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HomeMy WebLinkAbout2021-04-12 City Council Agenda Packet City Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Monday, April 12, 2021 Special Meeting 5:30 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the City’s website on the Thursday 11 days preceding the meeting. ***BY VIRTUAL TELECONFERENCE ONLY*** CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. Public comment may be addressed to the full City Council via email at City.Council@cityofpaloalto.org. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Agenda Changes, Additions and Deletions Oral Communications 5:30-5:45 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. 2 April 12, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Minutes Approval 5:45-5:50 PM 1.Approval of Action Minutes for the March 29, 2021 City Council Meeting Consent Calendar 5:50-5:55 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2.Approval of a Professional Services Contract With Rincon Consulting in the Amount of $627,994 for the Preparation of the City's 2023 -2031 Housing Element Update 3.Approval of Contract Number C21178632A With Graham Construction, Inc. in the Amount of $986,614 ; and Authorization for the City Manager to Negotiate and Execute Related Change Orders With Graham Construction, Inc. for a Not-to-Exceed Amount of $98,662, for a Total Not-to-Exceed Amount of $1,085,276 for the Fiscal Year (FY) 2021 Streets Preventive Maintenance Project, Capital Improvement Program Projects (PE-86070 and PO-11001) 4.Adoption of a Corrected Resolution for the Santa Clara County Historical Heritage Grant Program Authorizing the Application and Receipt of Grant Funds by the City of Palo Alto for the Roth Building (300 Homer Avenue) Roof and Frescoes Rehabilitation 5.Approval of Contract Number C21181207 With F. D. Thomas, Inc. in the Total Amount of $282,632 to Construct the Sludge Blending Tank Recoating Project at the Regional Water Quality Control Plant - Capital Improvement Program Project (WQ-19002); and Authorization for the City Manager to Negotiate and Execute Change Orders Not-to-Exceed $28,263 6.Approval of Amendment Number 2 to Contract Number CC16161769 With Macias, Gini, & O'Connell for External Audit Services to Extend the Term for One-year and add $175,000 for a new Total Not-to- Exceed Amount of $1,050,569 7.Finance Committee and Staff Recommend the City Council Review and Affirm Current Practices Outlined in the City Council Procedures and Protocols for Contract Approval on City Council Agendas 8.Finance Committee and Staff Recommend the City Council Review the Fiscal Year 2021 and Prior Finance Committee Referrals Update and Accept the Committee's Current Status Report; and Direct the Finance Committee to Review Long-term Financial Trends for Public Safety Q&A Q&A Memo Public Comment 3 April 12, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. 9.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C)–Retail and Ground Floor Combining Districts. Environmental Review: Exempt Under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) (FIRST READING: March 8, 2021 PASSED: 5-2 Cormack, Tanaka no) City Manager Comments 5:55-6:05 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 6:05-7:15 PM 10.PUBLIC HEARING: Finance Committee Recommends the City Council Approve the Park, Community Center, and Library Development Impact Fee Justification Study and Adjustments to the Park, Community Center, and Library Development Impact Fees; Adopt the Ordinance Updating the Park Land In-lieu fee; and Direct Staff to Implement the Impact Fee Updates With the Fiscal Year 2022 Budget (Continued From March 8, 2021) 7:15-8:45 PM 11.Update on the City's Planned Community (Planned Home Zoning - PHZ) Application Process and Possible Council Direction for Changes Related to its Implementation, Criteria, and Applicability Citywide 8:45-9:45 PM 12.Colleagues' Memo Regarding Referral to the Parks and Recreation Committee of a new Skate Park (Continued From March 15, 2021) Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. Presentation Presentation Public Comment Public Comment 4 April 12, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A.You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B.You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D.When called, please limit your remarks to the time limit allotted. E.A timer will be shown on the computer to help keep track of your comments. 3.Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 5 April 12, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Additional Information Informational Report Proclamation Honoring National Public Safety Telecommunicator's Week - April 11-17, 2021 Standing Committee Meetings Policy and Services Committee Meeting April 13, 2021 City/School Committee Meeting April 15, 2021 Schedule of Meetings Schedule of Meetings Public Letters to Council Set 1 Set 2 CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 12, 2021 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the March 29, 2021 City Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 03-29-21 DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY COUNCIL MEETING DRAFT ACTION MINUTES Page 1 of 7 Special Meeting March 29, 2021 The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:00 P.M. Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Absent: Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Rumi Portillo, Molly Stump, Dean Batchelor, Geo Blackshire, Robert Jonsen, Nick Raisch, Kiely Nose) Employee Organizations: Utilities Management and Professional Association of Palo Alto (UMPAPA); Service Employees International Union (SEIU), Local 521; Service Employees International Union (SEIU), Local 521, Hourly Unit; Palo Alto Police Officers Association (PAPOA); Palo Alto Fire Chiefs’ Association (FCA) and Employee Organization: International Association of Fire Fighters (IAFF), Local 1319; Palo Alto Police Manager’s Association (PAPMA) Authority: Government Code Section 54957.6(a). MOTION: Council Member Kou moved, seconded by Council Member Cormack to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:01 P.M. Council returned from Closed Session at 6:40 P.M. Mayor DuBois announced no reportable action. Consent Calendar MOTION: Council Member Kou moved, seconded by Mayor DuBois to approve Agenda Item Number 2. DRAFT ACTION MINUTES Page 2 of 7 Sp. City Council Meeting Draft Action Minutes: 03/29/2021 2. Approval of Council Appointed Officers (CAO) Committee Recommendation for an Executive Recruitment Process for City Clerk; Authorize Chair of CAO Committee to Execute a Contract With the Executive Recruitment Firm Peckham & McKinney as Specified in the Attached Proposal at an All-inclusive Cost of $27,000; and Authorize the CAO Committee to Finalize the Job Announcement After Receiving Council Input. MOTION PASSED: 7-0 Action Items 3. CONTINUED PUBLIC HEARING/QUASI JUDICIAL: Castilleja School Project 1310 Bryant: Conditional Use Permit (CUP) Amendment to Increase the Student Enrollment cap to 540 Students With Phased Enrollment and Campus Redevelopment, a Variance to Replace Campus Gross Floor Area and Architectural Review Approval of the Campus Redevelopment. Zone District: R-1(10,000). Environmental Review: Final Environmental Impact Report (EIR) Published July 30, 2020; Draft EIR Published July 15, 2019 (Continued From March 15, 2021). Council took a break at 8:27 P.M. and returned at 8:40 P.M. MOTION: Council Member Stone moved, seconded by Vice Mayor Burt to: A. Allow an enrollment of up to 450 students; direct Staff and the Planning and Transportation Commission (PTC) to review allowing Castilleja to apply for an increased enrollment up to 540 students in phases, contingent on their verified success in “no net new trips” resulting from the preceding enrollment limit based on the Traffic Demand Management (TDM) Plan Mitigation Measure 7a, and any additional TDM measures the City or Castilleja may find necessary to achieve the “no net new trips” condition of approval; i. Strengthen existing TDM protections, reporting requirements, and penalties for failure to meet conditions of approval. Penalties should include fees, suspension and reduction of enrollment and streamlining of corrective actions to violations; ii. To review increases in the number of Palo Alto and East Palo Alto students as a percentage of the student population and to further restrict student driving and parking on campus, including consideration of prohibiting driving by juniors; and iii. Evaluate a form of a TDM Oversight Committee; DRAFT ACTION MINUTES Page 3 of 7 Sp. City Council Meeting Draft Action Minutes: 03/29/2021 B. Direct Staff and the PTC to review both a non-underground parking facility option and an underground parking facility alternative that allows a maximum of 50 percent of the required on-site parking to be below grade without counting against the project floor-area. No more than 50 percent of the required on-site parking may be located below grade; i. Authorize a Residential Parking Program (RPP) for the surrounding neighborhood that prohibits RPP permits from being sold to Castilleja staff or students within the RPP district. The school-side of the streets surrounding Castilleja (Emerson Street, Kellogg Avenue, Bryant Street) shall be exempt from the RPP so Castilleja can continue to park on those streets. Castilleja shall cover the expense of implementing the neighborhood RPP; and ii. Castilleja’s parking restrictions will be fully enforced. Any overflow parking must be located off-site and not located on residential streets. Shuttle services satellite lots shall be used to accommodate this parking need; C. Direct Staff and Palo Alto’s Arborist to work with Castilleja to preserve and protect all trees on campus as can reasonably be accommodated; D. Evaluate phasing the construction of the new buildings to mitigate impacts associated with construction and eliminate the need for a temporary campus to be constructed on Spieker Field; E. Remand the revised building proposal (including the reduction of 4,000 sq. ft.) to the Architectural Review Board to reconsider the massing and the compatibility of the design within the residential neighborhood context; and F. Fifty percent of the public art expenses going to the Public Art Fund. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER, to add, “Consideration by Staff and the PTC to allow reduction of required parking based on TDM” (New Part A. iv.). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER, to add to Motion, Part C, “…to preserve protected trees on campus…” Council took a break at 9:45 P.M. and returned at 10:10 P.M. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to rewrite Motion, Part A, as “Allow an enrollment DRAFT ACTION MINUTES Page 4 of 7 Sp. City Council Meeting Draft Action Minutes: 03/29/2021 increase starting at 450 students; direct Staff and the Planning and Transportation Commission (PTC) to identify a procedure to allow Castilleja to further increase enrollment up to 540 students in phases, contingent on their verified compliance with objective standards demonstrating “no net new trips” resulting from the preceding enrollment limit, based on the Traffic Demand Management (TDM) Plan Mitigation Measure 7a, and any additional TDM measures the City or Castilleja may find necessary to achieve the “no net new trips” condition of approval”. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to rewrite Motion Part A. ii., as, “To review increases in the number of students as a percentage of the student population within bicycle distance and to further restrict student driving and parking on campus, including consideration of prohibiting driving by juniors”. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to rewrite Motion Part B. i., as, “Explore a Residential Parking Program (RPP) or alternative parking strategies for the surrounding neighborhood that prohibits RPP permits from being sold to Castilleja staff or students within the RPP district. The school-side of the streets surrounding Castilleja (Emerson Street, Kellogg Avenue, Bryant Street) shall be exempt from the RPP so Castilleja can continue to park on those streets. Explore requiring Castilleja to cover the expense of implementing the neighborhood RPP”. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to Motion Part B. ii., to, “…Explore having overflow parking located off-site and not located on residential streets; explore shuttle services satellite lots to accommodate this parking need”. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to Motion Part D, “…evaluate elimination of the need for a temporary campus…” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to Motion Part F, “Evaluate requiring 50 percent of the public art expenses…” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to change Motion Part E, from 4000 sq. ft. to 4370 sq. ft. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part C, “...to preserve as many protected trees…” DRAFT ACTION MINUTES Page 5 of 7 Sp. City Council Meeting Draft Action Minutes: 03/29/2021 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Motion Part F, “requiring” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to, “Direct Staff to explore the legalities of having a maximum buildout” (New Part G). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to, “Direct Staff and the PTC to evaluate 5 major events, and between 50 and 70 special events with no Sunday events” (New Part H). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to, “Direct Staff to provide information on Conditional Use Permits from other private schools in surrounding jurisdictions” (New Part I). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to Motion Part C, “…to preserve as many protected trees, to reduce the loss of protected trees on campus as can reasonably be accommodated”. SUBSTITUTE MOTION PART B: Vice Mayor Burt moved, seconded by Council Member Cormack to: Direct Staff and the PTC to review an underground parking facility alternative that allows a maximum of 50 percent of the required on-site parking to be below grade without counting against the project floor-area. No more than 50 percent of the required on-site parking may be located below grade. SUBSTITUTE MOTION PART B, PASSED: 4-3 DuBois, Kou, Stone no MOTION AS AMENDED: Council Member Stone moved, seconded by Vice Mayor Burt to: A. Allow an enrollment increase starting at 450 students; direct Staff and the Planning and Transportation Commission (PTC) to identify a procedure to allow Castilleja to further increase enrollment up to 540 students in phases, contingent on their verified compliance with objective standards demonstrating “no net new trips” resulting from the preceding enrollment limit, based on the Traffic Demand Management (TDM) Plan Mitigation Measure 7a, and any additional TDM measures the City or Castilleja may find necessary to achieve the “no net new trips” condition of approval; DRAFT ACTION MINUTES Page 6 of 7 Sp. City Council Meeting Draft Action Minutes: 03/29/2021 i. Strengthen existing TDM protections, reporting requirements, and penalties for failure to meet conditions of approval. Penalties should include fees, suspension and reduction of enrollment and streamlining of corrective actions to violations; ii. To review increases in the number of students as a percentage of the student population within bicycle distance and to further restrict student driving and parking on campus, including consideration of prohibiting driving by juniors; iii. Evaluate a form of a TDM Oversight Committee; and iv. Consideration by Staff and the PTC to allow reduction of required parking based on a TDM; B. Direct Staff and the PTC to review an underground parking facility alternative that allows a maximum of 50 percent of the required on-site parking to be below grade without counting against the project floor- area. No more than 50 percent of the required on-site parking may be located below grade; i. Explore a Residential Parking Program (RPP) or alternative parking strategies for the surrounding neighborhood that prohibits RPP permits from being sold to Castilleja staff or students within the RPP district. The school-side of the streets surrounding Castilleja (Emerson Street, Kellogg Avenue, Bryant Street) shall be exempt from the RPP so Castilleja can continue to park on those streets. Explore requiring Castilleja to cover the expense of implementing the neighborhood RPP; and ii. Castilleja’s parking restrictions will be fully enforced. Explore having overflow parking located off-site and not located on residential streets; explore shuttle services satellite lots to accommodate this parking need; C. Direct Staff and Palo Alto’s Arborist to work with Castilleja to preserve as many protected trees to reduce the loss of protected trees, on campus as can reasonably be accommodated; D. Evaluate phasing the construction of the new buildings to mitigate impacts associated with construction and evaluate elimination of the need for a temporary campus to be constructed on Spieker Field; E. Remand the revised building proposal (including the reduction of 4,370 sq. ft.) to the Architectural Review Board to reconsider the massing and DRAFT ACTION MINUTES Page 7 of 7 Sp. City Council Meeting Draft Action Minutes: 03/29/2021 the compatibility of the design within the residential neighborhood context; F. Evaluate 50 percent of the public art expenses going to the Public Art Fund; G. Direct Staff to explore the legalities of having a maximum buildout; H. Direct Staff and the PTC to evaluate 5 major events, and between 50 and 70 special events with no Sunday events; and I. Direct Staff to provide information on Conditional Use Permits from other private schools in surrounding jurisdictions. MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION AS AMENDED PARTS A-E, G-I PASSED: 7-0 MOTION AS AMENDED PART F PASSED: 4-3 Cormack, Filseth, Tanaka no Adjournment: The meeting was adjourned at 11:36 P.M. City of Palo Alto (ID # 11928) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Award Housing Element Consultant Contract Title: Approval of a Professional Services Contract With Rincon Consulting in the Amount of $627,994 for the Preparation of the City's 2023 -31 Housing Element Update. From: City Manager Lead Departme nt: Planning and Development Services Recommendation: Staff recommends City Council approve and authorize the City Manager or his designee to execute the attached Contract C21181034 with Rincon Consultants, Inc. (Attachment A) in an amount not to exceed $627,994 for professional services related to the preparation of the 2023-31 Housing Element (Housing Element). Executive Summary: In order to meet existing and future housing needs for all in the community, the State of California requires that all local jurisdictions adopt a Housing Element as part of their Comprehensive Plan. A Housing Element is a strategic housing plan outlining how the City will meet its housing needs, including identifying sites to accommodate new housing and programs to facilitate housing production. State law requires that jurisdictions update their Housing Element and have it certified by the State Housing and Community Development Department (HCD) every eight years. The City must prepare and have its Housing Element certified by January 2023 for the 2023-31 period. Due to the extensive work needed to prepare the Housing Element, the City will require the assistance of a consultant. After issuance of a Request for Proposals, staff recommends that the City award a contract to Rincon Consultants, Inc. The attached contract identifies specific tasks, deliverables and timelines to complete the project. City of Palo Alto Page 2 Background: Since 1969, the State has required all local jurisdictions to adequately plan to meet the housing needs of everyone in the community. Local jurisdictions meet this requirement by adopting housing elements as part of their Comprehensive Plan, which serves as the City’s "blueprint" for how the City will grow and develop. State law mandates inclusion of eight elements in comprehensive plans: land use, transportation, conservation, noise, open space, safety, housing, and most recently, environmental justice. Jurisdictions may elect to include additional elements. The Housing Element is one of the eight mandated elements in the Comprehensive Plan and the only element that requires certification by the state. The Housing Element covers a period of eight years.1 California’s housing element law acknowledges that, in order for the private market to adequately address the housing needs of Californians, local governments must adopt plans and regulatory systems that provide opportunities for housing development. As a result, housing policy in California rests largely on the effective implementation of local comprehensive plans and in particular, local housing elements. Discussion: The scope of the Rincon Consultants, Inc. contract is for the preparation of the 2023-31 Housing Element update and the associated environmental clearance. The update must be certified by the state no later than January 2023. Project Coordination The City’s Planning and Development Services Department (PDS) has coordinated the bid process with the Purchasing Division of Administrative Services. PDS will work closely with the consultant in the preparation of the Housing Element. This coordination will include bi-weekly meetings to track the update progress as well as working closely with the Working Group for housing programs and policies and site selection. City staff will oversee the consultant’s work for the environmental clearance. Proposal Process On November 30, 2020, a request for formal proposals (RFP) was posted on the Planet Bids Vendor Portal. The solicitation period was held for 24 days, with proposals due on December 23, 2020. The City received two proposals: 1) Rincon Consultants, Inc. and 2) M-Group. The proposals were evaluated by PDS and the City Attorney’s Office. Staff carefully reviewed each proposal in response to criteria identified in the RFP. Specific focus was placed on each 1 Current 2015-23 Housing Element: https://www.cityofpaloalto.org/civicax/filebank/documents/37935 City of Palo Alto Page 3 firm’s understanding of the housing element process, environmental review and understanding of Palo Alto concerns; one round of oral interviews was conducted. Subsequent to the selection of the preferred consultant, staff negotiated with the consultant to accommodate additional services that may be required, such as additional meetings. Accordingly, the contract includes an additional 20% contingency for potential additional services ($104,665) beyond the basic services ($523,329), resulting in a total of $627,994 as determined necessary by the City. Staff has worked with both consultants in the past and have been satisfied with their performance. While there were merits in the M-Group proposal, it was not selected because its proposal was substantially higher than the Rincon bid. Rincon Consultants, Inc. Staff selected Rincon Consultants, Inc. as the preferred consultant following the review of the written proposals and the oral interviews. Rincon Consultants, Inc. is an award-winning environmental firm with environmental scientists, planners and engineers. The firm has over 12 offices statewide, including Oakland, and employs more than 300 professionals. The proposal includes key subconsultants: Veronica Tam and Associates (Housing Element preparation) and Hexagon Transportation Consultants, Inc. (Traffic). Additional information on Rincon Consultants, Inc. can be found on their website. 2 There were multiple factors that guided staff in the consultant selection process. The factors included quality of the proposal, understanding of Palo Alto, experience in preparation of Housing Elements, and depth of knowledge. Both firms came with a variety of experience, including with Palo Alto, and had strong proposals. Rincon Consultants, Inc. presented a strong team with experienced subconsultants in Housing Element work and the most recent State requirements and traffic analysis. Because this plan is intended to provide policy, as well as development regulations, it is critical to have a team that can effectively work with the public, including the Housing Element Working Group, and develop regulations that are both aspirational and economically feasible. Resource Impact: Staff has explored available and anticipated future funding resources to cover the proposal cost of $627,994. Funds have been successfully identified to cover the project cost without having to request additional money from the General Fund at this time. Please note that identified funding includes the Comprehensive Plan Maintenance Fee, which C ity Council allocates from the General Fund to PDS every year. Should Council break from past budgets and decrease or eliminate this allocation, additional funding sources will be required. P lanned funding for the Housing Element update is detailed below and includes several state grants to help fund the work. 2 Rincon Consultants, Inc: https://www.rinconconsultants.com City of Palo Alto Page 4 Funding Source Amount SB2 Planning Grant $170,000 Local Early Action Planning (LEAP) Grant $151,000 Regional Early Action Planning (REAP) Grant $62,602 Comprehensive Plan Maintenance FY20/21 $93,000 Comprehensive Plan Maintenance FY21/22 (planned funding) $97,000 Comprehensive Plan Maintenance FY22/23 (planned funding) $54,392 TOTAL $627,994 In addition to these funds, staff has applied for $100,000 in further, competitive Regional Early Action Planning (REAP) funds to help with the site selection process. MTC/ABAG will announce the competitive REAP awards in May 2021. If the City is awarded the competitive REAP funding, staff would recommend re-allocation of some of the grant funds named above to support long- range planning projects, such as the North Ventura Coordinated Area Plan (NVCAP). The proposed consultant contract reflects the majority expense for the Housing Element update. Other expenses such as City staff time are not included in the contract. Timeline: The table below highlights the major milestones for the Housing Element (HE) update process: Milestones Action Projected Date Consultant Selected April 2021 HE Update Process Starts May 2021 Public Review HE Draft Released April 2022 CEQA Completed August 2022 Rezone Completed October 2022 City Council HE Adoption November 2022 HCD Certification January 2023 Environmental Review: The current action requested does not represent a project under the California Environmental Quality Act (CEQA). The City anticipates that a Supplemental Environmental Impact Report to the Comprehensive Plan Final Environmental Impact Report (2017) will be the appropriate level of environmental review for the Housing Element update and associated tasks. Attachments: Attachment A: Rincon Contract (PDF) City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 1 of 39 CITY OF PALO ALTO CONTRACT NO. C21181034 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND RINCON CONSULTANTS, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 5th day of April, 2021 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and RINCON CONSULTANTS, INC., a California corporation, located at 180 N. Ashwood Avenue, Ventura, CA 93003 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to complete the 2023-2031 Housing Element Update (the “Project”) and desires to engage a consultant to perform Housing Element Update, associated rezoning actions, and required California Environment Quality Act (CEQA) review in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through January 31, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 2 of 39 timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Hundred Twenty Three Thousand Three Hundred Twenty Seven Dollars ($523,327.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of One Hundred Four Thousand Six Hundred Sixty Five Dollars ($104,665.00) as a Twenty Percent (20%) of total cost contingency 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 Six Hundred Twenty Seven Thousand Nine Hundred Ninety Three Dollars ($627,993.00), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in 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            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 3 of 39 authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall 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.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 4 of 39 SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: Veronica Tam and Associates, Inc. 107 S. Fair Oaks Avenue, Suite 212 Pasadena, CA 91105 (626) 304-0440 Technical Advisor: Veronica Tam Hexagon Transportation Consultants, Inc. 4 North Second Street, Suite 400 San Jose, CA 95113 (408) 971-6100 Technical Advisors: Gary Black and At van den Hout CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 5 of 39 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Della Acosta as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Tim Wong, Planning and Development Services Department, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: (650) 329-2561. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. 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”) to the extent that such Claims arise out of, pertain to, or relate to the            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 6 of 39 negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 7 of 39 evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 8 of 39 To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 9 of 39 manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended 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.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 10 of 39 SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). 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, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 11 of 39 independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 12 of 39 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 13 of 39 CONTRACT No. C21181034 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee CONSULTANT RINCON CONSULTANTS, INC. Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title:                              City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 14 of 39 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. A. Community Engagement Plan Task A.1 Kickoff Meeting and Community Engagement Plan Kick Off Meeting Upon authorization to proceed, Rincon will facilitate a kickoff meeting and city tour, if desired, with City of Palo Alto staff. The purpose of the kickoff meeting is to discuss data needs and initial community issues and opportunities, set project expectations, and explain our proposed approach to the various components of the work program. The kickoff meeting is envisioned as a two-hour event followed by a citywide tour, if desired. Following the kickoff meeting, and conducted in a way deemed safe per COVID-19 conditions at the time of project initiation, the Rincon/VTA team and City Staff will tour the city in individual vehicles to explore key underutilized, vacant, and opportunity areas of focus as part of the Housing Element Update. The citywide tour is envisioned as a half-day (four hours) event, with COVID-compliant procedures if the team leaves the vehicles at any time during the tour. Community Engagement Plan Through our work in Palo Alto and updating Housing Elements for other cities, Rincon understands that public engagement will be at the forefront during the Housing Element Update. We strive to reach all community members using a variety of virtual and non-virtual methods through the languages they are most comfortable using, and work closely with local community groups, organizations, staff, and officials who know Palo Alto best. The Rincon/VTA team will kick off the community engagement effort by developing a Community Engagement Plan to COVID-19 and Community Engagement Due to the ongoing COVID-19 pandemic, we realize that the form of community engagement and participation such as public meetings, workshops, and community events is currently limited. Our team has become experienced at creating innovative, COVID- compliant outreach strategies that meet the needs of each specific community. We are currently working on several projects that have transitioned to Zoom or Microsoft Teams virtual platforms for public meetings and interviews with great success. We have also re- imagined how to solicit community feedback, transitioning several large outreach events to completely virtual platforms. These have included interactive online exercises, educational and informational videos, GIS participatory mapping techniques, live webinars with Q&A sessions, and visual preference surveys. Once in-person meetings are allowed, we can abide by County Public Health Guidelines and facilitate small group meetings. These could take place over two days and adhere to social distancing requirements. We will work with City staff to finalize our approach to facilitating community outreach and are dedicated to ensuring an inclusive process for all.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 15 of 39 educate, inform, and gain meaningful input from a broad and diverse range of groups and populations in Palo Alto. Community engagement will focus on the community at-large, directly affected stakeholders including property owners, businesses, residents and interest groups, and civic decision-makers. This effort will be designed to effectively build collaborative interest and identify common values and goals in the project direction, given the diverse group of local stakeholders, and to bring new participants into the conversation. Deliverable Community Engagement Plan Task A.2 Community Workshops and Working Group Meetings Community Workshops The Rincon/VTA team will assist City staff in preparing for and conducting up to five community workshops to discuss the Housing Element Update at key points in the process. Two public workshops will be hosted near the beginning of the project initiation to introduce the community to the Housing Element update process and its goals and to inform the public how to be involved throughout the project. The remaining three public engagement workshops will be organized around themes. This approach targets notification efforts to specific stakeholder groups interested in the specific themes and helps alleviate any fatigue or schedule conflicts that stakeholders and community members may feel with in-person participation. In light of the ongoing COVID-19 health crisis, HCD has stated that it is acceptable for much of the public engagement to occur online, although multiple engagement opportunities are anticipated. The Rincon/VTA team has therefore budgeted for participation in virtual workshops. The Rincon/VTA team will prepare all materials for the workshops and will serve as workshop facilitators. Deliverables Materials and presentations for up to five Community Workshops, including PowerPoint presentations. Working Group Meetings The Rincon/VTA team will facilitate a citizen/stakeholder working group to help gather community input during the Housing Element update process. At least one Rincon team member will attend and contribute to up to 15 working group meetings beginning in mid-2021 and continuing through fall of 2022. We will work with the City and working group to create each meeting’s agenda and we will maintain meeting minutes with roll call, discussion topics, and action items documented for each meeting. Meeting minutes will be provided to the City Project Team within two business days following each meeting. Additional responsibilities will include: ƒ Facilitating all HEAC meetings; Ms. Acosta will serve as the lead facilitator and primary point of contact for all working group communication and questions, with Brenna Weatherby and Veronica Tam attending as needed; ƒ Developing agendas with City Project Team and distributing agendas to members before each meeting; ƒ Preparing required memos and staff reports for each meeting; ƒ Preparing materials, e.g. PowerPoint presentations, handouts, etc., needed for each working group meeting;            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 16 of 39 ƒ Delivering presentations to the working group; ƒ Maintaining the working group roster and contact information; and ƒ Coordinating with the City Project Team to invite community groups (e.g., HOAs, service organizations, developers, business organizations) to participate in relevant working group meetings, as applicable. Deliverables Materials (varied) for Working Group meetings Task A.3 Public Meetings The Rincon/VTA team has budgeted for participation in six public meetings on the project. The Rincon/VTA team anticipates two Planning and Transportation Commission and four City Council meetings. We anticipate these meetings will be a combination of study sessions and public hearings to inform decisionmakers about the housing element process, discuss site selection strategies and challenges, and to present the Draft and Final Housing Element and CEQA review findings and recommendations. The RFP acknowledges the potential for additional City subcommittee meetings. Rincon/VTA team attendance at these meetings will be billed on a time and materials basis at current rates, as shown in our cost sheet and rates. The cost of our attendance at subcommittee meetings will vary depending on the level of consultant team involvement and the topic at hand. A per meeting cost is anticipated to range from $1,200 to $2,500. Deliverables ƒ Materials/presentations for Public Hearings, including PowerPoint presentations and printed exhibits. We have assumed $2,000 for printing costs associated with these materials, which will not be billed in the event of virtual public hearings. Task A.4 Other Outreach Webpage Development and Maintenance As part of the Community Engagement Strategy, the Rincon/VTA team will collaborate with the City Project Team to provide content for an interactive, informational webpage for the Housing Element Update and online public input survey. The webpage will enable community members and stakeholders to participate in an online survey, offer suggestions, exchange ideas, and learn about city-wide housing issues. Stakeholder Email List The Rincon/VTA team will assist the City in maintaining a tracking matrix to be created and updated by City staff throughout the project to document interested parties, affected audiences, and areas of community interest. Rincon will collect points of contact, mailing addresses, and emails of groups and agencies likely to be interested or affected by the Housing Element Update at public events and online engagement platforms for the City to include in the matrix and in the mailing list. Neighborhood and Pop-Up Outreach Rincon will participate up to three neighborhood or “pop-up events”, COVID-19 considerations allowing. These events will “piggyback” on standing events or meetings, such Farmers Market events, back-to- school nights, sport league opening days, or cultural celebrations. Locations            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 17 of 39 will be focused on gaining discussion and participation from areas or members of the community who commonly have engagement or equity concerns such as LGBTQ+, underserved communities, and environmental justice communities. Roadshow Material Rincon can prepare one set of “roadshow” materials that can be used by City staff and partner organizations at neighborhood meetings or pop-up outreach. These will be in the form of two activity posters, one set of handouts, contact information flyers, and associated activity materials to encourage community engagement and input. Rincon assumes the City will be responsible for all printing and distribution of materials. Deliverables ƒ Webpage initial language and update language ƒ Digital and printed neighborhood and pop-up materials ƒ Digital roadshow materials Information Flyer Materials will be designed for posting at pre-determined locations to generate interest in the Housing Element Update. These could take the form of a flyer or postcard that the City will be responsible for posting. The Rincon/VTA team will provide data and information but has assumed that the City and Santa Clara County Planning Collaborative (SCCPC) will be responsible for development of informational materials and all printing costs. Deliverables Language for informational flyer in Word format Task A.5 Online Engagement Over the past decade, communication through online and social media has transformed how information is both disseminated and received by the public. These online media tools are powerful, cost-effective and increasingly becoming the expected norm for how information is communicated. For the Palo Alto Housing Element Update, a variety of tech tools can replicate and supplement the core outreach methods used in the traditional General Plan workshops. Components of online engagement are proposed to include: ƒ Participatory Mapping Exercises and Tools. Participatory mapping exercises are a type of survey that allows participants to view, comment, and prioritize specific topics. Participatory mapping exercises can allow community members to identify and rank current housing conditions, identify and rank potential opportunity sites, and rate potential methods for implementing affordable housing, design standards, and policy changes to reduce barriers to housing. ƒ Story Maps: Vision, Issues, and Priorities. Story maps are an educational tool to help guide the viewer through the history, purpose, and process and easily provide information in a spatial format. Story Maps are clearly organized, visually appealing, and easy to use and allow us to tell the story of Palo Alto and its community and residents. Each story map should focus on a specific topic and contain a variety of content necessary to help educate stakeholders about the Housing Element. The Rincon/VTA team will design an online story map that educates and informs residents and stakeholders about the housing history, conditions, and potential future in Palo Alto.