ordinance will reference a few fundamental guidelines for
measurement and potential standards that could be used. Policies and
procedures will refine this definition as measurement types continue to evolve.
Participant question: Does the taxpayer self-define the standard used to define square
footage?
Staff response: Yes, as long as it meets minimum standards.
Participant: Is underground parking included?
Staff response: I do not think so; we will look into this.
Participant question: How would hotels be treated in the BLT?
Staff response: TOT receipts would offset what they would otherwise owe for
the BLT. The business owner would pay the difference.
Participant comment: Paying prospectively would be more difficult on a new business.
The new business should have at least 90 days before they first need to pay the tax. A
prospective payment approach would also create challenges for calculation of offsets. It
would be easier to pay the tax on a previous period rather than a future period.
Participant question: If taxation is prospective rather than retrospective, is there a
refund if you close business during the year you have already paid for?
Staff response: Yes, you can apply for a refund.
Participant question: What about an apartment owner? The language as it reads seems
like it would include apartment buildings and I do not see a specific exemption.
Staff response: Council has not yet determined how the tax applies to leased
residential space.
Participant question: How are businesses with multiple locations taxed?
Staff response: Suppose there is one corporate entity with one business license
that has multiple locations in the city. When calculating square footage, the
calculation would include the square footage of all locations. Only the first 5000
square feet would be exempted. This is a policy call for council.
Participant question: If I have a 25K square foot building and have five businesses
occupying the space, all would be exempt due to the 5000 square feet exemption?
Staff response: Yes.
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5
Participant question: Would we have to disclose our entire lease to the City? I would
hope the City would accept a redacted lease with the essential information
Staff response: Possibly during an audit the full lease would need to be shared.
We might be able to include a clause in the ordinance that the lease would stay
confidential.
Participant question: Would details about businesses and what BLT is paid be held
confidential?
Staff response: Yes.
Participant question: We need an objective standard for defining "start of occupancy."
Perhaps issuance by the City of the Certificate of Occupancy could be a milestone.
Staff response: This is something for consideration. There are hurdles for those
who may not have been issued this certificate yet but are paying rent during this
time. It may not work in all scenarios.
Participants - Listening Session/Focus Group 6: 3-29-22 (Community)
1. John Petrilla, Palo Alto resident
2. Verdere Philpot, Palo Alto resident
3. Alison Stephens, Palo Alto Community Child Care
4. Penny Ellson, resident of Palo Alto
5. Neilson Buchanan, resident of downtown north
6. Joanne Wetzel, Palo Alto community member
7. Jeremy Hauser, consultant for stakeholders
8. Dan Kostenbauder, Silicon Valley Leadership Group
Participants - Focus group 7: 5-19-22 (Business)
1. Shweta Bhatnagar - Stanford University Government Affairs
2. Charlie Weidanz - Palo Alto Chamber of Commerce
3. Kari Martinez - GM, Bloomingdales Stanford Shopping Center
4. Luke Nixon - COO, SAP Labs
5. Nicholas Karellas - SAP, Government Relations
6. John Koselak - Executive Director, V. Living
7. Kent Leacock - VMware, Government Relations and Public Policy
8. Dan Kostenbauder - Silicon Valley Leadership Group
9. Tiffany Griego - Senior Managing Director, Stanford Research Park
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ATTACHMENT G
Attachment G - 1
Summary of Prior Work on
Potential Revenue Generating Ballot Measures
The City of Palo Alto has been discussing its options for potential revenue-generating ballot
measures through 2019 and 2020. This work was suspended at City Council direction in March
2020 in order to marshal available resources to manage through the COVID-19 pandemic. A
timeline of the CMRs and discussions with the Finance Committee and the City Council since
April of 2019, when staff was formally directed to begin working on this project by the City
Council, is included below for additional context. The date, the forum of the meeting (Finance
Committee or City Council), the summary title, and the CMR number are included for ease of
reference.
Timeline
4/22/2019 City Council, “2019 Fiscal Sustainability Workplan”, CMR 10267
4/22/2019 City Council, “Approve Workplan for a Potential Revenue Generated Ballot
Measure”, CMR 10261
6/18/2019 Finance Committee, “Review, Comment, and Accept Preliminary Revenue Estimates
for Consideration of a Ballot Measure”, CMR 10392
8/20/2019 Finance Committee, “Evaluation and Discussion of Potential Revenue Generating
Ballot Measures”, CMR 10445
9/16/2019 City Council, “Evaluation and Discussion of Potential Revenue Generating Ballot
Measures and Budget Amendment”, CMR 10615
10/1/2019 Finance Committee, “Revised Workplan for Consideration of a Ballot Measure”, CMR
10712
10/15/2019 Finance Committee, “Stakeholder Outreach, Initial Polling, and Discussion of a
Potential Ballot Measure”, CMR 10743
11/4/2019 City Council, “Potential Ballot Measure Polling/Outreach, Contract, Solicitation
Exemption and Budget Amendment”, CMR 10792
12/2/2019 City Council, “Structure and Scenarios of Initial Round of Polling for a Potential Local
Tax Measure”, CMR 10891
12/17/2019 Finance Committee, “Consideration, Evaluation, and Discussion of a Revenue
Generating Local Tax Ballot Measure, Review of Refined Modeling, Analysis, Tax Structure and
Recommendation to the City Council”, CMR 10655
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ATTACHMENT G
Attachment G - 2
1/27/2020 City Council, “Update, Consideration, and Potential Direction on Possible Local Tax
Measure for 2020 Election”, CMR 11019
3/23/20 City Council, “Consideration of Analysis, Public Outreach, and Refined Polling and
Further Direction on a Potential Local Business Tax Ballot Measure for 2020 Election”, CMR
11161
3/23/20 City Council, “Consideration of Analysis, Public Outreach, and Refined Polling and
Further Direction on a Potential Local Business Tax Ballot Measure for 2020 Election”, At-Places
Memorandum
6/15/2021, Finance Committee Staff Report, “Recommend the City Council Approve the
Workplan for Pursuit of a Revenue-Generating Local Ballot Measure for the November 2022
General Election; Review and Potential Guidance to Staff on Affordable Housing Funding as
Referred by the Council”, CMR 12299
8/16/2021 City Council, “Approve the Workplan for Development of a Revenue-Generating
Local Ballot Measure for the November 2022 General Election; Review and Potential Guidance
to Staff on Affordable Housing Funds as Referred by the City Council”, CMR 12381
9/21/2021 Finance Committee, “Discuss Updates and a Recommended Further Refinement of
Potential Revenue Generating Local Ballot Measures,” CMR 13514
10/19/2021 Finance Committee, “Discuss Updates and Recommend Further Refinement of
Potential Revenue Generating Local Ballot Measures, and Review Draft Initial Polling Outline”,
CMR 13648
11/8/2021 City Council, “Discuss Updates and Recommend Further Refinement of Potential
Revenue Generating Local Ballot Measures, and Review Draft Initial Polling Outline”, CMR
13687
12/7/2021 Finance Committee, “Discuss Updates and Recommend Further Refinement of
Potential Revenue Generating Local Ballot Measures”, CMR 13728
1/18/2022 Finance Committee, “Discuss Poll Results Regarding Potential 2022 Revenue
Generating Ballot Measures and Recommend Further Refinement of Business License Tax and
Utility Tax Proposals”, CMR 13875
1/24/2022 City Council, “Discuss Polling Results, Analysis, and Community Stakeholder
Engagement Plan; Recommend Further Refined Parameters for a Possible Local Tax Ballot
Measure for November 2022 Election (Business License Tax and Utility Tax Proposals); and
Direct Staff on Related Items such as Community and Stakeholder Engagement Plan,” CMR
13770, p. 385 and CMR 13963, p. 462
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ATTACHMENT G
Attachment G - 3
3/28/2022 Finance Committee, "Revenue Generating 2022 Ballot Measures: Review Feedback
from the Ballot Measure Community and Stakeholder Engagement Plan and the Second Round
of Polling; Review Draft Ballot Measure Language; and Recommend to Council Further
Refinement of Potential Measures Adopting a Business License Tax and Confirming the Gas
Utility General Fund Transfer," CMR 13981
4/18/2022 City Council, "Revenue-Generating Ballot Measures for Fall 2022: Discuss 2nd-Round
Polling Results and Feedback from Community and Stakeholder Engagement Activities; Review
and Provide Staff Direction on Finance Committee Recommended Refined Parameters for a
Business License Tax and an Affirmation of the Gas General Fund Transfer; and Provide
Direction to Staff on Next Steps Including Launch of Third Poll, and Council's Non-Binding
Intentions for Allocation of Potential Proceeds", CMR 13571, p. 162
4/25/2022 City Council, " Revenue-Generating Ballot Measures for Fall 2022: Discuss 2nd-
Round Polling Results and Feedback from Community and Stakeholder Engagement Activities;
Review and Provide Staff Direction on Finance Committee Recommended Refined Parameters
for a Business License Tax and an Affirmation of the Gas General Fund Transfer; and Provide
Direction to Staff on Next Steps Including Launch of Third Poll, and Council's Non-Binding
Intentions for Allocation of Potential Proceeds (Continued from April 18, 2022)", CMR 14316 p.
62
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PLACEHOLDER
Attachment H:
Summary of Third & Final Round of Polling Results
This attachment is expected to be released on June 9th in a supplemental report.
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City of Palo Alto (ID # 13922)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Information Reports
City of Palo Alto Page 1
Title: Informational Report on the City of Palo Alto 2022 Water Gas and
Wastewater Utility Standards
From: City Manager
Lead Department: Utilities
This is an informational report and no Council action is required.
Background
The City of Palo Alto Utilities (CPAU) Department’s Water, Gas, and Wastewater (WGW)
Engineering Division implements standard design and construction specifications for water, gas,
and wastewater facilities in the public right-of-way and for CPAU-owned facilities on private
property. These standards ensure that utility infrastructure is constructed and maintained in a
safe, uniform, and reliable manner. The WGW Utility Standards include installation
requirements, material specifications, and standardized configurations.
Discussion
CPAU Engineering staff updates the WGW Utility Standards periodically and last issued revisions
in 2021. This 2022 edition reflects current construction material availability, and incorporates
up to date field practices, contract management, as well as other non-substantial technical
editing (Linked Document). A summary of the more significant revisions to the 2022 WGW
Utility Standards is provided below, and all edits are shown in redline form (Linked Document):
• Reworded some phrasing and added new language to increase clarity of standards and
requirements (in various Sections).
• Included additional language to clarify Contractor’s responsibilities on construction
projects to help City manage capital improvement project (CIP) contracts (in various
Sections).
• Clarified those capitalized terms not defined in the Standards have the same meaning
provided in the City’s General Conditions (Section 800).
• Clarified contractor’s submittal, pre-construction meeting, and scheduling requirements
(Section 800).
• Rearranged a few sections to make the sequence flow better (Section 800).
• Updated the website link to City’s Traffic Control Requirements (Section 800).
• Updated information on the City’s Certificate of Liability Insurance requirement and the
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City of Palo Alto Page 2
permit expiration date for Recycle Water Use Permits (Section 870).
• Strengthened the requirements for contractors to investigate sewer lateral locations
prior to boring gas pipe and to make multiple attempts when inspecting the sewer
laterals for potential cross bores after the gas pipe is installed by trenchless method s
(Section 2200).
• Clarified the shelf-life requirements for polyethylene pipe (Section 2300, 2400, and
2500).
• Added maximum allowable pull force for wastewater pipe -bursting operation (Section
2300).
• Updated the hardware and appurtenances for water mains based on current market
availability (Sections 2660).
• Added the procedures to disconnect large diameter water se rvices (Section 2660).
• Revised the gas pipe specification per current manufacturer’s material index (Section
2685).
• Revised the operator qualification requirements for gas pipe operations (Section 2685).
• Clarified the requirements for temporary sewer lateral connections and flow bypass
(Section 2730).
• Updated the sewer lateral connection requirements (Section 2735).
• Strengthened various requirements for sewer lateral cross bore inspection s (Section
2741).
The 2022 City of Palo Alto Water Gas and Wastewater Utility Standards are available on the
City’s Utility Engineering website at www.cityofpaloalto.org/gov/depts/utl/eng/standards.asp.