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 18 of 39 ƒ Online Survey. Knowing that many residents lead busy lives and may not be able to set aside time or have the ability to attend a virtual workshop, the Rincon/VTA team will design and disseminate a survey that will allow people to participate on their own time and in their own way. The Rincon/VTA team will draft the survey and revise questions based on staff feedback. Staff will be responsible for advertising the survey’s availability through the City’s other communication channels. Following its closing, an accompanying summary report will be created with numerical breakdowns of responses, charts and graphs where applicable, and narrative descriptions of the qualitative results. ƒ Social Media. A strategy will be developed for sharing project information through social media outlets such as Facebook, NextDoor, and Twitter. Language and images will be provided at key points in the process to the City for managing content through existing City accounts (up to four social media pushes are anticipated). ƒ Email Blasts. In concert with social media efforts, content for email blasts will be prepared to keep the community engaged and informed at key point in the process. Rincon will prepare content for up to four email blasts, which the City will send through established email listservs or newsletters. Deliverables ƒ Survey questions and online survey ƒ Social media language ƒ Email blast content B. Housing Element Review and Assessment Task B.1 Document Review Rincon will review all readily available resources including various codes, standards, and policies maintained by the Planning Department, the Comprehensive Plan Elements and 2017 Final EIR, all Area Plans and studies, the 2020-2025 Draft Consolidated Plan (Community Development Block Grant program), Eichler Design Guidelines, Single Story Overlay regulations, and housing services documents. Additional information will be provided by the City upon award of contract, including the City’s updated site inventory and development status information and city GIS data layers. We also anticipate the use of regional planning documents such as the Association of Bay Area Governments (ABAG) Comprehensive Economic Development Strategy for the San Francisco Bay Area, 2011 Bay Area Hazard Mitigation Plan, the Metropolitan Transportation Commission Plan Bay Area 2050 plans, the Santa Clara County 2020-2025 Consolidated Plan and Assessment of Fair Housing, and ABAG housing information, including the Regional Housing Needs Assessment (RHNA) for the Housing Element Cycle, when finalized. Any additional data or document needs will be assessed and discussed with the city to determine how the information is best accessed and/or shared. Task B.2 Review and Evaluation of Current Housing Element As an initial task to the Housing Element update, and following the kickoff meeting, we will review and evaluate the 2015-2023 Housing Element. Specifically, we will: ƒ Discuss the effectiveness and continued appropriateness of current housing programs and policies ƒ Evaluate the City’s progress in meeting current goals            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 19 of 39 ƒ Identify any barriers to achieving identified goals ƒ Review compliance with new State laws ƒ Identify potential revisions to existing programs We will start by evaluating the City’s latest Housing Element Annual Progress Report (APR). We will interview staff and compile additional information to provide an assessment of the continued appropriateness of existing programs and whether new programs should be added to address emerging trends and issues. Upon completion of this review, we will provide a memo summarizing our findings and a draft outline for the Housing Element Update. Deliverable ƒ Assessment Memorandum to include details on our review of the 2015-2023 Housing Element C. Housing Element Task C.1 Housing Resources and Opportunities The Rincon/VTA team will compile a list of housing resources and opportunities for inclusion in the Draft Housing Element. The Housing Resources and Opportunities section will include a description of the City’s 2023-2031 RHNA from ABAG. This analysis will examine the resources and opportunities available for the development, rehabilitation, and preservation of housing, which we have assumed will be provided by City staff or SCCPC, and shall include the following: ƒ Units Approved, Built, or Under Construction ƒ Adequacy of Public Facilities and Services ƒ Inventory of Financial and Administrative Resources available to support housing resources ƒ Energy Conservation Opportunities Deliverable ƒ None – information to be wrapped into Housing Element Task C.2 Housing Constraints The Rincon/VTA team will identify potential governmental and non-governmental constraints to housing production, including environmental and infrastructural constraints. This analysis will contain a review of factors that may potentially constrain the development, improvement, and preservation of housing in Palo Alto. Factors to be reviewed include market, governmental, environmental, and infrastructural constraints. New Housing Element laws also require the assessment of non-governmental constraints, including NIMBYism, lending practices, shortage of labor, and other economic factors. Where constraints exist, the Rincon/VTA team will identify and develop housing programs that can assist in the removal of constraints, where feasible. For each program, the Rincon/VTA team will identify potential funding sources, the lead agency or City division responsible for implementation, objectives, and timeframes. Deliverable ƒ Analysis of governmental constraints (to be wrapped into Housing Element)            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 20 of 39 ƒ List of Housing Programs for inclusion in Housing Element Update Task C.3 Housing Inventory of Sites Analysis ABAG’s Illustrative RHNA Allocation for the 6th cycle is 10,058 units. Based on this allocation, the Housing Element update will require efforts to identify sites with sufficient capacity for the RHNA, taking into consideration the following adequate site requirements under new Housing Element laws: ƒ No net loss of capacity when sites are developed ƒ Continued ability to meet the RHNA by income group ƒ Stringent standards for assessing feasibility when reusing vacant and underutilized sites that have previously been included in the 5th cycle Housing Element ƒ Demonstrated trends of development Per Addendum No. 1, we understand that ABAG is developing a site selection tool to assist jurisdictions as they prepare their parcel-specific sites inventory. We assume this tool will be available to the for use in the development of the Palo Alto sites inventory. Using this tool, a parcel-specific sites inventory will be developed and opportunities for lot consolidation will be identified. We will prepare an “adequate sites analysis” showing the relationship between the City’s RHNA and the dwelling unit capacity, availability of potential housing sites based on zoning, infrastructure, and General Plan policies, requirements, and limitations. It is important to note that AB 1397 (Adequate Sites) and SB 166 (No Net Loss) impose stringent requirements on the sites inventory for RHNA. Given the City’s development pattern, it is anticipated that most sites identified in the sites inventory will have an existing use and improvements and will be smaller than one-half acre. These sites may also have been used in a previous housing element cycle. In order to include these sites in the sites inventory, additional justification is required and may need to include: ƒ Lot consolidation potential ƒ Feasibility of development on smaller sites ƒ Impediments for residential development on non-vacant sites ƒ Recent development on similar sites ƒ Substantial evidence the existing use is likely to be discontinued within the planning period Following the analysis of available sites, a sites inventory will be prepared using HCD’s current inventory worksheet format and template. The Rincon/VTA team will work closely with staff and HCD to provide an expanded analysis of the sites inventory. Deliverables ƒ Draft Sites Inventory and Review of Sites for Suitability/Adequacy for RHNA Task C.4 Housing Needs Assessment The Rincon/VTA team will prepare a complete housing assessment and needs analysis consistent with State Housing Element law and HCD’s Completeness Review Checklist. The Needs Analysis will be comprehensively updated with the most recent American Community Survey (ACS) and housing market data. The Needs Analysis will contain the topics listed            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 21 of 39 below to satisfy Government Code Section 65583(a) requirements: ƒ Demographics, Income, and Employment Trends. This section includes information on the population growth trends, along with income distribution and employment trends. ƒ Household Characteristics. This section will also discuss household characteristics such has size, tenure, composition, and overcrowding conditions that may impact housing needs. ƒ Housing Stock Characteristics. This section will be an analysis of the condition of the existing housing stock as well as cost and affordability, including discussions on cost burden (overpayment). ƒ Affirmatively Furthering Fair Housing. This section will discuss new Housing Element law, which requires jurisdictions to examine barriers to fair housing and ensure housing programs are implemented in a manner to affirmatively further fair housing. ƒ Residential Building Permit Activity. This section will discuss residential building permit trends for single-family and multi-family products, building code regulations, fees, and permit and processing procedures. We will also analyze constraints on housing for persons with disabilities, as well as the city’s current permitting procedures for emergency shelters, transitional and supportive housing, and single-room occupancy units. ƒ Analysis of Special Housing Needs. The Rincon team will update the analysis of housing needs for special needs populations, including senior households, persons with disabilities, large families, single female-headed households, low-and very-low-income households, and the homeless. ƒ At-Risk Housing (Assisted Unit) Analysis. This task will include an analysis of existing assisted housing developments that are eligible to change from low income housing to market rate over the next ten years (i.e., at-risk housing). This analysis will cover units that are deed-restricted as low income housing as a result of public assistance, density bonus requirements, and inclusionary housing program. Deliverable ƒ Housing Needs Analysis Task C.5 Goals, Policies, and Implementing Programs Based upon the analyses and research conducted in the previous tasks, the Rincon/VTA team will develop programs and policies to guide implementation of the Housing Element over the next eight years. Housing goals, policies, and quantified objectives will focus on the production, conservation, maintenance, preservation, and improvement of housing. For each program included in the Housing Element, we will establish the timeframe for implementation, specific objectives, funding sources, and responsible agencies. All goals, policies and programs will be incorporated into the Housing Element. Deliverables ƒ None – information to be included in Housing Element            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 22 of 39 D. Refine VTA Travel Demand Model The City of Palo Alto Travel Demand Model (PATDM), which is a refinement of VTA’s Countywide Model (VTATDM), was calibrated and validated in 2013 against 2010 travel data based on ABAG Projections 2013 (P’13). In the fall of 2019, ABAG and the VTA developed new sets of land use data based on ABAG’s Projections 2017 (P’17). Review of the year 2015 local and regional land use assumptions show significant differences, not only future year (2040) projections but also for the 2015 base year. Existing 2015 land use assumptions from P’17 are more accurate than the P’13 since the P’13 was a land use forecast while the P’17 land uses are based on actual historical data. In addition, the United States Census Bureau recently released the 2011-2015 journey to work data from the American Community Survey and MTC compiled transit ridership data from household and on-board surveys and developed a database of regional transit trips by submode and by mode of access for the Bay Area Region. Based on these data, VTA updated the VTATDM. This update involved recalibrating the distribution and mode choice models and performing a “soft” model validation based on a very limited set of traffic counts and transit ridership data. While the VTATDM was validated at the County level, the validation effort concentrated on the regional facilities such as freeways major arterials. Updating the PATDM involves using the VTATDM and focus on refining the model’s capability of producing accurate travel patterns in the larger Palo Alto area. This model refinement includes the following tasks: Task D. 1 Land Use Data With input from the jurisdiction in Santa Clara County, the VTA recently developed a year 2015 land use data set that is generally consistent with the ABAG P’17. For the purpose of this scope of work, it is assumed that VTA’s 2015 land use assumption for the region, including the City of Palo Alto, will be the basis for the model update. Task D.2 Review Trip Distribution and Mode Choice Models In recent years, more current travel data has become available. The US Census Bureau released county to county journey to work data and workers per household by auto ownership data from the American Community Survey. These data were used to recalibrate the home-based work trip distribution model. For the non-work trip purposes, the 2013 California Household Travel Survey was used as the bases for calibration the distribution models. MTC’s 2015 Regional Transit Survey and daily transit ridership for the major transit operators were used to calibrate the mode choice models. Hexagon will review the calibration results to ensure that the model accurately reflects observes travel patterns. If necessary, Hexagon will adjust the model. In order to maintain consistency with the travel patterns from the VTA model, Hexagon may need to recalibrate the distribution and mode choice models. Hexagon will request the calibration files from the VTA and recalibrate these models if necessary.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 23 of 39 Task D.3 Highway Model Validation model validation will use generally accepted validation criteria: ƒ The volumes on all roadway links for which counts are available should be within 10 percent of the counts. ƒ At least 75 percent of the roadway links for which counts are available should be within the maximum desirable deviation, which ranges from approximately 15 to 68 percent depending on total volume. ƒ The model-wide coefficient of determination (R2) should be greater than 0.77. ƒ The correlation coefficient between the actual ground counts and the estimated traffic volumes should be greater than 88 percent. ƒ The Root Mean Square Error (RMSE) should not exceed 40 percent. Task D.4 Transit Model Validation The PATDM model will be validated against observed transit ridership. The transit validation will focus on comparing systemwide estimated ridership by mode (Caltrain, VTA Express Bus and VTA Local Bus and Marguerite, if daily boarding counts are made available) and daily boardings at the Palo Alto Caltrain Station. The target for transit systemwide validation is to be within 10% of the counts. However, larger differences are expected at the route level. Task D.5 Model Validation Documentation A memorandum will be prepared to document the input assumptions and results of the model update. The results will be presented in tabular form with comparisons of 2015 model volumes and existing traffic counts. Data to be provided by the City Although we have 2013 and 2014 traffic counts in the Palo Alto, additional traffic counts are needed to validate the model. It is our understanding that the City does have traffic counts from traffic studies conducted in the past five years. When available, the City will provide daily roadway segment counts and peak hour intersection turning movements counts. Counts should have been taken on weekdays between 2015 and 2019. E. Updates to Other Comprehensive Plan Elements Task E.1 Comprehensive Plan Amendments Based on the evaluation of the current Comprehensive Plan, issues and opportunities identified as part of the legislative analysis, and in conjunction with the Housing Element Update, we will prepare revisions to existing goals, policies, and actions, as appropriate and propose new goals, policies, and actions, as appropriate. This effort will focus on refinements and updates to address key policy topics and new state mandates and guidelines. If determined necessary, Rincon will update the Circulation Element of the Comprehensive Plan with information provided by Hexagon. The Circulation Element will describe the existing transportation system and its physical and operational characteristics within the City of Palo            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 24 of 39 Alto. The plan will include a description of the various transportation systems serving the city, existing level of service conditions at intersections and numerous freeway segments, truck routes, travel patterns based on forecasts developed with the TFM, transit ridership on the rail and bus systems and bicycle travel. The circulation element will also include transportation related goals, policies and programs to address future transportation needs for residents, visitors and businesses. Any necessary amendments to the goals and policies for the Comprehensive Plan will be the responsibility of Rincon with input from Hexagon. Rincon will utilize the City’s existing format, layout, and style to create an amended Comprehensive Plan. Rincon will edit Comprehensive Plan Elements as Word files in track changes before converting the document to another format. If Word files are not available, Rincon will work with the City to establish the best method for these amendments. Rincon anticipates up to two rounds of review of the Comprehensive Plan amendments. Each draft will be submitted electronically only and we will address one set of compiled, tracked changes from the City. The Comprehensive Plan table of contents (including figures, tables, and charts), glossary, and index will be updated as appropriate to reflect changes made throughout the document. Deliverables ƒ Administrative Draft of updated Comprehensive Plan (electronic delivery) ƒ Draft Comprehensive Plan (electronic delivery) ƒ Final Comprehensive Plan (electronic delivery) F. Zoning Code Amendments Task F.1 Rezoning Following preparation of the Administrative Draft Housing Element, the Rincon/VTA team will prepare a list of municipal code sections that will need to be amended to maintain consistency with updated Housing Element programs and identified Comprehensive Plan amendments. Changes to the municipal code will need to address the development of new residential zones or any re-zoning or upzoning that are required in order to accommodate the City’s RHNA allocation. The list will prioritize changes to Title 18, Zoning, with those that would result in the most widespread housing development potential prioritized over changes that would not have as much impact. Deliverable ƒ List of Impacted Code Sections Task F.2 Draft Ordinance The Rincon/VTA team will support staff in their preparation of draft ordinance language to reflect the required updates to the Palo Alto Municipal Code. Staff will be expected to provide any draft ordinance language, edits, and comments to Rincon staff in Microsoft Word format with a single set of consolidated comments. Rincon will then deliver suggested edits on the revised Draft Ordinance language in tracked changes to the City. Deliverable ƒ Draft Ordinance Language Edits            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 25 of 39 G. Environmental Document We understand that Palo Alto would like to prepare a supplement to the 2030 Comprehensive Plan Update EIR, certified in 2017, rather than a subsequent or new EIR. In accordance with Section 15164 of the CEQA Guidelines, a lead agency may prepare a supplement to a previously certified EIR if some changes or additions are necessary, but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR have occurred. Our approach in preparing the Supplemental EIR is to develop a user-friendly document that identifies potentially new CEQA impacts that need to be addressed, including Wildfire and Energy, and to address transportation impacts using Vehicle Miles Traveled (VMT) as a significance criterion replacing the traditional Level of Service (LOS) standard (requirement beginning in July of 2020). To the greatest extent feasible, Rincon will utilize the analysis contained within the previously certified 2030 Comprehensive Update EIR as the basis for the supplemental analysis, allowing for the assessment of issue areas where there has been minimal change or where existing mitigation still addresses the potential impacts, thereby reducing costs for the city. Task G.1 Environmental Assessments In conjunction with the Initial Adequate Sites Inventory (Task C.3) and in support of the project’s CEQA compliance requirements, Rincon will conduct focused assessments of the following environmental topics of concern. The analyses described herein will be summarized in the corresponding IS and/or Supplemental EIR section and separate technical reports will not be prepared (except for the traffic impact analysis). All data used in the technical analyses will be included as appendices to the primary environmental document. Air Quality Rincon will conduct air quality analyses for proposed project to determine if the predicted emissions during construction or operation of development envisioned under the Housing Element, Comprehensive Plan, and Zoning Code updates would result in significant impacts beyond those assessed in the 2030 Comprehensive Plan Update EIR. Construction emissions estimates would be generated from generalized construction data developed in conjunction with the city. Mobile source emissions will be estimated based primarily on trip generation data from traffic reports prepared for the GPU. The California Emissions Estimator Model (CalEEMod) will be used to estimate emissions of criteria pollutants associated with the project. Rincon will use the California Department of Transportation’s (Caltrans) Transportation Project-Level Carbon Monoxide Protocol methodology to determine if project traffic may result in local carbon monoxide hotspots. It is not anticipated a detailed hot spot analysis would be required. The analysis will address the project’s conformance with the Bay Area Air Quality Management District Air Quality Strategy and/or the State Implementation Plan. The analysis will also determine if the project will expose any sensitive receptors to substantial pollutant concentrations or create objectionable odors. Biological Resources A Rincon biologist will review the city's RHNA allocation and city-supplied data, the initial "first-pass" of potentially adequate sites inventory for biological resource constraints, and biological resource data including but not limited to query of relevant databases such as California Natural Diversity Database and National Wetlands Inventory, for information pertaining to biological resources occurring in the city. Based on this review, Rincon will            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 26 of 39 prepare a map indicating areas with low, medium or high biological constraints. The analysis will prioritize those biological constraints that could result in high mitigation costs or but will identify all potential biological resource constraints. Rincon will provide an overview of the type and extent of additional studies that may be needed to adequately examine future project effects; typical avoidance measures and compensatory mitigation that may be required to address impacts to biological resources; and responsible resource/regulatory agencies with jurisdictional authority for each specific resource identified. Cultural Resources Evaluation Rincon will prepare a programmatic cultural resources analysis to address potential impacts to archaeological and historic built environment resources. The cultural resources analysis will review historic resources and archaeological resources within the potential housing locations and the potential impacts to those resources as a result of the project. The study will include research on the prehistory and history of Palo Alto, as well as a review of historic maps, aerial photographs and data included in the California Historic Resources Inventory. Rincon assumes that no fieldwork or project level analyses will be required. Rincon will discuss the existing geologic setting, determine the paleontological sensitivity of geologic units within the Plan area, identify potential impacts to paleontological resources from development within the Plan area, discuss significance thresholds, and propose mitigation to avoid or mitigate impacts to scientifically significant paleontological resources. No formal museum records search will be performed, and the analysis will consist of an online search of available fossil locality records, review of existing geologic maps, and a review of primary literature regarding fossiliferous geologic units within the Plan area and region. Greenhouse Gases Rincon will conduct GHG analyses for proposed plans to determine if the predicted emissions during construction or operation of development proposed under proposed Housing Element Update, and the Comprehensive Plan and Zoning Code updates would result in substantial increase in GHG emissions beyond those assessed in the 2015 FEIR. Projected construction emissions would be generated from construction data developed with the city as part of the air quality analysis scope. Mobile source emissions will be estimated based primarily on trip generation data from traffic reports for proposed plans. CalEEMod will be used to estimate GHG emissions associated with the proposed Housing Element, Comprehensive Plan, and Zoning Code updates. The GHG analysis will also address the project’s conformance with the City of Palo Alto Climate Action Plan, including the City’s Climate Action Plan Ordinances. Noise and Vibration Rincon will conduct an noise and vibration analysis to determine if the predicted noise levels during construction or operation of land uses under the proposed Housing Element, Comprehensive Plan, and Zoning Code updates would exceed applicable city noise standards or result in impacts not already assessed in the 2017 FEIR. As part of the analysis, Rincon will perform long- and short-term field measurements at various potential housing sites within a plan area and at locations with receptors that may be affected by noise resulting from future developments and to document the existing noise environment. Project construction noise impacts would be generated from construction data (e.g., assumed duration of construction, phasing, types of equipment to be used, number of construction workers, etc.) developed in conjunction with the city. Construction traffic noise levels affecting existing land uses will be            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 27 of 39 modeled to determine the potential traffic noise increases. The analysis of long-term operational noise impacts associated with the future development will include noise increases generated by vehicle traffic on area roadways and noise from typical onsite noise sources, e.g. mechanical ventilation. Rincon will calculate traffic noise levels based existing, existing plus project, and cumulative plus project scenarios of forecasted traffic volumes as identified in traffic reports. Rincon will use this information to determine if increases to roadway noise levels would adversely affect existing or future land uses along affected roadways. On-site noise sources will be evaluated based on typical requirements for mechanical ventilation based on building size and other published noise reference data for activities. Transportation/Traffic Hexagon Transportation Consultants, Inc. will prepare a traffic impact analysis to assess the effects of the Housing Element Update compared to the current General Plan Housing Element conditions. The effects of increased traffic due to housing density increase or rezoning at selected locations will be assessed. The document will be a supplement to the General Plan and Climate Action Plan Final EIR, certified in 2015. The evaluation of the Housing Element will be based upon the City’s transportation policy. The City’s CEQA transportation policies require an evaluation of potential impacts related to vehicle-miles traveled (VMT) criteria. In addition, the effects of the plan on travel mode split, the percentage of travelers using a particular type of mode of travel or number of trips, intersection levels of service and other performance measures evaluated in the existing Comprehensive Plan will also be evaluated for informational purposes to better understand the transportation-related outcomes associated with the plan. However, the determination of project impacts per CEQA requirements will be based solely VMT. The transportation analysis will consist of an evaluation of the effects of the housing development plan for Palo Alto on the citywide transportation system through the year 2031. The existing Comprehensive Plan and its certified EIR included the planned development growth levels adopted in the Comprehensive Plan. Therefore, this traffic analysis will utilize the Comprehensive Plan land use data as the basis from which land use adjustments for the proposed Comprehensive Plan are made. Furthermore, the Palo Alto travel forecasting model (TFM) used for the completion of the existing Comprehensive Plan will be used for this traffic analysis, and VMT calculations will include the latest (ABAG Projections 2017) land use assumptions. Forecasts and traffic analyses will be based on year 2031 conditions and include the following project scenarios: ƒ Existing Comprehensive Plan which includes the adopted land use plan and assumed transportation system. ƒ Evaluation of up to three alternative project land use plans that include the approximately 10,000 housing units per the Regional Housing Needs Allocation ƒ Evaluation of the preferred land use plan Develop Forecasts for the Existing Comprehensive Plan. The City’s Travel Demand Forecast model includes the roadway network in the project area that is representative of Year 2030. The 2030 roadway network will be reviewed and adjustments made to reflect the roadway network to ensure that improvements identified as part of the adopted Comprehensive Plan roadway            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 28 of 39 network are included. In addition, the review will identify adjustments that must be made to reflect any planned roadway adjustments and improvement projects that were not included in the Comprehensive Plan. Hexagon will run the travel forecasting model and develop year 2030 travel forecast for the existing Comprehensive Plan. Develop Year 2030 Travel Forecast for the Proposed Plan. Land use input data for the proposed plan, which will include 10,000 or more housing units in Palo Alto will be provided by City staff or Rincon. The data need to be provided for each traffic analysis zone in Palo Alto. Hexagon will update the land use data base to reflect the housing allocation of the plan and run the model to develop forecast for the proposed Comprehensive Plan. Performance Statistics. Consistent with SB 743, VMT will be used as the metric to evaluate significant transportation impacts. The assessment of VMT impacts will be based on the process and criteria documented in the SB 743 Implementation Decisions for Palo Alto, dated July 1, 2020. A Vehicle Miles Traveled (VMT) will be prepared and Hexagon will work with City staff to determine project adjustments necessary to mitigate any identified project impacts to VMT. Other performance statistics that were used in the current Comprehensive Plan will be summarized and analyzed. Deliverables ƒ Technical Memorandums ƒ Transportation Analysis Task G.2 Notice of Preparation (NOP) and Scoping Meeting Pursuant to CEQA Guidelines Section 15163(c), a Supplemental EIR shall be given the same kind of notice and public review as is given to a draft EIR under CEQA Guidelines Section 15087. The NOP is intended to alert other public agencies about the undertaking, and to solicit their input on the scope of the Draft Supplemental EIR. Rincon will submit a final PDF copy of the NOP to city staff for posting on its website and for distribution to public agencies. It is assumed that the city will distribute the NOP using the city’s distribution list. Rincon will be responsible for filing the NOP with the Santa Clara County Clerk and State Clearinghouse/OPR. As required by CEQA, the NOP will circulate to responsible and trustee agencies for 30 days. During the 30-day NOP review process, Rincon will facilite a public scoping meeting to inform the public on the environmental issues they should expect to see addressed in the EIR as well as gather public input. Rincon will make a brief presentation on the Housing Element, Comprehensive Plan, and Zoning Code updates, and environmental review process, then record relevant public comments received. These comments will be summarized in the Supplemental EIR. Rincon assumes that the city will be responsible for notifying and consulting with local tribes pursuant to SB 18 and AB 52 requirements. Rincon can assist with that process by preparing materials and instructions for tribal noticing. Deliverables ƒ NOP for posting on website ƒ SB 18 and AB 52 Noticing Materials            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 29 of 39 Task G.3 Preparation of a 15162 Initial Study The Initial Study will evaluate each of the CEQA environmental issue areas using a modified CEQA Appendix G environmental checklist in accordance with CEQA Guidelines Section 15162. The IS analysis will also include a comprehensive review of the certified EIR mitigation measures. The purpose of the IS will be to determine the extent to which the environmental impacts associated with the proposed Housing Element, Comprehensive Plan, and Zoning Code updates were adequately addressed in the original EIR. This process will determine whether a Supplemental EIR is the appropriate document as assumed, and which CEQA environmental topics may need to be focused on for supplemental analysis. Rincon will incorporate information from any relevant and available technical studies to assist in addressing checklist issues. Where appropriate, impacts will be quantified in relation to established thresholds of significance. A determination of significance will be made for each issue area and mitigation measures will be provided as necessary for identified significant effects. Although each topic will be discussed in appropriate detail in the IS, we anticipate that key issue areas for the project will include topics found to be potential significant in the 2017 EIR. These topics include air quality and transportation. We will also assess potential impacts related to new CEQA topics including Energy and Wildfire. Deliverable ƒ Initial Study (electronic delivery) Task G.4 Administrative Draft Supplemental EIR The supplement to a certified EIR only needs to contain the information necessary to make the previous EIR adequate for the project as revised. Therefore, the format of the Administrative Draft Supplemental EIR will follow that of a focused EIR, concentrating on only those topics found to require minor additions or changes as a result of the proposed Housing Element, Comprehensive Plan, and Zoning Code updates. Our general report structure will include all the required sections of an EIR: Introduction; Executive Summary; Project Description and Environmental Setting; Analysis, Impacts, and Mitigation Measures; Alternatives Analysis; Cumulative Impacts; and Other CEQA Sections. The number of impacts to be analyzed and the depth of analysis will be a function of the IS conclusions, responses to the NOP, and staff direction based on current needs, and those still adequately addressed by the current EIR. New potential impacts will be identified, and mitigation measures will be prepared or modified to reduce significant impacts to a less-than- significant level, when feasible. For each potentially significant impact identified, the team will develop, in coordination with city staff and the broader consultant team, General Plan goals and/or policies to avoid or reduce identified impacts as self- mitigating policies. New or modified mitigation measures will be developed only if self-mitigating policies are determined not feasible or reasonable. The alternatives analysis will focus on reexamining the 2017 EIR alternatives and revise the alternatives and associated analysis only as necessary based on the changes from the Housing Element, Comprehensive Plan, and Zoning Code updates. Hexagon will be responsible for preparing the transportation analysis for use in the SEIR for the Housing Element and subsequent Comprehensive Plan Amendments. In addition to existing conditions, the transportation section will analyze traffic conditions of the existing and the proposed Comprehensive Plan. Traffic analysis will include analysis of freeway segments, interchanges, study intersections, transit ridership, and bicycle and pedestrian usage. Consistent            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 30 of 39 with SB 743, VMT will be used as the metric to evaluate significant transportation impacts. The assessment of VMT impacts will be based on the process and criteria documented in SB 743 Implementation Decisions for Palo Alto, dated July 1, 2020. Following internal city staff comments on the Administrative Draft Supplemental EIR (up to two rounds of review), the team will incorporate appropriate revisions to the Administrative Draft Supplemental EIR and prepare a Screencheck Draft Supplemental EIR for final internal review. All submissions of the Administrative Draft Supplement EIR will be provided in an editable, electronic Word format only. We assume all comments and revision requests will be submitted in a compiled and tracked changes Word format. Deliverables ƒ Administrative Draft Supplemental EIR (electronic delivery) ƒ Screencheck Draft Supplemental EIR (electronic delivery) Task G.5 Draft Supplemental EIR Upon authorization from city staff, the team will prepare the Public Review Draft Supplemental EIR for public circulation and distribute the Draft Supplemental EIR to the State Clearinghouse, responsible agencies, and interested agencies, organizations, and persons as part of the 45-day public circulation and review period per CEQA regulations. Rincon will provide digital versions (PDF and Word) of the Supplemental EIR (including appendices) for city use. Task G.6 Final Supplemental EIR Following public review, the team will prepare draft Responses to Comments. As part of preparing the responses, we will use the bi-weekly conference calls to discuss comment responses. Following internal comments on the draft responses, the team will prepare the final Responses to Comments. Concurrent with the preparation of Responses to Comments, Rincon will prepare a Mitigation Monitoring and Reporting Plan (MMRP) to be included in the Final Supplemental EIR. The team will prepare the Final Supplemental EIR after receipt of all written comments received during the review period. The Final Supplemental EIR will consist of the comments, responses, and corrections to the Draft Supplemental EIR, if any are warranted and be subject to up two rounds of review. Rincon will prepare a Screencheck Final Supplemental EIR for one round of internal city staff review and confirmation. The city will be responsible for submitting the Notice of Determination (NOD) to the County Clerk per CEQA regulations. Rincon assumes that no more than 72 hours of professional time will be required to respond to public comments on the Draft EIR. Rincon will provide digital versions (PDF and Word) and 15 printed copies of the Supplemental EIR (including appendices) for city use. Pursuant to CEQA Guidelines Section 15163(e), when the City Council ultimately decides whether to approve the project, they will need to consider the 2017 EIR as revised by the Supplemental EIR. Findings under Section 15091 will need to be made for each significant effect shown in the 2017 EIR as revised. Our Scope of Work does not include assistance with the preparation of Findings of Fact. This task can be added with written authorization of a change in scope and in accordance with our standard fee schedule. Deliverables            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 31 of 39 ƒ Responses to Comments (electronic delivery) ƒ MMRP (electronic delivery) ƒ Final Supplemental EIR (electronic delivery) H. Prepare and Finalize Housing Element Task H.1 Administrative Draft Housing Element We will prepare the Administrative Draft Housing Element based on analysis, research, and comments/discussions from the previous tasks. Our timeline and budget assume one round of review by City staff. The document will be provided in Word and PDF versions. Deliverable ƒ Administrative Draft of the Housing Element Update (electronic delivery) Task H.2 Public Review Draft Housing Element We will incorporate staff comments to formulate the Public Review Draft to be reviewed by City decision makers prior to submitting to HCD for review. We will work with City staff to compile a list of stakeholders and agencies/organizations to receive notification of the availability of the Draft Housing Element. Deliverable ƒ Public Review Draft of the Housing Element Update (electronic delivery) Task H.3 Final Draft Housing Element Following HCD review, the Rincon/VTA team will incorporate any comments to formulate the Final Housing Element prior to City Council adoption. Deliverables ƒ Final Adopted Housing Element Update (electronic delivery) ƒ All background and base data, including any GIS maps and digital data files Task H.4 HCD Certification HCD review of the Draft Housing Element is mandatory. During the review, we will work to address all HCD comments and will communicate with HCD and facilitate review of the revisions via revised pages. All revisions made to the Draft Housing Element will be shown as tracked changes. The goal is to secure a Finding of Substantial Compliance on the Draft Element before proceeding to adoption. This way, final certification will be contingent upon adopting the Housing Element as revised and reviewed by HCD and the City would avoid adopting a Housing Element that does not completely meet HCD requirements and needing to repeat the review and adoption process again. Throughout the HCD review process, the Rincon/VTA team will maintain contact with HCD staff via email and phone calls regarding the City’s progress, key issues to be addressed, and alternative approaches to compliance. After adoption, the Housing Element must be submitted to HCD for its final review within 90 days. Deliverables ƒ Cover letter summarizing changes ƒ Final Housing Element for certification            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 32 of 39 I. Project Management Project Management Ms. Acosta will serve as the main point of contact with the City and track the project schedule and budget to ensure that we stay within their respective parameters. As Project Manager, she will regularly communicate with the City via telephone and email and will proactively identify any potential issues that arise. If issues arise that may affect the project schedule or budget, Rincon will immediately communicate this to the City and determine a mutually agreeable course of action for resolution. The Project Manager and the Principal in Charge will help ensure quality control by reviewing all work products before they are sent to the City. As part of this assignment, Ms. Acosta and/or our Housing Team lead, Ms. Weatherby, will participate in and/or conduct bi-weekly check-in conference calls with City staff, and pertinent consultant team members as needed, to review project statuses, milestones, and project needs and concerns. We have found such meetings to be essential in ensuring timely project execution. Through these regular check-in calls, we will proactively identify project issues, immediately bring those issues to the attention of city staff, identify potential solutions, and coordinate with city staff as to the best course of action. Topics at these meetings may include any aspect of the project, e.g. public outreach, housing inventory assessment, document preparation, and CEQA.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 33 of 39 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: ƒ SERVICES AND DELIVERABLES TO BE PROVIDED ƒ SCHEDULE OF PERFORMANCE ƒ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ƒ 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 ___________________________________            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 34 of 39 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. Milestones Completion Number of Days/Weeks (as specified below) from NTP 1. TASK A: COMMUNITY ENGAGEMENT PROGRAM DEVELOPMENT Task A.1 Kick off Mtg and Community Engagement Plan Task A.2 Community Workshops and Working Group Meetings Task A.3 Public Meetings Task A.4 Other Outreach Task A.5 Online Engagement April 2021 As needed As needed As needed As needed 2. TASK B: HOUSING ELEMENT REVIEW AND ASSESSMENT Task B.1 Document Review Task B.2 Review and Evaluation of Current Housing Element May 2021 June 2021 3. TASK C: HOUSING ELEMENT COMPONENTS Task C.1 Housing Resources and Opportunities Task C.2 Housing Constraints Task C.3 Housing Inventory of Sites Analysis Task C.4 Housing Needs Assessment Task C.5 Goals, Policies and Implementing Programs June 2021 June 2021 Dec 2021 August 2021 Nov 2021 4. TASK D: REFINE VTA TRAFFIC DEMAND MODEL July 2021 5. TASK E: UPDATES TO OTHER COMPREHENSIVE PLAN ELEMENTS Task E.1 Recommendations Memo Task E.2 Comprehensive Plan Amendments August 2022 Oct 2022 6. TASK F: ZONING CODE AMENDMENTS Task F.1 Rezoning Task F.2 Draft Ordinance August 2022 Oct 2022 7. TASK G: ENVIRONMENTAL REVIEW Task G.1 Environmental Assessments Task G.2 Notice of Preparation and Scoping Meeting Task G.3 Preparation of a 15162 Initial Study Task G.4 Administrative Draft Supplemental EIR Task G.5 Draft Supplemental EIR Task G,6 Final Supplemental EIR Preparation (contingent on comments received) Oct 2021 Nov 2021 Oct 2021 March 2022 June 2022 August 2022            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 35 of 39 8. TASK H: PREPARE UPDATES FOR HCD REVIEW AND CERTIFICATION Task H.1 Administrative Draft Housing Element Task H.2 Public Review Draft Housing Element Task H.3 Final Draft Housing Element Task H.4 HCD Certification Dec 2021 June 2022 Sept 2022 Nov 2022 9. TASK I: PROJECT MANAGEMENT As needed NOTE: Housing Element needs to be certified by the State by January 2023. However, in the Housing Element, there may be some programs/rezones that need to be implemented by an undetermined years after certification. Additional Services as stated below will be requested as needed through January 2026. 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.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 36 of 39 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 TASKS NOT TO EXCEED AMT Task A: Community Engagement Program $85,868 Task B: Housing Element Review and Assessment $10,993 Task C: Housing Element $101,208 Task D: Refine VTA Traffic Demand Model $23,670 Task E: Updates to Other Comprehensive Plan Elements $21,038 Task F: Zoning Code Amendments $19,044 Task G: Environmental Documents $186,845 Task H: Prepare and Finalize Housing Element $43,747 Task I: Project Management $30,914 Sub-total of Services (Tasks A-I): $523,327 Sub-total for Reimbursable Expenses: $0 Total for Services and Reimbursable Expenses* $523,327 Additional Services (if any, per Section 4) $104,665 Maximum Total Compensation $627,993 *DIRECT COST SCHEDULE (included in Total for Services and Reimbursable Expenses) DETAILED COST NOT TO EXCEED AMT Colored Copies Single Sided $63 Photocopies Double Sided BW $720 Administrative Costs (VTA) $7,680 Neighborhood Outreach $1,000 Hexagon Transportation Consultants $131,971            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 37 of 39 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: Position Title Hourly Rate Principal I $202.40 Supervisor I $179.40 Senior Professional I $147.20 Professional III $119.60 Professional I $96.60 GIS/CADD Specialist II $115.00 Production Specialist $88.00 Clerical $69.00 Veronica Tam $160.00            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 38 of 39 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.            City of Palo Alto Professional Services Contract No. C21181034 Rev. Dec.15, 2020 Page 39 of 39 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP            City of Palo Alto (ID # 12011) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Contract for FY21 Streets Preventive Maintenance Project Title: Approval of Contract Number C21178632A with Graham Construction, Inc. in the Amount of $986,614, and Authorization for the City Manager to Negotiate and Execute Related Change O rders with Graham Construction, Inc. for a Not-to-Exceed Amount of $98,662, for a Total Not -to-Exceed Contract Amount of $1,085,276 for the FY 2021 Streets Preventive Maintenance Project, Capital Improvement Program projects PE -86070 and PO-11001 From: Cit y Manager Lead Department: Public Works Recommendation Staff recommends that the City Council: 1. Approve and authorize the City Manager or his designee to execute the contract with Graham Construction, Inc. (Contract No. C21178632A) in an amount not to exceed $986,614 for the Fiscal Year 2021 Streets Preventive Maintenance Project (Capital Improvement Program projects PE-86070 and PO-11001) for street maintenance; and 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Graham Construction, Inc. for related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $98,662. CITY OF PALO ALTO City of Palo Alto Page 2 Background Public Works Engineering Services Division manages construction contracts for concrete repair, preventive maintenance, resurfacing, and reconstruction of various city streets annually. In recent years, additional Capital Improvement Program (CIP) projects are being built through the annualized resurfacing contracts due to the complexity of construction and benefit of being included in a larger project. All City of Palo Alto streets are surveyed annually by the Public Works Engineering Services staff and rated by a computerized pavement maintenance management system (PMMS) and the Metropolitan Transportation Commission’s (MTC) pavement analysis program Street Saver. All streets have been coordinated with the Utilities Department and the Office of Transportation to eliminate the cutting of newly resurfaced streets. Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process, including sending flyers to adjacent residences and businesses and posting notices online on Nextdoor and the City’s website. Discussion Project Description The $986,614 expenditure for this contract includes preventive maintenance of approximately 15.8 lane-miles of public streets (1.2 million square feet) and 133,000 linear feet of crack sealing. This contract also includes thermoplastic striping in coordination with the Public Works Public Services Division. The streets and other work sites included in this contract are listed in Attachment A. Additional maps of the FY21 Street Maintenance Program and current 5-year plan for street repaving are available on the Street Maintenance Program homepage located at www.cityofpaloalto.org/streets. Bid Process On February 8, 2021, a notice inviting formal bids (IFB) for the Fiscal Year 2021 Streets Preventive Maintenance Project was posted online on PlanetBids and sent to builder’s exchanges and contractors through PlanetBids (the City’s eProcurement system). The bidding period was 24 calendar days. Bids were received from three qualified contractors on March 3, 2021 as listed on the attached Bid Summary (Attachment B). City of Palo Alto Page 3 Summary of Bid Process Bid Name/Number FY 2021 Streets Preventive Maintenance Project IFB #178632A Proposed Length of Project 70 calendar days Number of Bid Packages Downloaded by Builder’s Exchanges 9 Number of Bid Packages Downloaded by Contractors 20 Total Days to Respond to Bid 24 Pre-Bid Meeting? No Number of Bids Received: 3 Base Bid Price Range $986,614 to $1,404,425 The apparent low bidder was selected based upon the total of the base bids plus add Alternate 1. Bids ranged from $986,614 to $1,404,425. The lowest bid received was 27% under the engineer’s estimate and the highest bid received was 4% over the engineer’s estimate. Staff has reviewed all bids submitted and recommends the base bid and add alternate one , totaling $986,614 submitted by Graham Construction, Inc. be accepted, and Graham Construction, Inc. be declared the lowest responsible bidder. The contingency amount of $98,662, which equals ten percent (10%) of the total contract, is requested for related, additional, but unforeseen work that may develop during the project. Staff reviewed other similar projects performed by the lowest responsible bidder, Graham Construction, Inc.; including projects performed for the City and did not find any significant complaints with their previous work. Staff also checked with the Contractor’s State License Board and confirmed the contractor has an active license on file. Should the City Council not approve this contract, planned preventive maintenance work would be postponed, likely resulting in the need for more co stly overlay work on some streets whose condition may degrade beyond the usefulness of the preventive maintenance treatment. Given the significant savings from the engineers estimate of 27% noted above, staff has brought this contract forward for recommended approval to take advantage of the cost savings for needed maintenance activities. Resource Impact Funding for the Fiscal Year 2021 Streets Preventive Maintenance Project is available in the following CIP projects: Street Maintenance Program (PE-86070) and Thermoplastic Lane Marking and Striping (PO-11001). City of Palo Alto Page 4 Funding Allocations Funding Source Contract Contingency Total Funding 1 PE-86070 $939,767 $93,977 $1,033,744 2 PO-11001 $46,847 $4,685 $51,532 Totals $986,614 $98,662 $1,085,276 This contract is on the City’s construction contract template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determi ned that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. On March 22, 2021, the City Council directed staff to further reduce FY 2021 capital budget expenditures by $2.5 million through project deferrals (reappropriations), cost savings, or potentially elimination of project funding. The savings that will be ac hieved due to the lower than estimated costs contribute to this reduction, and will be returned to fund balance from CIP projects PE-86070 and PO-11001 in the amounts of $376,000 and $15,500, respectively. Policy Implications This project is in conformance with City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies. Stakeholder Engagement Residents and businesses impacted by the project will be notified via mailer prior to the start of any work detailing where and what type of work is to be expected for the duration of the project. Paving notices will be distributed to impacted parties 7-days and 24-hours prior to the full street closures. The City website will be updated with the digital version of the mailer as well as the latest construction schedule for full street closures. The schedule will be updated as necessary. Environmental Review Street resurfacing projects are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301(c) of the CEQA Guidelines as repair, maintenance or minor alteration of existing facilities and no further environmental review is necessary. Attachments/Links • Attachment A: Streets List and Project Maps • Attachment B: Bid Summary • Contract No. C21178632A is provided via online link at the top of this Staff Report Attachments: • Attachment A: Street List and Project Maps • Attachment B: Bid Summary Street Name Begin Location End Location 1 Addison Avenue Ramona Street Cowper Street 2 Addison Avenue Webster Street Middlefield Road 3 Alta Mesa Avenue Arastradero Road Irven Court 4 Amarillo Avenue Louis Road Greer Road 5 Amarillo Avenue Greer Road West Bayshore Road 6 Birch Street Cambridge Avenue College Avenue 7 Birch Street Stanford Avenue College Avenue 8 Bryant Street Channing Avenue Addison Avenue 9 Center Drive University Avenue Hamilton Avenue 10 Center Drive Hamilton Avenue Dana Avenue 11 Cowper Street Addison Avenue Lincoln Avenue 12 Cowper Street North California Avenue Santa Rita Avenue 13 Cowper Street Seale Avenue Santa Rita Avenue 14 E Meadow Drive Fabian Way E Meadow Circle 15 Edgewood cul-de-sac 3 Edgewood Drive End 16 Edlee Avenue Park Boulevard Wilkie Way 17 Emerson Street Churchill Avenue Tennyson Avenue 18 Ensign Way Middlefield Road End 19 Foothills Park Vista Hill Loop Vista Hill Loop 20 Guinda Street Channing Avenue Homer Avenue 21 Hawthorne Avenue Tasso Street Webster Street 22 High Street Everett Avenue University Avenue 23 Holly Oak Drive Ames Avenue Ames Avenue 24 Irven Court Alta Mesa Avenue End (West and East) 25 La Jennifer Way El Centro Street End 26 La Jennifer Way End End 27 La Selva Drive Military Way Barron Avenue 28 Lincoln Avenue Martin Avenue Channing Avenue 29 Louis Road Embarcardero Road 2361 Louis Road 30 Manchester Court Loma Verde Avenue End 31 Manuela Avenue Arastradero Road 4175 Manuela Avenue 32 Maybell Avenue Donald Drive Amaranta Drive 33 Olive Avenue Park Boulevard Ash Street FY 21 Preventive Maintenance Project Street List Attachment A 34 Oregon Avenue Sierra Court Santa Catalina Street 35 Oregon Avenue Bryant Street Emerson Street 36 Oregon Avenue South Court Waverley Street 37 Orinda Street Matadero Avenue Margarita Avenue 38 Palo Alto Avenue Guinda Street Seneca Street 39 Park Boulevard Olive Avenue Fernando Avenue 40 Park Boulevard Leland Avenue Stanford Avenue 41 Pine Street Hopkins Avenue Parkinson Avenue 42 Ramona Street Colorado Avenue End 43 Ramona Street El Carmelo Avenue End 44 Ramona Street Loma Verde Avenue El Verano Avenue 45 Ruthelma Avenue Edlee Avenue W Charleston Road 46 Seale Avenue Cowper Street Bryant Street 47 St. Claire Drive Cowper Street St. Michael Drive 48 St. Claire Drive St. Michael Drive St. Michael Drive 49 Washington Avenue Emerson Street Bryant Street 50 Waverley Street Marion Avenue Oregon Expressway private Moana Cour t W a l li s C t D o n a ld D riv e Encina Grande Drive Cereza Drive Los Ro bles Avenue Villa Vera Verdosa Drive Campana Drive Solana Drive G e o r g ia A v e Ynigo Way Driscoll Ct ng A r t hur 'Mayb ell W ay Maybell Avenue Frandon Ct Florales Drive Georgia Avenue Amaranta Avenue Amaranta Ct Miranda Green Foothill Expressway Ki s Cour t Terman Drive Baker Avenue Vista Avenue Wisteria Ln Pena Ct Co ulom be Drive Cherry Oa ks Pl P omona Avenue Aras tradero Roa d Abel Avenue Clemo A ve nue Villa Real El Camino Way Curtner Avenue Ventura Avenue Ma clane Emerson Street Ventura Ct Park Boulevard Magnolia Dr South El Camino Real Cypress Lane Gl enbrook D Fairme de A ven ue A rastrade ro Ro ad Ir v en Co ur t Los Palos Cir Los PalosPl Maybell Avenue Alta Mesa Ave Kelly Way Los Palos Avenue Suzanne Drive Suzanne Drive r i v e El Camino Real Suzanne Ct Lorabelle Ct McKellar Lane El Camino Way James Road Maclane Second Street Wilkie Way Camino CtWest Meadow Drive Thain Way Barclay Ct Victoria Place Interdale Way West Charleston Road Tennessee Lane Wilkie Way Carolina Lane Tennessee Lane Park Boulevard Wilkie Ct Davenport Way Alma Street Roosev Mo n r o e D r i v e Wilkie Way Whitclem Pl Whitclem Drive Duluth Circle Edlee Avenue Dinah's Court Cesano Court Monroe DriveMiller Avenue Whitclem Wy Whitclem Ct Ferne Avenue Ben Lomond Drive Fairfield Court Ferne Avenue Ponce Drive Heml ock Cour t Ferne Court Alma Street Monroe Drive San Antonio Road Nita Avenue Ruthelma Avenue Da rlington Ct East Charleston Road Lundy Lane Newberry Ct Park Boulevard George Hood Ln Alma Street e l t Circle Lind eroDrive Wright Place Starr Ki n g C ircle Shasta Drive Mackay Drive Diablo Court Scripps Avenue Scripps Court Nelson Drive Tioga Court Creekside Drive Greenmeadow Way Ben Lomond Drive Parkside Drive Dixon Place Ely Place Dake Avenue Ferne Avenue San Antonio Court (Private) Ch r i st opher Court Cal cater r a Place Ely Place Ely Place A dob e PlaceNelson C ourt Byron St ree tKeats Court Middlefield Road Duncan Place Carlson Court D u n c a n Place Mumford Place East Charleston Road S a n A n t o ni o R o a d East Meadow Drive Emerson Street Co u r t B r y a n t S t r ee t Roo s e v e l t Circle Ramon a Stree t Carlson Circle Red w o o d C i r c le S o u t h L e g h o r n Str e e t M o ntrose A venu e M a ple w o o d Charleston Ct East Charleston Road Seminole Way Sutherland Drive Nelson Drive El Capitan Place F a bi a n S tr e e t Loma Verde Avenue Bryson Avenue Midtown Court Cowper Street Gary Court Waverley Street South Court Bryant Street Ramona Street Alma Street Coastland Drive Colorado Avenue Byron Street Middlefield Road Gaspar Court Moreno Avenue Coastland Drive El Carmelo Avenue Ros e woo d D Campesino Avenue Dymond Ct Martinsen Ct Ramona Street Bryant Street Towle Way Towle Place Wellsbury Ct Avalon Court Flowers Lane Mackall Way Loma Verde Avenue Kipling St reet Cowper Street South Court Waverley Street El Verano Avenue Wellsbury Way La Middlefield Road St Claire Drive Alger Drive As hton Av enue St Michael Drive St Michael Drive Maure en Av enue Cowper Court Rambow Drive East Meadow Drive Ashton Court Murdoch Drive C o w p e r S t r eet Murdoch Ct St Michael Court MayCou r t Mayview Avenue Middlefield Road Ensign Way Bibbits DriveG ailen Ct Gailen Avenue Grove Avenue S a n A nt o n io R o a d C o m m e r c i a l S tr e e t I n d u strial A v e n u e Bib bits D riv e E a st C h a rl e st o n R o a d F a b i a n W a y T East Meadow Drive Grove Avenue Christine Drive Corina W ay R o s s R o a d C orin a W a y L o uis R o a d N a th a n W a y Transport Street Ortega C ourt East Meadow Drive yne Cour t alisman Loma Verde Avenue Allen Court Ross Court Loma Verde Pl Ames Avenue Richardson Court Holly Oak Drive Ames Avenue CorkOak Way Middlefield Road Ames Ct Ames Avenue Ross Road Rorke Way Ror ke Way Stone Lane Toyon Place Torreya Court Lupine Avenue Thornwood Drive Dr i ftwood Drive Talisman Drive Arbutus Avenue Ross Road Louis Road Aspen Way Evergreen Drive E a s t M e a d o w Driv e Corporation Way Elwell Court Janice Way East Meadow Circle East Meadow Circle GreerRoad Bayshore Freeway ri ve Ellsworth Place San Carlos Court Wintergreen Way SutterAvenue Sutter Avenue Clara Drive Price Court Stern Avenue Colorado Avenue Randers Ct Ross Road Sycamore Drive Sevyson Ct Stelling Drive Ross Road David Avenue Mur ray Way Stellin g D riv e Stelling Ct Manchester Court K e n n e t h D ri v e Thomas D r i v e G r ee r R o a d Stockton Place Vernon Terrace Louis Road Janice Way Thomas Drive Kenneth Drive Loma Verde Avenue Cli ftonCour t Elbr i d g e W a y Clara Drive Bau t ista Court Stockton Place Morris Drive Maddux Drive Piers Ct Louis Road Moraga Ct C o y o t e H i l l R o a d Hillvie w Avenue Porter Drive Hillview Avenue Hanover St reet Foothill ExpresswayMiranda Avenue St anford Av enue Amherst Street Columbia Street Bowdoin Street Dartmouth Street Hanover Street College Avenue California Avenue Hanover Street Ramos Way (Private) Page Mill Road Hansen Way Hanover Street Old Trace Court Arastradero Road Miranda Avenue Mockingbird Lane Old Tr ace Road M a n u el a W a y R o bb Roa d M a n u el a C o u rt M e s a A v e n u e O a k Hill A v e n u e M a n u ela A v e n u e M ir a n d a A v e n u e Laguna Ct Barron Avenue Josina Avenue Kendall Avenue Tippawingo St Julie Ct Matadero Avenue Ilima Way Ilima Court Laguna Oaks Pl Carlitos Ct La Calle Laguna Avenue El Cerr i t Paradise Way Roble Ridge (Private) L a MataWay Chimalus Drive Matadero Avenue o Road Paul AvenueKendall AvenueWhitsell Avenue Barron Avenue Los Robles Avenue Laguna Way Sha u na Lane La Para Avenue San Jude Avenue El Centro Street Timlott La Jennifer Way Magnolia Dr North La Donna Avenue Los Robles Avenue Rinc Manzana Lane on Circle Me sa Court C ro s b y P l G eorgia Avenue H u b b a r tt D ri v e Willm ar Drive Donald Drive Arastradero Road Foothill Expressway Miranda Avenue La Para Avenue San Jude Avenue Magnolia Drive Military Way Arbol Drive Orme Street Fernando Avenue Matadero Avenue Lambert Avenue Hansen Way El Camino Real Margarita Avenue Matadero Avenue Wilton Avenue Oxford Avenue Harvard Street California Avenue Wellesley Street Princeton Street Oberlin Street Cornell Street Cambridge Avenue College Avenue Williams Street Yale Street Staunton Court Oxford Avenue El Camino Real Churchill Avenue Park Boulevard Park Avenue Escobita Avenue Churchill Avenue Sequoia Avenue Mariposa Avenue Castilleja Avenue Miramonte Avenue Madrono Avenue Portola Avenue Manzanita Avenue Coleridge Avenue Leland Avenue Stanford Avenue Birch Street Ash Street Lowell Avenue Alma Street Tennyson Avenue Grant Avenue Sheridan Avenue Jacaranda Lane El Camino Real Sherman Avenue Ash Street Page Mill Road Mimosa Lane Chestnut Avenue Portage Avenue Pepper Avenue Olive Avenue Acacia Avenue Emerson Street Park Boulevard Orinda Street Birch Street Ash Street Page Mill Road Ash Street Park Boulevard College Avenue Cambridge Avenue New Mayfield LaneBirch Street California Avenue Park Boulevard Nogal Lane Rinconada Avenue Santa Rita Avenue Park Boulevard Seale Avenue Washington Avenue Santa Rita Avenue Waverley Stree Bryant Street High Street Emerson Street Colorado Avenue Street Emerson Street Ramona Street Bryant Street South Court El Dorado Avenue Alma Street Alma Street High Street t Emerson Waverley Oaks Washington Avenue Bryant Street South Court Waverley Street Emerson Street Nevada Avenue North California Avenue Santa Rita Avenue Ramona Street High Street North California Avenue Oregon Expressway Marion Avenue Ramona Street Colorado Avenue Waverley Street Kipling Street South Court Cowper Street Anton Court Nevada Avenue Tasso StreetTasso Street Oregon Avenue Marion Pl Webster Street Middlefield Road Ross Road Warren Way El Cajon Way Embarcadero Road P ri m ro s e W a y Iris W a y Tulip Lane T u lip L a n e Garland Drive Louis Road G r e e r R o a d Morton Street G r e e r Ro a d H a milto n A v e n u e H il b a r La ne Alannah Ct Edge Rhodes Drive Marshall Drive Fieldin Moreno Avenue Mar sh al l Dri v e Dennis Drive Agnes Way Oregon Avenue Blair Court Santa Ana Street Elsinore Drive Elsinore Court El Cajon Way Greer Road North California Avenue g Dr ive Colorado Avenue Sycamore Drive Amarillo Avenue Van Auken Ci r c le Bruce Drive Colonial Lane Moreno Avenue Celia Drive Burnham Way Greer Road Indian Drive Elmdale Pl C Tanland Drive Moreno Avenue Amarillo Avenue West Bayshore Road Sandra Place Clara Drive Colorado Avenue Greer Road Colorado Avenue Simkins Court Otterson Ct Higgins Place Lawrence Lane Maddux Drive Genevieve Ct Metr o Circ l e Moff et tCi r c le Greer Road East Bayshore Road ardinal Way Santa Catalina Street ArrowheadWay Aztec Way Chabot TerraceOregon Avenue Carmel Drive Sierra Court S t Franci s Drive West Bayshore Road Tanland Drive East Bayshore Road wo o d D r i v e Edgewood Drive Wildwoo d Lane I v y L a n e East Bayshore Road S t F r a n cis D ri v e Wild w o o d L a n e Watson Court Laura Lane S a n d al w o o d Ct O'Brine Lane (Private) Faber Place Embarcadero Road G eng R oad Sand Hill Road Q u arr y R o a d W e lc h R o a d Arboretum Road Quarry Road Sand Hill Road Homer Avenue Lane 8 West M edical Foundation Way Lane 7 West Lane 7 East E mbarcadero Road Encina Avenue El Camino Real Urban Lane Wells Avenue Forest Avenue High Street Emerson Street Channing Avenue Alma StreetAlma Street Pa lo A l to A El Camino Real venue Mitchell Lane Hawthorne Avenue Everett Avenue Lytton Avenue Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W Lane 21 High Street Gilman Street Hamilton Avenue University Avenue Bryant Court Lane 30 Florence Street Kipling Street Tasso Street Cowper Street Ruthven Avenue Hawthorne Avenue Lane 33 Pal o Alt o A ve n u e Everett Avenue Poe Street Waverley Street Tasso Street Cowper Street Palo Alto Avenue Webster Street Everett Court Lytton Avenue Byron Street Fulton Street Middlefield Road Churchill Avenue Lowell Avenue Seale Avenue Tennyson Avenue Melville Avenue Cowper Street Tasso Street Webster Street Byron Street North California Avenue Coleridge Avenue Waverley Street Bryant Street Emerson Street Kellogg Avenue Kingsley Avenue Portal Place Ross Road Oregon Avenue Garland Drive Lane A West Lane B West Lane B East Lane D West Lane 59 East Whitman Court Kellogg Avenue E mbarcadero Road Kingsley Avenue Lincoln Avenue Addison Avenue Lincoln Avenue Forest Avenue Downing Lane Homer Avenue Lane D East Lane 39 Lane 56 Hamilton Avenue Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Addison Avenue Scott Street Byron Street Palo Hale Street Seneca Street Lytton Avenue Guinda StreetPaloAltoAvenue Fulton Street Middlefield Road Forest Avenue Webster Street Kellogg Avenue Middlefield Road Byron Street Webster Street Cowper Street Tasso Street Cowper Street Addison Avenue Lincoln Avenue B o y c e A v e n u e Forest Avenue Hamilton Avenue Homer Avenue Guinda Street Middlefield Road Channing Avenue Alto Avenue Chaucer Street Chaucer Street University Avenue C h a n n in g A v e n u e A d dis o n A v e n u e L in c ol n A v e n u e R e g e n t Pl Guinda Street Lincoln Avenue Fulton Street M elville A v e n u e Byron Street Kingsley Avenue Melville Avenue H a milt o n A v e n u e H a milto n C o u rt F o r e st A v e n u e F o r e st C t M a rl o w e S tr e e t M a p l e S tr e e t P a lm S tr e e t S o m e rs et P l Pit m a n A v e n u e Fife A v e n u e F o r e st A v e n u eDana A v e n u e Lin c o ln A v e n u e U niv e r sit y A v e n u e Coleridge Avenue Lowell Avenue Fulton Street Cowper Street Tennyson Avenue Seale Avenue Northampton Drive West Greenwich Pl Middlefield Road Newell Road Guinda Street East Greenwich Pl Southampton Drive Webster Street Kir b y Pl K e n t Pla c e T e vis Pl M a rtin A v e n u e C e nte r Driv e H arriet S tre et W ils o n Stre et C e d ar Stre et H a rk e r A v e n u e G r e e n w o o d A v e n u e H u t c hin s o n A v e n u e C h a n nin g A v e n u e H o p kin s A v e n u e E mbarcadero Road As h b y Dr iv e Da n a Av e n u e H a mi lton Av e n u e P i t m an A v e n ue Southwood Drive West Crescent D ri v e C r e s cen t Driv e Unive r sity Avenue Center Drive East Crescen Ar c a dia Pl a c e Louisa Co urt N e w e ll Pl S h a ro n C t E rstw ild C o u rt W alt e r H a y s D riv e W aln ut D riv e N e w ell R o a d P a rkin s o n A v e n u e Pi n e S tr e e t Mark Twain Street Louis Road Barbara Drive P ri m r o s e W a y Iris Way E mbarcadero Road Walter Hays Drive Lois LaneJordan Pl L o is L a n e H e a th er L a n e Bret Harte Street S ta nle y W a y D e S o t o D riv e De Soto Drive Alester Avenue W alt e r H a y s D ri v e C h a n n in g A v e n u e Iris W a y tDrive Dana Avenue Hamilton Avenue New ell Road Ki n g s L a n e E dgewood D r i v e I sland Drive Jefferson Drive J ackso n D r i v e P atricia Lane Madison Way E dg e w o o d D r i v e Ramona Street Addison Avenue Channing Avenue Waverley Street Tennyson Avenue Seale Avenue Middlefield Road Byron Street Webster Street Marion Avenue Welch Road Sedro Lane Peral Lane McGregor Way Monroe Drive Silva Avenue Silva Court Miller Court Briarwood Way Dri scoll Place Paulsen Ln C o m m u nit y L a n e Lane 15 E Court Mad eline Ct A rr o y o C t David Ct Green Manor Oregon Expressway Oregon Expressway S h e rid a n A v e n u e Page Mil l Road Page Mill Road F o o t h ill E x p r e s s w a y M ir a n d a A v e n u e F o ot h ill Ex p r e s s w a y Miranda Avenue Foothill Expressway Cerrito Way Emerson Street Mi r a n d a A v e n u e Lane 20 W Lane 20 E Oregon Expressway University Avenue Jacob's Ct CalTrain ROW CalTrain ROW CalTrain ROW CalTrain ROW Emerson Street Waverley Street Kipling Street Clark Way Durand Way Sand Hill RoadSwain Way Clark Way Mosher Way Charles Marx Way Orchard Lane V iney a rd L a n e Oak Road Sand Hill Road S a n d Hill R o a d Sand Hill Road Lane 66 Bryant Street Ramona Street B la k e W ilb u r D ri v e West Charleston Road Bayshore Freeway Bayshore Freeway Bayshore Freeway West Bayshore Road East Bayshore Road East Bayshore Road East Bayshore Road West Bayshore Road East Bayshore RoadBayshore FreewayBayshore FreewayFabian Way Bayshore Freeway Bayshore Freeway Palo Road Shopping Center Way S h o p pin g C e nter W a y Shopping Center Way London Plane Way Plu m L a n e Sweet Olive Way Pear Lane Lane 66 La Selva Drive Grove Ct Miranda Court Stanford Avenue Lane 12 W Lane 5 E L a s u e n S tr e e t J a n e S t a n f or d W a y E s c on d i do R o a d O lm s ted Road P hill ips R oad Pistache Place Santa Ynez Street Lane B Lane C El Dorado Avenue O ak Creek Dr iv e Clara Drive Bellview Dr Everett Avenue Homer Avenue La C alle S a n A n to n i o R o a d Matadero Ave Colorado Pl Los Robles Avenue Timlott Ct Vi sta Villa Palo Al t o Avenue Lane La Donna Avenue Cass Way Kenneth Drive F a bia n W a y Page Mill Road Middlefield Road Christine Drive Louis Road E a s t C h a rle s t o n R o a d Bayshore Freeway Bayshore Freeway Chimalus Drive Hanover Street C o m m u nity L a n e Gr e e n w o o d A v e n u e H a rk er A v e n u e P a rkin s o n A v e n u e A v e n u eMaplewood Pl Mackay Drive S a nt a Te re s a L a n e Byron Street Varian Way Q u ail D r Q u ail D r P alo m a D r P alo m a D r T rinity L n H e ro n W y F e ath e r L nStanislaus Ln Tuolumne Ln Plo v e r L n S a n d p ip e r L n C u rl e w L n M alla r d L nEg ret L n Kla m at h L n Deodar St Alder Ln Spruce Ln Rickey's Ln Juniper Way Ri ck ey' s Wy Rickey's Wy Rickey's Wy Juniper Lane Emerson Street Boronda Lane Tahoe Lane Lake Avenue Donner Lane Almanor Lane Fallen Leaf Street Berryessa Street Cashel St Noble St Hettinger Ln Pratt Ln Emma Court G al v e z M all Fe d e rati o n W a y Abrams Cour t Al l a r d i c e W a y Alta Road Al va ra do C t A l v a r a d o R o w Angell Court A r g u ell o W a y A r g u e l l o W a y Avery Mall Ayrshire Farm Lane Barne s C o urt Bonair Siding Bowdoin Street Cabrillo Avenue C a b rillo A v e n u e C a m pus D riv e C a m p u s D riv e C a m p u s D riv e C a m p u s D ri v e C a m pus Drive C a m p u s D r i v e Campus Drive Campus Drive Campus Drive Campus Drive C a m p u s D ri v e C a m p u s D rive Ca mpus Drive Ca mpus Drive C a pistra n o W ay Casanueva Place Cathcart Way Cedro Way C e d r o W a y Churchill Mall Comstock Circle A boretum R oad Aboretum Road B lackwelder C ourt C amp us Dr i ve Cathcart Way Constanzo Street C oo k se y L a n e Co ron a d o A venue Cottrell Way Cottrell Way C o w ell L n C r o t he rs W a y Dolores Street Dolores S tr e e t D u d l e y L a ne D u e n a S t r e e t E l e c t i onee r Roa d Es c o n d id o Ma l l Escondido Mall E s c o n di d o R o a d Escondido Ro ad Escon dido Road E s pla na d a W ay E s t u d illo R o a d F r e m o n t R o a d Fren chma ns Road F r e n c h m a n s R o a d G a lv e z M all Alvarado Row Galvez Street G a l v e z S t r e e t G al v e z S t r e et G e r o n a R o a d Gerona R oadEl E scarpado G e r o n a Road Ho s k i n s Cour t Hulme Court J e nki ns C o u r t J u n ipero Serr a Boul e var d Junipero Serra Boulevard Junipero Serra Boulevard K nig h t W a y Lagunita Drive L a ne L L a n e W L a s u e n M all L a s u e n M all L a s u e n M all L a s u e n S tr e et L athro p D r iv e Lathrop Dr i v e L a t h rop Place Lat hro p D r i v e L o mit a D ri v e L o mit a D riv e L o mita D ri v e Lomita Drive Lomi t a D r i v e Lomi ta C o u rt L o mit a M a ll L o s A r b ole s A v e n u e Masters Mall M a yfi el d A v e n u e Mayfield Avenue Mayfield Avenue Mayf ie ld A v e n u e Mayfield Avenue Mayf i e l d A v e n u e McFarland Court Mears Court Mea rs Cou rt Me m o ri a l W a y Mirada Avenue M i r ad a A v e n u e M u s e u m W a y N S e r v ic e R o a d N Tolman Ln Nelson Mall Ne ls o n R o a d N or t h- S o u t h A x i s Oberlin St Co m st o ck Circl e E s c o n di d o M a ll Ol ms t e d R o a d Olmsted Road Ol ms t ed Road Olmsted Road Olmsted Roa d P al m D riv e P a l m D r iv e Pampas Lane Pa n a m a M a ll P a n a m a M all P a n a m a S tr e et Panama S t r e e t Pearce Mitchell Pl Peter Coutts C ir c l e P eter C outts Road Peter Coutts Road Pine Hill Court P i n e H ill Road Q u a r r y E x t e n s io n Quarry Road Q u il le n C t Raimundo Way R a i m u n d o W a y Raimundo Way Roble Dr ive Rosse Lane R o t h W a y R o t h W a y R o t h W a y Running Farm Lane R ya n Co u r t S S e r vi c e R o a d S Tolman Ln Salvatierra Street Salvatierra St Salvatierra Walk S a m u el M o r r is W y San Francisco Terrace San Fra n c is c o Cour t San Juan St Sa n Juan St S a n Ra fa e l P l S anta F e Ave n u e Santa M a ri a A venu e S an t a T e r e s a S t r ee t S an t a T e r e s a S t r e e t Santa Ynez Street S e a r s vill e R oa d S e q u o ia W y J a ne S t a n f o r d W a y Ja n e S t a n f o r d W a y Serra Street Serra Street Sonom a T e r race Stanford A ve nue Sta nford Avenue S t o c k F a r m Ro a d Thoburn Court T olm an Drive Valde z Plac e Valparaiso Street Vernier Place Vi a O r t e ga V ia P al ou Via P ue b l o M all W el c h R o a d W e lles ley S t Wilb u r W a y Wing Place Yale St Alma Street