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PALO ALTO
AIRPORT
PUBLIC WORKS DEPARTMENT
2021
ANNUAL NOISE
REPORT
(January 2021 to
December 2021)
AUG 2014 – SEPT 2015
(Q4 2014 – Q3 2015)*
Vision: Palo Alto Airport strives to balance the
interests of pilots to fly with the interests of
neighbors in a peaceful living environment. This
document is a report of the noise complaints
received by the airport in 2021. Airport staff uses
this information to identify trends within Palo Alto
and neighboring communities. These trends inform
communications between airport staff and pilots on
the issue of noise.
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Introduction:
The following is a report on noise-related operations and complaints received by Palo Alto Airport (PAO)
in 2021. The Federal Aviation Administration (FAA) defines air travel routes and procedures, including
defining separation distances between aircraft, determining hazards to aviation and all other safety
criteria for aircraft, and is responsible for directing and enforcing the movement of aircraft in flight.
Although organizations can petition the FAA regarding flight procedures, the FAA has the final say in what
is safe and acceptable. The Airport Noise and Capacity Act (ANCA) of 1990 federally prohibits public-use
airports from restricting airspace.
The FAA measures noise based on the Yearly Day and Night Average Sound Level (DNL) and the
Community Noise Equivalent Level (CNEL). While both are essentially the same, airports in California use
the CNEL method to measure noise. CNEL is a method of averaging single event aircraft noise into a
weighted 24-hour average. The system adds penalties to all events occurring during the evening (7pm –
10pm) and the night (10pm – 7am). The Santa Clara County Airport Land Use Commission (SCC ALUC)
performed a noise study for the Palo Alto Airport using the CNEL to determine the noise contours for 55,
60, 65, and 70 decibels. The contour map is included as Attachment A.
Regarding safety and altitude, the FAA has in place Federal Aviation Regulations (FARs) that establish
Minimum Safe Altitudes (MSAs) for aircraft. For fixed wing aircraft, the MSA is 1,000 feet above ground
when over congested areas and 500 feet when not over congested areas. These MSAs apply to all fixed
wing aircraft except when necessary for landing and takeoff operations. Helicopters are exempt from
these altitude restrictions due to the nature of their flight. These minimum altitudes are enforced by the
FAA Flight Standards District Office in San Jose, not by Palo Alto Airport. Palo Alto Airport cannot tell pilots
when or where to fly; the Airport, however, does have voluntary noise abatement procedures that Palo
Alto Airport recommends that pilots follow. (See the Noise Abatement Procedures section below.)
The Airport receives noise complaints via email at pao@cityofpaloalto.org and a noise complaint hotline
650-329-2405. Airport staff review and timely respond to all complaints, ascertaining information from
complainants including contact information, date, time, and description of the occurrence. Various flight
trackers can be used to help identify the aircraft involved and verify if FAA regulations or Palo Alto Airport
procedures were violated. The Airport staff reviews and compiles all data to determine trends with flying
activities.
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Purpose:
The purpose of the Palo Alto Airport Annual
Noise Report is to identify noise trends in the
surrounding areas and determine compliance
with established voluntary noise abatement
procedures.
Airspace:
The Palo Alto Airport airspace is unique. The
congested Bay Area airspace is dominated by
SFO Class Bravo airspace, which encompasses a
30 nautical mile radius around SFO. Underneath
the Class Bravo airspace lays the Class Charlie
airspace of Oakland and San Jose international
Airports. Finally, Moffett Airfield lies approximately 4 nautical miles to the southeast of Palo Alto Airport.
As a result, Palo Alto Airport airspace ends only 1.5 nautical miles southeast of the Palo Alto Airport’s
single runway (Runway 13/31). To land at Palo Alto Airport, aircraft must turn before entering Moffett’s
airspace, resulting in aircraft having to space themselves in traffic patterns over the peninsula when take-
off/landing volumes peak. The FAA’s Air Traffic Control Tower (ATCT) at Palo Alto Airport has a letter of
agreement with Moffett’s ATCT providing Palo Alto Airport aircraft with extensions into Moffett airspace
when Moffett airfield is not in use. The additional airspace is a useful mitigation tool during busy times.
Further restrictions in Palo Alto Airport airspace come from San Jose Class C airspace, starting at 1,500
feet Mean Sea Level, just southeast of Palo Alto Airport and SFO Class B airspace, starting at 2,500 feet
Mean Sea Level, just northeast of the Palo Alto Airport. Both are identified on the Palo Alto Airport
Sectional Map: San Jose Class C is shown with thick magenta lines and SFO Class B is shown with thick
blue lines. These restrictions play a vital role in aircraft departures, in turn influencing noise abatement
procedures for the Palo Alto Airport.
Noise Abatement Procedures:
Noise abatement procedures are voluntary procedures that the Airport asks pilots to follow. The Airport
is prohibited from restricting airspace. Palo Alto Airport staff will speak with individual pilots and educate
them about the voluntary noise abatement procedures. The Palo Alto Airport cannot levy fines on pilots
that violate the voluntary noise procedures. For illustrated noise abatement procedures reference Palo
Alto Airport Pilots Handout included as Attachment B.
The noise abatement procedures depend on the runway that is in use at the time. Depending on weather
patterns, aircraft can depart on Runway 31 to the northwest or Runway 13 to the southeast.
Approximately 90% of the time, weather conditions require the use of Runway 31. Pilots are asked to not
make a left crosswind departure from Runway 31, but instead make a “Left Dumbarton Departure” (fly to
the Dumbarton Auto Bridge before making a left turn and flying over East Palo Alto) or a right 270 degree
turn before departing to the south or west. When aircraft are using Runway 13, pilots are asked to make
Palo Alto Airport Sectional Map
Palo Alto Airport in Green
PAO Airspace highlighted in Red
Source: http://vfrmap.com/?type=vfrc&lat=37.461&lon=-122.115&zoom=10
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a left 270-degree turn. In addition to these procedures, pilots are asked to climb to 1,500 feet or above
ground before crossing Highway 101 and reduce power when safely able.
For arrivals, it is standard practice and necessary for pilots to descend to pattern altitude before entering
the traffic pattern around PAO, sometimes requiring aircraft to descend below the 1,500 feet minimum
of departing aircraft over Palo Alto. As these aircraft are descending to land the engines are generally
powered back and quieter than ascending aircraft.
Airport staff continuously engages with tenants and pilots about the voluntary noise abatement
procedures, always noting that safety always supersedes noise.
Findings:
The Palo Alto Airport remains one of the busiest general aviation Airports in the Bay Area with an average
of 158,280 operations per year since 2011. The year 2021 marks the second year of the Covid-19
Pandemic and during this time, operations increased by 45,856 which is a 34% increase during 2021
compared to the 2020 calendar year and it’s the highest amount of operations since 2015. An operation
is defined as either a takeoff or a landing and a touch-and-go procedure will account for two operations.
During the 2021 Calendar year, the Airport logged 253 total noise complaints from 27 households. Table
2 shows the number of complaints by quarter and includes the totals from 2020.
Table 3 sorts the complaints logged into three sections. The first one is PAO which includes all complaints
that involve aircraft that performed an operation at the Airport. The next section is General which includes
complaints that did not include a specific aircraft or incident of noise. These complaints may or may not
involve aircraft from PAO. The last section is Non-PAO, which include aircraft that are not based or did not
operate at the Airport. These flights may include California Highway Patrol, Coast Guard, Air Taxis, Pipe
Table 1. Airport Operations for Palo Alto Airport
Year Air Taxi Military Total Year Air Taxi Military Total
2002 62 1 208,755 2012 1,700 16 176,564
2003 17 1 212,981 2013 1,628 14 172,653
2004 619 12 199,453 2014 1,518 22 179,900
2005 2,397 28 184,821 2015 1,082 118 172,132
2006 1,932 17 176,570 2016 708 52 153,238
2007 1,440 318 181,883 2017 872 146 148,769
2008 1,697 280 174,332 2018 760 133 146,181
2009 1,650 301 155,556 2019 920 63 150,266
2010 2,077 6 158,217 2020 620 45 112,712
2011 1,572 8 170,389 2021 566 23 158,568
Avg 1346.3 97.2 182295.7 Avg 1037.4 63.2 157098.3
Table 6. Observed violations of voluntary noise abatement procedures Table 2. Complaints Received
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 2021 Total 2020
Complaints 143 60 36 14 253 514
Households 10 11 23 10 27 29
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Surveys, Stanford Life Flight, Angel Flights, and or banner towing operations. Also included in Table 3 are
the totals for 2020.
Table 4 below provides a detailed breakdown of the 253 complaints by City. Most complaints came from
the City of Los Gatos, with 171 complaints logged from 1 household and most of the complaints on the
first and second quarter of this year. The City of Palo Alto had a total of 39 complaints from 8 households.
Table 5 below shows the general type of aircraft identified as causing noise complaints at the Airport.
There are 2 types of engines for aircraft utilizing PAO. The first is reciprocating which is similar to an
automobile engine, and the second is turboprop which is a turbine engine with a propeller that produces
thrust. Aircraft are further differentiated by “multi” and “single” which denotes the number of engines
for the aircraft. As Table 5, shows single reciprocating aircraft produced the largest portion of noise
complaints. This class of aircraft represents most of the fleet at PAO and usually consists of Cessna, Piper
and Cirrus aircraft.
Table 3. Aircraft Association
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 2021 Total 2020
PAO 138 59 31 14 242 262
General 4 0 6 1 11 96
Non-PAO 1 1 6 13 21 104
Table 2. Complaints Received Table 4. Noise Complaints by City
City C H C H C H C H C H C H
Palo Alto 4 2 10 4 19 9 6 3 39 8 38 4
Sunnyvale 1 1 1 1 2 1 85 1
Menlo Park 3 2 2 2 5 2 28 3
Saratoga 0 0 232 2
Los Gatos 129 1 42 1 1 1 171 1 77 1
Los Altos 1 1 1 1 37 3
Portola Valley 1 1 1 1 2 1 2 2
East Palo Alto 1 1 2 1 6 4 3 3 12 3 3 2
Santa Cruz 1 1 1 1 2 2
Santa Clara 1 1 2 1 1 1
Fremont 1 1 1 1 2 1 0 0
NA 1 1 1 1 2 1 9 8
San Jose 4 1 2 2 6 1 0 0
Woodside 1 1 1 1 0 0
Moutain View 1 1 2 1 2 1 5 2 0 0
Atherton 1 1 1 1 0 0
Pescadero 1 1 1 1 0 0
143 10 60 11 36 23 14 10 253 27 514 29
Total 2020Q2Q1Q3Q4Total 2021
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Table 6 below shows the number of violations of the established noise abatement procedures. Airport
staff makes every effort to talk to all pilots that violate these procedures, but it is difficult to talk to all
transient pilots about noise abatement procedures. It is not the role of the FAA Air Traffic Control Tower
to advise pilots of the noise abatement procedures, however, the City has developed a working
relationship with the Air Traffic Control Tower (ATCT) and Air Controllers do advise pilots of the noise
abatement procedures when they have the ability to do so.
Table 5. Aircraft Type
Helicopter
Multi
Reciprocating Multi Turbo Prop
Single
Reciprocating Single Turbo Prop Unknown
2020 Complaints 9 11 11 347 22 10
2021 Complaints 8 8 4 200 24 9
Table 6. Observed violations of voluntary noise abatement procedures
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Tenant 4 3 3 1 11
Transient 0 1 3 0 4
Unknown 0 0 0 0 0
Total 4 4 6 1 15
Complaints 143 60 35 14 153
Operations 34,500 41,100 45314 30644 158568
% Compliance 99.90%99.90%99.90%99.99 99.99
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Following is a noise contour map for PAO, adopted by the Santa Clara County Airport Land Use
Commission (SCC ALUC) in their 2008 Comprehensive Land Use Plan, reflecting the forecasted noise
contours for Palo Alto Airport in 2022.
SCC ALUC used the Integrated Noise Model which considers airport altitude, mean temperature, runway
configuration, aircraft flight track definition, aircraft departure and approach profiles, aircraft traffic
volume and fleet mix, and flight track utilization by aircraft types. All data is entered into the CNEL formula
to prepare the noise contours for Palo Alto Airport.
The 65 decibel (db) noise level of the Airport extends beyond the airport boundaries, but is only over Palo
Alto Golf Course, Palo Alto Baylands Nature Preserve, and the salt marshes in San Mateo County.
Refer to https://www.sccgov.org/sites/dpd/DocsForms/Documents/ALUC_20081119_PAO_CLUP.pdf, for
a more detailed description of how the SCC ALUC prepared this map.
Attachment A
PAO Noise Contour Map
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2022 Forecasted Palo Alto Airport Noise Contour Map
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Attachment B
PAO Pilot Handout
Santa Clara County created a Pilot Handout for Palo Alto Airport that described the noise abatement
procedures. When the City of Palo Alto assumed control of the Airport, the existing noise abatement
procedures were adopted, with one exception, “pilots must maintain 1,500 feet or above across
Highway 101” was replaced with “Aircraft are asked to climb to and maintain at least 1,500 feet before
crossing Highway 101.” The change is consistent with the voluntary nature of noise abatement
procedures as Airports are Federally prohibited from instructing pilots how to fly.
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Bayside Pattern – 800ft
Left
270
Right
270
Peninsula Side
Pattern – 1000ft
Left
Dumbarton
Departure
Not to be used
for navigation
Safety First
Be Aware Palo Alto
Airport Lies under SFO
Class B Airspace
Key
Pattern
Noise Abatement Departures
RWY 31
RWY 13
Noise Abatement Procedures
Please fly neighborly and be aware of the surrounding
communities. There are noise sensitive areas to the west
and south of the Airport. Aircraft are asked to climb and
maintain at least 1500 feet before crossing Highway 101.
Fly over the bay whenever possible.
Please use reduced power setting whenever possible to
reduce noise impacts. Even a reduction in a 200 RPM can
significantly reduce noise.
Safety Always Supersedes Noise Abatement
Palo Alto Airport General Information
Bayside Pattern Alt – 800 feet
Peninsula Side Pattern Alt – 1000 feet MSL
ATCT hours of operation – 0700 – 2100 hrs
ATC / CTA Frequency – 118.600
ATC Ground Frequency – 125.000
Fuel Frequencies – 122.85 or 122.95
Airport Office Phone # – (650) 329-2444
320
Preferred West Bound Departures
Runway 31
Left Dumbarton Departure
When departing runway 31 turn right 10 on takeoff and climb over the bay. Fly straight to
Dumbarton Auto Bridge before making a left turn to fly over the peninsula or to the south.
Cross Highway 101 at or above 1500 feet.
Left 270 Departure
After takeoff climb over the bay while making a 270 turn and heading west or south over the
peninsula. Cross Highway 101 at or above 1500 feet.
Runway 13
Right 270 Departure
After takeoff turn right over and climb over the bay while making a 270 turn and heading west
or south over peninsula. Cross Highway 101 at or above 1500 feet.
Palo Alto Airport asks for
your cooperation in reducing
the noise impact of aircraft
on the neighboring
communities.
BE A GOOD NEIGHBOR – FLY SAFELY AND QUEITLY
CAUTION
The Palo Alto Baylands preserve
is located immediately to the
north of the Airport. Watch for
birds on or near the Airport.
Be alert for bikes & pedestrians
crossing a levee road 290’ from
departure end to Runway 31.
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Attachment C
Map of Palo Alto households
This map shows the approximate location and number of complaints from households within Palo Alto. This map was
generated using GIS by Airport staff.
20
4
3
3
2
2
3
2
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Schedule of Meetings
Published June 2, 2022
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.
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.
6/2/2022
Meetings are held in-person and by virtual teleconference.
MONDAY, June 6
Sp. City Council Meeting, 5:00 p.m.
TUESDAY, June 7
Sp. Finance Committee Meeting, 5:30 p.m.
WEDNESDAY, June 8
Planning & Transportation Commission Meeting, 6:00 p.m.
Sp. Utilities Advisory Committee Meeting, 6:00 p.m.
THURSDAY, June 9
Human Relations Commission, 6:00 p.m.
MONDAY, June 13
Sp. Architectural Review Board Meeting, 9:30 a.m.
Sp. City Council Meeting, 5:00 p.m.
TUESDAY, June 14
Policy & Services Committee Meeting, 7:00 p.m.
THURSDAY, June 16
Architectural Review Board Meeting, 8:30 a.m.
City/School Liaison Committee Meeting, 8:30 a.m.
Public Art Commission Meeting, 7:00 p.m.
MONDAY, June 20
Sp. City Council Meeting, 3:00 p.m.
TUESDAY, June 21
Sp. City Council Meeting, 3:00 p.m.
TUESDAY, June 28
Parks and Recreation Commission, 7:00 p.m.
WEDNESDAY, June 29
Planning & Transportation Commission Meeting, 6:00 p.m.
THURSDAY, July 7
Architectural Review Board Meeting, 8:30 a.m.
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City of Palo Alto (ID # 14501)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Supplemental Information: Revenue -Generating Ballot Measures
(Affirmation of the Natural Gas Utility Transfer and New Business Tax):
Direction to Staff on Key Policy Questions and Measure Characteristics, and
Direction to Return with Final Documents for Placement of Ballot Measure(s)
on the November 2022 Election and a Non -Binding Resolution for Intended
Use of Business Tax Proceeds
From: City Manager
Lead Department: Administrative Services
A staff report for this item was published as part of the City Council packet that was released on
June 2, 2022 (CMR 13983, packet p. 221), which includes staff’s recommendation that Council
provide direction on key policy questions and ballot measure characteristics and direction to
return with final documents for placement of ballot measure(s) on the November 2022
Election, including a resolution stating Council’s intended uses for Business Tax proceeds.
This supplemental memorandum transmits additional exhibits:
1. A draft of the ballot question and ordinance for a Business Tax (Attachment B)
2. A draft resolution to inform the public of Council’s intentions regarding use of Business
Tax Proceeds (Attachment C)
3. Summary results of the 3rd round of polling (Attachment H)
Attachments:
• Attachmenta: Attachment B: Draft Business Tax Ordinance, Ballot Question
• Attachmentb: Attachment C: Business Tax Resolution
• Attachmentc: Attachment H: Palo Alto Ballot Measure Survey Analysis & Tracking
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Ballot Measure Approving a Palo Alto Business Tax
Ballot Question
Shall the measure to raise funds for improving public safety,
affordable housing, rail crossing safety, homeless services,
economic revitalization and general city services, by
levying a tax on businesses in the City of Palo Alto at an
annual rate of ______ cents/square foot occupied by the
business, with annual adjustments for inflation and
exemptions for grocery stores and all businesses under
5,000 square feet, raising approximately $___ million
annually until ended by voters, be adopted?
YES
NO
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Ordinance
Uncodified provisions
1. The new tax imposed by this ordinance will go into effect on January 1, 2023.
2. Notwithstanding sections 090, 100, and 110 of the codified part of this ordinance,
the tax imposed by this ordinance will initially be due on the following schedule:
(a) For businesses [describe the category] the initial tax payment for the tax
that has accrued since January 1, 2023 will be due on _______ and will be delinquent 30
days later if not paid.
(b) For businesses [describe the category] the initial tax payment for the tax
that has accrued since January 1, 2023 will be due on _______ and will be delinquent 30
days later if not paid.
(c) For businesses [describe the category] the initial tax payment for the tax
that has accrued since January 1, 2023 will be due on _______ and will be delinquent 30
days later if not paid.
(d) With its initial tax payment, each business shall provide the following
information:
(1) The name of the business and the address or addresses at which it
will be operating in the city.
(2) The nature of the business’s activities.
(3) The square footage in which the business will be operating in the
city;
(4) If the business operator claims an offset under section 080,
sufficient information and documentation to establish the
business’s right to the offset and the amount of the offset;
(5) Any other information required by the Tax Administrator; and
(6) The amount of tax due based on the square footage of the business.
(e) A business that begins operating for the first time after January 1, 2023,
must submit its initial tax payment and initial information by the date provided in this
uncodified section or by the date provided in codified section 090, whichever is later.
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Codified Provisions
010 Title
This chapter is the “City of Palo Alto Business Tax Ordinance.”
020 Definitions
The definitions in this section apply to the words and phrases used in this chapter unless
the context clearly indicates otherwise.
(a) “Business” means any commercial enterprise, trade, calling, art, vocation, profession,
occupation, or means of livelihood, whether or not carried on for gain or profit.
(b) “Business operator” means a person who transacts, maintains, manages, operates,
controls, engages in, conducts, carries on, or owns a business in the city. It does not
include the employee of a business who is not an owner or proprietor of the business.
(c) “Calendar year” means the year beginning January 1 and ending December 31.
(d) “City” means the City of Palo Alto.
(e) “CPI Index” means the Consumer Price Index—All Urban Consumers for All Items for
the San Francisco-Oakland-Hayward Area or any successor to that index designated by
the Federal Bureau of Labor Statistics or the city council.
(f) “Fiscal year” means the year beginning July 1 and ending June 30.
(g) “Fixed place of business” means a place of business located in the city boundaries and
occupied for the particular purpose of operating a business. For the business of renting or
leasing real property, the real property being rented or leased is part of the fixed place of
business.
(h) “Grocery store” means a business that exists for the primary purpose of selling a range of
food items to consumers for consumption off site, such as canned foods; dry goods; fresh
produce; fresh meats, fish, and poultry; and any area that is not separately owned within
the store where food is prepared and served, including a bakery, deli, and meat and
seafood departments, or as otherwise defined in 14 CCR Section 18982(a)(3), provided
that any store that combines grocery items with other retail products or services is a
grocery store for the purpose of this chapter only if two-thirds or more of the occupied
space is designated to the sale of grocery items as listed in this section.
(i) “Hotel” has the meaning provided in section 2.33.010.
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(j) “Operate” means to conduct a business and includes all stages of conducting a business
from initial planning to the wind-down of a business, whether or not a profit is being
made.
(k) “Person” means any individual, firm, partnership, joint venture, association, corporation,
limited liability company, estate, trust, receiver, syndicate or other group or combination
acting as a unit and includes the plural as well as the singular number.
(l) “Quarter” means the three-month quarter of the fiscal year. The “first quarter” is the
months of July, August, and September; the “second quarter” is the months of October,
November, and December; the “third quarter” is the months of January, February, and
March; and the “fourth quarter” is the months of April, May, and June. The term “same
quarter of the previous fiscal year” means the quarter of the same number in the previous
fiscal year.
(m) “Square footage” means the rentable square footage used by a business as specified in a
business’s lease or, if the business floor space is owned by the business, as calculated in
the same manner as if the area was rented using commonly accepted standards of
measurement for leasing purposes such as the Standard Methods of Measurement
published by the Building Owners and Managers Association (BOMA). Any method of
measurement used must meet the following minimum standards:
(1) It shall be computed by measuring to the inside finish of permanent outer building
walls and shall include space used by columns and projections necessary to the
building.
(2) It shall include both the area used by the business and a proportionate share of the
building service areas such as lobbies, corridors and other common areas in a
building unless assigned to another business for tax calculation purposes or unless
agreed otherwise between the landlord and tenant.
(3) It shall not include vertical penetrations through the building such as stairs,
elevators, or heating, ventilation, air conditioning, utility, or telephone systems,
except on the lowest floor of stairs and elevators.
(4) For the business of renting or leasing residential property, area used exclusively
for residential purposes, areas solely for individual or family
sleeping/living/cooking/hygiene are not part of the square footage, but areas used
for the business operator’s offices, operational facilities, or to provide commercial
services to residents including common areas such as lobbies, are part of the
square footage.
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(4) Square footage for businesses with multiple locations will be measured and tax
assessed will be calculated based on the aggregate square footage for the business
for all locations in the City.
(n) “Tax Administrator” means the Director of Administrative Services, or successor
position, or their designee.
(o) “Transient” has the meaning provided in section 2.33.010.
(p) “Transient Occupancy Tax” means the tax imposed under section 2.33.020.
(q) “Transitory business” means a business that operates in the city for less than 90 days in
the course of one calendar year (such as seasonal sale lots, special events,
concerts/performances/circuses, filming, and party rentals).
(r) “Vacant” is to mean a severable portion of the physical location that a business is
operating, such as an entire floor, a building, or a portion of a floor with independent
entrance/exits, that is free from any use, fixtures, furniture, and equipment, and is
available for immediate use by a new tenant.
030 Obligation to Pay Business Tax
(a) It is unlawful for any business operator, either for themselves or for any other person, to
operate in the city any business taxed under this chapter without paying all business tax
required by this chapter.
(b) If a business has more than one business operator, then the payment of the business tax
by one business operator excuses any other business operators from the obligation to pay
the business tax for that period for which the tax has been paid.
(c) The requirement to pay business tax is in addition to and separate from the requirement to
obtain a business registration certificate under section 4.60.030.
(d) The payment of business tax does not authorize the doing of any act which the person or
business paying the business tax is not otherwise entitled to do and does not excuse the
business from complying with other applicable Code requirements.