Alma Street Alma Street Alma Street Alma Street Hawthorne Avenue Lytton Avenue Nathan Abbott Way Sam McDonald Road Sam McDonald Mall B o w d oin L a n e A r g u ello W a y G o v e r n o rs A v e n u e G o v ern o r s A v e n u e G o v e r n o r s A v e n u e S G o v e r n o rs L a n e P a s t e u r D r iv e Lagunita Drive Alma Village Lane Alma Village Circle Ryan Lane O'Connor Lane Gene Ct Brassinga Ct Cole Ct Birch Street Arbo retum Road W e lc h R o a d P a s t e u r D r iv e P a s t e u r D ri v e Campus Drive This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Microsurfacing Type I abc Microsurfacing Type II 0'2047' FY 2 1 S t r e e t s P r e v e n t i v e M a i n t e n a n c e P r o j e c t Lo c a t i o n M a p s CIT Y O F PALO A L T O I N C O R P O R A T E D C A LI FO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto bleung, 2020-11-18 11:22:04 (\\cc-maps\Encompass\Admin\Personal\FEMA.mdb) -- Coastland Drive Coastland Drive Santa Rita Avenue Waver ley Street Waverley Oaks Washington Avenue South Court Waverley Street Santa Rita Avenue N or th California Avenue South Court Cowper Street Anton Court Nevada Avenue Tasso StreetTasso Street Oregon Avenue Marion Pl Middlefield Road Ross Road Warren Way El Cajon Way E m barcadero Road P ri m r o s e W a y Iris W a y Tulip Lane T u l i p L a n e Garland Drive Louis Road G r e e r R o a d Morton Street G r e e r R o a d H a m ilt o n A v e n u e H i l b a r L a n e A l a n n a h C t Ed g e R h o d e s D r i v e De n n i s D r i v e Agnes Way Oregon Avenue Blair Court Santa Ana Street Elsinore Drive Elsinore Court El Cajon Way Greer Road North California Avenue Burnham Way Greer Road Indian Drive l Way Santa Catalina Street Arrowhead Wa y Aztec Way Chabot TerraceOregon Avenue Carmel Drive Sierra Court S t Franci s Dr ive w o o d D r i v e Edgewood Drive Wildwo o d Lane I v y L a n e East Bayshore Road S t F r a n c i s D ri v e W il d w o o d L a n e W atson C ourt Laura Lane S a n d a l w o o d C t O'Brine Lane (Private) Lane 21 Gilman Street University Avenue Bryant Court Lane 30 Florence Street Kipling Street Tasso Street Cowper Street Ruthven Avenue Hawthorne Avenue Lane 33 Pa l o A l t o A v e n u e Everett Avenue Poe Street Waverley Street Tasso Street Cowper Street Palo Alto Avenue Webster Street Everett Court Lytton Avenue Byron Street Fulton Street Middlefield Road Churchill Avenue Lowell Avenue Seale Avenue Tennyson Avenue Cowper Street Tasso Street Webster Street Byron Street North California Avenue Coleridge Avenue Waverley Street Portal Place Ross Road Oregon Avenue Garland Drive Whitman Court Kellogg Avenue E m barcadero Road Kingsley Avenue Lincoln Avenue Forest Avenue Downing Lane Homer Avenue Lane 39 Lane 56 Hamilton Avenue Webster Street Waverley Street Kipling Street Addison Avenue Scott Street Byron Street Palo Hale Street Seneca Street Lytton Avenue Guinda StreetPaloAltoAvenue Fulton Street Middlefield Road Forest Avenue Webster Street Kellogg Avenue Middlefield Road Byron Street Webster Street Cowper Street Tasso Street Cowper Street Addison Avenue Lincoln Avenue B o y c e A v e n u e Forest Avenue Hamilton Avenue Homer Avenue Guinda Street Middlefield Road Channing Avenue Al t o Avenue Chaucer Street Chaucer Street University Avenue C h a n n i n g Av e n u e A d d is o n A v e n u e L i n c o l n A v e n u e R e g e n t Pl Guinda Street Lincoln Avenue Fulton Street M e lv ill e A v e n u e Byron Street Kingsley Avenue Melville Avenue H a m ilt o n A v e n u e H a m ilt o n C o u rt F o r e s t A v e n u e F o r e s t C t M a r l o w e S t r e e t M a p l e S t r e e t P a l m S t r e e t S o m e r s e t P l P it m a n A v e n u e F if e A v e n u e F o r e s t A v e n u eDana A v e n u e L i n c o l n A v e n u e U n i v e r s it y A v e n u e Coleridge Avenue Lowell Avenue Fulton Street Cowper Street Tennyson Avenue Seale Avenue Northampton Drive West Greenwich Pl Middlefield Road Newell Road Guinda Street East Greenwich Pl Southampton Drive Webster Street K ir b y P l K e n t P l a c e T e v i s P l M a rti n A v e n u e C e n t e r D riv e H a rri e t S t r e e t W il s o n S tr e e t C e d a r S tr e e t H a r k e r A v e n u e G r e e n w o o d A v e n u e H u t c h i n s o n A v e n u e C h a n n i n g A v e n u e H o p k i n s A v e n u e E m barcadero R oad A s h b y D r i v e D a n a A v e n u e H a m i l t o n A v e n u e P i t m a n A v e n u e Southwood Drive West Crescent D r i v e C r e s c en t Dri v e Univ ersity Avenue Center Drive East Crescen A r c a d i a P l a c e L o u i s a C o u r t N e w e ll P l S h a r o n C t E r s t w ild C o u rt W a lt e r H a y s D ri v e W a l n u t D ri v e N e w e ll R o a d P a r k i n s o n A v e n u e P i n e S tr e e t Mark Twain Street Louis Road Barbara Drive P ri m r o s e W a y Iris W ay E m barcadero Road W alter Hays Drive Lois LaneJordan P l L o i s L a n e H e a t h e r L a n e Bret Harte Street S t a n l e y W a y D e S o t o D ri v e D e S o t o D r i v e A l e s t e r A v e n u e W a lt e r H a y s D ri v e C h a n n i n g A v e n u e Iri s W a y t Drive D a n a A v e n u e H a m i l t o n A v e n u e N e w e l l R o a d K i n g s L a n e E d gewoo d D r i v e I s l a n d D r i v e J e f f e r s o n D r i v e J a c k s o n D r i v e P a t r i c i a L a n e M a d i s o n Way E d g e w o o d D r i v e Addison Avenue Channing Avenue Waverley Street Tennyson Avenue Seale Avenue Middlefield Road Byron Street Webster Street C o m m u n it y L a n e Green Manor Oregon Expressway Oregon Expressway Lane 20 W Lane 20 E Oregon Expressway Waverley Street Kipling Street P hil l i p s R o a d Bellview Dr Everett Avenue Homer Avenue P alo A l t o A ve n u e C o m m u n it y L a n e G r e e n w o o d A v e n u e H a r k e r A v e n u e P a r k i n s o n A v e n u e Byron Street Hawthorne Avenue Lytton Avenue This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Microsurfacing Type I abc Microsurfacing Type II 0'805' FY 2 1 S t r e e t s P r e v e n t i v e M a i n t e n a n c e P r o j e c t Lo c a t i o n M a p s CIT Y O F PALO A L T O I N C O R P O R A T E D C A LI FO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto bleung, 2020-11-18 12:40:41 (\\cc-maps\Encompass\Admin\Personal\FEMA.mdb) VI ,;' rs,-,' ',·\ I ·~.-~11· 1 · I'~~,) !; ; I , I, ______c,; _llj { -= ] i -ir Coastland Drive Coastland Drive Oxfor d A venu e C al ifor ni a Av enue Wellesley Street Princ eton Street Cornel l Street Cambr idge A venu e Colleg e Avenue Wil l i am s Stre e t Yale Street Staunton Court O x f o rd A v enu e El Camino Real Churchill Avenue Park Boulevard P a rk Ave nue Escobita Avenue Churchill Avenue Sequoia Avenue Mariposa Avenue Castilleja Avenue Miramonte Avenue Madrono Avenue Portola Avenue Manzanita Avenue Coleridge Avenue Leland Avenue Stanford Avenue Birc h Street Ash Street Lowell Avenue Alma Street Tennyson Avenue Gran t Avenue Sheridan Avenue Jacaranda Lane El Camino Real Sherman Av enue Ash S t r eet Mim osa Lane Col lege Av enue Cambri dge Avenue New Mayf ield L ane Bir ch Str eet C al ifornia Avenue Park Boulevard Nogal Lane Rinconada Avenue Santa Rita Avenue Park Boulevard Seale Avenue Washington Avenue Santa Rita Avenue Waver ley Stree Bryant Street High Street Emerson Street Colorado Avenue Street Alma Street High Street t Emerson Waverley Oaks Washington Avenue Bryant Street South Court Waverley Street Emerson Street Nevada Avenue North California Avenue Santa Rita Avenue Ramona Street High Street N or th California Avenue Oregon Expressway Marion Avenue Ramona Street South Court Cowper Street Anton Court Nevada Avenue Tasso StreetTasso Street Oregon Avenue Marion Pl Middlefield Road Q u a r r y R o a d W e l c h R o a d A r b o r e t u m R o a d Quarry Road Homer Avenue Lane 8 West M edical Foundation W ay Lane 7 West Lane 7 East E m barcadero Road Encina Avenue El Camino Real Urban Lane W ells Avenue Forest Avenue High Street Emerson Street Channing Avenue Alma StreetAlma Street P a l o A l t o A El Camino Real v enue Mitchell Lane Hawthorne Avenue Everett Avenue Lytton Avenue Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W Lane 21 High Street Gilman Street Hamilton Avenue University Avenue Bryant Court Lane 30 Florence Street Kipling Street Tasso Street Cowper Street Ruthven Avenue Ha w t h o r n e A v e n u e Lane 33 Pa l o A l t o A v e n u e Everett Avenue Poe Street Waverley Street Tasso Street Cowper Street Palo Alto Avenue Webster Street Ev e r e t t C o u r t Lyt t o n A v e n u e Byron Street Fulton Street Middlefield Road Churchill Avenue Lowell Avenue Seale Avenue Tennyson Avenue Melville Avenue Cowper Street Tasso Street Webster Street Byron Street North California Avenue Coleridge Avenue Waverley Street Bryant Street Emerson Street Kellogg Avenue Kingsley Avenue Portal Place Oregon Avenue Garland Drive Lane A West Lane B West Lane B East Lane D West Lane 59 East Whitman Court Kellogg Avenue E m barcadero Road Kingsley Avenue Lincoln Avenue Addison Avenue Lincoln Avenue Forest Avenue Downing Lane Homer Avenue Lane D East Lane 39 Lane 56 Hamilton Avenue Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Addison Avenue Scott Street Byron Street Lytton Avenue Guinda StreetPaloAltoAvenue Fulton Street Middlefield Road For e s t A v e n u e Webster Street Kellogg Avenue Middlefield Road Byron Street Webster Street Cowper Street Tasso Street Cowper Street Ad di s o n A v e n ue Lincoln Avenue B o y c e A v e n u e Homer Avenue Guinda Street Middlefield Road Channing Avenue A d d is o n A v e n u e Guinda Street Lincoln Avenue Fulton Street M e lvill e A v e n u e Byron Street Kingsley Avenue Melville Avenue Coleridge Avenue Lowell Avenue Fulton Street Cowper Street Tennyson Avenue Seale Avenue Northampton Drive West Greenwich Pl Middlefield Road Newell Road Guinda Street East Greenwich Pl Southampton Drive Webster Street W il s o n S tr e e t H o p k i n s A v e n u e E m barcadero R oad Ramona Street Addison Avenue Channing Avenue Waverley Street Tennyson Avenue Seale Avenue Middlefield Road Byron Street Webster Street Marion Avenue Sedro Lane Per a l La n e Paulsen Ln C o m m u n it y L a n e Lane 15 E Green Manor Oregon Expressway S h e ri d a n A v e n u e Emerson Street Lane 20 W Lane 20 E University Av enue CalTrain ROW CalTrain ROW Emerson Street Waverley Street Kipling Street Orchard Lane V i n e y a r d L a n e S a n d H ill R o a d Sand Hill Road Bryant Street Ramona Street Palo Road Shopping Center Way S h o p p i n g C e n t e r W a y Shopping Center Way London Plane Way P l u m L a n e Sweet Olive Way Pear Lane Lane 12 W Lane 5 E L a s u e n S t r e e t O l m s ted R o a d Pistache Place Everett Avenue Homer Avenue P alo A l t o A v e n u e C o m m u n it y L a n e G r e e n w o o d A v e n u e H a r k e r A v e n u e P a r k i n s o n A v e n u e Byron Street Emerson Street A b r a m s C o u r t Angell Court Avery Mall B a r n e s C o u r t Bonair Siding C a m pus Drive Campus Drive Campus Drive Campus Drive Churchill Mall A b o r e t u m R o a d Ab o r e tum R oad D u d l e y L a n e Galv ez Street G a l v e z S t r e e t Ho s k i n s Co u r t H u l m e C o u r t L a s u e n S t r e e t Masters Mall Nelson Mall N e l s o n R o a d Olmsted Road O l m s t e d Road Olmsted Road P a l m D r i v e P a l m D r i v e Pampas Lane Serra Street Serra Street Tho burn C ourt W e l l e s l e y S t Yale S t Alma Street Alma Street Alma Street Alma Street Hawthorne Avenue Lytton Avenue Sam McDonald Road Sam McDonald Mall Birch Stree t A r b o r e t u m R o a d This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Microsurfacing Type I abc Microsurfacing Type II 0'805' FY 2 1 S t r e e t s P r e v e n t i v e M a i n t e n a n c e P r o j e c t Lo c a t i o n M a p s CIT Y O F PALO A L T O I N C O R P O R A T E D C A LI FO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto bleung, 2020-11-18 13:37:14 (\\cc-maps\Encompass\Admin\Personal\FEMA.mdb) '] I I I=--- private Ferne Avenue Shasta Drive Mackay Drive Diablo Court Nelson Drive Tioga Court Dake Avenue Ferne Avenue Ch r i s t opher Cour t Ca l ca t e r r a P l ace Ely Place A d o b e Pla c eNelson C o urt Byron St r ee tK ea t s C ourt Middle field R oad Carlson Court D u n c a n Pla c e East Charleston Road S a n A n t o n i o R o a d C o u r t e e t n Ci rcle Re d w o o d C i r c l e S o u t h L e g h o r n S tr e e t M o ntro s e A v e n u e M a ple w o o d Charleston Ct East Charleston Road Seminole Way Su therlan d Driv e Nelson Drive El Capitan Place F a b i a n S t r e e t Loma Verde Avenue Bryson Avenue Midtown Court Cowper Street Gary Court Waverley Street South Court Coastland Drive Colorado Avenue Byron Street Middlefield Road Gaspar Court Moreno Avenue Coastland Drive El Carmelo Avenue R o s e w oo d D Campesino Avenue Dymond Ct Martinsen Ct Towle Way Towle Place Wellsbury Ct Avalo n Cou r t Flowers Lane Mackall Way Loma Verde Avenue Kipling St re e t Cowper Street South Court Waverley Street El Verano Avenue Wellsbury Way La Middlefield Road St Claire Drive Alger Drive Ashto n A venue St Michael Drive St Michael Drive Maureen Avenue Cowper Court Rambow Drive East Meadow Drive Ashton Court Murdoch Drive C o w p e r S t r ee t Murdoch Ct St Michael Court May Co u r t Mayview Avenue Middlefield Road Ensign Way Bibbits DriveG ailen Ct Gailen Avenue Grove Avenue S a n A n t o n i o R o a d C o m m e r c i a l S t r e e t I n d u s t ri a l A v e n u e B ib bit s D riv e E a s t C h a rl e s t o n R o a d F a b ia n W a y T East Meadow Drive Grove Avenue Ch r i s t i n e D r i v e C orina W ay R o s s R o a d C o ri n a W a y L o u i s R o a d N a t h a n W a y Transport Street O rteg a C o urt East Meadow Drive yne Cour t al isman Loma Verde Avenue Allen Court Ross Court Loma Verde Pl Ames Avenue Ri c h a r d s o n C o u r t Holly Oak Drive Ames Avenue Cork Oak Way Middlefield Road Ames Ct Ame s A v e n u e Ross Road Rorke Way Ro r k e Wa y Stone Lane Toyon Place To r r e y a C o u r t Lupine Avenue Thornwo od Dr ive Dr i f twood Dr i ve Talisman Drive Arbutus Avenue Ross Road Louis Road Aspen Way Evergreen Dri ve E a s t M e a d o w D ri v e Corporation Way Elwell Court Janice Way East Meadow Circle East Meadow Circle Greer R oad Bayshore Freeway ri ve Ellsworth Place San Carlos Court Wintergreen Way Sutter Avenue Sutter Avenue Clara Drive Price Court Stern Avenue Colorado Aven ue Randers Ct Ross Road Sycamore Drive Sevyson Ct Stelling Drive Ross Road David Avenue Mu r r ay Way S t e lli n g D riv e Stelling Ct Manchester Court K e n n e t h D r i v e Thomas D r i v e G r e e r R o a d Stockton Place Vernon Terrace Louis Road Janice Way Thomas D rive Kenneth Drive Loma Verde Avenue C l i fton Cour t Elbr i d g e W a y Clara Drive Bau t i s ta Court Stockton Place Morris Drive Maddux Drive Piers Ct Louis Road Moraga Ct South Court El Dorado Avenue South Court Waverley Street Marion Avenue Colorado Avenue Waverley Street Kipling Street South Court Cowper Street Anton Court Tasso StreetTasso Street Oregon Avenue Marion Pl Webster Street Middlefield Road Ross Road Warren Way Garland Drive Louis Road Marshall Drive Fieldi n Moreno Avenue M a r sh a l l D r i v e Dennis Drive Agnes Way Oregon Avenue Blair Court Santa Ana Street g Dr i ve Colorado Avenue Sycamore Drive Amarillo Avenue Van Au k en C i r c le Bruce Drive Colonial Lane Moreno Avenue Celia Drive Burnham Way Greer Road Indian Drive Elmdale Pl C Tanland Drive Moreno Avenue Amarillo Avenue West Bayshore Road Sandra Place Clara Drive Colorado Avenue Greer Road Colorado Avenue Simkins Court Otterson Ct Higgins Place Lawrence Lane Maddux Drive Genevieve Ct Met r o Circ l e Mof f e t t C i r c l e Greer Road East Bayshore Road ard i na l Way Santa Catalina Street Arrowhead Way Aztec Way Chabot TerraceOregon Avenue Carmel Drive Sierra Court West Bayshore Road Tanland Drive East B ayshore R oad W atson Court Ross Road Oregon Avenue Garland Drive Byron Street Webster Street Marion Avenue Court David Ct Green Manor Oregon Expressway Oregon Expressway Oregon Expressway Bayshore Freeway Bayshore Freeway Bayshore Freeway West Bayshore Road East Bayshore Road East Bayshore Road East Bayshore Road West Bayshore Road East Bayshore RoadBayshore FreewayBayshore FreewayFabian Way Bayshore Freeway Bayshore Freeway Grove Ct Clara Drive S a n A n t o n i o R o a d Colorado Pl Kenneth Drive F a b i a n W a y Middlefield Road Christine Drive Louis Road Bayshore Freeway Bayshore Freeway A v e n u e M a ple w o o d Pl Q u a il D r Q u a il D r P a l o m a D r P a l o m a D r T ri n it y L n H e r o n W y F e a t h e r L nSta nislaus L n Tuolumne Ln P l o v e r L n S a n d p i p e r L n C u r l e w L n M a ll a r d L n E g r e t L n K l a m a t h L n Boronda Lane Ta hoe Lane Lake Avenue Donner Lane Almanor Lane Fallen Leaf Street Berryessa Street F e d e r a ti o n W a y This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Microsurfacing Type I abc Microsurfacing Type II 0'805' FY 2 1 S t r e e t s P r e v e n t i v e M a i n t e n a n c e P r o j e c t Lo c a t i o n M a p s CIT Y O F PALO A L T O I N C O R P O R A T E D C A LI FO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto bleung, 2020-11-18 13:40:08 (\\cc-maps\Encompass\Admin\Personal\FEMA.mdb) J 1. _) l .. __ , r'-'.:i I --=:J I I J.~ --· '1-'1 /_~:;:::::_.,, ,· - - ------ _____ , --., : / i ·----,,----· ----- 11 II 1 1 I u ---- -- D o n a l d D r i v e E n c i na Gr and e Dri v e Cereza Drive Los R obles Avenu e Vi lla Vera Verd osa Drive C a mpa n a Dri v e Sol a n a D r i v e Y n i g o Wa y Driscoll Ct ng A r t h ur 'M a y b e l l Wa y M a y b e l l A v e n u e F r a n d o n C t Flora l es D r i v e G e org ia A venu e Am a ranta A ve n u e A m a r a n t a C t Ki s Co u r t T e r m a n D r i v e B a k e r A v e n u e V ista A venue Wisteria Ln Pen a C t C o u l o m b e D r i v e C h e r r y O a k s P l P o m o n a A v e n u e A r a s t r a d e r o Ro a d A b e l A v e n u e C l e m o A v e n u e Villa Real El Camino Way C u rtn er Ave nu e Ve ntura Aven ue Mac l a n e Emerson Street Ve ntura Ct Pa rk Bou levard M a gn o lia D r So u t h E l Cam ino Re al C y press Lane G l enbrook D F a i r m e d e A v e n u e A r a s t r a d e r o R o a d I r v e n C o u r t Los Palos Cir Los Pa l o sPl M a y b e l l A v e n u e A l t a Mes a A v e Kelly Way Los Palos Avenue Suzanne Drive Suzanne Drive r i v e El Camino Real Suzanne Ct Lorabelle Ct McKellar Lane El Ca mino W ay James Road Ma cla ne Second Street Wilkie Way Ca mino CtWe st Mead ow D r i ve T h a i n W a y Barclay Ct Victoria Place I n t e r d a l e W a y West Charleston Road Tennessee Lane Wilkie Way Carolina Lane Tennessee Lane Park Boulevard Wilkie Ct Davenport Way Alma Street Roos e v Mo n r o e D r i v e Wilkie Way Whitclem Pl Whitclem Drive Duluth Circle Edlee Avenue Dinah's Court Cesano Court Monroe DriveMiller Avenue Whitclem Wy Whitclem Ct Ben Lomond Drive Ferne Avenue Ferne Court Alma Street Monroe Drive Ruthelma Avenue Darlington Ct East Charleston Road Lundy Lane Newberry Ct Park Boulevard George Hood Ln Alma Street e l t C ircle L in dero Drive Wright Place Star r K i n g C i rcle Shasta Drive Mackay Drive Diablo Court Scripps Avenue Scripps Court Nelson Drive Tioga Court Creekside Drive Greenmeadow Way Ben Lomond Drive Parkside Drive Dixon Place Ely Place Ely Place Ely Place A d o b e Pla c eNelson C o urt Duncan Place Carlson Court D u n c a n Pla c e Mumford Place East Charleston Road East Meadow Drive Emerson Street C o u r t B r y a n t S t r e e t R oo s e v e l t C i rc le Ramon a S t re e t Carlso n Ci rcle Re d w o o d C i r c l e S o u t h El Capitan Place Loma Verde Avenue Cowper Street Gary Court Waverley Street South Court Bryant Street Ramona Street Alma Street El Carmelo Avenue Campesino Avenue Dymond Ct Martinsen Ct Ramona Street Bryant Street Kipling St re e t Cowper Street South Court Waverley Street El Verano Avenue Maureen Avenue Cowper Court Rambow Drive East Meadow Drive Colum bia Street Bo wdoin S treet D ar tmout h Stre et H an o v er Stre et College Avenue Californi a Avenue H anove r Stre et Ram o s W a y (P r i v a te) Page Mill R oad H an s e n W a y Ha no ver St reet Laguna Ct Barro n Ave nue Josin a Ave nue K end a l l Av e n ue Tippawingo St J ulie C t M atade ro Ave nue Ilima Way Ilima Cour t Lag una Oaks Pl Ca r l i t o s C t La Calle La guna Aven ue E l C er r i t Par adise Way Roble Ridge (Private) L a Ma taW a y C hi ma l u s Dr i v e M atad ero Av enue o Road P au l A venu e K e nd a l l Ave nu e Whits ell Av enue Barron Aven ue L os R o bl e s Ave n u e Lag una W ay Sh a u n a Lane L a P ara A venue Sa n J ud e A ve n u e El C entro Stree t T iml o t t La J e nn i f e r W a y M agn oli a D r N ort h La Don na A venue Los Robles A v e n u e Rinc Manzana Lane o n Ci r cl e G e orgia A ve n u e H u b b a r t t D r i v e W ill m ar D riv e D o nald D r ive L a P ara A ven ue San J ude A venu e Magnolia Drive M i l ita r y W ay Arbol Drive Orme Str eet F ernan do A v enue Mat adero A ven ue La mbert A ven ue H anse n W ay El Camino Real Mar garita Avenue M atade ro Av enue Wil ton A venue Cal ifornia Aven ue Welle sley Street C ambr i dge A venu e Grant Avenu e Sheridan Avenue Ja c a randa Lane El Camino Real S h e rman Aven ue Ash Street P age Mill Road Mimosa Lane C hestn ut Av enue Porta ge Av enue Pe pper A venu e O live A venue A cacia Avenu e Emerson Street Park Boulevard O ri nda Stree t Birch Street Ash Street Pa ge M i l l R oad Ash Street Pa rk Bo ul eva rd C ambri dge A venue N ew Mayfiel d L ane Birch Stree t C alifor nia A venue Pa rk Bo ul eva rd No gal Lane Washington Avenue Colorado Avenue Street Emerson Street Ramona Street Bryant Street South Court El Dorado Avenue Alma Street Alma Street High Street Emerson Bryant Street South Court Waverley Street Emerson Street Nevada Avenue N or th Ca lifornia Aven ue Ramona Street High Street N orth C alifo rnia A venue Oregon Expressway Ramona Street Colorado Avenue Waverley Street Kipling Street South Court Cowper Street Anton Court Nevada Avenue Sedro Lane Pe r a l La n e M cGregor W ay Monroe Drive Silva Avenue Silva Court Miller Court Dr i s c o ll P la ce Madeline Ct Oregon Expressway S h e ri d a n A v e n u e P age Mill Ro ad Cerrito Way Jacob's Ct CalTrain ROW CalTrain ROW Lane 66 West Charleston Road Lane 66 La Selva Drive El Dorado Avenue L a C a l l e M atadero Ave L o s Ro b l e s Ave nue Tim l ott Ct Vis ta Villa Lane La Donna Avenue C a s s W a y P ag e Mil l Road Chi ma lus D r ive Han o v er S t r e et Deodar St Alder Ln Spruce Ln Rickey's Ln Juniper Way R i c k e y ' s W y Rickey's Wy Rickey's Wy Juniper Lane Cashel St Noble St Hettinger Ln Pratt Ln Em ma Court Alma Street Alma Street Alma Village Lane Alma Village Circle Ryan LaneGene Ct Brassinga Ct Cole Ct Bir ch Str eet This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Microsurfacing Type I abc Microsurfacing Type II 0'805' FY 2 1 S t r e e t s P r e v e n t i v e M a i n t e n a n c e P r o j e c t Lo c a t i o n M a p s CIT Y O F PALO A L T O I N C O R P O R A T E D C A LI FO R N I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto bleung, 2020-11-18 13:42:04 (\\cc-maps\Encompass\Admin\Personal\FEMA.mdb) ---------·•1r- " 1,1, () \ -- --., : \ : ; ' ·----,,----· BASE BID ITEMS QTY UNITS 1 MICROSURFACING SEAL TYPE I 62,699 SY 4.50$ 282,145.50$ 2.40$ 150,477.60$ 2.15$ 134,802.85$ 2.40$ 150,477.60$ 2 MICROSURFACING SEAL TYPE II 66,806 SY 2.25$ 150,313.50$ 2.58$ 172,359.48$ 2.25$ 150,313.50$ 2.80$ 187,056.80$ 3 2" AC BASE REPAIR USING 3/4" MAX MEDIUM WITH 15% RAP 174 TONS 150.00$ 26,100.00$ 200.00$ 34,800.00$ 211.86$ 36,863.64$ 300.00$ 52,200.00$ 4 3" AC BASE REPAIR USING 3/4" MAX MEDIUM WITH 15% RAP 977 TONS 150.00$ 146,550.00$ 190.00$ 185,630.00$ 202.23$ 197,578.71$ 300.00$ 293,100.00$ 5 4" AC BASE REPAIR USING 3/4" MAX MEDIUM WITH 15% RAP 267 TONS 150.00$ 40,050.00$ 170.00$ 45,390.00$ 178.69$ 47,710.23$ 300.00$ 80,100.00$ 6 SKIN PATCH FOR PCC BASED STREETS 1,838 SF 4.00$ 7,352.00$ 5.00$ 9,190.00$ 5.35$ 9,833.30$ 3.60$ 6,616.80$ 7 CRACK SEALING 132,558 LF 0.55$ 72,906.90$ 0.48$ 63,627.84$ 0.51$ 67,604.58$ 1.20$ 159,069.60$ 8 INERT RECYCLING SOLIDS 1,418 TONS 4.00$ 5,672.00$ 15.00$ 21,270.00$ 6.42$ 9,103.56$ 4.20$ 5,955.60$ 9 RESET VALVES IN BASE REPAIRS (TBD BY ENGINEER)29 EA 500.00$ 14,500.00$ 300.00$ 8,700.00$ 267.50$ 7,757.50$ 480.00$ 13,920.00$ 10 RESET VALVES (TBD BY ENGINEER)19 EA 500.00$ 9,500.00$ 700.00$ 13,300.00$ 722.25$ 13,722.75$ 600.00$ 11,400.00$ 11 RESET MANHOLE (TBD BY ENGINEER)8 EA 1,000.00$ 8,000.00$ 950.00$ 7,600.00$ 963.00$ 7,704.00$ 1,200.00$ 9,600.00$ 12 REMOVE AND REPLACE BLUE PAVEMENT MARKERS 64 EA 25.00$ 1,600.00$ 25.00$ 1,600.00$ 26.75$ 1,712.00$ 30.00$ 1,920.00$ 13 THERMOPLASTIC STRIPING, WHITE, 4" WIDE 3,543 LF 3.00$ 10,629.00$ 1.25$ 4,428.75$ 1.34$ 4,747.62$ 1.50$ 5,314.50$ 15 THERMOPLASTIC STRIPING, WHITE, 12" WIDE 3,776 LF 5.00$ 18,880.00$ 4.00$ 15,104.00$ 4.28$ 16,161.28$ 4.80$ 18,124.80$ 16 THERMOPLASTIC STRIPING, YELLOW, 4" WIDE 76 LF 3.00$ 228.00$ 1.25$ 95.00$ 1.34$ 101.84$ 1.50$ 114.00$ 17 THERMOPLASTIC STRIPING, YELLOW, 12" WIDE 1,145 LF 5.00$ 5,725.00$ 4.00$ 4,580.00$ 4.28$ 4,900.60$ 4.80$ 5,496.00$ 18 THERMOPLASTIC STRIPING, BLUE, 4" WIDE 33 LF 3.00$ 99.00$ 4.00$ 132.00$ 4.28$ 141.24$ 4.80$ 158.40$ 19 THERMOPLASTIC STRIPING, CALTRANS DETAIL 2 5,175 LF 2.00$ 10,350.00$ 1.05$ 5,433.75$ 1.12$ 5,796.00$ 1.30$ 6,727.50$ 20 THERMOPLASTIC STRIPING, CLATRANS DETAIL 8 100 LF 2.00$ 200.00$ 1.00$ 100.00$ 1.07$ 107.00$ 1.20$ 120.00$ 21 THERMOPLASTIC STRIPING, CALTRANS DETAIL 9 8,440 LF 2.00$ 16,880.00$ 1.05$ 8,862.00$ 1.12$ 9,452.80$ 1.30$ 10,972.00$ 22 THERMOPLASTIC STRIPING, CALTRANS DETAIL 21 176 LF 2.00$ 352.00$ 2.00$ 352.00$ 1.65$ 290.40$ 2.40$ 422.40$ 23 THERMOPLASTIC STRIPING, CALTRANS DETAIL 22, 4" WIDE 50 LF 3.00$ 150.00$ 1.60$ 80.00$ 7.88$ 394.00$ 1.90$ 95.00$ 24 THERMOPLASTIC STRIPING, CALTRANS DETAIL 22, 6" WIDE 9,514 LF 2.00$ 19,028.00$ 2.30$ 21,882.20$ 2.46$ 23,404.44$ 2.80$ 26,639.20$ 25 THERMOPLASTIC STRIPING, CALTRANS DETAIL 27B 2,975 LF 2.00$ 5,950.00$ 1.00$ 2,975.00$ 1.07$ 3,183.25$ 1.20$ 3,570.00$ 26 THERMOPLASTIC STRIPING, CALTRANS DETAIL 29 615 LF 2.00$ 1,230.00$ 2.10$ 1,291.50$ 2.25$ 1,383.75$ 2.50$ 1,537.50$ 27 THERMOPLASTIC STRIPING, CALTRANS DETAIL 32 575 LF 2.00$ 1,150.00$ 2.15$ 1,236.25$ 2.30$ 1,322.50$ 2.58$ 1,483.50$ 28 THERMOPLASTIC STRIPING, CALTRANS DETAIL 36 110 LF 2.00$ 220.00$ 1.50$ 165.00$ 1.61$ 177.10$ 1.80$ 198.00$ 29 THERMOPLASTIC STRIPING, CALTRANS DETAIL 37 110 LF 2.00$ 220.00$ 1.50$ 165.00$ 1.61$ 177.10$ 1.80$ 198.00$ 30 THERMOPLASTIC STRIPING, CALTRANS DETAIL 37B 90 LF 2.00$ 180.00$ 1.55$ 139.50$ 1.66$ 149.40$ 1.86$ 167.40$ 31 THERMOPLASTIC STRIPING, CALTRANS DETAIL 38 3,060 LF 2.00$ 6,120.00$ 1.45$ 4,437.00$ 1.55$ 4,743.00$ 2.00$ 6,120.00$ 32 THERMOPLASTIC STRIPING, CALTRANS DETAIL 38A 220 LF 2.00$ 440.00$ 1.30$ 286.00$ 1.39$ 305.80$ 1.50$ 330.00$ 33 THERMOPLASTIC STRIPING, CALTRANS DETAIL 38B 435 LF 2.00$ 870.00$ 1.60$ 696.00$ 1.71$ 743.85$ 2.00$ 870.00$ 34 THERMOPLASTIC STRIPING, CALTRANS DETAIL 39/39A 9,565 LF 2.00$ 19,130.00$ 1.00$ 9,565.00$ 1.07$ 10,234.55$ 1.20$ 11,478.00$ 35 THERMOPLASTIC STRIPING, CALTRANS DETAIL 40 410 LF 2.00$ 820.00$ 0.80$ 328.00$ 0.86$ 352.60$ 1.00$ 410.00$ 36 THERMOPLASTIC PAVING LEGENDS 770 EA 30.00$ 23,100.00$ 20.00$ 15,400.00$ 21.40$ 16,478.00$ 24.00$ 18,480.00$ 37 REMOVE AND REPLACE 22' WIDE SPEED HUMP W/ STRIPING 1 EA 7,250.00$ 7,250.00$ 5,500.00$ 5,500.00$ 4,750.80$ 4,750.80$ 12,500.00$ 12,500.00$ 38 BIKE SHARROW 2 EA 525.00$ 1,050.00$ 550.00$ 1,100.00$ 385.20$ 770.40$ 430.00$ 860.00$ 39 ALLOWANCE FOR MISC TRANSPORTATION IMPROVEMENTS 1 LS 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 40 TRAFFIC CONTROL 1 LS 375,000.00$ 375,000.00$ 100,000.00$ 100,000.00$ 157,065.98$ 157,065.98$ 232,000.00$ 232,000.00$ 41 TREE TRIMMING 100 CREW HRS 30,000.00$ 30,000.00$ 275.00$ 27,500.00$ 278.20$ 27,820.00$ 312.00$ 31,200.00$ 42 INERT RECYCLING SOLIDS WITH FABRIC 1,418 TONS 5.00$ 7,090.00$ 10.00$ 14,180.00$ 8.56$ 12,138.08$ 1.20$ 1,701.60$ ADD ALTERNATE #1 QTY UNITS 1 VOLCANIC IN ORIGIN BLACK ROCK AGGREGATE 129,505 SY 0.01$ 1,295.05$ 0.09$ 11,655.45$ -$ -$ 0.16$ 20,720.80$ PERCENT OVER ENGINEER'S ESTIMATE -27%-25% PAVEMENT COATINGS CO. 1,383,704.20$ PAVEMENT COATINGS CO. 1,404,425.00$ 4% VSS INTERNATIONAL, INC. 1,007,000.00$ VSS INTERNATIONAL, INC. 1,007,000.00$ 986,614.32$ GRAHAM CONTRACTORS, INC. GRAHAM CONTRACTORS, INC. 974,958.87$ ATTACHMENT B FY21 STREETS PREVENTIVE MAINTENANCE PROJECT BID SUMMARY ENGINEER'S ESTIMATE BASE BID TOTAL ENGINEER'S ESTIMATE CONTRACT TOTAL AMOUNT (BASIS OF AWARD) 1,343,325.95$ 1,344,621.00$ Attachment B City of Palo Alto (ID # 12028) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Approval of Corrected Resolution for Roth Building County Grant Applications Title: Adoption of a Corrected Resolution for the Santa Clara County Historical Heritage Grant Program Authorizing the Application and Receipt of Grant Funds by the City of Palo Alto for the Roth Building (300 Homer Ave) Roof and Frescoes Rehabilitation From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council adopt the attached resolution (Attachments A) to comply with an application for historic preservation grant funds from the County of Santa Clara to rehabilitate the Roth Building frescoes and roof. Background The Palo Alto Museum (PAM) has been working for several years to raise funding through various means including grants. In partnership with the City, as the owner of the facility, PAM sought and received the award of grants from Santa Clara County. The City Council has acted on these grant opportunities in the past including 2018 and 2020. The City has continued its long history with PAM in partnership to develop the Roth Building. The most recent staff report from December 2020 can be found here CMR 11832 which discusses funding options for a “warm shell.” The City Council took action to direct staff to pursue selling the Roth building, partner with PAM on a “warm shell” with no additional city money, research lease options and explore re-zoning, and return to the City Council in June 2021. In 2018, the City first received a grant under the County’s historical heritage grant program in the amount of $100,000 to cover a portion of the cost of replacement of the Roth Building roof. Through that application process, the City Council approved a resolution committing the project to park use for twenty years (CMR 9767), and the City executed a grant agreement with the County. City of Palo Alto Page 2 Discussion Subsequently, the City in continuing collaboration with the Palo Alto Museum (PAM), applied for and was awarded an additional Santa Clara County Historic Grant (CMR 11287) for the roof replacement ($200,000) and for the preservation of the art frescoes ($105,000) at the Roth Building. On November 16, 2020 Council approved a resolution for grants for the Roth Building (CMR 11653). Due to a misunderstanding the City mistakenly adopted the incorrect form resolution for the applicable round of the grant program, and the County asked the City to correct it and adopt the proper form resolution. Attached to this staff report is the corrected resolution. Council approval of the corrected proposed resolution (Attachment A) would authorize the City Manager to execute the grant agreement and administer the grant. The resolution and grant agreement are the only outstanding items to be completed for the City to receive the awarded grants. The program guide for the grant can be found on the County’s website at this link1. Approval of the overall project and partnership with PAM would still be needed by the City Council to begin work on the rehabilitation and draw on these grant funds. Should the City decide to pursue a different path with the Roth Building inconsistent with the County grant requirements the City could choose not to use the County grant funds. Timeline The Roth Building project was last reviewed by the City Council on December 14, 2020 (CMR 11832). Based on Council’s direction staff is preparing to return to City Council this year. The timing of the grant funding related to this resolution would coincide with the construction of the building once started. Resource Impact Council approval of the resolution will allow the City to enter into the grant agreements to receive County funding for the roof and the frescoes once the overall project is approved. The roof portion of the project previously received Santa Clara County Historic Grant Program funding ($100,000) in 2019. These agreements would bring the total grant funding for the roof to $302,992 and $100,000 for the frescoes. Stakeholder Engagement Staff has coordinated with the County of Santa Clara staff to prepare and finalize the resolution and PAM. Environmental Review The Roth Building rehabilitation project is Categorically Exempt from CEQA review pursuant to CEQA guidelines section 15331, Historical Resource Restoration/Rehabilitation, as a project limited to maintenance, repair, and rehabilitation in accordance with the secretary of interior standards for historic preservation. Attachments: 1 https://www.sccgov.org/sites/parks/Documents/historic-grant-program-revised-procedural-guide-060419.pdf City of Palo Alto Page 3 • Attachment A: Resolution Roth Building County Grant Applications Resolution No.____ Resolution of the Council of the City of Palo Alto Approving City of Palo Alto’s Applications for County of Santa Clara Historic Grants for the Roth Building Roof Rehabilitation and Roth Building Art Frescoes Projects in Heritage Park; Delegating Authority to an Authorized Representative to Sign and Submit the Grant Applications to the County of Santa Clara; Sign the Grant Agreements and Administer the Projects on Behalf of City of Palo Alto; and, Committing the Project Property to the Project Use for a Period of at least twenty years R E C I T A L S A. The County of Santa Clara (“County”) has established the Historic Grant Program to acknowledge and celebrate untold perspectives of underrepresented communities within Santa Clara County (“Grant Program”); and, B. The County funds the Grant Program; and, C. The City of Palo (the “Applicant”) submitted Grant Applications to the County in order to seek Grant Program funds for the following Projects: 1) Roth Building Roof Rehabilitation and 2) Roth Building Art Frescoes Preservation (the “PROJECTS”); and, D. The PROJECTS will be located at 300 Homer Avenue, Palo Alto, California, 94301 (the “Property”), and said Property is owned or controlled by City of Palo Alto (the “Property Holder”); and, E. If the County-funded PROJECT is for a capital improvement of a structure or building of historic significance, then the County requires that the property on which the grant- funded capital-improvement PROJECT is located be continually used for a minimum of 20 years and be open to all Santa Clara county residents on a non-discriminatory basis; and, F. The Property Holder has granted permission (consent) to the Applicant to use the Property for the PROJECTS for the period of time (“Term”) set out in the Grant Application, and said consent is evidenced by an attached grant deed, lease, license or other agreement granting such rights to the Applicant (Attachment 1); and, G. Applicant is required pursuant to the Historic Grant Program Procedural Guide to designate a legally authorized representative to administer the PROJECTS and to execute the Grant Agreements, along with any amendments thereto, on behalf of the Applicant; and Attachment A Attachment A - 1 H. Pursuant to the County’s grant requirements, the City Council adopted Resolution No. 9923, the County’s form resolution, at its November 16, 2020 meeting approving the application for the PROJECTS; subsequently County staff informed the City that it had mistakenly adopted the incorrect form resolution and asked that the City correct that action and adopt the proper form resolution, which will be addressed by adoption of this resolution. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palo Alto hereby makes the following determinations: SECTION 1. The PROJECTS are located on the Property that will be continually used for the PROJECTS for the Term as set out in the Grant Applications; SECTION 2. The City Council hereby delegates authority to the City Manager or designee, to sign and submit the Grant Applications to the County of Santa Clara, to negotiate, execute, amend, or terminate the Grant Funding Agreements (“Grant Agreement”) and any other agreements in relation to the Historic Grant Program, and authority to administer and carry out all terms and conditions of the Grant Agreements and related agreements including but not limited to taking any all other necessary actions to complete the PROJECTS. SECTION 3. By delegating such authority to the City Manager, the City Council acknowledges, agrees, represents and warrants that the execution of the Grant Agreements and any and all other agreements or amendments by the City Manager binds and obligates the City Council of the City of Palo Alto to comply with all terms and conditions of such agreements, without the necessity of additional approvals or conditions; SECTION 4. The City Council has had the opportunity to seek the advice of its own legal counsel and other professionals in connection with the Grant Agreements and the Historic Grant Program Procedural Guide. SECTION 5. The City Council agrees that the terms and conditions of the Grant Agreement and the requirements of the Historic Grant Program Procedural Guide are acceptable and the City Council is ready, willing and able to carry out the terms and conditions of the Grant Agreements without any amendment thereto. SECTION 6. The City Council hereby approves the Grant Applications submitted on its behalf to the County of Santa Clara in relation to the PROJECTS and the request for Grand funds. BE IT FURTHER RESOLVED that Resolution No. 9923, is hereby superseded by adoption of this Resolution. // // Attachment A Attachment A - 2 // INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor ________________________________ ________________________________ Assistant City Attorney City Manager ________________________________ Director of Planning and Development Services ________________________________ Director of Administrative Services Attachment A Attachment A - 3 City of Palo Alto (ID # 12043) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Sludge Blending Tank Recoating Contract at the Regional Water Quality Control Plant Title: Approval of Contract Number C21181207 With F. D. Thomas, Inc. in the Total Amount of $282,632 to Construct the Sludge Blending Tank Recoating Project at the Regional Water Quality Control Plant - Capital Improvement Program Project (WQ -19002); and Authorization for the City Manager to Negotiate and Execute Change Orders Not -to-Exceed $28,263 From: City Manager Lead Department: Public Works Recommendation Staff recommends that the City Council: 1. Approve and authorize the City Manager or his designee to execute the contract with F. D. Thomas, Inc. (Attachment A) in the amount of $282,632 for the Sludge Blending Tank Recoating Project, funded in Wastewater Treatment Enterprise Fund Capital Improvement Program, Project WQ-19002, at the Regional Water Quality Control Plant; and 2. Authorize the City Manager or his designee to execute one or more change orders to the contract with F. D. Thomas, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which may not exceed $28,263. Background The Regional Water Quality Control Plant (RWQCP) was originally constructed in 1934 ; it has undergone several expansions and upgrades, including the construction of sewage sludge incinerators in 1972 and the sludge equalization/blending tank in 1999. The incinerators were decommissioned in 2019 after construction of the new Sludge Dewatering and Truck Loadout Facility, however the sludge blending tank (tank) remains in service because of its continued utility. The tank is constructed of welded steel, is 35 feet tall and 25 feet in diameter, and stores about 100,000 gallons of sludge. This tank is utilized for sludge equalization in conjunction with the upstream gravity thickeners, which are used to thicken sludge prior to storage in the CITY OF PALO ALTO City of Palo Alto Page 2 blending tank. The tank uses pumps to maintain a consistent blend of sludge that is collected from upstream collection systems. Blending provides better dewatering on downstream belt filter presses that are used to further dewater the sludge prior to off-haul to other treatment facilities. The tank also provides surplus storage capacity to equalize sludge production allowing for an even feed on belt filter presses in the new Sludge Dewatering and Truck Loadout Facility. The tank is periodically emptied for inspection and maintenance. Last summer, critical repairs were completed to stop leaks from the tank perimeter that caused sludge to spill onto the ground and pump motors. Discussion Over the course of the tank’s 22-year life, the tank’s protective interior and exterior coating has deteriorated. The work to be performed under this contract includes removing existing coatings from both interior and exterior surfaces of the tank; cleaning and blasting the surfaces; repairing the steel tank, as needed; replacing the interior sludge overflow pipe; and applying new protective coatings on the tank. This work requires a specialized industrial coating contractor with skills and resources not available with in-house plant maintenance staff. Bid Process On January 28, 2021, the City solicited formal bids from qualified coating contractors for the Sludge Blending Tank Recoating Project. The bidding period was 34 days. On March 2, 2021, bids were received from five qualified contractors as presented in the bid summary (Attachment B). Summary of Bid Process Bid Name/Number Sludge Blending Tank Recoating Project (IFB181207) Proposed Length of Project 150 days after Notice to Proceed Number of Bid Packages downloaded by Contractors 19 Number of Bid Packages downloaded by Builder’s Exchanges 6 Total Days to Respond to Bid 34 Virtual Pre-Bid Meeting Yes Number of Company Attendees at Pre- Bid Meeting 11 Number of Bids Received 5 Base Bid Price Range $282,632 to $467,881 Staff has reviewed all bids submitted and recommends the bid of $282,632 submitted by F. D. Thomas, Inc. be accepted and F. D. Thomas, Inc. be declared the lowest responsible bidder. The base bid is 8% below the engineer's estimate of $308,438. A contingency amount of $28,263 (10% of the contract) is requested for related, additional but unforeseen work that may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. City of Palo Alto Page 3 Alternatively, the City could choose to replace the current aging infrastructure and install a new tank, however, that is a significantly greater cost than the recommended recoating of the existing tank that will extend its useful life. The tank is an integral component of the processes at the RWQCP and is important in equalizing solids loading and thereby maximize the efficiency of the solids handling equipment. Timeline The work is anticipated to be completed by September 2021. Resource Impact As the lead agency, the City of Palo Alto has appropriated the funding for this contract in the Fiscal Year 2021 Wastewater Treatment Enterprise Fund Capital Improvement Program Plant Repair, Retrofit, and Equipment Replacement Project (WQ-19002). WQ-19002 is the capital project used to fund this type of retrofitting work as part of the minor capital improvement plan at the RWQCP. Palo Alto RWQCP treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s cost share of this project is about 35% and the other five agencies’ share is about 65%, based on the contribution of share of treatment costs. Policy Implications This recommendation does not represent any change to existing City policies and supports the Comprehensive Plan Policy N.4-16. Stakeholder Engagement This project is part of the RWQCP’s minor Capital Improvement Program funded by Palo Alto and the five partner agencies who use the RWQCP for wastewater treatment. The five partner agencies are regularly updated on both the need for and the progress of wastewater treatment capital work. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency staff about the minor and major capital improvement programs. With respect to Palo Alto itself, the open meetings on the budget process serve as the main vehicle for engaging the community on new projects and associated rate impacts. Environmental Review The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of publicly owned wastewater facilities involving no or negligible expansion. Attachments: • Attachment A - Contract with FD Thomas • Attachment B - Bid Summary Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C21181207 City of Palo Alto Sludge Blending Tank Recoating Project CI TY OF PALO ALTO Invitation for Bid (IFB) Package 2 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. March 17, 2017 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. March 17, 2017 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. March 17, 2017 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on April 12, 2021 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and F.D. THOMAS, INC. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Corporation duly organized and in good standing in the State of Oregon, California Contractor’s License Number 610403 and Department of Industrial Relations Registration Number 1000000093. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On January 28, 2021, City issued an Invitation for Bids (IFB) to contractors for the Sludge Blending Tank Recoating Project (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the Sludge Blending Tank Recoating Project, located at Regional Water Quality Control Plant, 2501 Embarcadero Way, Palo Alto, CA. 94303 ("Project"). Invitation for Bid (IFB) Package 7 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within one hundred fifty (150) calendar days (by 9/22/2021) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of one thousand dollars ($1,000) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Substantial Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the Invitation for Bid (IFB) Package 9 Rev. March 17, 2017 CONSTRUCTION CONTRACT amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of Two Hundred Eighty-Two Thousand Six Hundred Thirty-Two Dollars ($282,632). [This amount includes the Base Bid and Additive Alternates .] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Siew Ching Chin AND [Include Construction Manager, If Applicable.] Invitation for Bid (IFB) Package 12 Rev. March 17, 2017 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: F.D. Thomas, Inc. Attn: Philip Sadler 200 Harris Avenue Sacramento, CA 95838 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the Invitation for Bid (IFB) Package 14 Rev. March 17, 2017 CONSTRUCTION CONTRACT right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. March 17, 2017 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work: .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. Invitation for Bid (IFB) Package 16 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. March 17, 2017 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality Invitation for Bid (IFB) Package 19 Rev. March 17, 2017 CONSTRUCTION CONTRACT for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. March 17, 2017 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. March 17, 2017 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Public Works Director CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Date:____________________________ Invitation for Bid (IFB) Package 22 Rev. March 17, 2017 CONSTRUCTION CONTRACT ATTACHMENTS: http://cleanbay.org/files/docs/Other/c21181207-contract-attachment1.pdf?df25375b19 Attachment A – General Conditions Attachment B – Field Order Attachment C – Special Provisions Bid Item Description Engineer's Estimate F.D. Thomas, Inc. Euro Style Management, Inc. Paso Robles Tank, Inc. Certified Coatings Co. Jeffco Painting & Coating, Inc. Base Bid Remove existing coatings from both interior and exterior surfaces of an existing sludge blending tank made of steel and measuring 25-feet(ft) in diameter and 35-ft tall; clean and blast the surfaces per coating manufacturer's recommendations; repair the steel tank, as needed, at locations as determined during construction; replace deteriorated 6-inch diameter overflow pipe and pipe supports inside the tank; and apply new protective coatings on both interior and exterior surfaces of the tank, and the tank’s inlet/outlet piping to the first flange. $308,438 $282,632 $365,000 $368,462 $394,820 $467,881 Additive Alternate Bid None ------------ Deductive Alternate Bid None ------------ $308,438 $282,632 $365,000 $368,462 $394,820 $467,881 Lowest Responsible Bidder Highest bidderRemarks: Attachment B City of Palo Alto, Public Works Department - RWQCP CIP WQ-19002 Facility Equipment Replacement Bid Summary for Sludge Blending Tank Recoating Project (IFB-181207) Total Bid: From:Rice, Danille To:Council, City; Council Agenda Email Cc:Executive Leadership Team; O"Rourke, Kyle; ORG - Clerk"s Office Subject:Council Agenda Consent Questions for April 12, Item 5 & 6 Date:Thursday, April 8, 2021 3:45:38 PM Attachments:image003.png image010.png image011.png image013.png image014.png image002.png Dear Mayor and Council Members: On behalf of City Manager Ed Shikada, please find below the staff responses to inquiries made by Council Member Tanaka in regard to the April 12, 2021 Council Meeting agenda. Item 5: Sludge Blending Tank Recoating Contract at the Regional Water Quality Control Plant. 1. Is the cost for the recoating of the tank shared between Palo Alto and the five other partner agencies funding the RWQCP, or is the recoating solely funded by Palo Alto? As stated in the staff report Resource Impact section, “Palo Alto RWQCP treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s cost share of this project is about 35% and the other five agencies’ share is about 65%, based on the contribution of share of treatment costs.” 2. What would be the long-term cost-benefit of replacing the tank? When does Staff foresee the tank needing to be replaced in the future, and would it be more beneficial to do so now? Based on budgetary quotes from tank manufacturers, a new and upgraded 316 stainless steel tank including demolition of the existing carbon steel tank and hook-up of existing mechanical and electrical systems would be approximately $900,000 to $1,100,000. At this price range, the existing tank can be recoated a number of times before it makes more sense to replace with stainless steel. Should the carbon steel tank corrode more and fail in the future, a 316 stainless steel tank is a viable option for the RWQCP and would be implemented (however with more downtime during construction). The existing tank can be recoated numerous times unless the protective coating is not replaced, in which case the underlying carbon steel tank would corrode. Corroded steel is more difficult to sandblast and recoat. Corroded steel develops holes and loses structural strength putting the tank at risk of operational and structural failure. Non-destructive ultrasonic thickness testing of the carbon steel tank shows that the steel continues to have its original thickness, however given the leaks mentioned in the staff report, it is evident that the protective coating has started to fail and peel off in enough locations to warrant the recoating now. The new coating is an improved coating and should have a longer life than the 22-years of the previous elastomeric coating. Item 6: Financial Audit Contract Extension 1. Can staff provide additional information on what the following line means: "[t]he second component of the total increase to compensation is included in the anticipation of the need to perform audit procedures over a second major program under the Single Audit."? The idea of calling out the two ‘components’ of the amendment is simply to foster an understanding that, at its face, it appears that MGO has increased their fees year over year by roughly $7k. In reality, they have offered a discount, but we have assumed that there will be a 2nd major program to audit under the Single Audit. Each year, a determination as to the number of federal grant programs subject to the Single Audit must be made. This determination is based on the dollars expended under each federal grant program as well as the relative risk associated with each program. In the current contract with MGO, there is an assumption that 1 federal grant program will be subject to audit each year. An ‘apples to apples’ comparison from the current contract to the amended scope (i.e., 1 federal grant program), would be to compare the $163,725 figure (amendment amt.) to the $168,742 amount in the existing contract. The ‘second component’ of the amendment is the assumption that a second major program will be subject to single audit for FY21. Thus, an additional $10,275 that is included in the amendment to covers those additional costs. Thank you. Danille Rice Executive Assistant to the City Manager (650) 329-2105 | danille.rice@cityofpaloalto.org www.cityofpaloalto.org City of Palo Alto (ID # 12106) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Financial Audit Contract Extension Title: Approval of Amendment Number 2 to Contract Number CC16161769 With Macias, Gini, & O'Connell for External Audit Services, to Extend the Term for one Year and add $175,000, for a new Total Not -to-Exceed Amount of $1,050,569 From: City Manager Lead Department: City Auditor Recommended Motion The City Auditor recommends approval of amendment no. 2 to Contract No. C16161769 with the accounting firm of Macias, Gini & O’Connell LLP (MGO), for external finan cial audit services, to extend the term of the contract by one additional year, ending February 28, 2022, and to increase the total maximum compensation by $175,000.00, from $875,569 to $1,050,569 (Attachment A). Discussion The City Charter requires the City Council, through the City Auditor, to engage an independent certified public accounting firm to conduct the annual financial audit, and report the results of the audit, in writing, to the City Council. The City’s original contract with MGO included the provision of external audit services through January 21, 2021 and was approved by the City Council on April 4, 2016 (Staff Report). Contract amendment no. 1, approved and executed by the City Manager per PAMC 2.30.290 (b), extended the contract term by six months, through July 21, 2021, at no added cost to the City (Attachment B). Contract amendment no. 2 will extend the contract term through February 28, 2022, and add $175,000 to the not-to-exceed amount, for a new total not to exceed $1,050,569. Contract amendment no. 2 will enable the provision of external auditing services to cover the City’s fiscal year ending June 30, 2021. Due to extraordinary circumstances caused by the COVID-19 pandemic and the timing and selection of a new service delivery for the City Auditor role, the City Auditor and City staff expect that going out to a new competitive solicitation is impractical at this time. If a new provider were to be awarded the contract, engaging a new financial audit firm would cause significant logistical challenges for City staff under the current circumstances. The first year of a new audit engagement requires significant interaction with and education of the new fin ancial City of Palo Alto Page 2 audit team to understand the City's finances and accounting practices. Due to the current remote work environment, critical vacancies in the City’s accounting team (most notably the Finance Manager), and the expectation that remote work will be on-going when preliminary audit work is expected to begin (April/May), the added effort involved in on-boarding new audit staff would exacerbate already challenging circumstances. According to Section 2.30.360(b)(2) of the Palo Alto Municipal Code (PAMC), an exemption from competitive solicitation applies to situations where solicitation would be “impracticable, unavailing or impossible ... [or] not be useful or produce any operational or financial advantage for the city”. As above, a competitive solicitation at this time would cause significant challenges under the current circumstances, sufficient to render such solicitation “impracticable” and “unavailing,” as well as being without “operational advantage” for the city. Under the circumstances, and in accordance with PAMC, the City Auditor initiated a request for exemption from competitive solicitation with the Chief Procurement Officer and City Manager, which was approved. Staff expects to conduct a request to proposal solicitation during this extension and award a new contract for service based on that public process prior to the sunset of this extension. Given the above, the City Auditor recommends that the City Council authorize this amendment no. 2 to the MGO contract to extend the current contr act term by one year, ending February 28, 2022 (for audit of the financial statements for the fiscal year ending June 30, 2021 ), and to increase the total maximum compensation by $175,000 from $875,569 to $1,050,569 . Additional note: California Government Code Section 12410.6 (b) states that a local agency shall not employ a firm to provide audit services if the lead audit partner or coordinating audit partner having primary responsibility for the audit, or the audit partner responsible for reviewing the audit, has performed audit services for six consecutive fiscal years. In the case of the current financial auditors, the lead audit partner has transitioned in the appropriate time period such that the current team may, consistent with Government Code Section 12410.6 (b), perform an audit of the financial statements for the fiscal year ending June 30, 2021 . For reference, amendment no. 1 to this contract extending the contract for a six -month term to complete the FY 2020 Single Audit of Federally Funded P rograms is Attachment B. The total not-to-exceed compensation was not increased in amendment no. 1, which was approved and executed by the City Manager per PAMC 2.30.290 (b). The original City Council approval can be found here: https://www.cityofpaloalto.org/civicax/filebank/documents/51628 after a formal Request for Proposal (RFP) and competitive procurement process. Resource Impact This contract amendment no. 2 increases total maximum compensation of the existing contract by $175,000. That figure is comprised of two components. First, to perform the same procedures as have been performed in prior years, audit fees total $163,725, which is inclusive City of Palo Alto Page 3 of a $10,000 discount offered by MGO. The second component of the total increase to compensation is included in the anticipation of the need to perform audit procedures over a second major program under the Single Audit. Note that definition of a major program lies in the a mount of funding received by the City through Federal grants, and is not determined by the actions of the City itself. Funding for this contract amendment no. 2 is subject to City Council approval through the annual budget process. Environmental Impact The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments: • Attachment A - Amendment No. 2 to Contract No. C16161769 with Macias Gini & O'Connell LLP • Attachment B - Amendment No. 1 to Contract No. C16161769 with Macias Gini & O'Connell Page 1 of 15 AMENDMENT NO. 2 TO CONTRACT NO. C16161769 BETWEEN THE CITY OF PALO ALTO AND MACIAS GINI & O’CONNELL LLP This Amendment No. 2 (this “Amendment”) to Contract No. C16161769 (the “Contract” as defined below) is entered into as of April 5, 2021, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MACIAS GINI & O’CONNELL LLP, a limited liability partnership, located at 2121 N. California Blvd., Suite 750, Walnut Creek, California, 94596 (“CONSULTANT”). CITY and CONSULTANT 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 external auditing services, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term, and to increase the total maximum compensation by $175,000.00 from $875,569.00 to $1,050,569.00, as detailed herein. 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 Contract No. C16161769 between CONSULTANT and CITY, dated April 11, 2016, as amended by: Amendment No.1, dated January 15, 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 2, “TERM,” of the Contract is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through February 28, 2022, unless terminated earlier pursuant to Section 19 of this Agreement.” Page 2 of 15 SECTION 3. Section 4, “NOT TO EXCEED COMPENSATION,” of the Contract is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A,” including both payment for professional services and reimbursable expenses, shall not exceed per year as follows: 2016 – 2017 $149,925.00 2017 – 2018 $154,423.00 2018 – 2019 $159,055.00 2019 – 2020 $163,827.00 2020 – 2021 $168,742.00 2021 – 2022 $163,725.00 Total compensation for services and reimbursable expenses shall not exceed Nine Hundred Fifty Nine Thousand Six Hundred Ninety Seven Dollars ($959,697.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services, and reimbursable expenses shall not exceed One Million Fifty Thousand Five Hundred Sixty Nine Dollars ($1,050,569.00). The applicable rates and schedule of payment are set out at Exhibit “C-1,” entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C.” CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A.”” SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C-1” entitled “HOURLY RATE SCHEDULE”, AMENDED, REPLACES PREVIOUS. Page 3 of 15 SECTION 5. 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 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated 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 MACIAS GINI & O’CONNELL LLP By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS) EXHIBIT “B”: SCHEDULE OF PERFORMANCE (AMENDED, REPLACES PREVIOUS) EXHIBIT “C”: COMPENSATION (AMENDED, REPLACES PREVIOUS) EXHIBIT “C-1”: HOURLY RATE SCHEDULE (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: D3FABAE8-5237-4792-8824-CD62C686D88C Partner David Bullock Page 4 of 15 EXHIBIT “A” SCOPE OF SERVICES, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT to provide Auditing Services per the following: PROJECT SPECIFICATIONS Unless otherwise noted, all audit services cover the City's fiscal years ending on June 30, 2016, through June 30, 2021. The audit services are to be performed in accordance with generally accepted auditing standards; the standards for financial audits set forth in the United States Government Accountability Office's Government Auditing Standards (2011 revision, or subsequent revisions); the provisions of the federal Single Audit Act of 1984, as amended in 1996; and the United States Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Generally accepted accounting principles provide for certain required supplementary information, such as Management's Discussion and Analysis to accompany the City's basic financial statements. CONSULTANT shall apply certain limited procedures consisting principally of inquiries of management regarding the methods of measurement and presentation, which the City shall affirm to the CONSULTANT in the City's Management Letter. Please note that all dates cited will be confirmed each year during the entrance conference. Basic Audit Services Required CONSULTANT shall audit the City's financial statements and prepare the City's federal and state tax returns for the Palo Alto Public Improvement Corporation for the fiscal years ending on June 30, 2016, through June 30, 2021. In providing these services, CONSULTANT shall: A. Prior to year-end, and preferably during March and April, the CONSULTANT shall perform interim work to test the internal controls of accounting processes. Deliverables: 1) No later than the last working day in May of each year, provide the City Auditor and the Director of Administrative Services with a draft management letter of the issues identified. 2) Within three weeks after receiving the City’s response to any issues in the draft management letter (the Accounting Division in the Administrative Services Department will respond in a written memo), provide written comments to the response to the City Auditor and the Director of Administrative Services. B. Use the City’s worksheet and template to prepare the Comprehensive Annual Financial Report (Annual Report), including the entity wide statements. The Annual Report should be prepared in the format recommended by the Government Finance Officers Association, in accordance with City standards, and with website-compatibility. Page 5 of 15 NOTE: The City of Palo Alto may transition during the contract period to preparing the Annual Report itself. If it does, this item would no longer be a required service, and the contract price would be adjusted accordingly. Deliverables: 1) No later than the fifteenth (15th) day of November of each year, provide the electronic data used to prepare the Annual Report to the Administrative Services Department. C. Audit the basic financial statements and supplementary entity-wide combining and individual fund financial statements included in the City's Annual Report, including all funds under the jurisdiction and control of the City, and render a professional opinion thereon. Deliverables: 1) No later than the 15th day in November of each year, provide a complete electronic version of the Comprehensive Annual Financial Report, including the opinion letter and the Single Audit Report, in a website-compatible format, to the City Auditor and the Director of Administrative Services. 2) No later than the fifteenth (15th) day of November of each year, provide fifteen (15) color and ten (10) black and white bound copies of the Comprehensive Annual Financial Report, including the opinion letter and the Single Audit Report, to the City Auditor. D. Audit the City's federal financial assistance program and issue reports thereon in accordance with the provisions of the Single Audit Act of 1984, including the 1996 amendments to the Single Audit Act, and any other amendments which become effective during the term of this contract. Deliverables: 1) See deliverables under Item C above. E. Prepare a management letter to the City Council that includes observations and recommendations identified during the audit. This may include: • issues regarding internal control structure (e.g., information systems, functions, and procedures) • items concerning compliance with laws, rules, and regulations • opportunities for economies and efficiencies inherent in the accounting functions or reporting activities of the City • other matters of interest to the City Council and management Deliverables: 1) One week after completing field work each year, provide a draft management letter for completed field work to the City Auditor and the Director of Administrative Services. 2) No later than the fifteenth (15th) day of November of each year, provide the final comprehensive management letter to the City Auditor and the Director of Administrative Services. Page 6 of 15 F. Audit the financial statements of the Regional Water Quality Control (RWQC) Plant and issue a report thereon in accordance with the requirements in the "Basic Agreement between the Cities of Palo Alto, Mountain View, and Los Altos for Acquisition, Construction, and Maintenance of a Joint Sewer System," and all addenda thereto. Deliverables: 1) No later than the last working day in October of each year, provide an electronic copy of the draft RWQC report to the City Auditor and the Director of Administrative Services. 2) No later than the fifteenth (15th) day of November of each year, provide an electronic copy of the final RWQC report to the City Auditor and the Director of Administrative Services. G. Audit and issue a report on the financial statements of the Palo Alto Public Improvement Corporation, which the City has created to finance construction of specific facilities and prepare their applicable federal and state informational and tax returns. Deliverables: 1) No later than the last working day in October of each year, provide an electronic copy of the draft Public Improvement Corporation report to the City Auditor and the Director of Administrative Services. 2) No later than the last working day of November of each year, provide an electronic copy of the final Public Improvement Corporation report to the City Auditor and the Director of Administrative Services. 3) No later than the fifteenth (15th) day of February of each year, provide an electronic copy of the federal and state tax returns to the City Auditor and the Director of Administrative Services. H. Audit the City's state financial assistance program (Transportation Development Act) and issue reports thereon in accordance with applicable state requirements. Deliverables: 1) No later than the last working day in October of each year, provide an electronic copy of the draft financial assistance program report to the City Auditor and the Director of Administrative Services. 2) No later than the fifteenth (15th) day of November of each year, provide an electronic copy of the final financial assistance program report to the City Auditor and the Director of Administrative Services. I. Perform agreed-upon procedures on the Gann Limit calculation and prepare a letter certifying compliance, as required. Deliverables: 1) No later than the last working day in May of each year, provide an electronic copy of the Gann Limit letter to the City Auditor and the Director of Administrative Services. Page 7 of 15 J. Audit the statements of, and issue a report thereon, cable television franchise receipts and disbursements, for the current period, relating to the Joint Operating Agreement signed on October 13, 1988, by and among the City of Palo Alto, Town of Atherton, City of Menlo Park, City of East Palo Alto, County of San Mateo, and County of Santa Clara. Deliverables: 1) No later than the fifteenth (15th) day of November of each year, provide an electronic copy of the cable report to the City Auditor and the Director of Administrative Services. K. Prepare the Annual Financial Transactions Report and Annual Street Report in accordance with instructions from the California State Controller’s Office. NOTE: The City of Palo Alto may transition during the contract period to preparing these reports itself. If it does, this item would no longer be a required service, and the contract price would be adjusted accordingly. Deliverables: 1) No later than the second Friday in September of each year, provide an electronic copy of the Annual Street Report to the Director of Administrative Services for signature and mailing, with a courtesy copy to the City Auditor. 2) No later than the fifteenth (15th) day of October of each year, provide an electronic copy of the Annual Financial Transactions Report to the Director of Administrative Services for signature and mailing, with a courtesy copy to the City Auditor. L. Audit and issue a report on the financial statements of the Palo Alto Library Bond Fund, and perform agreed-upon procedures on the Library Bond Fund and issue a report of compliance as required. NOTE: We are anticipating that activity in this fund will cease at some point during the contract period. If it does, this item would no longer be a required service, and the contract price will be adjusted accordingly. Deliverables: 1) No later than the last working day in October of each year, provide an electronic copy of the library bond report to the City Auditor and the Director of Administrative Services. 2) No later than the fifteenth (15th) day of November of each year, provide an electronic copy of the library bond report of compliance to the City Auditor and the Director of Administrative Services. M. CONSULTANT is required to attend the following meetings, at no additional cost, during each audit engagement period: • Entrance Conference – Prior to conducting interim work, CONSULTANT shall meet with the City Auditor and the Director of Administrative Services or their designees, to establish timelines for completing required tasks. • CONSULTANT shall meet regularly with the City Auditor and the Assistant Director of Administrative Services or their designees to report on the progress of CONSULTANT’S examinations and on the preliminary audit findings and recommendations. Page 8 of 15 • CONSULTANT shall meet with the City Auditor or designee independently to review internal control issues identified during the audit. This will include reportable conditions, if applicable, reflected in the draft management letter. • CONSULTANT shall hold an exit conference with the City Auditor, Director of Administrative Services, and appropriate staff upon completion of the audit. CONSULTANT will present the financial statements and draft management letter at this meeting. • CONSULTANT shall attend a Council Finance Committee meeting to present and discuss the audit results and the management letter. N. Provide training for City staff, at no additional cost, regarding important industry developments and technical matters: • Proactive guidance on complying with any GASB pronouncements and/or other requirements that may significantly impact the City’s financial reporting over the next several years. • Provide formal training regarding industry developments and new accounting regulations. O. Assist the City in the transition to comply with any new Governmental Accounting Standards Board (GASB) pronouncements. To the extent possible, this assistance should be provided during the interim work, and may include reviewing reports, transactions, and Management Discussion and Analysis. P. CONSULTANT will provide to the City Auditor and Director of Administrative Services or designee, at no additional cost, any publications produced by CONSULTANT, the American Institute of Certified Public Accountants (AICPA), the Financial Accounting Standards Board (FASB), the GASB, the Government Finance Officers Association (GFOA), and the United States Government Accountability Office (GAO). Examples of these publications include: • AICPA Professional Standards • AICPA State and Local Governments – Audit and Accounting Guide • FASB Accounting Standards • GASB Codifications of Governmental Accounting and Financial Reporting Standards • GFOA publications related to governmental accounting, auditing and financial reporting • GAO’s Government Auditing Standards ASSISTANCE TO BE PROVIDED TO CONSULTANT AND REPORT PREPARATION Administrative Services Department (ASD) and Clerical Assistance ASD staff and responsible management will be available during the audit to assist the firm by providing information, documentation and explanations. ASD staff will prepare statements and schedules for CONSULTANT as requested. Report editing and compilation shall be the responsibility of CONSULTANT. ASD staff will print copies, as needed, of the electronic reports provided by CONSULTANT. Page 9 of 15 Work Area, Photocopying, and Parking The City will provide CONSULTANT with reasonable workspace and access to a copying machine/scanner and parking for CONSULTANT’S staff, taking into consideration the on-going pandemic and safety restrictions. TIME REQUIREMENTS Audit schedule (exact dates to be confirmed at the entrance conference each year): Interim Work Completed: May 31 – for subsequent years, it is anticipated that draft management letter interim work be completed in March and April Field Work Completed: October 15 Initial Draft Report: November 1 Final Report: November 15 Presentation of Audit Results: Third Tuesday in November to Finance Committee Page 10 of 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone by the dates 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. See also the “Time Requirements” section of Exhibit A (Scope of Services). For fiscal years 2015–2016 through 2020–2021, CONSULTANT’s schedule of performance is as follows: (CONTINUED ON THE NEXT PAGE.) Page 11 of 15 For fiscal year 2021–2022, CONSULTANT’s schedule of performance is as follows: AUDIT TIMELINE - CITY OF PALO ALTO Planning Client expectations meeting Upon execution of contract Perform planning procedures 4/19/2021 - 4/30/2021 Interim Fieldwork On-site interim fieldwork 5/3/2021 - 5/21/2021 Report interim management letter and provide the client participation schedule for year-end 6/4/2021 Year End Fieldwork Obtain final client trial balances and prepared by client (PBC) items 9/7/2021 On-site year-end financial statements fieldwork 09/13/2021*-10/15/2021 Reporting Receipt of draft MD&A, financial statements, notes and other RSI for the City 9/20/2021 Receipt of draft MD&A, financial statements, notes and other RSI for the other reports 9/20/2021 Review Annual Street Report 10/8/2021 Review of draft Comprehensive Annual Financial Report and other reports with the City 10/15/2021 Deliver and submission of Annual Street Report 10/29/2021 Deliver Comprehensive Annual Financial Report and Single Audit Reports to the City 10/29/2021 Deliver all other reports (including Required Communication to City Council)10/29/2021 Review Annual Financial Transactions Report 1/7/2021 Deliver and submission of Annual Financial Transactions Report 1/31/2022 Deliver Federal and State tax returns for the Palo Alto Public Improvement Corporation 02/15/2022 Communication Weekly status meetings 09/13/2021-10/29/2021 Exit conference: review with Management the results of the engagement 10/29/2021 On-Going Services Meet and consult with the City Auditor and City management throughout the year on business and accounting issues.On-going * Year-end fieldwork starts two weeks after receipt of agreed-upon PBC items. DATES Page 12 of 15 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $959,697.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $1,050,569.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance, and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None However, if CITY authorizes reimbursable expenses, all requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Page 13 of 15 EXHIBIT “C-1” HOURLY RATE SCHEDULE, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) For fiscal years 2017–2018 through 2020–2021, CONSULTANT’s hourly rate schedule is as follows: Page 14 of 15 Fees for subsequent years shall be adjusted to reflect increases in the consumer price index, up to a maximum of 3% per year. After the initial year, the maximum annual fee amount, if a 3% increase is granted, shall be: 2017 – 2018 $154,423.00 2018 – 2019 $159,055.00 2019 – 2020 $163,827.00 2020 – 2021 $168,742.00 See following page regarding fiscal year 2021-2022 fees. (CONTINUED ON THE NEXT PAGE.) Page 15 of 15 For fiscal year 2021–2022, CONSULTANT’s hourly rate schedule is as follows: Fees for subsequent years may, by agreement of the parties, be adjusted to reflect increases in the consumer price index, up to a maximum of 3% per year. Vers.: Aug. 5, 2019 Page 1 of 2 AMENDMENT NO. 1 TO CONTRACT NO. C16161769 BETWEEN THE CITY OF PALO ALTO AND MACIAS GINI & O’CONNELL LLP This Amendment No. 1 (this “Amendment”) to Contract No. C16161769 (the “Contract” as defined below) is entered into as of January 15, 2021, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MACIAS GINI & O’CONNELL LLP, a limited liability partnership, located at 2121 N. California Blvd., Suite 750, Walnut Creek, California, 94596 (“CONSULTANT”). CITY and CONSULTANT 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 external auditing services, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term by six months, from the original contract end date of January 21, 2021 through July 21, 2021, with no change to the maximum compensation payable under 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 Contract No. C16161769 between CONSULTANT and CITY, dated April 11, 2016. 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 2. “TERM” of the Contract is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through July 21, 2021, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. 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 4. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. DocuSign Envelope ID: 21B4C992-C9DA-46BF-832D-2F68EE6E142C Vers.: Aug. 5, 2019 Page 2 of 2 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 MACIAS GINI & O’CONNELL LLP By: Name: Title: DocuSign Envelope ID: 21B4C992-C9DA-46BF-832D-2F68EE6E142C David Bullock Partner Cassie Coleman Ed Shikada Certificate Of Completion Envelope Id: 21B4C992C9DA46BF832D2F68EE6E142C Status: Completed Subject: Please DocuSign: Amendment #1 C16161769 MGO - Legal Reviewed.pdf Source Envelope: Document Pages: 2 Signatures: 3 Envelope Originator: Certificate Pages: 2 Initials: 0 Terry Loo AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Terry.Loo@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 1/12/2021 4:40:47 PM Holder: Terry Loo Terry.Loo@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp David Bullock dbullock@mgocpa.com Partner Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 98.35.35.26 Sent: 1/12/2021 4:47:07 PM Viewed: 1/13/2021 12:48:36 AM Signed: 1/13/2021 12:54:47 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Cassie Coleman cassie.coleman@cityofpaloalto.org Assistant City Attorney Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 1/13/2021 12:54:49 AM Viewed: 1/13/2021 10:04:41 AM Signed: 1/13/2021 10:04:56 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada ed.shikada@cityofpaloalto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 98.42.3.200 Sent: 1/13/2021 10:04:58 AM Viewed: 1/13/2021 11:45:15 AM Signed: 1/13/2021 11:46:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Rocelyn Fernando Rocelyn.Fernando@CityofPaloAlto.org Interim Accounting Manager City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 1/13/2021 11:46:04 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 1/12/2021 4:47:07 PM Certified Delivered Security Checked 1/13/2021 11:45:15 AM Signing Complete Security Checked 1/13/2021 11:46:02 AM Completed Security Checked 1/13/2021 11:46:04 AM Payment Events Status Timestamps From:Rice, Danille To:Council, City; Council Agenda Email Cc:Executive Leadership Team; O"Rourke, Kyle; ORG - Clerk"s Office Subject:Council Agenda Consent Questions for April 12, Item 5 & 6 Date:Thursday, April 8, 2021 3:45:38 PM Attachments:image003.png image010.png image011.png image013.png image014.png image002.png Dear Mayor and Council Members: On behalf of City Manager Ed Shikada, please find below the staff responses to inquiries made by Council Member Tanaka in regard to the April 12, 2021 Council Meeting agenda. Item 5: Sludge Blending Tank Recoating Contract at the Regional Water Quality Control Plant. 1. Is the cost for the recoating of the tank shared between Palo Alto and the five other partner agencies funding the RWQCP, or is the recoating solely funded by Palo Alto? As stated in the staff report Resource Impact section, “Palo Alto RWQCP treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s cost share of this project is about 35% and the other five agencies’ share is about 65%, based on the contribution of share of treatment costs.” 2. What would be the long-term cost-benefit of replacing the tank? When does Staff foresee the tank needing to be replaced in the future, and would it be more beneficial to do so now? Based on budgetary quotes from tank manufacturers, a new and upgraded 316 stainless steel tank including demolition of the existing carbon steel tank and hook-up of existing mechanical and electrical systems would be approximately $900,000 to $1,100,000. At this price range, the existing tank can be recoated a number of times before it makes more sense to replace with stainless steel. Should the carbon steel tank corrode more and fail in the future, a 316 stainless steel tank is a viable option for the RWQCP and would be implemented (however with more downtime during construction). The existing tank can be recoated numerous times unless the protective coating is not replaced, in which case the underlying carbon steel tank would corrode. Corroded steel is more difficult to sandblast and recoat. Corroded steel develops holes and loses structural strength putting the tank at risk of operational and structural failure. Non-destructive ultrasonic thickness testing of the carbon steel tank shows that the steel continues to have its original thickness, however given the leaks mentioned in the staff report, it is evident that the protective coating has started to fail and peel off in enough locations to warrant the recoating now. The new coating is an improved coating and should have a longer life than the 22-years of the previous elastomeric coating. Item 6: Financial Audit Contract Extension 1. Can staff provide additional information on what the following line means: "[t]he second component of the total increase to compensation is included in the anticipation of the need to perform audit procedures over a second major program under the Single Audit."? The idea of calling out the two ‘components’ of the amendment is simply to foster an understanding that, at its face, it appears that MGO has increased their fees year over year by roughly $7k. In reality, they have offered a discount, but we have assumed that there will be a 2nd major program to audit under the Single Audit. Each year, a determination as to the number of federal grant programs subject to the Single Audit must be made. This determination is based on the dollars expended under each federal grant program as well as the relative risk associated with each program. In the current contract with MGO, there is an assumption that 1 federal grant program will be subject to audit each year. An ‘apples to apples’ comparison from the current contract to the amended scope (i.e., 1 federal grant program), would be to compare the $163,725 figure (amendment amt.) to the $168,742 amount in the existing contract. The ‘second component’ of the amendment is the assumption that a second major program will be subject to single audit for FY21. Thus, an additional $10,275 that is included in the amendment to covers those additional costs. Thank you. Danille Rice Executive Assistant to the City Manager (650) 329-2105 | danille.rice@cityofpaloalto.org www.cityofpaloalto.org City of Palo Alto (ID # 12131) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Finance Committee Referral: City Council Agenda Contract Approval Protocols Title: Finance Committee and Staff Recommend the City Council Review and Affirm Current Practices Outlined in the City Council Procedures and Protocols for Contract Approval on City Council Agendas From: City Manager Lead Department: Administrative Services Recommendation The Finance Committee and staff recommend that the City Council review and affirm current practices outlined in the City Council Procedures and Protocols for Contract Approval on City Council Agendas. Discussion On February 1, 2020, the City Council conducted its annual retreat where the Council reviewed the Council Meeting and Agenda Guidelines of the City Council Procedures and Protocols Handbook (Council Handbook) was reviewed. The Council discussed Consent Calendar Categories and the following motion was passed: MOTION: Council Member Tanaka moved, seconded by Vice Mayor DuBois to direct the Finance Committee to come up with proposed thresholds for Council to consider related to Section 2.4.L, Consent Calendar Categories, which determines the eligibility for items to be placed on the Consent Calendar. MOTION PASSED: 4-3 Cormack, Filseth, Fine no Staff engaged the assistance of its Purchasing Special Advisor, Management Partners, to review the Council Handbook, analyze City Council awarded contracts and review average duration times for meetings in Fiscal Years 2020 and 2019, and research typical agency practices. Results of this review can be found in CMR ID # 11965 (Attachment A). The video and presentation from this item can be found in the following links for reference: • Finance Committee February 3, 2021 video • PowerPoint Presentation The Finance Committee reviewed the results of the study, discussed the referral and findings. Ultimately the Committee unanimously (3-0 vote) recommended that this item be forwarded to the City Council to review and affirm current practices for approval of contracts on consent agendas. The formal motion is below: City of Palo Alto Page 2 MOTION: Chair Cormack moved, seconded by Council Member Filseth to accept this report, affirm current practices for approval of contracts on consent agendas, and forward this status to the City Council for approval. Stakeholder Engagement This report follows up on Council referral items and has been coordinated internally among departmental parties. Resource Impact This item in particular does not have an estimated fiscal impact, however, should recommended action differ from current practices, resources may be impacted. The cost to complete this analysis, not including staff time, totaled approximately $6,000. Environmental Impact This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). . Attachments: • Attachment A: Finance Committee Referral - City Council Agenda Contract Approval Protocols (CMR ID 11965) City of Palo Alto (ID # 11965) Finance Committee Staff Report Report Type: Action Items Meeting Date: 2/2/2021 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: Finance Committee Referral: City Council Agenda Contract Approval Protocols Title: Review and Affirm City Council Procedures and Protocols for Contract Approval on City Council Agendas and Forward to t he City Council to Accept From: City Manager Lead Department: Administrative Services Recommendation Staff recommends the Committee review and accept this report and affirm current practices for approval of contracts on consent agendas and recommend forwarding this status to the City Council for approval. Discussion On February 1, 2020, the City Council conducted its annual retreat where the Council reviewed the Council Meeting and Agenda Guidelines of the City Council Procedures and Protocols Handbook (Council Handbook) was reviewed. The Council discussed Consent Calendar Categories and the following motion was passed: MOTION: Council Member Tanaka moved, seconded by Vice Mayor DuBois to direct the Finance Committee to come up with proposed thresholds for Council to consider related to Section 2.4.L, Consent Calendar Categories, which determines the eligibility for items to be placed on the Consent Calendar. MOTION PASSED: 4-3 Cormack, Filseth, Fine no Staff engaged the assistance of its Purchasing Special Advisor, Management Partners, to review the Council Handbook, analyze City Council awarded contracts and review average duration times for meetings in Fiscal Years 2020 and 2019, and research typical agency practices. Results of this review can be found in Attachment A. Specifically, Section 2.4.L of the Council Handbook outlines Consent Calendar Categories and describes the Consent Calendar as “the section where administrative and non-controversial items shall be presented. The Mayor and City Manager should be sensitive to high dollar value items and consider placing those items in the action agenda section.” Furthermore, the Consent Calendar section may include administrative matters that include contracts, appointments, approval of applications, and any ATTACHMENT A City of Palo Alto Page 2 other matters. The focus of the analysis was placed on contracts associated with the purchase of goods and services, as defined in the Council Handbook: “A contract for goods, general services, professional services, public works projects, dark fiber licensing contracts or wholesale commodities, purchases, as outlined in the Purchasing Ordinance, provided such contracts represent the customary and usual business of the department as included in the Adopted Budget. Examples include: routine maintenance contracts, annual audit agreement; software and hardware support agreements, janitorial services, copier agreements or postage machine agreements.” (Section 2.4.L.2) Referral Assigned Department Status FY2020 City Council Retreat: Direct the Finance Committee to come up with proposed thresholds for Council to consider related to Section 2.4.L, Consent Calendar Categories, which determines the eligibility for items to be placed on the Consent Calendar. Administrative Services Department Closed Included in the staff report as well as further detailed in Attachment A, staff in consultation with Management Partners, has reviewed the contract approvals by the City Council and the not to exceed limits and whether they were approved as a consent item or action item. Options for potential recommendations that the Finance Committee may consider for the full City Council’s consideration and action: 1) Review the data analysis presented and affirm current practice, 2) Clarify the types of purchase contracts that must be placed on the Consent Calendar or as an Action Item in the City Council Procedures and Protocols Handbook, 3) Implement a contract dollar threshold for items that must be placed on the Consent Calendar or as an Action Item, and/or 4) Consider increasing thresholds for City Council approval of contracts and/or include indexing provisions for these thresholds. ATTACHMENT A City of Palo Alto Page 3 Review and Analysis of Council Agendas City Council Agendas were reviewed and each item, for both the Consent Calendar and Action, were categorized into types of contracts and typical contract actions. Table 1: Contract Types and Actions Types of Contracts Contract Actions Purchase of Goods, Services, and Public Works Construction Initial approval and amendments Wholesale utility commodities, service purchase, and sale Time extensions Intergovernmental Deferrals and removal from agenda Other (employment-related, leases and licensing) Direction to staff, termination Focus of the analysis was placed on contracts awarded for the purchase of goods, services and public works construction. Within this contract type, initial approval and amendments contract action was considered as this type of action has an associated dollar value impact that can be grouped into a potential threshold for Consent Calendar Categories. Table 2: Contracts on Council Agendas Purchase Contracts Other Contracts/Actions Total Scheduled Agenda Items FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 Action Items 3* 4* 11 5 85 83 Consent Calendar 75* 88* 43 31 229 200 Total 78 92 54 36 314 283 Table 2 summarizes discrete agenda items however there may be multiple contracts awarded in some instances (as noted by the asterisk). In FY 2020, a total of 143 purchase contracts were awarded on consent and a total six contracts were awarded as an Action item, one of which was moved to the Consent Calendar. For FY’s 2019 and 2020, City Council agenda items that were initial approval or amendments of purchase contracts respectively total 25 percent and 32 percent of total scheduled agenda items. Other Contracts/Actions includes intergovernmental agreements and wholesale commodity purchases. In addition to the presented in Table 2, Tables 3 and 4 illustrate the average number of purchase contracts on Consent, Action, average elapsed time per Action item and groups these items by dollar amount. ATTACHMENT A City of Palo Alto Page 4 Table 3: Contract and Agenda Item Averages FY 2019 FY 2020 Purchase Contracts on Consent 2.6 3.5 Consent Items per Meeting 6.7 5.9 Average Elapsed Time per Action Item 1:25 1:12 Action Items per Meeting 2.5 2.4 Table 4: Purchase Contracts on Consent by Dollar Threshold Dollar Value FY 2019 FY 2020 Up to $250,000 16 13 $250,001 to $500,000 16 20 $500,001 to $1,000,000 20 18 $1,000,001 to $5,000,000 15 28 Greater than $5,000,000 6 6 Total 73 85 In FY 2020, the average time per Action item was 1 hour and 12 minutes, with the actual time distribution being between 31 minutes and 2 hours and 45 minutes. If a threshold of $1,000,000 were to be selected, for example, based on FY 2020 activity, 34 additional Action items would be added to Council agendas and would result in an additional 40 hours and 48 minutes across all Council meetings throughout the year. In addition to number of agenda items, time average, and grouping purchase contracts by dollar amount, the distribution of these contracts is summarized by month in the below table. Table 6: Contracts on Consent Calendar by Month As noted in the Council Handbook, “the Mayor and City Manager should be sensitive to high dollar value items and consider placing those items in the action agenda section.” Considering this practice and comparing it to potentially assigning a dollar threshold to whether purchase contract be placed as Action, a chart comparing the elapsed time in minutes to the dollar value of the purchase contract was compiled. It should be noted that discussion of these items focused on policy considerations, other ATTACHMENT A City of Palo Alto Page 5 actions, and public comment and the time noted in this chart does not count the time focused on the actual contract approval. Table 7: Dollar Value and Action Agenda Time Duration Based on the above chart, the contract having the lowest dollar value is the Independent Police Auditing contract, totaling $75,000, that went to Council FY 2020; time spent on this item was 122 minutes. In contrast, the largest dollar value contract, New California Avenue Garage, was discussed for 47 minutes and totaled $48.4 million. Using the Independent Police Auditing and Pension Funding Policy items as examples, both with much lower dollar values relative to the other contracts considered, the discussion surrounding these items was focused on policy considerations and public comment. Agency Practices and Observations The City’s current practice is aligned with the most common method used by California Cities, that is to place contracts for approval on the Consent Calendar. These items are typically characterized as administrative and/or routine in nature. Discretion is usually given to the City Manager, in consultation with the Mayor and staff, to determine what contracts should be considered as Action items. Comparable cities were selected through a combination of demographic information and proximity to Palo Alto to review the contract approval process: • Menlo Park • Milpitas • Mountain View • Redwood City • San Jose • San Mateo • Santa Clara • Sunnyvale In reviewing the contract approval practices of the cities listed above, all eight jurisdictions utilize the consent calendar to award contracts. The City’s Purchasing Advisor also reviewed Council agendas from ATTACHMENT A City of Palo Alto Page 6 several other Bay Area cities, all which place contracts on the consent calendar. These cities include Campbell, Cupertino, Daly City, Fremont, Hayward, Pleasanton, Union City and Walnut Creek. While some California cities may have policies or practices that require Council consideration of contracts as action items, it appears to be uncommon. In addition, some cities do not bring certain contracts forward for Council approval if funds are included in the Adopted Budget. A summary of agency trends is summarized in the table below. Table 8: Agency Trends City Practice Mountain View Goods and general service purchases do not require Council approval if budgeted funds are available. Redwood City Approval thresholds can be adjusted annually by lesser of CPI or 2%. San Jose Goods and public works contracts less than $1,000,000 do not require Council approval; approval thresholds can be periodically adjusted by CPI. Santa Clara Goods procured with purchase orders do not require Council approval if budgeted funds are available; increases to award thresholds and indexing anticipated. In reviewing statistics of Council Agenda for the last two fiscal years together with agency trends, the following observations should be noted: Most California cities place contracts on the Consent Calendar. Contracts that are considered administrative and routine in nature are placed on the Consent Calendar. Policies allow for members of the public, Council, and staff to pull items from Consent to Action. Discretion is given to the City Manager, in consultation with Mayor and staff to place items on Consent or Action. Used as an important time management tool. Greater clarity could be provided in the Council Handbook. Current policy language focusing on high dollar value contracts dilutes emphasis on controversial items and/or items of significant public interest that may not come with substantial cost but are more appropriately considered as Action Items. Agency Trends. Trends among the agencies noted increased thresholds for Council approval are being reviewed and that indexing provisions are included in the policy; some have higher thresholds than Palo Alto. Additionally, the periodic indexing of solicitation thresholds is a common practice done by federal and state agencies. Time Management Tool. Placing contracts of a predetermined high dollar value as Action Items will have varying impacts on meeting scheduling and meeting times, and can impact operational effectiveness, with more significant impacts occurring at critical times of the fiscal year. Contracts resulting from competitive solicitations should come before Council when they are ready for award and may have time sensitivity due to grant restrictions, timing for construction or service provision, timely receipt of goods, or expiry. The high number of contracts presented near the end of the fiscal year typically includes expiring contracts that must be renewed. ATTACHMENT A City of Palo Alto Page 7 Stakeholder Engagement This is an informational report to follow up on Council referral items and has been coordinated internally among departmental parties. Resource Impact This is an information item to follow up on Council referral items and has no fiscal impact, however, should recommended action differ from current practices, resources may be impacted. Environmental Impact This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). . Attachments: • Attachment A: Consideration of Potential Dollar Thresholds for Treating Contract Awards as Action Items on City Council Agendas ATTACHMENT A City of Palo Alto Finance Committee Consideration of Potential Dollar Thresholds for Treating Contract Awards as Action Items on City Council Agendas December 15, 2020 Pete Gonda, Special Advisor ATTACHMENT A ATTACHMENT A Areas of Focus 2 Background on Council Referral and Typical Agency Practices Analysis of Palo Alto Contracts for Two Fiscal Years Observations Gleaned from the Analysis A B C ATTACHMENT A ATTACHMENT A City Council Referral 3 Research to include: •Number of contracts awarded and dollar “buckets” •Review of other City policies •Projection of additional Action items to be added to Council agendas if Consent Calendar approvals were limited by dollar value Council Member Tanaka moved, seconded by Vice Mayor DuBois, to direct the Finance Committee to come up with proposed thresholds for Council to consider related to Section 2.4.L, Consent Calendar Categories, which determines the eligibility for items to be placed on the Consent Calendar. ATTACHMENT A ATTACHMENT A City Council Procedures and Protocols Handbook 4 “The consent calendar portion is the section where administrative and non- controversial items shall be presented. The Mayor and City Manager should be sensitive to high dollar value items and consider placing those items in the action agenda section.” ATTACHMENT A ATTACHMENT A Typical Consent Calendar Items 5 1.Ordinances and Resolutions 2.Administrative Matters Including Contracts, Appointments, Approval of Applications, and Any Other Matter 3.Request to Refer Items to Any Council Standing Committee, Committee, Board, Commission or Council Appointed Officer 4.Items Unanimously Recommended for Approval by a Council Committee Unless Otherwise Recommended by the Committee, Mayor, City Attorney or City Manager 5.Items Recommended for Approval by Council-Appointed Boards and Commissions ATTACHMENT A ATTACHMENT A Typical Consent Calendar Items: Contracts 6 •Contracts for which the subject or scope of work has been previously reviewed by the City Council. •A contract for goods, general services, professional services, public works projects, dark fiber licensing contracts or wholesale commodities, purchases, as outlined in the Purchasing Ordinance, provided such contracts represent the customary and usual business of the department as included in the Adopted Budget. Examples include:routine maintenance contracts, annual audit agreement; software and hardware support agreements, janitorial services, copier agreements or postage machine agreements. ATTACHMENT A ATTACHMENT A Typical Agency Practices 7 ➢Most common method by California cities for approving contracts is to place them on the Consent Calendar ✓Characterized as administrative and/or routine in nature ✓Discretion is usually given to the City Manager, in consultation with Mayor and staff, to determine what contracts are considered as Action items ATTACHMENT A ATTACHMENT A Typical Agency Practices 8 ➢Management Partners reviewed procedures for eight Bay Area cities ➢Cities selected through combination of demographic information, proximity to Palo Alto ATTACHMENT A ATTACHMENT A Typical Agency Practices 9 All agencies reviewed use the Consent Calendar for contract approvals: Menlo Park, Milpitas, Mountain View, Redwood City, San Jose, San Mateo, Santa Clara, Sunnyvale ATTACHMENT A ATTACHMENT A Trends in Agency Practices 10 ✓Trends point to increased thresholds for Council approval and including indexing provisions ✓Some cities do not bring certain contracts forward for Council approval if funds are included in Adopted Budget ATTACHMENT A ATTACHMENT A Agency Trends 11 City Practice Mountain View Goods, general services purchases do not require Council approval if budgeted funds are available Redwood City Approval thresholds adjusted annually by lesser of CPI or 2% San Jose Goods and public works contracts less than $1,000,000 do not require Council approval; approval thresholds periodically adjusted by CPI Santa Clara Goods procured with purchase orders do not require Council approval if budgeted funds are available; increases to award thresholds and indexing anticipated ATTACHMENT A ATTACHMENT A Types of Contracts Purchase of Goods, Services and Public Works Construction Wholesale utility commodities, services purchase and sale Intergovernmental Other (employment-related, leases and licensing) 12 ATTACHMENT A ATTACHMENT A Contract Actions Initial approval and amendments Time extensions Deferrals and removal from agenda Direction to staff, termination 13 ATTACHMENT A ATTACHMENT A Contracts on Council Agendas 14 Purchase Contracts Other Contracts, Actions Total Scheduled Agenda Items FY2018-19 FY2019-20 FY2018-19 FY2019-20 FY2018-19 FY2019-20 Action Items 3*4*11 5 85 83 Consent Calendar 75*88*43 31 229 200 Total 78 92 54 36 314 283 *Represents discrete agenda items even though multiple contracts may have been awarded in some instances. In FY 2019/20, a total of 143 purchase contracts were awarded on Consent; 6 total purchase contracts were awarded from the Action Calendar, with one moved to Consent. ATTACHMENT A ATTACHMENT A Other Contracts –FY 2019-20 15 ➢14 intergovernmental agreements ✓Cable-related, cost-sharing, grants, estimated costs/fiscal impacts ✓Three with direct award costs between $112,000 and $800,000 ➢Four wholesale utility commodities and services purchase and sale agreements ✓Annual expense cap of $5 million, no revenue limit (1) ✓Regulatory representation, program management (3) ➢16 of 18 on Consent ATTACHMENT A ATTACHMENT A Palo Alto Contract Analytics -Two Fiscal Years 16 FY 2018-19 Average FY 2019-20 Average Purchase Contracts on Consent 2.6 3.5 Consent Items per Meeting 6.7 5.9 Average Elapsed Time per Action Item 1:25 1:12 Action Items per Meeting 2.5 2.4 ATTACHMENT A ATTACHMENT A Contracts on Consent Calendar by Month 17 6 2 7 4 8 2 2 3 9 4 26 8 6 14 8 7 4 11 2 2 3 20 July August September October November December January February March April May June FY 2018-19 FY 2019-20 0 ATTACHMENT A ATTACHMENT A Total Action and Consent Items by Month 18 1 22 10 26 19 34 7 14 10 16 16 54 0 23 11 25 19 19 13 17 9 8 14 42 3 11 2 6 6 10 8 7 4 9 5 14 0 3 7 5 7 8 9 8 7 4 5 20 4 33 12 32 25 44 15 21 14 25 21 68 0 26 18 30 26 27 22 25 16 12 19 62 FY 2018-19 FY 2019-20 Consent Action ATTACHMENT A ATTACHMENT A Palo Alto Contract Analytics: Purchase Contracts 19 Purchase Contracts on Consent by Dollar Threshold Dollar Value FY 2018-19 FY 2019-20 Up to $250,000 16 13 $250,001 to $500,000 16 20 $500,001 to $1,000,000 20 18 $1,000,001 to $5,000,000 15 28 Greater than $5,000,000 6 6 Total 73 85 ATTACHMENT A ATTACHMENT A “Number of additional Action items to be added to Council agendas if Consent Calendar approvals were limited by dollar value “ •Average of 1:12 hours per Action Item, with actual distribution between 0:31 and 2:45 hours •Number of Consent Calendar contracts greater than $1,000,000 = 31 •Average number of Consent Calendar Items per meeting greater than $1,000,000 = 3 •Uneven distribution of Consent Calendar contracts greater than $1,000,000: Zero to 8 across all meetings; 1 to 12 by month 20 FY 2019-20 ATTACHMENT A ATTACHMENT A Hwy 101 Bike Bridge, 41 Minutes, $15,549,772 Pension Funding Policy, 92 Minutes, $230,000 Independent Police Auditing, 122 Minutes, $75,000 New California Avenue Garage, 47 Minutes, $48,396,817 GreenWaste Agreement, 99 Minutes, $22,183,000 Downtown Garage Final EIR, 120 Minutes, $2,287,866 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 0 20 40 60 80 100 120 140 Do l l a r A m o u n t ( $ ) Elapsed Time (Minutes) RPP Old Palo Alto, 43 Minutes, $3,223,857 Dollar Value and Agenda Item Duration (Action Calendar Contracts) 21 FY 2018-19 FY 2019-20 Legend ATTACHMENT A ATTACHMENT A Observations 22 1. Most California cities place contracts on the Consent Calendar. •Considered administrative and routine in nature. •Allow for members of the public, Council and staff to pull items. •Provide discretion to the City Manager to consult with Mayor and staff to place controversial items, high value contracts and contracts with significant public interest on the Action agenda. •Used as an important time management tool. ATTACHMENT A ATTACHMENT A Observations from Analysis 23 2. Greater clarity could be provided in the Council Procedures and Protocols Handbook. •Current policy language focusing on high dollar value contracts dilutes emphasis on controversial items and/or items of significant public interest that may not come with substantial cost but are more appropriately considered as Action Items. ATTACHMENT A ATTACHMENT A Observations from Analysis 24 3. Trends point to increasing staff level contract approval thresholds (and indexing them) that would reduce the number of contracts considered by City Councils. •Reflection of the impact of inflation. •Viewed as efficiency tool at all levels of government. ATTACHMENT A ATTACHMENT A Observations from Analysis 25 4. Placing contracts of a predetermined high dollar value on the Action Calendar will have varying impacts on meeting scheduling and meeting times, as well as operational effectiveness, with more significant impacts occurring at critical times of the fiscal year. •Contracts resulting from competitive solicitations come before Council when they are ready for award and may have time sensitivity due to grant restrictions, timing for construction or service provision, timely receipt of goods, or expiry. •The high number of contracts presented near the end of the fiscal year typically include expiring contracts that must be renewed. ATTACHMENT A ATTACHMENT A Other Practical Considerations 26 •Analysis focused on purchase contracts of goods, services and public works construction with enumerated dollar values and does not include: ▪Contracts with other governmental agencies ▪Contracts related to hiring or wages, hours and working conditions ▪Purchase and sale agreements for wholesale utility commodities and services ▪Revenue generating contracts or bond financings •Most of these items are placed on the Consent Calendar and can have significant fiscal impacts. •Moving these types of contracts to the Action Calendar based on maximum dollar value of fiscal impact will further impact meeting scheduling. ATTACHMENT A ATTACHMENT A Questions and Comments Pete Gonda, Special Advisor| pgonda@managementpartners.com ATTACHMENT A ATTACHMENT A City of Palo Alto (ID # 12132) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: FY 2021 and Prior Finance Committee Referrals Status Update Title: Finance Committee and Staff Recommend the City Council Review the Fiscal Year 2021 and Prior Finance Committee Referrals Update and Ac cept the Committee's Current Status Report; and Direct the Finance Committee to Review Long -term Financial Trends for Public Safety From: City Manager Lead Department: Administrative Services Recommendation The Finance Committee recommends that the City Council: 1) Review and accept the Fiscal Year 2021 and prior Finance Committee referrals update and current status report; and 2) Direct staff to return to the Finance Committee with an additional review of Public Safety long term financial trends, beginning with the Fire Department, and concurrent with the annual September review of pensions. Background and Discussion The staff report linked (CMR 11966) was presented to the Finance Committee on February 2, 2021 and provides an update on all outstanding City Council referrals to the Finance Committee. Staff researched the referrals and the current list reflects direction as recently as the FY 2021 Adopted Budget to 2013. During this period staff has found records for approximately 36 referrals of which 20 have been completed. The table below outlines the remaining 16 referrals of which 11 are recommended to be closed and five (5) remain outstanding as work continues. City of Palo Alto Page 2 During the Committee’s review of the referral to explore changing delivery of services from a dominant fire-oriented model to a dominant medical-oriented model, the Committee, using the Fire Department as an example, discussed the long-term sustainability of employee costs. The Committee members remarked, based on their analysis, on the trend of sound financial management, ensuring revenues and expenses remain in-line annually, however, the trend that this has been done by a slow erosion of staffing resources as staffing costs increase. The Committee moved to request that Council direct staff to return to the Finance Committee with analysis to support additional review of Public Safety long term financial trends, beginning with the Fire Department, and concurrent with the Committee’s review of pension reports from CalPERS in fall 2021. A revised complete list of referrals reviewed and discussed by the Committee is below, updated for the discussion at both the City Council retreat on January 30, 2021 as well as at the Finance Committee. Referral Assigned Department Status CY2019 Fiscal Sustainability Workplan: Improvement of code enforcement, 311 system, and customer relationship management activities. Referred April 2019. Planning & Development Services/ City Manager’s Office/ Information Technology Department In Progress This item has been delayed due to vacancies and resource availability. In addition, code enforcement reductions were approved as part of the FY 2021 Adopted Budget, freezing two of three code enforcement staff. Evaluation of Printing & Mailing Services levels and service delivery. Referred May 2019. Administrative Services In Progress This item has been delayed due to vacancies and resource availability. Development of a request for proposal (RFP) is underway. Refer to the Finance Committee, a proposal to consider affordable housing funding. Referred February 2020, revised January 2021. Planning & Development Services Department/ Administrative Services Department In Progress Staff expects to bring initial discussion on this item during the first half of 2021. Stanford University Medical Fund Referred January 30, 2021 In Progress At the City Council retreat, recognizing that the review of SUMC Funds has related policy and finance/budget aspects, the City Council switched the SUMC referral currently with the Policy and Services Committee be to the Finance Committee. Staff anticipated review of these funds as part of the annual budget process. Review sworn versus non- sworn staffing for cost savings/enhanced services/increased revenues. Referred May 2016. Police Department/ Fire Department Recommend to Policy & Services Committee Staff continue to evaluate delivery of services through the annual budget process with a lens towards cost savings. However, considering the current race and equity work, it is recommended that this work be reassigned to the Policy and Services Committee in alignment with the services reforms being explored City of Palo Alto Page 3 Referral Assigned Department Status through race and equity workplan. Fire staffing models have been discussed below in the summary of the current status of Fire medical services delivery. Resume work on a potential business tax or local tax ballot measure. Referred March 2020 Administrative Services On Hold March 2020, this work was placed on hold in March 2020 as part of CMR #11161 due to the COVID-19 public health emergency. As discussed at the January 30, 2021 City Council retreat, it is expected that this work will resume in calendar year 2021. FY2021 Budget: A report or item on the JMZ six months after it opens and what it would look like to eliminate the General Fund Subsidy through a fully cost recoverable program. Referred June 2020 Community Services Department On Hold The Junior Museum and Zoo (JMZ) construction project is 98% complete. In May 2020, staff presented the preliminary operating plan to Council (CMR 11222) along with adjustments to the municipal fee schedule (memo). Due to COVID-19, re-opening of the new facility was delayed. Staff anticipated a March 2021 opening; however, that has been further delayed due to the pandemic. Staff and the Friends of the JMZ are now considering a FY 2021 opening as discussed in the FY 2021 Mid-Year Budget Review. Staff will return with an analysis and modeling of a fully cost-recoverable program once JMZ is completely operational. Police Services Utilization and Resources Study: evaluating the possibility of using the CA commission for Police Officer Standards and Training to conduct the police service evaluation or issue an RFP. Referred 2013. Police Department Closed This study was not commissioned however, given the age of this referral is recommended closed. Work is actively under review as part of the City’s Race and Equity projects which ensure the intention of this is addressed however, updated for current priorities. Consideration of stronger encroachment fees for construction that impact portions or all of a city street or sidewalk. Referred May 2015. Public Works Department Closed As part of the application process for any development or construction project work, street and sidewalk closures are reviewed and appropriate fees assessed. As part of the annual review of the municipal fee schedule, staff works to maintain full cost recovery on these fees. Discussion of changes to the Public Art Ordinance to Simplify the Calculation of the Public Art Fee Part of Public Art Master Plan. Referred May 2015. Community Services Department Closed The City Council considered ordinance changes for the City’s Public Art Program on October 5, 2020 (City Manager Report #11539 Percent for Public Art Ordinances). No changes to the public art ordinance for public or private development projects were made. Capture costs associated Office of Closed City of Palo Alto Page 4 Referral Assigned Department Status with parking and traffic initiatives attaining cost recovery between revenues and expense. Referred May 2016. Transportation This item is no longer applicable. Through the establishment of the Office of Transportation including additional resources for parking management activities, programs are brought forward by this team. For example, plans brought forward for the opening of the new California Avenue parking garage. Report to City Council on the plan and implications of power redundancy. Referred May 2017. Utilities Department Closed Staff is providing an update via an information item as part of the February 8, 2021 City Council agenda Update on Progress Toward a Second Transmission Line Corridor Connecting the City of Palo Alto Electric Distribution System to the Pacific Gas & Electric Transmission Grid. Colleagues' Memo on Fiscal Transparency in Labor Negotiations: Workplan and Suggested Terms Requires Informed Conversations w/ Labor Groups. Referred September 2018 Human Resources Department Closed This item was considered by the Finance Committee on September 4, 2018 (CMR #9549). Work was directed to the Human Resources Department to review this with the City’s bargaining units and incorporate this in the City’s next round of labor negotiations. As a result of the financial implications of the COVID-19 public health emergency, in June 2020, contracts were extended through a one-year roll-over provision with the agreement of zero wage increases. Therefore, the majority of the City’s contracts remain closed and staff have not begun the next round of labor negotiations. Contracts are expected to re-open over the coming 12 -18 months if not sooner for some; this work will be included as part of those discussions. CY2019 Fiscal Sustainability Workplan: Proposals to address/ recruitment & retention challenges. Referred April 2019. Human Resources Department Closed This item is no longer applicable. Staff remain focused on restructuring the workforce to adapt to the current changing workforce environment, making adjustments based on financial constraints, and preparing for the new normal. CY2019 Fiscal Sustainability Workplan: Parking Management Referred April 2019. Office of Transportation Closed This item is no longer applicable. Through the establishment of the Office of Transportation including additional resources for parking management activities, programs are brought forward by this team. For example, plans brought forward for the opening of the new California Avenue parking garage. Direct the Finance Committee to come up with proposed thresholds for Council to consider related Administrative Services Department Closed This item was agendized separately on this same February 2, 2021 agenda for Finance Committee Review and consideration and to the City Council as City of Palo Alto Page 5 Referral Assigned Department Status to Section 2.4.L, Consent Calendar Categories, which determines the eligibility for items to be placed on the Consent Calendar. Referred February 2020. well. This item was previously agendized on December 15, 2021, however during the Finance Committee meeting was deferred until calendar year 2021. FY2021 Budget: Explore changing delivery of services from a dominant fire-oriented model to a dominant medical-oriented model. Referred June 2020 Fire Department Closed Included in the staff report is a summary of the current status of Fire medical services delivery. Staff recommends that considering the current medically oriented agency status and complementary cross- staffing model, that no immediate action be taken. The Fire Department will continue to look for efficiencies and methods for modernization of its delivery of services. Stakeholder Engagement This is an informational report to follow up on Council referral items and has been coordinated internally among departmental parties. Resource Impact This is an information item to follow up on Council referral items and has no fiscal impact. Environmental Impact This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). . TO: HONORABLE MAYOR AND CITY COUNCIL FROM: RUMI PORTILLO, HUMAN RESOURCES DIRECTOR DATE: APRIL 12, 2021 SUBJECT: #8 – FY 2021 AND PRIOR FINANCE COMMITTEE REFERRALS STATUS UPDATE This memo provides clarification regarding the Finance Committee Referrals Status Update on the following item: The status of this item is “Closed” for the following reasons: 1) Staff have fully implemented the Finance Committee’s recommendation to adjust the method by which bargaining proposals are costed. As directed by the Finance Committee, the costing methodology now includes the Council-adopted discount rate for pension. 