040 Imposition of Business Tax
Any business operator operating a business at a fixed place of business in the city must
pay a business tax at the following rates:
(a) Beginning January 1, 2023, the tax shall be imposed at the rate of $0.05 per month per
square foot of square footage occupied or used by the business at the beginning of the
quarter, with no tax being imposed for the first 5,000 square feet.
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(b) Beginning January 1, 2025, the tax shall be imposed at the rate of $0.10 per month per
square foot of square footage occupied or used by the business at the beginning of the
quarter, with no tax being imposed for the first 5,000 square feet. This rate shall be
adjusted annually by the CPI Index as provided in section 050.
050 Annual CPI Adjustment of Tax Rate
(a) Beginning with the 2026-27 fiscal year, and each fiscal year thereafter, the tax rate shall
be automatically increased by a percentage equal to the percentage increase in the CPI
Index in the previous calendar year (“the CPI Increase).”
(b) Notwithstanding subdivision (a) of this section, in any year in which the CPI Increase is
more than 5%, the increase in the tax rate will be limited to 5%, and the amount of the
CPI Increase that exceeds 5% (“the Excess CPI Increase”) shall be added to the following
fiscal year’s CPI Increase under subdivision (a) of this section.
(c) If the addition of a previous fiscal year’s Excess CPI Increase to a current fiscal year’s
CPI Increase exceeds 5%, then the increase in the tax rate will again be limited to 5%,
and the amount that the combination of the CPI Increase and the previous fiscal year’s
Excess CPI Increase exceeds 5% will create a new “Excess CPI Increase” to be added to
the following fiscal year’s CPI Increase under subdivision (a) of this section.
060 Disposition of Tax Revenue
The tax imposed by this chapter is for the purpose of raising revenue for the general
governmental purposes of the city. All of the proceeds from the tax imposed by this chapter shall
be placed in the city’s general fund.
070 Exemptions from Tax
(a) The following businesses are exempt from the tax imposed by this chapter:
(1) Any business exempt from the tax by the laws of the United States or the State of
California;
(2) Grocery stores;
(3) Businesses that occupy or use 5,000 square feet or less in the city; and
(4) Transitory businesses.
(b) If a business operator operates a single integrated business that has two or more parts, one
or more of which could be exempt from the tax imposed by this chapter if operated as a
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separate business, the city may, at its discretion, exempt from the tax any part of the
business that would be exempt if operated as a separate business, provided the business’s
square footage can be reasonably allocated between the parts. If the city determines that
the square footage cannot be reasonably allocated between the different parts of the
business, then the entire business shall be taxed, unless to do so would violate a law of
the United States or the State of California.
080 Business Tax Offsets
(a) A business operator that operates a hotel in the city may deduct from the business tax it
owes for a quarter for the business of operating the hotel an amount equal to the total
transient occupancy tax collected and remitted to the city in the same quarter of the
previous fiscal year from transients staying at the hotel.
(b) The business operator of a business that has discretion to determine the location of the
place of sale, place of use or principal place of negotiation for sales or use tax purposes
and which exercises that discretion and designates the city as the place of sale, place of
use, or principal place of negotiation for sales or use tax purposes which results in the
city receiving sales or use tax revenues that it would not otherwise have received, but for
the business’s exercise of its discretion to designate the city as the place of sale, place of
use or principal place of negotiation for sales or use tax purposes (“Discretionary Sales or
Use Tax Sales”) may deduct from the business tax it owes for a quarter an amount equal
to one half of the total sales tax or use tax received by the city from the Discretionary
Sales or Use Tax Sales of that business in the same quarter of the previous fiscal year.
This offset can offset up to, but no more than, __% of the business’s quarterly business
tax.
(c) A business operator of a business that has rights to property due to property ownership, a
ground lease, or a lease that permits subleasing, and that is offering that property for sale
or rent, may deduct from the business tax owed for the business an amount equal to the
business tax associated with the square footage being offered for sale or rent, provided
that the area to be sold or rented is completely vacant and available for immediate
occupancy.
(d) A business claiming an offset under this section must claim the offset with its tax filing
for the quarter for which the offset is claimed.
(1) If the information necessary for a business to claim an offset is not available, the
business may defer claiming an offset for up to one year.
(2) The Tax Administrator may require a business claiming an offset to submit
additional information to support the claim of the offset. The request for
additional information must be made in writing and the information must be
provided within thirty (30) days.
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(3) If the Tax Administrator determines that an offset claimed by a business is
incorrect, the Tax Administrator may make and Initial Determination of the
amount, if any, of the offset and the amount of tax due under section 150(a).
090 Quarterly Tax Payments
(a) The tax imposed by this chapter shall be paid quarterly. The tax for each quarter is due
the first day of the following quarter and is delinquent thirty (30) days later.
(b) For the first quarter in which a business begins operating in the city, the business’s tax
shall be prorated for the number of days that the business was operating in the quarter.
(c) For the last quarter in in which a business operates in the city before closing, the
business’s tax shall be prorated for the number of days that the business was operating in
the quarter.
100 Business Tax Filing for a New Business
(a) When a business begins operating in the city for the first time, the business operator must
provide the Tax Administrator with the following information, verified by the business
operator as true and correct under penalty of perjury of the laws of the State of California,
before beginning the operation of the business in the city:
(1) The name of the business and the address or addresses at which it will be
operating in the city;
(2) The date on which the business will begin operating;
(3) The nature of the business’s activities;
(4) The square footage in which the business will be operating in the city; and
(5) Any other information required by the Tax Administrator; and
110 Quarterly Tax Returns
With each quarterly tax payment, a business operator must submit a quarterly tax return
which contains the following information, verified by the business operator as true and correct
under penalty of perjury of the laws of the State of California:
(a) The name of the business and the address or addresses at which it will be operating in the
city.
a
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(b) The nature of the business’s activities.
(c) The square footage in which the business will be operating in the city;
(d) If the business operator claims an offset under section 080, sufficient information and
documentation to establish the business’s right to the offset and the amount of the offset;
(e) Any other information required by the Tax Administrator; and
(f) The amount of tax due based on the square footage of the business.
120 Agreements for Installment Payments
The Tax Collector may enter into an agreement with a business operator to allow a
business operator to pay the tax on a more or less frequent basis.
130 Businesses Operating in the Same Location
(a) All business operators operating businesses in the same square footage are obligated to
pay business tax measured by that square footage..
(b) The payment of business tax by a business operator absolves any other business operator
from having to pay business tax measured by the same square footage.
(c) Two or more business operators that are operating businesses in the same square footage
may contractually agree which business will pay the business tax measured by that square
footage.
(d) If two or more business operators are operating businesses in the same square footage and
one of the business operators is exempt from paying business tax measured by that square
footage then no business tax shall be owed on the square footage in which the exempt
business is operating.
140 Delinquent Taxes (Penalties and Interest)
(a) When a tax becomes delinquent, a penalty of 10% of the amount of the delinquent tax
will be added to the amount of tax due. If the tax remains unpaid sixty (60) days after
becoming delinquent, an additional penalty of 25% of the amount of the delinquent tax
(excluding accrued interest and the initial penalty) will be added to the amount of tax due.
(b) On the first of each month that a tax is delinquent, interest in the amount of 1.5% of the
delinquent amount, excluding penalties and interest, will be added to the amount of tax
due.
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(c) A business operator may apply to the Tax Administrator for a reduction or waiver of any
accrued penalties or interest, and the Tax Administrator may reduce or waive any accrued
penalties or interest upon a finding of good cause.
150 Administrative Procedure to Assess or Correct Tax
(a) If the Tax Administrator determines that a business operator has incorrectly reported any
information to the city or has not paid all or any of the tax, penalties, or interest that are
due, the Tax Administrator may, using any information available to the Tax
Administrator, issue an Initial Determination stating what the Tax Administrator believes
to be the correct information and, if new or additional tax, penalties, or interest are due,
how much tax, penalties, or interest are due. An Initial Determination must be issued
within five (5) years of the last day of the quarter to which the Initial Determination
applies, except in the case of an audit conducted under section 210, in which case it must
be issued within ninety (90) days of the completion of the audit and can apply to any of
the quarters that were subject to the audit. The Initial Determination shall be served on
the business operator either personally or by U.S. mail to the most recent address for the
business operator in the Tax Administrator’s records. Service is effective upon deposit of
the Initial Determination in the U.S. Mail.
(b) A business operator affected by an Initial Determination may within fifteen (15) days of
service of an Initial Determination contest the Initial Determination and request a hearing
before the Tax Administrator by filing with the Tax Administrator a written request for a
hearing. The further accrual of penalties and interest shall be tolled upon the filing of a
request for a hearing. If a business operator does not contest an Initial Determination and
request a hearing with the Tax Administrator within fifteen (15) days of service of the
Initial Determination, the Initial Determination shall become final and cannot be
appealed.
(c) If a business operator timely contests an Initial Determination and requests a hearing, the
Tax Administrator shall set a hearing within thirty (30) days of the filing of the request
for a hearing. Notice of the hearing shall be served on the business operator either
personally or by U.S. mail to the most recent address for the business operator in the Tax
Administrator’s records.
(d) At the hearing the business operator may present evidence and argument regarding the
Initial Determination to show why the Initial Determination is incorrect and to show what
the determination of the Tax Administrator should be. Within sixty (60) day after the
close of the hearing, the Tax Administrator shall serve a Final Determination, setting
forth the Tax Administrator’s determination of the facts and issues that were the subject
of the Initial Determination. The Final Determination shall be served on the business
operator either personally or by U.S. mail to the most recent address for the business
operator in the Tax Administrator’s records. Service is effective upon deposit of the Final
Determination in the U.S. Mail. Unless an appeal of a Final Determination is filed under
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section 170, any penalties or interest tolled under subdivision (b) of this section will
resume accruing ten (10) days after the service of the Final Determination.
160 General Administrative Remedy
(a) Any person affected by a decision of the Tax Administrator (“the challenger”), except for
decisions under section 150, may challenge that decision by filing a written objection to
the decision with the Tax Administrator. The objection must be filed within fifteen (15)
days of the issuance of the decision being challenged. If the Tax Administrator was
required to provide notice of the decision, then the time to file an objection to the
decision begins to run from the date of service of the notice of the decision. The Tax
Administrator shall serve a written response to the objection within thirty (30) days of the
filing of the objection, which period can be extended by the Tax Administrator for an
additional thirty (30) days. The Tax Administrator’s response to the objection shall be
served on the challenger either personally or by U.S. mail to the most recent address for
the challenger in the Tax Administrator’s records.
(b) The challenger may request a hearing on the Tax Administrator’s response to the
objection by filing a request for a hearing with the Tax Administrator within fifteen (15)
days of service of the response to the objection. If a timely request for a hearing on a
response to the objection is filed with the Tax Administrator, the Tax Administrator shall
set a hearing within thirty (30) days of the filing of the request for a hearing. Notice of
the hearing shall be served on the challenger either personally or by U.S. mail to the most
recent address for the challenger in the Tax Administrator’s records.
(c) At the hearing the challenger may present evidence and argument regarding the decision
being challenged to show why the decision is incorrect and to show what it should be.
Within sixty (60) days after the close of the hearing, which the Tax Administrator may
extend for an additional sixty (60) days, the Tax Administrator shall serve a Final
Determination on the decision, setting forth the Tax Administrator’s determination of the
decision that was challenged. The Final Determination shall be served on the challenger
either personally or by U.S. mail to the most recent address for the challenger in the Tax
Administrator’s records. Service is effective upon deposit of the Final Determination in
the U.S. mail.
170 Appeals
(a) A Final Determination of the Tax Administrator under section 150, subdivision (d), or
section 160, subdivision (c), can be appealed to the City Manager by filing a written
notice of appeal with the City Manager within fifteen (15) days of service of the notice of
the Final Determination being appealed.
(b) Only a business operator who files a timely request for a hearing on an Initial
Determination under section 150 and participates in the hearing or a challenger who files
an objection to a decision and files a request for a hearing on the response to the
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objection under section 160 and participates in the hearing can file an appeal under this
section.
(c) If a timely appeal is filed with the City Manager, the City Manager, or the City
Manager’s designee, shall set a hearing within thirty (30) days of the filing of the appeal,
which may be extended by the City Manager for an additional thirty (30) days. Notice of
the hearing shall be served on the appellant either personally or by U.S. mail to the most
recent address for the challenger in the Tax Administrator’s records. The tolling of the
accrual of penalties or interest under section 150, subdivision (b), shall continue upon the
timely filing of an appeal under this section.