2) Staff have been directed to bargain directly with each union in the next successor agreement for each group on the topic of transparency in bargaining. This is a mandatory subject of the meet and confer process and falls under Council authority. As such, staff will bring forward the results from bargaining to Council for approval. _______________________ _________________________ Rumi Portillo Ed Shikada Chief People Officer / Human Resources Director City Manager DocuSign Envelope ID: 6067957D-67AF-4287-AEF8-64EF4D749FA0 4/12/20214/12/2021 City of Palo Alto (ID # 12165) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Second Reading: Retail Zoning Ordinance Title: SECOND READING: Adoption of an Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood, Co mmunity, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor Combining Districts. Environmental Review: Exempt Under California Environmental Quality Act (CEQA) G uidelines Section 15061(b)(3) (FIRST READING: March 8, 2021 PASSED: 5 -2 Cormack, Tanaka No). From: City Manager Lead Department: Planning and Development Services Recommendation: Staff recommends that the City Council adopt an Ordinance (Attachment A) o n second reading to amend Title 18 of the Palo Alto Municipal Code. Background: This ordinance was originally introduced on December 14, 2020 and presented for second reading on March 8, 2021 (staff report # 12054). On March 8, 2021, the City Council directed several amendments to the ordinance, and staff therefore recommends holding another second reading. The motion below passed on March 8, 2021, moved by Vice Mayor Burt and seconded by Mayor DuBois, with a 5-2 vote (Cormack and Tanaka voting no) to adopt the attached temporary ordinance with the following exceptions: A. Prohibit allowing nails salons, beauty shops, barber shops, etc. directly on California Avenue street facing; City of Palo Alto Page 2 B. On University Avenue, California Avenue, as well as Town and County, prohibit the expansion of the size of gyms greater than 1,800 square feet, and refer this to Planning and Transportation Commission for additional review; C. Prohibit expansion on the main streets of Downtown and California Avenue the expansion of tutoring and schools and related functions in those same areas; D. Allow the change to commercial recreation to go forward, but also direct the Planning and Transportation Commission to look at occupancy for personal services that are commercial recreation; E. Refer to the Planning and Transportation Commission the evaluation of the most appropriate way to define restrictions on dining establishments; F. Prohibit expansion of the permissible medical sizes on the main shopping streets of California Avenue, University Avenue and Midtown Shopping Center. Attachments: Attachment A: Ordinance Amending Title 18 (Zoning) (PDF) *NOT YET APPROVED* 1 0160034_20210330_ay16 Ordinance No. ___ Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor combining districts The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of Coronavirus Disease 2019 (“COVID-19”). B. As a result of the COVID-19 pandemic and the public health response, restaurant, retail, tourism, and hospitality business has significantly declined and the nation is experiencing a recession. C. The City Council desires to relax certain zoning regulations in the City’s commercial zoning districts to address some of the economic challenges created by the COVID-19 pandemic and to spur economic activity. D. The public health, safety, or welfare require that such changes to the City’s zoning regulations be enacted for a temporary period and as expediently as possible, without review by the Planning and Transportation Commission pursuant to Palo Alto Municipal Code section 18.80.090. SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: 18.04.030 Definitions (a) Throughout this title the following words and phrases shall have the meanings ascribed in this section. [. . .] (45) “Drive-in/drive-through service” means a feature or characteristic of a use involving sales of products or provision of services to occupants in vehicles, including drive-in or drive-up windows and drive- through services such as mechanical automobile washing, pharmacy windows, coffee stands, automatic teller machines, etc. [. . .] *NOT YET APPROVED* 2 0160034_20210330_ay16 (47) “Eating and drinking service” means a use providing preparation and retail sale of food and beverages with a full menu and providing indoor seating area. Eating and drinking service include presence of a full commercial kitchen and commercial dishwasher. including restaurants, fountains, cafes, coffee shops, sandwich shops, ice cream parlors, taverns, cocktail lounges and similar uses. For establishments with incidental sale alcoholic beverages, a minimum of 50% of revenues from an ‘eating and drinking service’ must be derived from the sale of food. Related definitions are provided in subsections (45) (Drive-in/drive-through service), (125)(B) (Intensive retail service) and (136) (Take-out service). [. . .] (95) “Medical office” means a use providing consultation, diagnosis, therapeutic, preventive, or corrective personal treatment services by doctors, dentists, medical and dental laboratories, and similar practitioners of medical and healing arts for humans, licensed for such practice by the state of California. Incidental medical and/or dental research within the office is considered part of the office use, where it supports the on-site patient services. Medical office use does not include the storage or use of hazardous materials in excess of the permit quantities as defined in Title 15 of the Municipal Code. Medical gas storage or use shall be allowed up to 1,008 cubic feet per gas type and flammable liquids storage and use shall be allowed up to 20 gallons total (including waste). (95.1) (A) “Medical research” means a use related to medical and/or dental research, testing and analysis, including but not limited to trial and clinical research. Biomedical and pharmaceutical research and development facilities are not included in this definition. Medical Research does not include the storage or use of quantities of hazardous materials above the exempt quantities listed in Title 15 of the Municipal Code nor any toxic gas regulated by Title 15. Additionally, Medical Research may include storage and use of etiological (biological) agents up to and including Risk Group 2 or Bio Safety Level 2 (Center for Disease Control). (95.2) (B) “Medical support retail” means a retail use providing sales, rental, service, or repair of medical products and services to consumers or businesses, and whose location near hospitals or medical offices facilitates the provision of medical care or medical research. Examples of medical retail uses typically include, but are not limited to, pharmacies, sale of prosthetics, and sale of eyeglasses or other eye care products. (95.3) (C) “Medical support service” means a use providing administrative support functions for healthcare providers or facilities, intended to support the operations of hospitals or of medical and dental office uses, and whose location near those medical facilities enhances the interaction between medical providers and/or facilitates the provision of medical care or medical research. Examples of medical support service uses typically include, but are not limited to, administration and billing services, public relations, training, and fundraising. Hospitals and ambulance services are not included in this definition. [. . .] *NOT YET APPROVED* 3 0160034_20210330_ay16 (114) “Personal service” means a use providing services of a personal convenience nature, and cleaning, repair or sales incidental thereto, including: (A) Beauty shops, nail salons, day spas, and barbershops; (B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations where all cleaning or servicing for the particular station is done elsewhere; and laundry and cleaning stations where the cleaning or servicing for the particular station is done on site, utilizing equipment meeting any applicable Bay Area Air Quality Management District requirements, so long as no cleaning for any other station is done on the same site, provided that the amount of hazardous materials stored does not at any time exceed the threshold which would require a permit under Title 17 (Hazardous Materials Storage) of this code; (C) Repair and fitting of clothes, shoes, and personal accessories; (D) Quick printing and copying services where printing or copying for the particular service is done on site, so long as no quick printing or copying for any off-site printing or copying service is done on the same site; (E) Internet and other consumer electronics services; (F) Film, data and video processing shops, including shops where processing for the particular shop is done on site, so long as no processing for any other shop is done on the same site; (G) Art, dance or music studios intended for an individual or small group of persons in a class (see “commercial recreation” for other activities); and (H) Fitness and exercise studios, or similar uses, in a space having of 1,800 5,000 square feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square feet other activities). (I) Learning centers intended for individual or small group settings, including tutoring, standardized test preparation, language classes, after-school programs, cooking classes, and similar uses. [. . .] (125) “Retail service” means a use open to the public during typical business hours and predominantly engaged in providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use. (A) “Extensive retail service,” as used with respect to parking requirements, means a retail sales use having more than seventy-five percent of the gross floor area used for display, sales, and related storage of bulky commodities, including household furniture and appliances, lumber and building materials, carpeting and floor covering, air conditioning and heating equipment, and similar goods, which uses have demonstrably low parking demand generation per square foot of gross floor area. *NOT YET APPROVED* 4 0160034_20210330_ay16 (B)  “Intensive retail service” as used with respect to parking requirements, means any retail service use not defined as extensive retail service and including limited food service (i.e. ‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food and/or beverages are ready to consume at the time of sale and any seating area is limited; examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items). [. . .] (136) “Take-out service” means a characteristic of an eating or drinking service which encourages, on a regular basis, consumption of food or beverages, such as prepared or prepackaged items, outside of a building, in outdoor seating areas where regular table service is not provided, in vehicles parked on the premises, or off-site. Take-out service does not include intensive retail service uses, as defined in subsection (125)(B). [. . .] SECTION 3. Section 18.16.040 (Land Uses) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: The uses of land allowed by this chapter in each commercial zoning district are identified in the following tables. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. (a) Commercial Zones and Land Uses Permitted and conditionally permitted land uses for each commercial zone are shown in Table 1: TABLE 1 PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required LAND USE CN(4) CC, CC(2) CS (4) Subject to Regulations In: ACCESSORY AND SUPPORT USES Accessory facilities and activities customarily associated with or essential to permitted uses, and operated incidental to the principal use. P P P 18.42 Drive-in services or take-out services associated with permitted uses(3) CUP CUP CUP 18.42 *NOT YET APPROVED* 5 0160034_20210330_ay16 Tire, battery, and automotive service facilities, when operated incidental to a permitted retail service or shopping center having a gross floor area of more than 30,000 square feet. CUP 18.42, 18.40.160 Safe Parking 18.42.160 EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools P P Churches and Religious Institutions P P P Private Educational Facilities CUP P P Private Clubs, Lodges, or Fraternal Organizations CUP P P MANUFACTURING AND PROCESSING USES Recycling Centers CUP CUP CUP Warehousing and Distribution CUP OFFICE USES Administrative Office Services P 18.16.050 Medical Offices CUP (5) CUP (5) CUP (5) 18.16.050 Professional and General Business Offices P P P 18.16.050 PUBLIC/QUASI-PUBLIC USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards. CUP CUP CUP RECREATION USES Commercial Recreation CUP (5) CUP (5) CUP (5) 18.40.160 Outdoor Recreation Services CUP CUP CUP *NOT YET APPROVED* 6 0160034_20210330_ay16 RESIDENTIAL USES Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c) Home Occupations P P P Residential Care Homes P P P RETAIL USES Eating and Drinking Services, excluding drive-in and take-out services P P P 18.40.160 Retail Services, excluding liquor stores P P P 18.40.160 Liquor stores CUP P P 18.40.160 Shopping Centers P 18.16.060(e), 18.40.160 SERVICE USES Ambulance Services CUP CUP CUP Animal Care, excluding boarding and kennels P P P Boarding and Kennels CUP Automobile Service Stations CUP CUP CUP 18.30(G) Automotive Services CUP Convalescent Facilities CUP P P Day Care Centers P P P 18.40.160 Small Family Day Care Homes P P P Large Family Day Care Homes P P P Small Adult Day Care Homes P P P Large Adult Day Care Homes CUP P P Banks and Financial Services V CUP P(2) P(2) General Business Services CUP P Hotels P P 18.16.060(d), 18.40.160 *NOT YET APPROVED* 7 0160034_20210330_ay16 Mortuaries CUP P P Neighborhood Business Services P 18.16.060(f) Personal Services P P (6) P 18.16.060(f), 18.40.160 Reverse Vending Machines P P P TEMPORARY USES Farmer's Markets CUP CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years. CUP CUP CUP TRANSPORTATION USES Parking as a principal use CUP CUP Transportation Terminals CUP CUP P = Permitted Use CUP = Conditional Use Permit Required (1) Residential is only permitted: (i) as part of a mixed use development, pursuant to the provisions of Section 18.16.060(b), or (ii) on sites designated as housing inventory sites in the Housing Element of the Comprehensive Plan, (iii) on CN or CS sites on El Camino Real, or (iv) on CC(2) sites, all pursuant to the provisions of Section 18.16.060(b) and (c). (2) Except drive-in services. (3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not be less than 150 feet from one another. (4) For properties in the CN and CS zone districts, businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit. (5) A conditional use permit is not required for medical office or commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on California Avenue and in the Midtown Shopping District; (B) commercial recreation uses fronting on California Avenue and in the Town and Country Village Shopping Center. (6) A conditional use permit is required for the following uses when fronting on California Avenue: (A) Fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area; and (B) Learning centers intended for individual or small group settings. A conditional use permit is required for *NOT YET APPROVED* 8 0160034_20210330_ay16 fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area in Town and Country Village Shopping Center. [. . .] SECTION 4. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: 18.16.060 Development Standards [. . .] (f) Size of Establishments in the CN District In the CN district, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 5.  Such uses may be allowed to exceed the maximum establishment size, subject to issuance of a conditional use permit in accord with Section 18.76.010.  The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use. TABLE 5 MAXIMUM SIZE OF ESTABLISHMENT Type of Establishment Maximum Size (sq ft) Personal Services 2,500 3,000 Retail services, except grocery stores 15,000 Grocery stores 20,000 Eating and drinking services 5,000 Neighborhood business services 2,500 3,000 [. . .] (h) Outdoor Sales and Storage (2) In the CC district and in the CC (2) district, the following regulations shall apply to outdoor sales and storage: (A) Except in shopping centers, all permitted office and commercial activities shall be conducted within a building, except for: (i) Incidental sales and display of plant materials and garden supplies occupying no more than 2,000 square feet of exterior sales and display area, (ii) Outdoor eating areas operated incidental to permitted eating and drinking services or intensive retail uses, (iii) Farmers’ markets that have obtained a conditional use permit, and *NOT YET APPROVED* 9 0160034_20210330_ay16 (iv) Recycling centers that have obtained a conditional use permit. (B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a conditional use permit. SECTION 5. Sections 18.18.050 (Land Uses) of Chapter 18.18 (Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: 18.18.050 Land Uses The uses of land allowed by this chapter in each commercial zoning district are identified in the following table. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. Permitted and conditionally permitted land uses for the CD district are shown in Table 1: Table 1 CD Permitted and Conditionally Permitted Uses P Permitted Use • CUP Conditional Use Permit Required CD-C CD-S CD-N Subject to regulations in Chapter: ACCESSORY USES Accessory facilities and activities associated with or essential to permitted uses, and operated incidental to the principal use P P P Drive-in or Take-out Services associated with permitted uses (2) CUP CUP CUP Tire, battery, and automotive service facilities, when operated incidental to a permitted retail service or shopping center having a gross floor area of more than 30,000 square feet CUP 18.40.160 Safe Parking 18.42.160 EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools P P Churches and Religious Institutions P P P *NOT YET APPROVED* 10 0160034_20210330_ay16 Private Educational Facilities P P CUP Private Clubs, Lodges, or Fraternal Organizations P P CUP MANUFACTURING AND PROCESSING USES Recycling Centers CUP CUP CUP Warehousing and Distribution CUP OFFICE USES Administrative Office Services P 18.18.060(f) Medical, Professional, and General Business Offices P P P 18.18.060(f) PUBLIC/QUASI-PUBLIC FACILITY USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards CUP CUP RECREATION USES Commercial Recreation CUP (3) CUP (3) CUP (3) Outdoor Recreation Services CUP CUP CUP RESIDENTIAL USES Multiple-Family P (1) P (1) P (1) 18.18.060(b) Home Occupations P P P Residential Care Homes P P P RETAIL USES Eating and Drinking Services, except drive-in or take- out services P P P 18.18.060(g) , 1 8.40.160 Retail Services, excluding liquor stores P P P 18.18.060(g) , 1 8.40.160 *NOT YET APPROVED* 11 0160034_20210330_ay16 Shopping Centers P 18.18.060(g) , 1 8.40.160 Liquor Stores P P CUP 18.40.160 SERVICE USES Animal Care, excluding boarding and kennels P P P Ambulance Services CUP CUP CUP 18.30(G) Automobile Service Stations CUP CUP CUP Automobile Services CUP Convalescent Facilities P P CUP Day Care Centers P P P 18.40.160 Small Family Day Care Homes P P P Large Family Day Care Homes P P P Small Adult Day Care Homes P P P Large Adult Day Care Homes Financial Services, except drive-up services P P CUP General Business Services CUP P P Hotels P P P 18.18.060(d) , 1 8.40.160 Mortuaries P P CUP Personal Services P (4) P (4) P (4) 18.18.060(g) , 1 8.40.160 Reverse Vending Machines P P P TRANSPORTATION USES Parking as a principal use CUP CUP Passenger Transportation Terminals CUP *NOT YET APPROVED* 12 0160034_20210330_ay16 TEMPORARY USES Indoor Farmers’ Markets CUP CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years CUP CUP CUP P Permitted Use CUP Conditional Use Permit Required (1) Residential is only permitted as part of a mixed use development, pursuant to the provisions of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c). (2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet and each use shall not be less than 150 ft from one another. (3) A conditional use permit is not required for commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on University Avenue; (B) commercial recreation uses fronting on University Avenue. (4) A conditional use permit is required for the following uses when fronting on University Avenue: (A) Fitness or exercise studios, and similar uses; and (B) Learning centers intended for individual or small group settings. SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18 (Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: [. . .] (g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 4. Such uses may be allowed to exceed the maximum establishment size, subject to the issuance of a conditional use permit in accordance with Chapter 18.76. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use. // *NOT YET APPROVED* 13 0160034_20210330_ay16 TABLE 4 MAXIMUM SIZE OF ESTABLISHMENT Type of Establishment Maximum Size (ft 2 ) Personal Services 2,500 3,000 Retail services, except grocery stores 15,000 Grocery stores 20,000 Eating and drinking services 5,000 (h) Outdoor Sales and Storage. The following regulations shall apply to outdoor sales and storage in the CD district: (1) CD-C Subdistrict In the CD-C subdistrict, the following regulations apply: (A) Except in shopping centers, all permitted office and commercial activities shall be conducted within a building, except for: (i) Incidental sales and display of plant materials and garden supplies occupying no more than 2,000 square feet of exterior sales and display area, (ii) Outdoor eating areas operated incidental to permitted eating and drinking services or intensive retail uses, (iii) Farmers' markets which have obtained a conditional use permit, and (iv) Recycling centers that have obtained a conditional use permit. (B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a conditional use permit. (C) Exterior storage shall be prohibited, except recycling centers which have obtained a conditional use permit. (2) CD-S Subdistrict In the CD-S subdistrict, outdoor sales and display of merchandise, and outdoor eating areas operated incidental to permitted eating and drinking services and intensive retail uses shall be permitted subject to the following regulations: (A) Outdoor sales and display shall not occupy a total site area exceeding the gross building floor area on the site, except as authorized by a conditional use permit. *NOT YET APPROVED* 14 0160034_20210330_ay16 (B) Areas used for outdoor sales and display of motor vehicles, boats, campers, camp trailers, trailers, trailer coaches, house cars, or similar conveyances shall meet the minimum design standards applicable to off-street parking facilities with respect to paving, grading, drainage, access to public streets and alleys, safety and protective features, lighting, landscaping, and screening. (C) Exterior storage shall be prohibited, unless screened by a solid wall or fence of between 5 and 8 feet in height. (3) CD-N Subdistrict In the CD-N subdistrict, all permitted office and commercial activities shall be conducted within a building, except for: (A) Incidental sales and display of plant materials and garden supplies occupying not more than 500 square feet of exterior sales and display area, and (B) Farmers' markets that have obtained conditional use permits. [. . .] SECTION 7. Section 18.30(A).040 (Permitted Uses) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the following uses shall be permitted in an R district: (a) Eating and drinking services, except drive-in and take-out services. (b) Personal services, except the following on California Avenue: beauty shops; nail salons; barbershops; and laundry and cleaning services as defined in Section 18.04.030(114)(B); fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers intended for individual or small group settings. (c) Retail services. (d) All other uses permitted in the underlying commercial district, provided they are not located on a ground floor. SECTION 8. Section 18.30(A).050 (Conditional Uses) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: The following uses may be conditionally permitted in an R district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval): (a) Financial services, except drive-in services, on a ground floor. (b) All other conditional uses allowed in the underlying commercial district provided they are not located on a ground floor. (c) Formula retail businesses on California Avenue. *NOT YET APPROVED* 15 0160034_20210330_ay16 (d) Beauty shops, nail salons, and barbershops, fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers intended for individual or small group settings. SECTION 9. Section 18.30(C).020 (Permitted Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: (a) The following uses shall be permitted in the GF combining district, subject to restrictions in Section 18.40.160180: (1) Eating and drinking; (2) Hotels; (3) Personal services, except for parcels with frontage on University Avenue, where uses defined in Section 18.04.030(114)(B), (G), and (H), and (I) are not permitted; (4) Retail services; (5) Theaters; (6) Travel agencies; (7) Commercial Recreation up to 5,000 square feet in gross floor area, except for parcels with frontage on University Avenue; (78) All other uses permitted in the underlying district, provided such uses are not on the ground floor. (b) Elimination or conversion of basement space currently in retail or retail-like use or related support purposes is prohibited. (c) Entrance, lobby, or reception areas serving non-ground floor uses may be located on the ground floor to the extent reasonably necessary, provided they do not interfere with the gound ground floor use(s), and subject to the approval of the Director. SECTION 10. Section 18.30(C).030 (Conditional Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: (a) The following uses may be conditionally allowed on the ground floor in the GF ground floor combining district, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection (b), subject to restrictions in Section 18.40.160: (1) Business or trade school; (2) Commercial recreation over 5,000 square feet in gross floor area or with frontage on University Avenue; (3) Day care; (4) Financial services, except drive in services; (5) General business service; (6) Learning centers intended for individual or small group settings; *NOT YET APPROVED* 16 0160034_20210330_ay16 (7) All other uses conditionally permitted in the applicable underlying district, provided such uses are not on the ground floor. (b) The director may grant a conditional use permit under this section only if he or she makes the following findings in addition to the findings required by Chapter 18.76 (Permits and Approvals): (1) The location, access or design of the ground floor space of the existing building housing the proposed use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district. (2) The proposed use will not be determined to the retail environment or the pedestrian-oriented design objectives of the GF combining district. (c) Any use conditionally permitted pursuant to this section shall be effective only during the existence of the building that created the exceptional circumstance upon which the finding set forth in subsection (b) was made. SECTION 11. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 12. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 13. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be seen. // // // // // // *NOT YET APPROVED* 17 0160034_20210330_ay16 SECTION 14. This ordinance shall be effective on the thirty-first date after the date of its adoption and shall expire upon the earlier of June 30, 2022 or adoption of replacement legislation by the City Council. Upon expiration of this ordinance, the City Clerk shall direct the City’s codifier to update the Palo Alto Municipal Code as appropriate. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Development Services City of Palo Alto (ID # 12163) City Council Staff Report Report Type: Action Items Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Public Hearing: Park, Community Center, Library Impact Fee Study Title: PUBLIC HEARING: Finance Committee Recommends City Council Approve Park, Community Center, and Library Development Impact Fee Justification Study; Adjustments to Park, C ommunity Center, and Library Development Impact Fees; Adopt the Ordinance Updating Park Land In Lieu fee; and Direct Staff to Implement the Impact Fee Updates With the Fiscal Year 2022 Budget (Continued From March 8, 2021) From: City Manager Lead Departmen t: Community Services Recommendation The Finance Committee and Staff recommend that the City Council hold a Public Hearing and: 1. Review and Accept the Park, Community Center, and Library Development Impact Fee Justification Study and select and approve upd ated fee levels based on study recommendations to update the City’s Park, Community Center, and Library Impact Fee Program, 2. Direct staff to implement the approved fee levels as part of the Fiscal Year 2022 budget process, and 3. Adopt an ordinance to update the fair market value per acre of land for the Park Land in Lieu Fee in PAMC section 21.50.070. This is a duplicate of the report posted on the March 8, 2020 agenda. No changes have been made from CMR #12027. Executive Summary Under California law (AB 1600), cities have the ability to charge new development for its relative share of the cost to fund the acquisition of land and improvements to public facilities and services. 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. Although fees are updated annually to reflect i ncreases in the Bay Area Consumer Price Index or Engineering News Record Construction Cost Index, baseline City of Palo Alto Page 2 fee levels for some of the City’s impact fees have not been reviewed or updated in nearly 20 years, nor has the actual cost inflation of land valuation in the City. On November 8, 2019, staff released an RFP for a Parks, Library, and Community Center Development Impact Fee Nexus Study. The local firm of DTA was determined to be the most qualified consultant. DTA prepared the attached Park, Community C enter, and Library Development Impact Fee Justification Study (the “Study”), found in Attachment A, which provides a detailed legal framework for the imposition of impact fees, defines the City facilities addressed in the study, illustrates the calculation methodology used, and specifies the maximum fee levels which the City could charge to new development. On December 15, 2020, staff and DTA presented the draft study to Finance Committee to receive feedback prior to presenting to Council (Minutes). 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 up dates, as well as 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. 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 the square footage per employee used as demographics information seemed too high. Additionally, there was a request to see commercial fees differentiated between retail and office space. The City Council has broad discretion in determining fee schedules, as long as set at or below the maximum amounts. Council may wish to consider the funding needed to implement improvements, the effect of fees on the financial feasibility of development, and comparability with other communities, among other factors. Discussion The City’s Park, Community Center, and Library Development Impact Fees were initially developed in 2001. Table 1 below shows the FY 2020 impact fees for new development based on land use type. Table 1. FY 2020 Park, Community Center, and Library Development Impact Fees City of Palo Alto Page 3 State law requires agencies to identify a reasonable relationship, or nexus, between an impact fee and new development, and to make findings regarding: (a) the purpose of the fee; (b) what mitigation projects the fee will be used to fund; (c) the nexus b etween the fee’s use and the type of development on which the fee will be imposed; (d) the nexus between the need for the public facility and the type of development on which the fee will be imposed; and (e) the nexus between the amount of the fee and the cost of the public facility attributable to the development upon which the fee is imposed. The Study is designed to support these findings and is structured as shown in Table 2 below. Table 2. Summary of Nexus Study Methodology Step 1 Demographic Assumptions: Identify future growth that represents the increased demand for facilities Step 2 Facility Needs and Costs: Identify the amount of public facilities required to support the new development and the costs of such facilities Step 3 Cost Allocation: Allocate costs per equivalent dwelling unit Step 4 Fee Schedule: Calculate the fee per residential unit or non -residential square foot To develop new impact fee levels, DTA utilized the Standards-Based Fee Methodology, or Level of Service (“LOS”), which establishes impact fees based on “standards,” where costs are based on the existing LOS provided to the community. The existing LOS is based on the square feet of space, integrated unit, or number of volumes (in the case of Library) per 1,000 Persons Served for each facility, which is an industry-standard method of quantifying LOS for facilities such as Parks, Community Centers, and Libraries. The Standards-Based Methodology also relies on the concept of Equivalent Dwelling Units, or EDUs, to allocate benefit among each of the land use categories. EDUs are a mechanism that equates varying land uses to residential dwelling unit standards in order to equitably calculate fees. The Standards -Based Methodology ensures that City facilities are appropriately developed and sized so that future residents and employees do not cause a reduction in LOS by unduly burdening the infrastructure system, thus leading to decay and deterioration. To project future development and facility needs, DTA used projections of future p opulation and development within the City outlined in the City’s 2017 Parks, Trails, Natural Open Space and Recreation Master Plan, as well as Scenario 3 of the 2017 Comprehensive Plan Update Draft Environmental Impact Report (“2017 EIR”). The attached report details the total fee amounts required to finance new residential and non - residential development’s share of the costs of new facilities as summarized in Table 3 below. The fees within this study reflect the maximum fee levels that may be legally imposed on new City of Palo Alto Page 4 residential and non-residential development; however, Council may decide to adopt fee levels below this maximum. Table 3. Proposed Maximum Fee Levels for Park, Community Center, and Library Development Impact Fees Park Community Center Library Total Fees Residential Single Family $57,420 $4,438 $2,645 $64,504 Multi-Family $42,468 $3,283 $1,956 $47,707 Non-Residential Commercial/Industrial (per 1,000 SF)$16,837 $1,301 $776 $18,914 Hotel/Motel (per 1,000 SF)$2,866 $222 $132 $3,220 City of Palo Alto Proposed Development Impact Fees (Maximum) New or increased development impact fees go into effect no sooner than 60 days after adoption (Government Code § 66017). Development impact fees must be paid based on the rate in effect at the time of payment. A developer may pay fees at any point after the planning entitlement has been issued and must pay all applicable fees prior to the issuance of a building permit, unless otherwise approved by Council. It is especially important that the City’s fees are calculated based on correct assumptions regarding the current market value of land. Using CoStar, a leading commercial real estate database, DTA has analyzed historical sales data of vacant land in the cities of Campbell, Santa Clara, Sunnyvale, Saratoga, Mountain View, San Jose, and Los Altos and recommends an updated FMV of $5.7 M. DTA has provided in Table 4 and Chart 1 below a comparison of the proposed land valuation to those used in neighboring cities and communities, as well as information approximating when these local agencies last updated their land valuations. City of Palo Alto Page 5 Table 4. Comparable Land Valuation per Acre Chart 1. Comparable Land Valuation per Acre City of Palo Alto Page 6 DTA also reviewed Community Center and Library Development Impact Fees in the cities of Morgan Hill, Brentwood, Paso Robles, Richmond, and Fremont. These cities were chosen for their comparable size and because they each have both Community Center and Library Development Impact Fees. DTA has provided in Table 5 and Chart 2 below a comparison of the proposed Community Center and Library fees to those used in other cities and communities. Table 5. Comparable Community Center and Library Development Impact Fees Jurisdiction Library Single Family Library Multi- Family Community Center Single Family Community Center Multi- Family Palo Alto (Existing)1 $1,676 $674 $4,827 $2,122 Palo Alto (Proposed)$2,645 $1,956 $4,438 $3,283 Morgan Hill $2,132 $2,054 $3,955 $3,470 Brentwood2 $1,595 $1,179 $1,595 $1,179 Paso Robles3 $942 $942 $2,920 $2,920 Richmond $1,744 $1,744 $1,543 $1,267 Fremont4 $2,569 $1,483 $2,569 $1,483 Notes: 1. Reflects fees for Single Family homes greater than 3,000 sq. ft. and Multi-Family homes greater than 900 sq. ft. 2. Community Facilities Fee may include Library and Community Centers. 