(d) At the hearing the appellant and the Tax Administrator may present evidence and
argument regarding the decision being appealed to show why the decision is correct or
incorrect and to show what it should be. Within sixty (60) days after the close of the
hearing, which the City Manager or the City Manager’s designee may extend for an
additional sixty (60) days, the City Manager or the City Manager’s designee shall serve a
written decision, setting forth the resolution of the appeal. The decision shall be served on
the appellant either personally or by U.S. mail to the most recent address for the appellant
in the City Manager’s records. Service is effective upon deposit of the decision in the
U.S. Mail. Any penalties and interest that were tolled under section 150, subdivision (b),
shall resume accruing ten (10) days after the service of the decision.
(e) A decision of the City Manager, or the City Manager’s designee, served under
subdivision (d) of this section is subject to judicial review under sections 1094.5 and
1094.6 of the Code of Civil Procedure with a writ petition filed in the appropriate court
within ninety (90) days of the service of the written decision. Any tax, penalties, or
interest determined by the decision to be owed to the city by the appellant must be paid to
the city as a precondition to filing a writ petition challenging the decision, but a claim for
a refund under section 200 does not have to be filed before filing a writ petition.
190 Constitutional Apportionment
(a) No tax imposed by this chapter shall be applied to a business operator so as to constitute
an undue burden on interstate commerce or intercity commerce or be violative of the
equal protection or due process clauses of the United States or California constitutions.
(b) A business operator who contends that the application of a tax imposed by this chapter on
the business operator constitutes an undue burden on interstate commerce or intercity
commerce or violates the equal protection or due process clauses of the United States or
California constitutions may apply to the Tax Administrator for an apportionment of the
tax imposed on the business operator that would remove the constitutional violation by
filing a written request with the Tax Administrator that explains the factual and legal
basis for the claimed constitutional violation and proposes a method of apportionment
that would resolve the alleged constitutional violations.
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(c) The Tax Administrator, in consultation with City Attorney, shall review the application
and within sixty (60) days of the filing of the application issue a decision on the
application. The decision on the application shall be served on the business operator
either personally or by U.S. mail to the most recent address for the challenger in the Tax
Administrator’s records. The decision can be challenged under section 160.
200 Refunds
(a) A business operator who believes that any tax, penalty, or interest has been illegally,
erroneously, or mistakenly paid to, collected by, or otherwise received by the city may
file a claim for a refund of the amount of tax, penalty, or interest claimed to have been
improperly received by the city.
(b) The claim must be filed with the Tax Administrator and signed under penalty of perjury
by the business operator. The claim must state:
(1) The legal and factual basis for the refund claim;
(2) The amount of tax, penalty, or interest allegedly improperly received by the city,
(3) The date or dates that the improper payments were made to the city, and
(4) The address of the claimant.
(c) The claim must be filed with the Tax Administrator within one (1) year of the date of the
allegedly improper payment to the city.
(d) The Tax Administrator shall provide a written decision on the claim within thirty (30)
days of the filing of the claim by serving the decision on the claimant either personally or
by U.S. mail to the address provided in the claim. Service is effective upon deposit of the
response in the U.S. Mail.
(e) A claimant may challenge the Tax Administrator’s decision on a refund claim under
section 160.
(f) This section does not apply to:
(1) A claim for a refund arising out of a decision of the Tax Administrator, City
Manager, or City Manager’s designee under sections 150, 160, 170, or 190; or
(2) A claim that could have been asserted by the claimant, but was not, under sections
150, 160, 170, or 190.
210 Audits
(a) The Tax Administrator may conduct an audit of any business operator to ensure proper
compliance with the requirements of this chapter.
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(b) To initiate an audit the Tax Administrator shall provide written notice to the business
operator that is the subject of the audit of the initiation of the audit by serving the notice
personally or by U.S. mail to the most recent address for the business operator in the Tax
Administrator’s records. The notice shall state the period of time subject to the audit.
(c) Notice of the initiation of an audit for a quarter for which either a business tax filing for a
new business or quarterly tax return was submitted under section 100 or section 110 must
be served within five (5) years of the last day of the quarter to which the filing or return
applied.
(d) Notice of the initiation of an audit for a quarter for which neither a business tax filing for
a new business nor a quarterly tax return was submitted under section 100 or section 110,
but for which the business was registered as a business under section 4.60.030, must be
served within seven (7) years of the last day of the quarter for which the filing or return
should have been filed.
(e) Notice of the initiation of an audit for a quarter for which neither a business tax filing for
a new business nor a quarterly tax return was submitted under section 100 or section 110,
and for which the business was not registered as a business under section 4.60.030, must
be served within ten (10) years of the last day of the quarter for which the filing or return
should have been filed.
(f) Upon completion of an audit, the Tax Administrator may make an Initial Determination
under subdivision (a) of section 150 of any taxes, penalties, and interest determined to be
owed and not paid for the audit period. The Initial Determination must be issued within
ninety (90) days of the completion of the audit. If a business operator subject to audit is
unable or unwilling to provide sufficient records to enable the Tax Administrator to
verify compliance with this chapter, the Tax Administrator is authorized to make a
reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled
to a rebuttable presumption of correctness.
220 Maintenance and Review of Records
(a) Business operators must maintain for six (6) years records of square footage and
information necessary to calculate the tax. If the Tax Administrator serves notice of the
initiation of an audit, the information pertinent for the quarters subject to the audit must
be maintained until the conclusion of the audit.
(b) The Tax Administrator may with reasonable notice inspect the premises and records of
the business operator.
(c) The Tax Administrator may request the city council to issue an administrative subpoena
for records of a business operator or other persons with relevant information.
230 Confidentiality of Records
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All documents submitted to the city by a business operator under this chapter and all
documents of a business operator inspected by the Tax Administrator in the conduct of an audit
are presumed to be confidential and will not be subject to public inspection to the fullest extent
allowed by law and must be maintained so that the contents of the documents will not become
known except to persons charged with the administration of this chapter. Confidential documents
may be shared with consultants retained by the city to aid in the administration of this chapter,
provided the consultants agree to maintain the confidentiality of the documents. However,
nothing in this section precludes the city from aggregating information and releasing it in a
manner that does not identify any particular business or connect any information with a
particular business.
240 Action to Collect Delinquent Taxes
(A) Any tax, penalty, and interest imposed on a business operator under this chapter is a debt
owed by the business operator to the city, which may be recovered in an action filed by
the city in a court of competent jurisdiction.
(B) An action under this section shall be filed within three (3) years of an Initial
Determination becoming final under subdivision (b) of section 150, the issuance of a
Final Determination under subdivision (d) of section 150 that is not appealed, the
issuance of a Final Determination under subdivision (c) of section 160 that is not
appealed, or the issuance of a decision under subdivision (d) of section 170.
(C) During the pendency of an action filed under this section, interest will continue to accrue
under subdivision (b) of section 140 until the entry of judgment.
(D) Before filing an action, the city may serve the business operator either personally or by
U.S. mail at the most recent address for the business operator in the Tax Administrator’s
records with notice of the pending action and give the business operator fifteen (15) days
to pay all of the delinquent taxes, penalties, and fees. If all of the of the delinquent taxes,
penalties, and fees are not paid within the fifteen-day period, then an additional penalty of
25% of the amount of the delinquent tax (including accrued penalties and interest) shall
be added to the total delinquency and may be recovered in the action.
250 Errors Not Binding on the City
No error by the Tax Administrator or any other officer, employee, or agent of the city in
the application of this chapter shall prevent, prejudice, or estop the collection by or for the city
of the full amount of tax owed by any person under this chapter.
260 Dates
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If the last day for the performance of any act under this chapter is a Saturday, Sunday, or
holiday recognized by the city, then the date for the performance of that act is extended to the
next day that is not a Saturday, Sunday, or holiday recognized by the city.
270 Rules and Regulations
(a) The Tax Administrator may adopt rules and regulations that are not inconsistent with the
provisions of this chapter as may be necessary to aid in the application and enforcement
of this chapter.
(b) The Tax Administrator may adopt rules providing for the service or filing of any notices,
filings, returns, or submittals required by this chapter. These rules may provide
alternative means for serving or filing any notice, filing, return, or submittal, and may
clarify the method of serving or filing any notice, filing, return, or submittal provided for
in this chapter.
280 City Council Amendments
(a) The city council may amend this chapter in any way it deems necessary without the
approval of the electorate, provided the amendment does not increase the amount of tax
that any person would pay.
(b) Any amendment to this chapter that would reduce the amount of tax any taxpayer would
pay, either temporarily or permanently, must be approved by two-thirds (2/3) of the
members of the city council.
(c) Notwithstanding subdivision (a) of this section, the city council may with the approval of
two-thirds (2/3) of its members and without approval of the electorate reduce, revise, or
eliminate any of the business tax offsets in section 080.
290 Severability
If any word, phrase, sentence, part, section, subsection, or other portion of this chapter, or
any application thereof to any person or circumstance is declared void, unconstitutional, or
invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other
portion, or the prescribed application thereof, shall be severable, and the remaining provisions of
this chapter, and all applications thereof, not having been declared void, unconstitutional or
invalid, shall remain in full force and effect. The People of the City of Palo Alto hereby declare
that they would have passed this ordinance, and each section, subsection, sentence, clause and
phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences,
clauses or phrases had been declared invalid or unconstitutional.
300 Savings Clause
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No section, clause, part, or provision of this chapter shall be construed as requiring the
payment of any tax that would be in violation of the Constitution or laws of the United States of
America or of the Constitution or laws of the State of California.
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Resolution No. ____
Resolution of the Council of the City of Palo Alto Describing
the Council’s Intentions Regarding Uses of Proceeds of a Business
Tax to be Submitted to the Voters for Approval in November 2022
R E C I T A L S
A.The City of Palo Alto is a safe, healthy, and vibrant community with a wide array of public
services and facilities that support and enhance the lives and experiences of residents, businesses,
workers and visitors to the City. These include a network of neighborhood parks and libraries; excellent
public and private schools and universities; community centers, museums and theater facilities; high-
quality local health care services; walkable, bikeable, safe neighborhoods; an extensive urban forest;
two lively downtown areas with indoor and outdoor dining, live music and shopping opportunities;
world-leading climate protection programs; and more.
B.The City of Palo Alto is a well-run municipality, with a Triple-A bond rating and a reputation
for pro-active fiscal management, strong ongoing investments in public infrastructure, and conservative
financial planning.
C.As Palo Alto looks toward the future, City leaders have determined that the time has come to
seek voter approval to tax businesses that operate in the City, as many neighboring communities do. A
business tax would ensure that organizations that benefit from doing business in Palo Alto do their part
to support the City’s work to meet evolving challenges, provide for new and expanding public needs,
and maintain the high-quality environment that residents, workers, and visitors enjoy.
D.If a business tax is approved by voters, its proceeds will be placed in the City’s general fund
for use on general government services. Each year, Council Members elected by the voters will
determine the uses of those proceeds that best serve the public interest.
E.With this Resolution, the City Council informs voters of its intentions regarding the public
services and programs that would be supported by business tax revenues.
Accordingly the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Council hereby adopts the above Recitals as findings of the Council.
SECTION 2. It is the Council’s intention to use proceeds of a business tax—a general tax for general
government uses—to fund new and enhanced services and programs that support safety and quality of
life as the community continues to develop. The following uses, in particular, would be supported by
business tax revenues:
Transportation and Safe Train Crossings. In the coming years, Palo Alto will need to need to invest
substantial local funds in the improvement and safety of train crossings. CalTrain is electrifying and
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trains are increasing in number. To maintain traffic flow, bicycle and pedestrian mobility, and safety, the
City’s four at-grade road crossings must be modified and separated from the train right-of-way. It is
estimated that an average investment of $250 million will be needed for the improvements needed at
each crossing. City funds will be used as matching funds to secure additional county, state, and federal
funds for these investments in transportation infrastructure.
Housing Affordability and Services for the Unhoused. A balanced and healthy community welcomes
families and individuals from all walks of life. In Palo Alto, significant investments are needed to bring
housing costs into reach for many moderate earners who work in the City, such as teachers, public
safety employees, and workers in the trades and service industries. With few affordable local housing
options, these workers must travel long distances between home and work, contributing to green-house
gas emissions and traffic congestion. In addition, longtime residents—especially those who rent—are at
risk of losing housing and being forced to relocate to other communities or become unhoused. Those
who are already living in the City without housing need financial support to transition to stable, safe and
clean housing. Substantial funding is needed to advance these goals.
Enhanced Local Services. Rising costs and constrained revenues have limited the City’s ability to
provide services—such as police, fire, emergency services, and rejuvenation of our two downtown
districts—at the level desired by the community. Stable long-term revenues from a business tax will put
highly-valued City services on sound footing for the future.
SECTION 3. The Council finds that adoption of this Resolution is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
__________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: ____________________________
City Manager
__________________________
City Attorney
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220-6398
Key Findings from a Survey of Palo Alto Voters
Conducted May 22-26, 2022
Assessing Support for Potential
Finance Ballot Measures
ATTACHMENT H
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1
Survey Methodology
Dates May 22-26, 2022
Survey Type Dual-mode Voter Survey
Research Population Likely November 2022 Voters in Palo Alto
Total Interviews 463
Margin of Sampling Error (Full Sample) ±4.9% at the 95% Confidence Level
(Half Sample) ±6.6% at the 95% Confidence Level
Contact Methods
Data Collection Modes
(Note: Not All Results Will Sum to 100% Due to Rounding)
Text
InvitationsTelephone
Calls
Email
Invitations
Telephone
Interviews Online
Interviews
ATTACHMENT H
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2
Survey Goals and Approach
Assess voter reactions to two
potential ballot measures,
with draft legal language: a
business tax and a measure to
ratify utility fund transfers.
Business tax and utility
measure rotated to assess
impact of ballot sequence.
Evaluate voters’priorities for
business tax structure.
Gauge the impact of pro and
con messaging on breadth
and intensity of support for
the businesses tas.
Business Tax
Utility Fund Transfer Ratification
Uses of Funds
Pro-BT Messages and Re-Vote
Anti-BT Message and Re-Vote
Business Tax and Utility Questions Rotated
Vote on One, Both, Neither?
BLT Amounts and Exemptions
Demographics
Message Blocks Rotated
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3
Context
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4
Voters in the city are have become more
pessimistic than optimistic about the city’s direction.
Q1.
36%
41%40%43%
61%
39%
35%34%37%
25%25%24%27%
20%
14%
May 2022March 2022202120182016
Right Direction Wrong Track Don’t Know
Would you say that things in Palo Alto are generally headed in the right direction,
or do you feel that things are headed in the wrong direction?
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5
Voter Views of a
Business Tax
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6
Hypothetical Ballot Language Tested
Shall the measure to raise funds for services such as
improving public safety, affordable housing, rail crossing
safety,homeless services,economic revitalization and
general City services,by levying a tax on businesses in the
City of Palo Alto at an annual rate of (HALF SAMPLE:10)
(HALF SAMPLE:12)cents per square foot occupied by the
business,with annual adjustments for inflation and
exemptions for grocery stores, seasonal businesses and all
businesses under 5,000 square feet,raising approximately
(HALF SAMPLE:$22 million)(HALF SAMPLE:$26 million)
per year until ended by voters, be adopted?
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Q2 Total. Do you think you would vote yes or no on such a measure?
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
21%
37%
1%
1%
14%
24%
2%
Total Yes59%
Total No38%
Support for the 12-cent version is no
lower than the 10-cent version, but
backing for both is very tentative.
21%
42%
5%
1%
14%
18%
4%
Total Yes68%
Total No26%
10 cents 12 cents
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8
Three-quarters of Democrats support the
measure; a majority of independents do.
Q2 Total. Do you think you would vote yes or no on such a measure?
Initial Business License Tax Vote (Rates Combined) by Party
75%
55%
20%22%
39%
75%
3%5%5%
Democrats Independents Republicans
Total Yes Total No Undecided
(% of
Sample)(60%)(30%)(10%)
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Seven in ten women support the measure.
Q2 Total. Do you think you would vote yes or no on such a measure?
Initial Business License Tax Vote (Rates Combined) by Gender
58%
69%
39%
26%
3%5%
Men Women
Total Yes Total No Undecided
(% of
Sample)(48%)(51%)
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Four in five voters under 50 support the
business tax; older voters are more divided.
Q2 Total. Do you think you would vote yes or no on such a measure?
Initial Business License Tax Vote (Rates Combined) by Age
80%
49%55%
17%
47%
39%
3%4%6%
18-49 50-64 65+
Total Yes Total No Undecided
(% of
Sample)(41%)(29%)(30%)
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11
Voter Views of a
Utility Fund Measure
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Q3 Total. Do you think you would vote yes or no on such a measure?
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
20%
35%
3%
1%
17%
12%
11%
Total Yes59%
Total No30%
Shall the measure affirming the City of Palo Alto’s existing routine budget practice since 1950 ofannually transferring no more than 18%of the gross revenues from the City’s natural gas utility(generated by the City’s retail natural gas rates) to its general fund to support general city servicessuch as library services; climate change reduction; transportation; and police,fire,emergencymedical, and 911 response; providing approximately $7 million annually in existing revenues,be adopted?
The utility measure also has support from
nearly three in five, and backing is also soft.
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Nearly two-thirds of Democrats back
the measure, as do almost three in
five independents.
Q3 Total. Do you think you would vote yes or no on such a measure?
Initial Utility Measure Vote by Party
64%58%
37%
22%
36%
59%
14%7%4%
Democrats Independents Republicans
Total Yes Total No Undecided
(% of
Sample)(60%)(30%)(10%)
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Two-thirds of business tax supporters also
back the utility measure.
Q3 Total. Do you think you would vote yes or no on such a measure?
Initial Utility Measure Vote by Initial Business Tax Support
66%
47%49%
22%
47%
15%11%6%
36%
Among Business Tax
Supporters
Among Business Tax
Opponents
Among Undecideds
Total Yes Total No Undecided
(% of
Sample)(63%)(32%)(4%)
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About half of voters back each measure when
asked to consider them in tandem.
Q4.
If both of these measures were on the same ballot, would you vote
“yes” on both, for just one, or for neither?
15%
33%
17%
18%
17%
Yes, on business tax only
Yes, on both
Yes, on utility fund transfer measure only
No, on both
Don't know
Total Yes on Business Tax48%
Total Yes on Utility Measure50%
Note: the sequence in which the measures were presented did not yield
any meaningful difference in support.
ATTACHMENT H
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16
Structuring a
Business Tax
ATTACHMENT H
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17
Q5 a-g. Not Part of Split Sample
36%
43%
33%
29%
15%
22%
19%
34%
27%
30%
30%
43%
35%
32%
12%
12%
15%
13%
18%
12%
16%
11%
10%
13%
12%
10%
14%
22%
6%
9%
10%
15%
14%
17%
11%
Exempting seasonal businesses that operate less than 90 days per year from the tax
Exempting grocery stores from the tax
Exempting the first 5,000 square feet of each business from the tax
Having the tax remain in place until ended by voters
Phasing in the tax over a 2-year period
Basing the tax on the square footage of a business’s property in Palo Alto
Reducing business tax bills for hotels by the amount they already pay in hotel taxes
Strng. Supp.Smwt. Supp.Don't Know Smwt. Opp.Strng. Opp.Total Supp.Total Opp.
71%17%
69%19%
63%22%
59%28%
58%24%
57%31%
51%33%
I am going to read you a list of some of the major provisions of this measure. Please tell me whether you support or oppose that aspect of the measure.
Voters broadly support a variety of exemptions
and phasing in the tax over two years.
ATTACHMENT H
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18
Q5 h-m. Split Sample
34%
18%
12%
16%
16%
10%
29%
31%
36%
28%
27%
24%
19%
13%
24%
16%
12%
31%
12%
15%
5%
18%
20%
14%
7%
23%
23%
22%
26%
22%
Limiting the annual increase for inflation to 5%
Charging a tax of 12 cents per square foot per month on current rents, an increase averaging 1.7% per square foot
Charging a tax of 10 cents per square foot per month
Charging a tax of 10 cents per square foot per month on current rents, an increase averaging 1.4%
Automatically adjusting the tax by up to 5% each year to adjust for inflation
Charging a tax of 12 cents per square foot per month
Strng. Supp.Smwt. Supp.Don't Know Smwt. Opp.Strng. Opp.Total Supp.Total Opp.
62%19%
49%38%
49%28%
44%41%
43%45%
34%36%
I am going to read you a list of some of the major provisions of this measure. Please tell me whether you support or oppose that aspect of the measure.
Three in five support a cap on inflation
increases; tax rates are divisive.
ATTACHMENT H
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19
Ext./Very
Impt.
64%
60%
58%
56%
55%
47%
35%
Q6. I am going to read you a list of more-specific ways in which funds generated by a tax could be spent. Please tell me how important each item is to you
personally: extremely important, very important, somewhat important, or not too important.
41%
33%
31%
37%
29%
22%
16%
23%
27%
27%
19%
26%
25%
19%
21%
22%
24%
20%
25%
29%
36%
14%
17%
17%
22%
18%
22%
27%
Improving public safety response to violent crime
Improving public safety response to property crime
Providing outreach and supportive services to people experiencing homelessness
Building affordable housing
Building safe crossings for traffic and pedestrians to go over or underCaltrain tracksCreating more vibrant, attractive business districts where streets are closed to allow better pedestrian access
Improving the University and California Avenue business districts
Ext. Impt.Very Impt.Smwt. Impt.Not Too Impt.Don't Know
Among potential uses of money, voters
prioritize improving response to crime.
ATTACHMENT H
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20
Impact of Messaging
on the Business Tax
ATTACHMENT H
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21
21%
26%
19%
22%
39%
33%
28%
31%
6%
6%
6%
14%
14%
20%
20%
18%
16%
23%
17%
Initial Business Tax Vote
Vote After Positives
Vote After Negatives
Final Business Tax Vote
Def. Yes Prob. Yes Und., Lean Yes Undecided Und., Lean No Prob. No Def. No Total Yes Total No
64%32%
62%32%
50%44%
56%38%
Negative messaging drives support for the
measure down to 50%.
Q2 Total, Q8 Split E, Q8 Split F & Q9 Total. Do you think you would vote yes or no on such a measure?
Positives and Negatives Rotated
Mid-Point Vote Margins of Error +/-6.9%
ATTACHMENT H
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22
Segmenting the Electorate by Consistency of
Support for a Business Tax
Consistent
Yes
43%
Swing
33%
Consistent
No
24%
Consistent Yes :Voters who
consistently indicated they would
vote “yes”on the measure
Consistent No:Voters who
consistently indicated they would
vote “no” on the measure
Swing:Voters who do not fall into
any of the other categories –
remaining consistently undecided or
switching positions
The following slide shows demographic
groups that disproportionately fall into
one category or the other.
ATTACHMENT H
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23
Consistent Yes Swing Consistent No
43% of the Electorate 33% of the Electorate 24% of the Electorate
Ages 18-29 Own Palo Alto Business Republican Men
Democratic Women
Ages 18-49 Independent Women Republicans Ages 50+
Democrats Ages 18-49 Women Ages 50+ Republicans
Women Ages 18-49 Democratic Women Ages 50+ Men Ages 50+
Democratic Men Ages 18-49 Independents Ages 18-49 Independents Ages 50+
Non-College Educated Women Ages 30-39 Independent Men
Renters Ages 40-49 ZIP Code 94301
Ages 18-49 Women Ages 75+
Some College or Less Democrats Ages 50+ College-Educated Men
Democratic Women Ages 65+ Ages 65+
Ages 30-39 Independents Homeowners
Non-College Educated Men Asians/Pacific Islanders Ages 50+
Democrats Ages 75+ Men
Men Ages 18-49 Ages 65-74 Ages 50-64
Whites Ages 65-74
Demographic Profile of the Segments
Business License Tax Measure
ATTACHMENT H
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24
Q7. I am going to read you some statements from people who support the measure. Please tell me whether you find it very convincing, somewhat convincing,
or not convincing as a reason to support the measure.
(Ranked by Very Convincing)
(FAIR SHARE)Palo Alto currently registers businesses of all sizes for $50.That means a mom-and-pop coffee shop pays the same as a tech company withthousandsofemployees.This measure is a sensible way to ensure largebusinessespaytheirfairsharefortheservicestheCityprovides and that theiremployeesenjoy,like affordable housing and police and fire protection.