3. General Government Fee may include Community Facilities. 4. General Capital Facilities Fee may include Library and Community Centers. Chart 2. Comparable Library and Community Center Development Impact Fees City of Palo Alto Page 7 The City Council has broad discretion in determining fee schedules, as long as set at or below the maximum amounts. Council may wish to consider the funding needed to implement improvements, the effect of fees on the financial feasibility of development, and comparability with other communities, among other factors. If Council were to decide to adopt a tiered approach to implementation, fee levels could be gradually increased over a four-year period as shown in Table 6. Table 6. Tiered Fee Approach Park Fee FY 2021-22 Community Center Fee FY 2021-22 Library Fee FY 2021-22 Total Fees FY 2021-22 Park Fee FY 2022-23 Community Center Fee FY 2022-23 Library Fee FY 2022-23 Total Fees FY 2022-23 Single Family $14,355 $1,110 $661 $16,126 $28,710 $2,219 $1,323 $32,252 Multi-Family $10,617 $821 $489 $11,927 $21,234 $1,641 $978 $23,853 Commercial/Industrial (per 1,000 SF)$4,209 $325 $194 $4,728 $8,418 $651 $388 $9,457 Hotel/Motel (per 1,000 SF)$717 $55 $33 $805 $1,433 $111 $66 $1,610 Park Fee FY 2023-24 Community Center Fee FY 2023-24 Library Fee FY 2023-24 Total Fees FY 2023-24 Park Fee FY 2024-25 Community Center Fee FY 2024-25 Library Fee FY 2024-25 Total Fees FY 2024-25 Single Family $43,065 $3,329 $1,984 $48,378 $57,420 $4,438 $2,645 $64,504 Multi-Family $31,851 $2,462 $1,467 $35,780 $42,468 $3,283 $1,956 $47,707 Commercial/Industrial (per 1,000 SF)$12,628 $976 $582 $14,185 $16,837 $1,301 $776 $18,914 Hotel/Motel (per 1,000 SF)$2,150 $166 $99 $2,415 $2,866 $222 $132 $3,220 Land Use 75% of Proposed Maximum Fee 100% of Proposed Maximum Fee Land Use 25% of Proposed Maximum Fee 50% of Proposed Maximum Fee Apart from the three impact fees, the City has a Park land dedication or in lieu fee. In general, when residential subdivisions are created, this provision requires the developer to dedicate City of Palo Alto Page 8 land for parks or alternatively pay a fee. The fee is calculated based on the formula outlined in section 21.50.080 of the municipal code, which itself is based on the fair market value of land. The fair market value (FMV) was last set in 2006 at $3.9 M per acre. The FMV has been adjusted each year by the Construction Cost Index (CCI) for calculating annual fee updates. To harmonize the FMV of land of this fee with the impact fees, the ordinance attached will update the FMV to $5.7 million per acre. This ordinance will take effect upon approval of the impact fees which are anticipated to be approved as part of the FY 2022 budget process. Timeline Based on Council recommendation and approval, new fee levels will be adopted as part of the FY 2022 annual budget process. Impact fee ordinances require formal public notice a nd do not become effective until 60 days after adoption on a second reading. Resource Impact Development Impact Fees provide funding for capital improvements to mitigate the impacts of new development in the community. The revenues received each year vary based on the amount of residential and non-residential development occurring in Palo Alto during that timeframe. Revenue adjustments will be brought forward in the annual budget process as appropriate to recognize the impacts of any fee updated and adopted by the City Council. According to the FY 2019-20 Annual Status Report on the Development Impact Fees Schedule (CMR #11746), a total of approximately $583,573 was collected in Park, Community Center, and Library fees. DTA projects that the total fee revenues will increase by a minimum of two times should the maximum fee levels be approved and adopted as new fees. Please see Table 7 below for more detail. Table 7. Current and Projected Revenues Fee Category Total Revenues Collected FY 2019-20201 Total Projected Annual Revenues2 Park $402,902 $1,208,706 Community Center $134,638 $201,957 Library $46,033 $69,050 Total $583,573 $1,479,713 Notes: 1. Total revenues collected reflect last available report as of period ending June 30, 2020. 2. Figures are an approximation and subject to change. Stakeholder Engagement The Community Services and Library departments have presented this report to the Finance Committee on December 15, 2020 (Minutes) and the Parks and Recreation Commission (PRC) for review. City of Palo Alto Page 9 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. Council also has the authority, for policy reasons, to restructure fees based on articulated City policies. The information provided in this report allows Council to take the next step towards reevaluating and adjusting the City’s Development Impact Fees for Library and Community Services. 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 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: • Attachment A: Palo Alto Park, Community Center, and Library Development Impact Fee Justification Study • Attachment B: Ordinance Amending PAMC Section 21.50.070 to Update the Fair Market Value of Land for the Park Land Fees In Lieu of Dedication Fee 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 $5,700,000 26.11 $1,406,530 $84,392 $70,327 $189,590,784 $40,177.63 Natural Open Space Acres 604.38 $57,000 604.38 $40,000 $2,400 $2,000 $61,284,430 $12,987.25 Total $250,875,213 $53,164.88 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 $57,419.91 Notes: [1]Employee Adjustment Factor of 19.63% 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 Foothills Park Capital Improvements Foothills Park Capital Improvements 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 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 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 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 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 $9,350,609 $1,981.56 Building Master Plans Integrated Unit 0.75 $171,692 $128,744 $27.28 Total $25,206,154 $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 $9,350,609 $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 $20,944,256 $4,438.46 Community Center LOS Facilities Fee Total $4,438.46 Notes: [1]Employee Adjustment Factor of 19.63% 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-2 CITY OF PALO ALTO COMMUNITY CENTER DEVELOPMENT IMPACT FEE CALCULATION 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 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 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 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 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 $629 $569,997 $120.79 College Terrace Library (2300 Wellesley) Square Feet 358.73 $629 $225,622 $47.81 Downtown Library (270 Forest Ave.) Square Feet 1,356.64 $629 $853,250 $180.82 Mitchell Library (3700 Middlefield) Square Feet 6,148.81 $629 $3,867,262 $819.54 Rinconada Library (1213 Newell) Square Feet 4,440.34 $629 $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 $12,696,686 $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 $12,481,907 $2,645.14 Library Facilities Fee Total $2,645.14 Notes: [1]Employee Adjustment Factor of 19.63% 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 Library inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan. [5]Estimates based on cost assumptions for Library improvement costs provided by City of Palo Alto. APPENDIX A-3 CITY OF PALO ALTO LIBRARY DEVELOPMENT IMPACT FEE CALCULATION 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 Commercial/Industrial (per 1,000 SF)95,653 19.63%18,772 0.80 0.29 23,322,578 6,839 Hotel/Motel (per 1,000 SF)1,101 19.63%216 0.14 0.05 1,577,422 79 Total 164,138 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 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 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 Commercial/Industrial (per 1,000 SF)9,916 19.63% 1,946 0.80 0.29 2,417,876 709 Hotel/Motel (per 1,000 SF)114 19.63% 22 0.14 0.05 163,533 8 Total 21,015 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-4 CITY OF PALO ALTO EDU & EBU CALCULATION YEAR TO BUILD-OUT (2040) Total Hours of Potential Park, Community Center, and Library Usage per Week Existing EDU Calculation (FY 2020) Future EDU Calculation (FY 2040) Employment Adjustment Factor Employment Adjustment Factor *NOT YET APPROVED* 1 0223_20210223_ts24 Ordinance No. ___ Ordinance of the Council of the City of Palo Alto Amending Section 21.50.070 (Calculation of fair market value) of Chapter 21.50 (Park Land Dedication or Fees In Lieu Thereof) of Title 21 (Subdivisions and Other Divisions of Land) to Update the Fair Market Value of Land. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: 1. Pursuant to local law and the state Quimby Act (see Gov. Code section 66477 et seq.), the City requires park land dedication or fees in lieu thereof when creating a subdivision as detailed in Palo Alto Municipal Code chapter 21.50; 2. The City Council approved a Park, Community Center, and Library Development Impact Fee Justification Study on March 8, 2021 in which it was determined that the fair market value of land for acquisition for City parks is $5.7 million per acre in Palo Alto; and 3. The City Council now desires to update the fair market value per acre of land for the purposes of Chapter 21.50 to $5.7 million per acre. SECTION 2. Subsection (b) of Section 21.50.070 (Calculation of fair market value) of Chapter 21.50 (Park Land Dedication or Fees In Lieu Thereof) of Title 21 (Subdivisions and Other Divisions of Land) is hereby amended as follows (new text in underline, deleted text in strikethrough): 21.50.070 Calculation of fair market value. (a) At the time of submission a final subdivision map for approval, the city shall, in those cases where a fee in lieu of dedication is required either in whole or in part, determine the fair market value of the land in the proposed residential development, and this determination shall be used in calculating the fee to be paid. If the developer objects to the fair market value, the city, at developer's expense, shall obtain an appraisal of the property by a qualified independent real estate appraiser, agreed to by the city and the developer, and the value established by said appraiser using standard recognized appraisal techniques to establish fair market value will be accepted as the fair market value of the land in the proposed development. Alternatively, the city and the developer may agree as to the fair market value. (b) The fair market value per acre of land for the purposes of the calculation in § 21.50.080 is $3.9 $5.7 million per acre. (c) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without *NOT YET APPROVED* 2 0223_20210223_ts24 regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Council finds this ordinance to update this fee is not considered a Project as defined by the California Environmental Quality Act pursuant to CEQA regulation 15061(b)(3). The projects associated with this fee 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. SECTION 5. This Ordinance shall be effective upon the effective date of the revised Parks, Open Space, and Library impact fees anticipated to be approved with the City’s fiscal year 2022 budget, but in no case shall the ordinance be effective less than thirty-one days after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Community Services ____________________________ Director of Administrative Services City of Palo Alto (ID # 11876) City Council Staff Report Report Type: Action Items Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: PHZ Update Title: Update on the City's Planned Community (Planned Home Zoning - PHZ) Application Process and Possible Council Direction for Changes Related to its Implementation, Criteria and Applicability Citywide From: City Manager Lead D epartment: Planning and Development Services Recommendation: Staff recommends that Council discuss the Planned Home Zoning application process and provide direction to staff as appropriate. Background: On February 3, 2020, the City Council reauthorized the use of Planned Community zoning for housing projects, including mixed-use projects.1 Planned Community zoning is authorized in accordance with Palo Alto Municipal Code (PAMC) Title 18, Chapter 38 and intended to facilitate unified, comprehensively planned developments that provide a substantial public benefit and enhance the policies and programs of the City’s Comprehensive Plan. The City Council previously suspended use of the Planned Community zoning around 2014 out of concern that the public benefits the City was receiving were not aligned with the value conveyed to (mostly commercial) developers for changes in local zoning standards. Following adoption of the City’s Comprehensive Plan in 2017, a Housing Work Plan in 2018, changes to the municipal code and several colleagues’ memos – all prepared, in part, with the intent to spur more housing production – the City Council enabled Planned Community zoning for housing projects that met two public benefit criteria: 1) At least twenty percent of the housing units would be deed restricted for below market rate housing units, and 2) More housing units would be provided than needed to accommodate net new jobs created by the 1 Council Report, dated February 3, 2020 introducing PHZ concept: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=61922.54&BlobID=74930 City of Palo Alto Page 2 development. In exchange for meeting these criteria, a home builder could seek relie f from certain zoning standards, typically height, floor area, parking, lot coverage, and setbacks. The program was informally renamed Planned Home Zoning (PHZ) but follows the same procedural requirements of a Planned Community project. Over the past year, the City Council has reviewed PHZ prescreening requests for three properties: two on El Camino Real and one on Fabian Way.2 A prescreening is a necessary first step an applicant must take prior to filing a formal application. City staff does not have t he authority to refuse or decline to process any prescreening application. A noticed public hearing before the City Council is required when filed. The three PHZ prescreening applications considered to date included 593 net new housing units. Three additional prescreening applications are pending for another 125 units. Staff conversations with other potential applicants suggests interest in another ~350 housing units in Downtown, along El Camino Real, and other locations. The City’s Comprehensive Plan anticipates the City will add about 4,000 housing units from 2015-2030, or about 267 housing units per year.3 Since 2015, the City has averaged 122 net new housing units per year; accessory dwelling units make up twenty-three percent of those units. As part of the Housing Element update required by state law, it is anticipated the City will need to plan for more than 6,000 units over the next housing cycle. As previously reported and in accordance with state senate bill 35 (SB 35), the City (and other jurisdictions) are subject to state mandated application streamlining requirements when it fails to issue building permits for its regional housing needs allocation (RHNA) for either low income or market rate units. At present in Palo Alto, a housing project w ould be eligible for streamlined administrative review (no architectural review) if a housing project is at least two -thirds residential, restricts fifty percent of the units to low-income households, and meets other state requirements. The required on-site below market rate unit proportion falls to 10% if the City fails to meet its market rate housing production. The City has consistently met its market rate RHNA targets and is expected to do so again for the current housing cycle. However, for the upcoming RHNA cycle (2023-2031), without significant land use policy adjustments to local zoning, meeting the anticipated market rate housing targets will be challenging. Following the study session discussions on the three previously reviewed PHZ applications, one developer has declined to proceed with the housing component and filed an application to 2 3300 El Camino Real Prescreening Council Report, dated June 22, 2020: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=73113.28&BlobID=77258 2951 El Camino Real City Council Staff Report, dated January, 19, 2021: https://www.cityofpaloalto.org/civicax/filebank/documents/79814 3997 Fabian Way Prescreening Council Report, dated February 8, 2021 3 The housing range provided in the Comprehensive Plan is 3,545 – 4,420 units. City of Palo Alto Page 3 build an approximately 52,800 square foot office building. Another home builder is expected to file a formal PHZ application for PHZ. The third owner anticipates requesting another prescreening opportunity before the City Council. All pending prescreening applications have been stayed temporarily pending the Council’s discussion but are expected to resume shortly. The PHZ application process was intended to stimulate more home building and inform the City about land use regulations that may constrain housing production. There are many factors a property owner considers when redeveloping property including how long it has been under their ownership, the cost to acquire the land, existing and forecasted revenue projections, hard and soft construction costs, time, risk, experience, and a multitude of other variables. The City’s zoning regulations have not enabled the amount of housing the Comprehensive Plan envisions despite recent amendments to encourage home building. In conversations with potential developers, the City’s Housing Incentive Program (HIP), which eliminates density restrictions, removes lot coverage constraints, and increases a site’s floor area ratio, were viewed as a positive step, but it has not resulted in any meaningful housing production. One exception, however, is a recent 102-unit housing project approved by the City Council that included extending the HIP along San Antonio Road where it did not previously exist. The PHZ application is not and was never intended to be a long-term solution or alternative to fixed zoning standards. The application process is too long for many developers, carries a fair amount of risk, and lacks predictability. Many community members also object to the uncertainly it creates for them and concern that the property next door can be redeveloped with a building that is taller or more massive than otherwise allowed under existing zoning rules. PHZ applications do have value though in other respects. This application type has (along with previous development agreement applications) generated approximately 2,100 housing units over the past two decades. Recent PHZ applications also provide information about the type of devel opment standards that appear to constrain housing development. While more information is needed, clearly incremental increases to height and greater floor area are often cited as limitations. Financing is another factor. Many developers have expressed a ne ed to retain (rebuild) or add net new office floor area to help pay for the residential units. Some owners are unwilling to forgo office rents in favor of a housing project and will not file a PHZ application. Owners that are willing to consider a housing project instead of office are likely to ask for a greater deviation from the code to make up for the opportunity cost for not providing office. The first three prescreening applications illustrate this challenge and at least two other potential PHZ applica tions seek to add net new office or retain what is already existing. Based on this City’s experience after one year, evolving Council perspectives, and community feedback on some pending PHZ applications, the City Council requested staff schedule this PHZ update to consider whether additional parameters are needed to provide some certainty to residents and set clearer expectations to prospective applicants regarding the limits of the PHZ application process. City of Palo Alto Page 4 Discussion: The City Council has the authority to discontinue or modify the PHZ program at any time. Staff recommend the Council continue to accept applications to learn more about zoning constraints and to facilitate more housing production. While there may be different perspectives about the appropriateness of the PHZ applications presented thus far and some pending applications, there is the potential for other more modest applications depending on how the Council may want to modify the program. Some of the topics the City Council may want to provide additional guidance on are summarized below. When considering the topic areas below, it is important to remember that the City Council has very broad discretion to approve or deny any formal PHZ application. These applications include a legislative component and the City Council, as the City’s legislative body, has the exclusive decision-making authority (short of an initiative or referendum) to approve or deny any request. Location Criteria While not explicitly stated in the staff report or Council minutes on February 3, 2020, the expectation was that PHZ applications would be filed in commercial zones. References to the HIP, efforts to improve the jobs/housing balance, and statements that redevelopment would likely occur in commercial areas underscore that intent. However, there also was no explicit restriction advising owners that the City would not consider a PHZ on a low-density, residentially zoned parcel. A pending PHZ application for a property located in College Terrace and zoned R-1 has generated a significant amount of correspondence to the City Council mailbox. As noted earlier, staff is unable to reject or fail to process prescreening applications, but staff did advise the prospective applicant that the proposed PHZ application was not consistent with the intent of this program. The City Council in its discussion may want to clarify its interest in considering PHZ applications for R-1 and low-density zoning. The Council this year reviewed one PHZ application that was principally located on commercially zoned property but did include two adjacent R-1 zoned parcels in the North Ventura Coordinated Area Plan area. The bulk of the housing density, however, was located on the commercially zoned properties. Going forward, staff recommends PHZ applications be considered for all commercial, industrial zoning, and multifamily districts. Height Recent Council feedback suggests some willingness to exceed the 50-foot height by approximately 10% or, where adjacent buildings are taller, not exceed the height of those neighboring buildings. Many developers are interested in taller buildings up to 60 feet or more. While there is some appeal in establishing a defined number, staff recommend the Council City of Palo Alto Page 5 allow for some flexibility to respond to neighborhood context where additional height above 10% may not be impactful, such as some areas in Downtown or areas that are not in close proximity to sensitive land uses, such as the R-1 district or low-density zoning. Often the additional height not only increases the number of units that can be built it also increases the value of the project making it more financially feasible and thus more likely to be built. Floor Area Ratio Similar to height, a project’s floor area ratio requires consideration of the context in whic h a potential project is being proposed. The HIP allows for a 1.5 FAR along El Camino Real, but the City’s affordable housing and workforce housing overlay allow up to 2.4 FAR. Two recent PHZ projects on El Camino Real contemplated FARs of 1.79 and 2.55. Downtown the HIP allows up to a 3.0 FAR. With the PHZ, a prospective applicant may request a greater FAR, but staff and the City Council would be in a position to offer comments to reduce FAR if it is perceived too great. Given the number of variables and contextual unknowns, staff again recommend some measure of continued flexibility in order to encourage more housing production. Twenty Percent (20%) Inclusionary Housing Requirement This provision is one of the substantial public benefits PHZ applications provide in exchange for changes in local zoning regulations. This inclusionary standard is greater than the current 15% requirement in the code. It also has the potential to provide a greater diversity of deed restricted income units, including low and very low income and missing middle workforce housing. The City Council reviewed a market feasibility study4 in September that documented some of the challenges that arise when more deed restricted housing units are embedded in market rate development. Unless the underlying zoning standards permit greater development incentives to help offset the cost of the affordable units, it is unlikely there will be any significant new housing production with or without income restriction units. In June 2020, the City Council endorsed four options5 that a prospective PHZ applicant could use to satisfy the 20% inclusionary requirement. During its review of previous PHZ applications, some councilmembers have articulated the 20% inclusionary requirement was too low and di d not satisfy the desired income levels. Staff does not recommend increasing inclusionary requirements and there may be some argument to reduce the standard to 15% especially if the Council is concerned about the size of recent PHZ housing projects. If, however, there is an interest to increase the number beyond 20%, the City Council may want to consider this additional amount be dedicated toward deed -restricted workforce housing 4 Market Feasibility Study to Increase BMR units from 15% to 20% and Extend to Rental Housing, dated September 21, 2020: https://www.cityofpaloalto.org/civicax/filebank/documents/78377 5 PHZ Inclusionary Options and Jobs/Housing Report, dated June 23, 2020: https://www.cityofpaloalto.org/civicax/filebank/documents/77352 City of Palo Alto Page 6 units. These units serve households with incomes between 120% and 150% of th e County’s area median income level. Depending on the size of units (number of bedrooms), rents and allowable sales prices for these units can equal market rates, which allows a developer to cover the cost of the unit. By being income-restricted, the rental and sales prices for these units grow more slowly over time, preserving housing for moderate income families. These units can be particularly important for teachers, first responders, and others who earn competitive wages, but remain priced out of Palo Alto. Office Component Staff has had several conversations with prospective PHZ applicants and office space is often a component in conceptual site planning. Generally, sites with existing office will likely include a request to at least rebuild/replace existing area and add housing. Some property owners are interested in a net increase in office either because the underlying zoning permits office development or to help make the housing project more feasible. To encourage a property owner to build housing with inclusionary units where office is allowed by right, the City’s housing incentives must be significant enough to support that financial decision. For this reason, many PHZ applications on commercial property are likely to include an office component. In one prescreening application, the applicant proposed a code compliant office project with a 0.4 FAR and a PHZ request for a 1.39 FAR housing component with 190 housing units (38 affordable units). In this instance, the applicant was unwilling to foreg o projected office revenue for a one hundred percent housing project. The Council in 2020 was mixed in its non - binding comments and the applicant dropped the residential component. Today the City is processing an architectural review application for a new 52,800 square foot research park office building. The City has a number of policies that limit office development, including a 50,000 square foot annual office cap, a citywide cap on office and research/development through 2030, and a retail preservation ordinance that restricts the conversion of ground floor retail and retail-like uses to office. If the City Council desires to further reduce the office component of PHZ applications, it could consider a standard that requires 2/3rds of the gross floor area to be dedicated toward housing or make changes to the jobs/housing criteria. However, reducing or eliminating office from PHZ applications is expected to reduce the number of applications filed. Jobs Housing Balance The same night Council endorsed the four inclusionary options it also accepted the staff recommended approach for determining the number of housing units needed to offset net new job creation. The model uses estimates from the Valley Transportation Authority Transportation Management Program to determine the number of jobs generated per one thousand square feet based on generalized job classifications. City of Palo Alto Page 7 To determine the number of housings units required for each job produced, staff would divide the number of jobs created by the number of employed residents per household. Most recent data on the number of employed residents per households comes from the American Census Survey from 2018 and for Palo Alto is 32,287 employed residents and 26,212 households. Accordingly, Palo Alto has an employed residents per household ratio of 1.23. The following table was provided in the June 2020 staff report to illustrate for a hypothetical project how many net new housing units would be required to off -set net new commercial jobs created: At a recent PHZ prescreening study session, at least one Councilmember suggested it may be appropriate to reconsider the above approach. The above model does not take into consideration additional jobs generated to support the net new increase in commercial jobs. For example, a new employee may also patronize local restaurants, need services for their home, and generate demand for other local jobs. Staff recommend the City Council consider the above jobs/housing criteria, which is intended to serve as a second substantial p ublic benefit to approve a PHZ application and one that serves to improve the City’s jobs/housing balance. Policy Implications: The PHZ process is intended to spur housing production by providing incentives that encourage more home building and less office development to address the City’s housing needs and improve the City’s jobs/housing imbalance. Housing production is Palo Alto is not keeping up with local policies set forth in the Comprehensive Plan or state targets provided through the RHNA process. The PHZ has been available to property owners for about 14 months and has spurred significant interest and several prescreening applications. Many in the community have expressed concerns about the PHZ process and some Councilmembers noted an interest in making program refinements. To the extent more is required of home builders, such as more inclusionary units or less office space, this direction will impact the number of PHZ applications the City receives. While the City is expected to meet the market rate housing targets for the current housing cycle, it will be a challenge to meet these targets in the upcoming housing cycle without significant local land use City of Palo Alto Page 8 policy changes to spur more housing production. Increasingly the state legislature has sought to compel home building solutions on local jurisdictions in ways that may not align with community interests. The PHZ process is one way the City can exercise its local control over zoning and eventually establish clear, objective regulations that will enable the City to meet its housing needs. Resource Impact: There is no significant fiscal or budgetary impact associated with this recommendation. Timeline: Depending on the direciton received, some action taken by Council can be implemented immediately; any legislative changes directed by Council would likely require review before the Planning and Transportation Commission and require time to prepare and prioritized relative to other department efforts. Stakeholder Engagement: Notice of this disussion was provided on the meeting agenda and published online. Environmental Review: The recommendation does not qualfiy as a project in accordance with the California Environmental Quality Act. City of Palo Alto COLLEAGUES MEMO April 12, 2021 Page 1 of 2 (ID # 12105) DATE: April 12, 2021 TO : City Council Members FROM: Council Member Cormack, Council Member Tanaka SUBJECT: COLLEAGUES' MEMO REGARDING REFERRAL TO THE PARKS AND RECREATION COMMITTEE OF A NEW SKATE PARK (CONTINUED FROM MARCH 15, 2021) Goal Having an additional, updated and inclusive skatepark would be valuable to the community of Palo Alto, for both children and adults, by providing a local option for healthy and fun outdoor activities to the large community of action sport participants within Palo Alt o. Background and discussion The only skatepark in Palo Alto is a historical skate bowl at Greer park. While many years ago it was considered great, layers of graffiti have led to slippery surfaces, and the newly evolved forms of skateboarding, BMX biking, scootering, etc. have surpassed the conditions that the bowl at Greer park can adequately support. Almost 2,000 people have signed a petition asking for a new skate park with a good mix of street and transition features that would support skaters at all levels. Many other cities on the Peninsula, around the country, and elsewhere in the world, have already created new skateparks to p rovide safe and supportive environments for their community and we need to catch up. The lack of proper facilities for these activities leads to many people pursuing their activity in other cities, which requires non-environmentally friendly transportation. Alternatively, many people skate in the streets, sometimes trespassing onto private property, or in an unsafe environment that could harm the participant, property, or bystanders. With skateboarding an official Olympic sport starting this summer, interest and participation is likely to increase. The community is ready to work with the Parks and Recreation Commission to identify an appropriate location and design that would be substantially paid for with private funds. One estimate of the cost per square foot is $75, so the total construction expense will likely exceed $1 million. Specialized skatepark design and construction companies exist and will work with the available land and funding. Comparison of current situation with proposed Current Greer Skatepark (5,788 square feet): April 12, 2021 Page 2 of 2 (ID # 12105) - limited to more experienced skaters - only has bowls; no versatility; no ledges, rails, stair sets, flat bar, etc. - very slippery and uneven due to many years of graffiti - small size results in very crowded activity New proposed skatepark update (15,000 to 20,0000 square feet): - will have sets of stairs in varying heights - will have a new bowl with a metal lip around the edges to support modern bowl skating and lip tricks - will have a smaller bowl, quarter pipes, bank ramps, or mini half pipes to support beginners - will have ledges, metal flat rails, and metal handrails of varying height Recommendation Refer this proposal to the Parks and Recreation Commission to evaluate the need for a skatepark, identify a suitable location, and prioritize a skatepark facility within the Parks, Trails, Natural Open Space and Recreation Master Plan. Resource Impact Referral of this item to the Parks and Recreation Commission would initiate a several month effort involving the Commission and staff, with particular appreciation to the high level of community engagement that would be required. This includes receiving input from advocates of new facilities and/or replacement of the existing Greer Park facilities, as well as neighborhood and general community input regarding any proposed sites. Areas of Greer Park adjacent to the existing skatepark were previously designed as passive recreation areas by the community, so consultation with the park user community will be important. To the extent that other locations beyond Greer Park are considered, the staff effort required for community outreach could be considerably greater and would need to be prioritized among other parks planning efforts. As noted, the expectation that such a facility would be largely funded by private donors adds additional considerations that would best be outlined at the outset of a planning effort. Ideally there will be an organization that steps f orward as the point of contact for fundraising and outreach to prospective donors. The City has successfully worked with several groups on community-supported facilities, and establishing clear roles and expectations will be very important to such an effort. A project of this nature would ultimately be incorporated into a future year’s Capital Improvement Program (CIP), reflecting a timeframe for implementation that reflects relative priority for funding as well the review and approval steps required. When fundraising is complete, it will take considerable staff time to manage the CIP from planning through construction. City of Palo Alto (ID # 12178) City Council Staff Report Report Type: Informational Report Meeting Date: 4/12/2021 City of Palo Alto Page 1 Summary Title: Proclamation Honoring Public Safety Telecommunicator's Week Title: Proclamation Honoring National Public Safety Telecommunicator's Week - April 11 -17, 2021 From: City Manager Lead Department: Police Attachments: • Attachment A: National Public Safety Telecommunicator's Week ______________________________ Tom DuBois Mayor Proclamation NATIONAL PUBLIC SAFETY TELECOMMUNICATOR’S WEEK April 11-17, 2021 WHEREAS, emergencies can occur at any time requiring police, fire, or emergency medical services; and WHEREAS, when an emergency occurs the prompt response of law enforcement, firefighters and paramedics is critical to the protection of life and preservation of property; and WHEREAS, the safety of our police officers and firefighters is dependent upon the quality and accuracy of information obtained from citizens who telephone the City of Palo Alto Communications Center; and WHEREAS, public safety dispatchers are the first and most critical contact our citizens have with emergency services; and WHEREAS, public safety dispatchers are the single vital link for our law enforcement and fire personnel by monitoring their activities by radio, providing them information and ensuring their safety; and WHEREAS, public safety dispatchers of the City of Palo Alto Communications Center have contributed substantially to the apprehension of criminals, suppression of fires and treatment of patients; and WHEREAS, each dispatcher has exhibited compassion, understanding and professionalism during the performance of their job in the past year. NOW, THEREFORE, I, Tom Dubois, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby proclaim and call upon all citizens of Palo Alto to observe the week of April 11-17, 2021, as “National Public Safety Telecommunicator’s Week” and join in honoring the men and women whose diligence and professionalism keep our city and citizens safe. Presented: April 12, 2021