(COMPARISON)Palo Alto does not have a business tax,unlike most communitiesin California.Several nearby communities have significant taxes on business,such as East Palo Alto’s tax of $2.50 per square foot annually on commercialofficespaceover25,000 square feet and San Francisco’s business tax of $2.85 to$5.60 per $1,000 of gross receipts annually.This tax would align Palo Alto’s taxsystemwiththoseofothercities in the area.(TAX BASE)This measure is not a tax on homeowners or shoppers,but on thecity’s largest businesses.Sales taxes continue to decline in Palo Alto,and bydiversifyingtheCity’s tax base with a thoughtfully designed business tax,we willbebetterabletoweatherfuturefinancial crises without having to raise taxes oneverydayresidents.(ACCOUNTABILITY)This measure will be subject to strict accountabilityprovisions like annual financial audits;full public disclosure of all spending;and arequirement that all funds be spent locally in Palo Alto.This will ensure funds areusedefficiently, effectively,and as promised.
(RESOLUTION)Though this measure will be a general tax that can fund any cityneed,the City Council has committed to approving a plan before the election sothatvotersknowexactlyhowit will spend the money:on public safety,affordable housing,homelessness,and improving the safety of rail crossings.
Support Messages Tested ATTACHMENT H
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25
Q7. I am going to read you some statements from people who support the measure. Please tell me whether you find it very convincing, somewhat convincing,
or not convincing as a reason to support the measure.
42%
31%
30%
25%
25%
26%
33%
32%
38%
36%
68%
64%
62%
63%
61%
Fair Share
Comparison
Tax Base
Accountability
Resolution
Very Convincing Somewhat Convincing
Describing how the measure would make
business taxes fairer is broadly compelling.
ATTACHMENT H
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Negative Message Provided
Q9. Having heard this, would you vote yes or no on the measure?
The cost of living is out of control and inflation
is on the rise –now is not the time to be
raising taxes .Local rents and taxes are already
among the highest in the nation, and we can’t
afford another business tax this size . In
addition, this tax has no expiration date on it –
it’s a forever tax that includes an automatic
cost escalator,meaning that the tax will
increase every year,giving the City a blank
check for hundreds of millions of dollars.
ATTACHMENT H
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Q3 Total & Q10. Do you think you would vote yes or no on such a measure?
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
20%
35%
3%
1%
17%
12%
11%
Total Yes59%
Total No30%
Initial Utility
Measure Vote
16%
41%
2%
2%
16%
12%
11%
Total Yes59%
Total No30%
Final Utility
Measure Vote
After pros and cons on the business tax
measure, support for the utility measure is
holds steady –broad, but soft.
ATTACHMENT H
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28
Conclusions
ATTACHMENT H
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Conclusions
• Skepticism of the electorate continues to grow, as it is in many cities around
the region, with a plurality of voters saying the City is on the wrong track for
the first time.
• With hypothetical measure language, a business tax measure has support
from just under two‐thirds (64% to 32%); after pros and cons, 56% support it.
• At the same time, the measure shows signs of soft support:
– Only one in five say they would “definitely” vote for the measure, both before
and after messaging.
– After exposure to negative messaging, the measure leads by only a narrow 50%
to 44% margin.
• Voters are comfortable with a measure that caps inflation adjustments at 5%.
There is no consistent preference between a 10‐cent and 12‐cent per square
foot rate.
• Voters are most enthusiastic about allocating new funding toward public
safety, affordable housing, and outreach to the unhoused
• A measure ratifying utility fund transfers appears viable; it has support from
three in five voters before and after messaging.
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For more information, contact:
Dave@FM3research.com
Dave Metz
Miranda@FM3research.com
Miranda Everitt1999 Harrison St., Suite 2020
Oakland, CA 94612
Phone (510) 451-9521
Fax (510) 451-0384
ATTACHMENT H
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MAY 22-26, 2022
CITY OF PALO ALTO BALLOT MEASURE SURVEY
220-6398-WT
N=463
MARGIN OF SAMPLING ERROR ±4.9% (95% CONFIDENCE INTERVAL)
A/B & C/D & E/F SPLITS
Hello, I'm ___________ from _________, a public opinion research company. I am definitely not trying to sell
you anything. We are conducting an opinion survey about issues that interest people living in the City of Palo
Alto and we are only interested in your opinions. May I speak to ______________? (YOU MUST SPEAK
TO THE VOTER LISTED. VERIFY THAT THE VOTER LIVES AT THE ADDRESS LISTED,
OTHERWISE TERMINATE).
A. Before we begin, I need to know if I have reached you on a cell phone, and if so, are you in a place
where you can talk safely without endangering yourself or others? (IF NOT ON A CELL PHONE,
ASK: “Do you own a cell phone?”)
Yes, cell and can talk safely ------------------------------------------------- 82%
Yes, cell but cannot talk safely --------------------------------- TERMINATE
No, not on cell ----------------------------------------------------------------- 18%
(DON’T READ) DK/NA/REFUSED ------------------------- TERMINATE
1.(T*) First, would you say that things in Palo Alto are generally headed in the right direction, or do you
feel that things are headed in the wrong direction?
Right direction ----------------------------- 36%
Wrong direction ---------------------------- 39%
(DON'T READ) DK/NA ---------------- 25%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 2
NOW I WOULD LIKE TO ASK YOU A FEW QUESTIONS ABOUT TWO MEASURES THAT MAY
APPEAR ON THE PALO ALTO BALLOT IN THE NOVEMBER ELECTION.
(SPLIT SAMPLE A ONLY: Q2 THEN Q3)
(SPLIT SAMPLE B ONLY: Q3 THEN Q2)
2. The FIRST/SECOND measure might read as follows:
“Shall the measure to raise funds for services such as improving public safety, affordable housing, rail
crossing safety, homeless services, economic revitalization and general City services, by levying a tax
on businesses in the City of Palo Alto at an annual rate of (SPLIT SAMPLE C: ten) (SPLIT SAMPLE
D: twelve) cents per square foot occupied by the business, with annual adjustments for inflation and
exemptions for grocery stores, seasonal businesses and all businesses under 5 thousand square feet,
raising approximately (SPLIT SAMPLE C: 22 million dollars) (SPLIT SAMPLE D: 26 million
dollars) per year until ended by voters, be adopted?”
Do you think you would vote yes or no on such a measure? (IF YES/NO, ASK: “Is that definitely or
just probably?”) (IF UNDECIDED, ASK: Do you lean toward voting yes or no?”)
SPLIT A: SPLIT B: SPLIT C: SPLIT D:
ASKED ASKED 10¢/SQFT 12¢/SQFT
FIRST SECOND /$22M $26M TOTAL
TOTAL YES --------------------------------------------- 64% ------- 64% ------ 59% ---- 68% ------- 64%
Definitely yes --------------------------------------------- 22% ------- 20% ------ 21% ---- 21% ------- 21%
Probably yes ---------------------------------------------- 40% ------- 39% ------ 37% ---- 42% ------- 39%
Undecided, lean yes --------------------------------------1% -------- 4% -------- 1% ------ 5% --------- 3%
TOTAL NO ---------------------------------------------- 34% ------- 30% ------ 38% ---- 26% ------- 32%
Undecided, lean no ---------------------------------------1% -------- 1% -------- 1% ------ 1% --------- 1%
Probably no ----------------------------------------------- 12% ------- 15% ------ 14% ---- 14% ------- 14%
Definitely no ---------------------------------------------- 21% ------- 15% ------ 24% ---- 12% ------- 18%
(DK/NA) ---------------------------------------------------2% -------- 6% -------- 2% ------ 6% --------- 4%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 3
(SPLIT SAMPLE A ONLY: Q2 THEN Q3)
(SPLIT SAMPLE B ONLY: Q3 THEN Q2)
3. The FIRST/SECOND measure might read as follows:
“Shall the measure affirming the City of Palo Alto’s existing routine budget practice since 1950 of
annually transferring no more than 18 percent of the gross revenues from the City’s natural gas utility
(generated by the City’s retail natural gas rates) to its general fund to support general city services such
as library services; climate change reduction; transportation; and police, fire, emergency medical, and
9-1-1 response; providing approximately 7 million dollars annually in existing revenues, be adopted?”
Do you think you would vote yes or no on such a measure? (IF YES/NO, ASK: “Is that definitely or
just probably?”) (IF UNDECIDED, ASK: Do you lean toward voting yes or no?”)
SPLIT B: SPLIT A:
ASKED ASKED
FIRST SECOND TOTAL
TOTAL YES ---------------------------------- 59% -------------------- 59% --------------------- 59%
Definitely yes ---------------------------------- 20% -------------------- 20% --------------------- 20%
Probably yes ----------------------------------- 34% -------------------- 37% --------------------- 35%
Undecided, lean yes ---------------------------- 5% ---------------------- 1% ---------------------- 3%
TOTAL NO ----------------------------------- 26% -------------------- 34% --------------------- 30%
Undecided, lean no ----------------------------- 1% ---------------------- 1% ---------------------- 1%
Probably no ------------------------------------ 16% -------------------- 19% --------------------- 17%
Definitely no ----------------------------------- 10% -------------------- 14% --------------------- 12%
(DK/NA) --------------------------------------- 15% ---------------------- 7% --------------------- 11%
4. Next, if both of these measures were on the same ballot, would you vote “yes” on both, for just one,
or for neither? (IF YES ON ONE, ASK: “Which one would you vote “yes” on: the business license
tax or the utility fund transfer measure?”)
Yes, on both ------------------------------------------------- 33%
Yes, on business tax only --------------------------------- 15%
Yes, on utility fund transfer measure only ------------- 17%
No on both --------------------------------------------------- 18%
(DON'T READ) DK/NA --------------------------------- 17%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 4
THE REST OF MY QUESTIONS ARE ABOUT THE MEASURE THAT
WOULD ESTABLISH A BUSINESS TAX IN PALO ALTO.
5. First, I am going to read you a list of some of the major provisions of this measure. For each, please
tell me whether you support or oppose that aspect of the measure. (IF SUPPORT/OPPOSE, ASK: “Is
that strongly SUPPORT/OPPOSE or just somewhat?”) (READ RANDOMIZE)
STR SMWT SMWT STR (DK/ TOTAL TOTAL
SUPP SUPP OPP OPP NA) SUPP OPP
[ ]a. Basing the tax on the square
footage of a business’s property
in Palo Alto --------------------------------- 22% ----- 35% ---- 14% ----- 17% ----- 12% 57% 31%
[ ]b. Having the tax remain in place
until ended by voters ---------------------- 29% ----- 30% ---- 12% ----- 15% ----- 13% 59% 28%
[ ]c. Phasing in the tax over a two-
year period ---------------------------------- 15% ----- 43% ---- 10% ----- 14% ----- 18% 58% 24%
[ ]d. Exempting grocery stores from
the tax ---------------------------------------- 43% ----- 27% ---- 10% ------ 9% ----- 12% 69% 19%
[ ]e. Exempting seasonal businesses
that operate less than 90 days
per year from the tax ---------------------- 36% ----- 34% ---- 11% ------ 6% ----- 12% 71% 17%
[ ]f. Exempting the first five
thousand square feet of each
business from the tax ---------------------- 33% ----- 30% ---- 13% ----- 10% ----- 15% 63% 22%
[ ]g. Reducing business tax bills for
hotels by the amount they
already pay in hotel taxes ----------------- 19% ----- 32% ---- 22% ----- 11% ----- 16% 51% 33%
(SPLIT SAMPLE A ONLY)
[ ]h. Automatically adjusting the tax
by up to five percent each year
to adjust for inflation ---------------------- 16% ----- 27% ---- 20% ----- 26% ----- 12% 43% 45%
(SPLIT SAMPLE AE ONLY)
[ ]i. Charging a tax of ten cents per
square foot per month --------------------- 12% ----- 36% ------ 5% ----- 23% ----- 24% 49% 28%
(SPLIT SAMPLE AF ONLY)
[ ]j. Charging a tax of ten cents per
square foot per month on
current rents, an increase
averaging one point four
percent --------------------------------------- 16% ----- 28% ---- 18% ----- 22% ----- 16% 44% 41%
(SPLIT SAMPLE B ONLY)
[ ]k. Limiting the annual increase for
inflation to five percent ------------------- 34% ----- 29% ---- 12% ------ 7% ----- 19% 62% 19%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 5
STR SMWT SMWT STR (DK/ TOTAL TOTAL
SUPP SUPP OPP OPP NA) SUPP OPP
(SPLIT SAMPLE BE ONLY)
[ ]l. Charging a tax of twelve cents per
square foot per month --------------------- 10% ----- 24% ---- 14% ----- 22% ----- 31% 34% 36%
(SPLIT SAMPLE BF ONLY)
[ ]m. Charging a tax of twelve cents per
square foot per month on current
rents, an increase averaging one
point seven percent ------------------------ 18% ----- 31% ---- 15% ----- 23% ----- 13% 49% 38%
(RESUME ASKING ALL RESPONDENTS)
6. Next, I am going to read you a list of more-specific ways in which funds generated by a tax could be
spent. After I read each one, please tell me how important each item is to you personally: extremely
important, very important, somewhat important, or not too important. (RANDOMIZE)
EXT VERY SMWT NOT TOO (DK/ EXT/
IMP IMP IMP IMP NA) VERY
[ ]a. Building safe crossings for traffic and
pedestrians to go over or under Caltrain tracks ----- 29% ----- 26% ---- 25% ----- 18% ----- 2% 55%
[ ]b. Building affordable housing ---------------------------- 37% ----- 19% ---- 20% ----- 22% ----- 2% 56%
[ ]c. Providing outreach and supportive services to
people experiencing homelessness -------------------- 31% ----- 27% ---- 24% ----- 17% ----- 1% 58%
[ ]d. Improving the University and California
Avenue business districts ------------------------------- 16% ----- 19% ---- 36% ----- 27% ----- 2% 35%
[ ]e. Improving public safety response to violent
crime ------------------------------------------------------- 41% ----- 23% ---- 21% ----- 14% ----- 2% 64%
[ ]f. Improving public safety response to property
crime ------------------------------------------------------- 33% ----- 27% ---- 22% ----- 17% ----- 1% 60%
[ ]g. Creating more vibrant, attractive business
districts where streets are closed to allow better
pedestrian access ----------------------------------------- 22% ----- 25% ---- 29% ----- 22% ----- 2% 47%
NEXT, HERE ARE SOME STATEMENTS FROM SUPPORTERS AND OPPONENTS OF THE
POTENTIAL BUSINESS TAX WE HAVE BEEN DISCUSSING.
(SPLIT SAMPLE E ONLY: READ Q7 THEN Q8 THEN Q9)
(SPLIT SAMPLE F ONLY: READ Q9 THEN Q7 THEN Q8)
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 6
7.FIRST/NEXT, I am going to read you some statements from people who support the measure. After
hearing each statement, please tell me whether you find it very convincing, somewhat convincing, or
not convincing as a reason to support the measure. If you do not believe the statement, please tell me
that too. (RANDOMIZE)
VERY SMWT NOT DON'T (DK/ VERY/
CONV CONV CONV BEL NA) SMWT
[ ]a.(RESOLUTION) Though this measure will be
a general tax that can fund any city need, the
City Council has committed to approving a
plan before the election so that voters know
exactly how it will spend the money: on public
safety, affordable housing, homelessness, and
improving the safety of rail crossings. --------------- 25% ----- 36% ---- 22% ----- 13% ----- 5% 61%
[ ]b.(T-ACCOUNTABILITY) This measure will
be subject to strict accountability provisions
like annual financial audits; full public
disclosure of all spending; and a requirement
that all funds be spent locally in Palo Alto.
This will ensure funds are used efficiently,
effectively, and as promised.--------------------------- 25% ----- 38% ---- 16% ----- 17% ----- 4% 63%
[ ]c.(T-COMPARISON) Palo Alto does not have a
business tax, unlike most communities in
California. Several nearby communities have
significant taxes on business, such as East Palo
Alto’s tax of $2.50 per square foot annually on
commercial office space over 25,000 square
feet and San Francisco’s business tax of $2.85
to $5.60 per 1000 dollars of gross receipts
annually. This tax would align Palo Alto’s tax
system with those of other cities in the area. -------- 31% ----- 33% ---- 22% ------ 9% ------ 5% 64%
[ ]d.(T-FAIR SHARE) Palo Alto currently
registers businesses of all sizes for 50 dollars.
That means a mom-and-pop coffee shop pays
the same as a tech company with thousands of
employees. This measure is a sensible way to
ensure large businesses pay their fair share for
the services the City provides and that their
employees enjoy, like affordable housing and
police and fire protection. ------------------------------ 42% ----- 26% ---- 18% ----- 10% ----- 4% 68%
[ ]e.(T-TAX BASE) This measure is not a tax on
homeowners or shoppers, but on the city’s
largest businesses. Sales taxes continue to
decline in Palo Alto, and by diversifying the
City’s tax base with a thoughtfully designed
business tax, we will be better able to weather
future financial crises without having to raise
taxes on everyday residents. --------------------------- 30% ----- 32% ---- 20% ----- 14% ----- 4% 62%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 7
(SPLIT SAMPLE E ONLY: READ Q7 THEN Q8 THEN Q9)
(SPLIT SAMPLE F ONLY: READ Q9 THEN Q7 THEN Q8)
8. Now that you’ve learned more about it, would you vote yes or no on a measure to raise funds for
services such as improving public safety, affordable housing, rail crossing safety, homeless services,
economic revitalization and for general city services, by levying a tax on businesses in the City of Palo
Alto at an annual rate of (SPLIT SAMPLE C: ten) (SPLIT SAMPLE D: twelve) cents per square foot
occupied by the business? (IF YES/NO, ASK: “Is that definitely or just probably?”) (IF
UNDECIDED, ASK: “Do you lean toward voting yes or no?”)
SPLIT E: SPLIT F: SPLIT C: SPLIT D:
ASKED ASKED 10¢/SQFT 12¢/SQFT
FIRST SECOND /$22M $26M TOTAL
TOTAL YES --------------------------------------------- 61% ------- 63% ------ 61% ---- 64% ------- 62%
Definitely yes --------------------------------------------- 25% ------- 28% ------ 29% ---- 24% ------- 27%
Probably yes ---------------------------------------------- 34% ------- 33% ------ 30% ---- 37% ------- 33%
Undecided, lean yes --------------------------------------3% -------- 2% -------- 1% ------ 3% --------- 2%
TOTAL NO ---------------------------------------------- 32% ------- 32% ------ 34% ---- 30% ------- 32%
Undecided, lean no ---------------------------------------2% -------- 2% -------- 2% ------ 2% --------- 2%
Probably no ----------------------------------------------- 15% ------- 14% ------ 13% ---- 16% ------- 14%
Definitely no ---------------------------------------------- 15% ------- 17% ------ 20% ---- 12% ------- 16%
(DK/NA) ---------------------------------------------------7% -------- 5% -------- 5% ------ 7% --------- 6%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 8
(SPLIT SAMPLE E ONLY: READ Q7 THEN Q8 THEN Q9)
(SPLIT SAMPLE F ONLY: READ Q9 THEN Q7 THEN Q8)
9.FIRST/NEXT, let me read you a brief statement from opponents.
The cost of living is out of control and inflation is on the rise – now is not the time to be raising taxes.
Local rents and taxes are already among the highest in the nation, and we can’t afford another business
tax this size. In addition, this tax has no expiration date on it – it’s a forever tax that includes an
automatic cost escalator, meaning that the tax will increase every year, giving the City a blank check
for hundreds of millions of dollars.
Having heard this, would you vote yes or no on the measure? (IF YES/NO, ASK: “Is that definitely
or just probably?”) (IF UNDECIDED, ASK: “Do you lean toward voting yes or no?”)
SPLIT F: SPLIT E:
ASKED ASKED
FIRST SECOND TOTAL
TOTAL YES ---------------------------------- 52% -------------------- 48% --------------------- 50%
Definitely yes ---------------------------------- 21% -------------------- 16% --------------------- 19%
Probably yes ----------------------------------- 28% -------------------- 28% --------------------- 28%
Undecided, lean yes ---------------------------- 3% ---------------------- 4% ---------------------- 3%
TOTAL NO ----------------------------------- 44% -------------------- 44% --------------------- 44%
Undecided, lean no ----------------------------- 0% ---------------------- 2% ---------------------- 1%
Probably no ------------------------------------ 14% -------------------- 25% --------------------- 20%
Definitely no ----------------------------------- 29% -------------------- 17% --------------------- 23%
(DK/NA) ----------------------------------------- 4% ---------------------- 8% ---------------------- 6%
Q8/Q9 COMBINED FINAL VOTE AFTER PROS AND CONS
TOTAL YES ------------------------------ 56%
Definitely yes ------------------------------- 22%
Probably yes -------------------------------- 31%
Undecided, lean yes ------------------------- 3%
TOTAL NO -------------------------------- 38%
Undecided, lean no -------------------------- 2%
Probably no --------------------------------- 20%
Definitely no -------------------------------- 17%
(DON'T READ) DK/NA ------------------ 6%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 9
10. And let me ask you one last time about the second measure I mentioned earlier, which would affirm the
City of Palo Alto’s existing budget practice of annually transferring no more than 18 percent of the
gross revenues from the City’s natural gas utility to its general fund to support City services such as
homeless services; climate change reduction; transportation; and police, fire, emergency medical, and
911 response. Do you think you would vote yes or no on such a measure? (IF YES/NO, ASK: “Is
that definitely or just probably?”) (IF UNDECIDED, ASK: “Do you lean toward voting yes or no?”)
TOTAL YES ------------------------------ 59%
Definitely yes ------------------------------- 16%
Probably yes -------------------------------- 41%
Undecided, lean yes ------------------------- 2%
TOTAL NO -------------------------------- 30%
Undecided, lean no -------------------------- 2%
Probably no --------------------------------- 16%
Definitely no -------------------------------- 12%
(DON'T READ) DK/NA ---------------- 11%
HERE ARE MY LAST QUESTIONS, AND THEY ARE FOR STATISTICAL PURPOSES ONLY.
11.(T) Do you own a business in Palo Alto?
Yes --------------------------------------------- 7%
No -------------------------------------------- 86%
(DON’T READ) DK/NA ------------------ 7%
12. Do you own or rent your place of residence?
Own ------------------------------------------ 61%
Rent ------------------------------------------ 28%
(DON’T READ) DK/NA ---------------- 12%
13. What was the last level of school you completed?
High school graduate or less --------------- 4%
Some college/vocational school ----------- 8%
College graduate (4 years) --------------- 41%
Post graduate work/
Professional school --------------------- 44%
(DON’T READ) DK/NA ------------------ 4%
ATTACHMENT H
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FM3 RESEARCH 220-6398-WT PAGE 10
14. With which racial or ethnic group do you identify yourself: Latino or Hispanic, African American or
Black, White or Caucasian, Asian or Pacific Islander, multiracial, or some other ethnic or racial
background? (IF ASIAN OR PACIFIC ISLANDER, ASK: “Are you Vietnamese, Chinese, South
Asian or East Indian, or of some other Asian background?”)
Latino/Hispanic ------------------------------ 4%
African American/Black -------------------- 2%
Caucasian/White --------------------------- 47%
Vietnamese ------------------------------------ 1%
Chinese ---------------------------------------- 9%
South Asian/East Indian -------------------- 3%
Other Non-Asian/Pacific Islander -------- 1%
Other Asian/Pacific Islander --------------- 7%
Multiracial ------------------------------------ 7%
(DON’T READ) DK/NA ---------------- 20%
THANK AND TERMINATE
GENDER: Male ------------------------------------------ 48%
Female --------------------------------------- 51%
Nonbinary ------------------------------------- 1%
PARTY REGISTRATION: Democrat ------------------------------------ 60%
Republican ---------------------------------- 10%
No Party Preference ----------------------- 27%
Other ------------------------------------------- 3%
FLAGS
P16 ---------------------------- 56%
G16 --------------------------- 73%
P18 ---------------------------- 54%
G18 --------------------------- 74%
P20 ---------------------------- 65%
G20 --------------------------- 85%
R21 --------------------------- 88%
BLANK ------------------------ 5%
AGE
18-24 --------------------------- 8%
25-29 -------------------------- 8%
30-34 -------------------------- 6%
35-39 --------------------------- 5%
40-44 -------------------------- 5%
45-49 -------------------------- 9%
50-54 -------------------------- 9%
55-59 ------------------------- 11%
60-64 -------------------------- 9%
65-74 -------------------------- 15%
75+ --------------------------- 15%
PERMANENT ABSENTEE
Yes ---------------------------- 93%
No ------------------------------ 7%
HSEHLD. PARTY TYPE
Dem 1 ------------------------ 35%
Dem 2+ --------------------- 18%
Rep 1 --------------------------- 5%
Rep 2+------------------------- 2%
Ind 1+ ----------------------- 22%
Mix --------------------------- 18%
MODE
Phone ------------------------- 33%
Online ------------------------ 67%
CONTACT METHOD
Phone ------------------------- 33%
E-mail ------------------------ 55%
Text --------------------------- 12%
ATTACHMENT H
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